Six Page APA Paper Format With A Strong Thesis (Not Including The Title And Reference Pages). The Description Is Below:
5-2. Mental Models A mental model can be thought of as an internal picture that affects a leader's thoughts, actions, and relationships with others. Mental models are theories people hold about speci�ic systems in the world and their expected behavior. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#AWCLDG96LT7JBDYUC495) A system means any set of elements that interact to form a whole and produce a speci�ied outcome. To understand what is meant by a mental model, consider an electrical circuit as a system. Exhibit 5.1 shows the elements of an electrical circuit system. A mental model would give you a picture in your mind of how these four elements �it together to produce the outcome of light. Just as an electric circuit is a system, an organization is a system, as is a football team, a sorority pledge drive, or the registration system at a university. An accurate mental model helps a leader understand how to arrange the key elements in these systems to get the desired outcome.
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models
theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
W. B. Rouse and N. M. Morris, “On Looking Into the Black Box: Prospects and Limits in the Search for Mental Models,” Psychological Bulletin 100 (1986), pp. 349–363; Beng-Chong Lim and Katherine J. Klein, “Team Mental Models and Team Performance: A Field Study of the Effects of Team Mental Model Similarity and Accuracy,” Journal of Organizational Behavior 27 (2006), pp. 403–418; Vanessa Urch Druskat and Anthony T. Pescosolido, “The Content of Effective Teamwork Mental Models in Self-Managing Teams: Ownership, Learning, and Heedful Interrelating,” Human Relations 55, no. 3 (2002), pp. 283–314; and Peter M. Senge, The Fifth Discipline: The Art and Practice of the Learning Organization (New York: Doubleday, 1990).
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Mental models theories people hold about speci�ic systems in the world and their expected behavior
Exhibit 5.1. Elements of a System
New Leader Action Memo
As a leader, you can become aware of your mental models and how they affect your thinking and behavior. You can learn to regard your assumptions as temporary ideas and strive to expand your mindset.
Leaders have many mental models that tend to govern how they interpret experiences and how they act in response to people and situations. Consider the two different mental models in the following quote from Robert Townsend, former CEO of Avis Rent-a-Car. To have a successful organization, he advised leaders, “you'll have to give up being an administrator who loves to run others and become a manager who carries water for his people so they can get on with the job.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#VBBEB7B70BLXC28Q9295) The �irst part of the phrase re�lects a mental model that it is the leader's job to control people, whereas the second part re�lects a mental model that the leader is a servant who helps people do their best. Exhibit 5.2 shows the mental model that Google's top leaders use to keep the company on the cutting edge as its core business of search matures. At Google, leaders believe that risk-taking, a little craziness, and making mistakes are important for the sake of innovation. Too much structure and control is considered death to the company. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#ELGNM5MJJ0D38EYJA636)
From Robert Townsend, Up the Organization , quoted in “Everything You Wanted to Know about Leadership, from the Man Who Broke All the Rules,” The Conference Board Review (September–October 2007), pp. 37–41.
Adam Lashinsky, “Chaos by Design,” Fortune (October 2, 2006), pp. 86–98.
Exhibit 5.2. Google Leaders' Mental Model
Stay uncomfortable
Let failure coexist with triumph
Use a little less “management” than you need
Defy convention
Move fast and �igure things out as you go
Source: Based on Adam Lashinsky, “Chaos by Design,” Fortune (October 2, 2006), pp. 86–98.
Leaders at Google, as well as other organizations, strive to create mental models that are aligned with organizational needs, goals, and values. However, personal values, attitudes, beliefs, biases, and prejudices can all affect one's mental model. A leader's assumptions play an important role in shaping his or her mental models, but leaders can examine their assumptions and shift or expand mental models when
needed to keep their organizations healthy. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#BUXB3YK769QSN4SKD803)
The following discussion is based partly on Robert C. Benfari, Understanding and Changing Your Management Style (San Francisco: Jossey-Bass, 1999), pp. 66–93.
5-2a. Assumptions
In Chapter 4 , we discussed two very different sets of attitudes and assumptions that leaders may have about subordinates, called Theory X and Theory Y, and how these assumptions affect leader behavior. A leader's assumptions naturally are part of his or her mental model. Someone who assumes that people can't be trusted will act very differently in a situation than someone who has the assumption that people are basically trustworthy. Leaders have assumptions about events, situations, and circumstances as well as about people. Assumptions can be dangerous because people tend to accept them as “truth.”
J.C. Penney provides a good example. Ron Johnson, who helped create the popular and successful Apple retail stores, was hired to save J.C. Penney from a slow death, but he was �ired just 17 months into the job. Johnson's assumptions about the transformation, which included making stores and merchandise more upscale, were based on his experience with what worked at Apple. He created in-store “boutiques” with expensive shelving and signage and pushed stores to stock youthful, slim-�itting clothing and European designs, re�lecting a shift away from the retailer's core customers. The problem is that J.C. Penney isn't Apple. Customers �lock to Apple stores for cutting-edge, status- symbol products, but J.C. Penney's customers want basic clothing and home goods at low prices. Johnson's remake assumed the only department store customer that mattered was the one “who shops at Target or Macy's or Nordstrom's,” said Margaret Bogenrief of ACM Partners. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#TTQKZ3Q8PFY3KWF3L506) In 2015, Marvin Ellison took over as the third CEO at Penney in four years. One of Ellison's biggest jobs will be working with other top Penney's leaders to bring more realistic assumptions to the challenge of reinventing an iconic brand for a new era.
Stephanie Clifford, “Chief's Silicon Valley Stardom Quickly Clashed at J.C. Penney,” The New York Times (April 9, 2013), http://www.nytimes.com/2013/04/10/business/how-an- apple-star-lost-his-luster-at-penneys.html?emc=eta1&_r=0 (http://www.nytimes.com/2013/04/10/business/how-an-apple-star-lost-his-luster-at-penneys.html?emc=eta1&_r=0) (accessed April 24, 2013); Stephanie Clifford, “J.C. Penney Ousts Chief of 17 Months,” The New York Times , April 8, 2013, http://www.nytimes.com/2013/04/09/business/ron-johnson-out-as- jc-penney-chief.html?pagewanted=all&_r=0 (http://www.nytimes.com/2013/04/09/business/ron-johnson-out-as-jc-penney-chief.html?pagewanted=all&_r=0) (accessed April 24, 2013); and Andrew Ross Sorkin, “A Dose of Realism for the Chief of J.C. Penney,” The New York Times , November 12, 2011, http://dealbook.nytimes.com/2012/11/12/a-dose-of-realism-for- the-chief-of-j-c-penney/ (http://dealbook.nytimes.com/2012/11/12/a-dose-of-realism-for-the-chief-of-j-c-penney/) (accessed March 26, 2013).
As this example illustrates, it is important for leaders to regard their assumptions as temporary ideas rather than �ixed truths. The more aware a leader is of his or her assumptions, the more the leader understands how assumptions guide behavior and decisions. In addition, the leader can question whether long-held assumptions �it the reality of the current situation. Questioning assumptions can help leaders understand and shift their mental models.
5-2b. Changing or Expanding Mental Models
The mindset of top leaders has always played a key role in organizational success. A Harvard University study ranking the top 100 business leaders of the twentieth century found that they all shared what the researchers refer to as “contextual intelligence,” the ability to sense the social, political, technological, and economic context of the times and adopt a mental model that helped their organizations best respond. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#ACBVETXD1AHRW7UR1380) In a world of rapid and discontinuous change, the greatest factor determining the success of leaders and organizations may be the ability to change or expand one's mental model. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#ELGE69Z87WNP5L3R1165) Consider how Ron Rivera, head coach of the Carolina Panthers, expanded his mental model of how to lead a football team.
Anthony J. Mayo and Nitin Nohria, In Their Time: The Greatest Business Leaders of the 20th Century (Boston: Harvard Business School Press, 2005).
Prasad Kajpa, “Steve Jobs and the Art of Mental Model Innovation,” Ivey Business Journal (May–June 2012), http://www.iveybusinessjournal.com/topics/leadership/steve-jobs-and- the-art-of-mental-model-innovation (http://www.iveybusinessjournal.com/topics/leadership/steve-jobs-and-the-art-of-mental-model-innovation) (accessed March 26, 2013); David J. Glew, Stephen C. Harper, and Jonathan D. Rowe, “Is Your Organization a Target?” Industrial Management (November–December 2010), pp. 15–20; Geoffrey Colvin, “The Most Valuable Quality in a Manager,” Fortune (December 29, 1997), pp. 279–280; and Marlene Piturro, “Mindshift,” Management Review (May 1999), pp. 46–51.
In the Lead Ron Rivera, Carolina Panthers
Most NFL coaches keep the time they spend in the locker room to a minimum. Ron Rivera, head coach of the Carolina Panthers, used to do that too, but after asking for advice from �ighter pilots about how to promote honesty and trust, Rivera shifted his mental model from one of maintaining distance from players to one of getting to know and understand players at a deep personal level. Now he's in the locker room interacting with players all the time. “Unless you are exposed to them [in the locker room], when they let their hair down, you won't get to know them,” he says.
After being advised to “remove rank” when talking to subordinates, Rivera took a bunch of players to dinner and asked them to give honest feedback. He was amazed at some of the things he heard. “I'm blown away,” he said. “You guys should have told me!” That's when he embarked on a crusade to create a culture of total honesty, where players felt they could ask him or tell him anything. Rivera set up a second of�ice closer to the locker room and he regularly visits the training room and cafeteria, as well as the locker
room, to interact informally with players. “I have answered questions in the locker room about whether a player should get puppies,” Rivera said. “I told them having a puppy is just like having a baby, there's a lot of responsibility.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#HVVEP4PWZ5Z9MQXQ2964)
Based on Kevin Clark, “The Coach Who Won't Leave the Locker Room,” The Wall Street Journal (October 13, 2015), http://www.wsj.com/articles/the-coach-who-wont- leave-the-locker-room-1444755991 (http://www.wsj.com/articles/the-coach-who-wont-leave-the-locker-room-1444755991) (accessed October 15, 2015).
Having closer personal relationships with his players helps Rivera monitor morale and smooth problems that might interfere with high performance. Leaders have to keep open minds and be willing to question assumptions and shift their mental models when new approaches are needed.
Organizations are vulnerable when leaders stick with obsolete mental models in the face of new realities. For example, market share for the BlackBerry smartphone has plummeted in recent years because leaders at Research in Motion stayed with what worked in the past and had a hard time shifting their mental model to keep the company competitive in an environment that changed quickly with the introduction of Apple and Samsung smartphones. On the other hand, leaders at Apple, particularly the late Steve Jobs, have been masters at shifting or expanding their mental models over the years. One researcher who interviewed Steve Jobs said he could “sometimes throw you off balance by suddenly adopting your position as his own, without ever acknowledging that he ever thought differently.” One reason Apple is so successful today, this researcher asserts, is that Steve Jobs was a genius at reframing issues and shifting mental models—his own, his employees', his partners', and his customers'. Before the iPhone, no one had ever thought of something like the App Store or the possibility of demanding a share of the revenue from wireless carriers, for instance. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#KNRQ838N3SW5EAUA1127)
Kajpa, “Steve Jobs and the Art of Mental Model Innovation.”
Unfortunately, many leaders become prisoners of their own assumptions and mindsets because these led to success in the past. They �ind themselves simply going along with the traditional way of doing things—whether it be running a business such as Research in Motion, managing a foundation, handling insurance claims, selling cosmetics, or coaching a basketball team—without even realizing they are making decisions and acting within the limited frame of their own mental model. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#MGHE73XYTNH62L0A7655)
Glew et al., “Is Your Organization a Target?”; Gary Hamel, “Why … It's Better to Question Answers Than to Answer Questions,” Across the Board (November–December 2000), pp. 42–46; and Jane C. Linder and Susan Cantrell, “It's All in the Mind (set),” Across the Board (May–June 2002), pp. 39–42.
One speci�ic challenge for the mental models of leaders is to navigate through ambiguities and complexities on a global scale that far exceed anything they encounter within their traditional management responsibilities. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#ZCYQM97LKHP3YA66E941) A global mindset can be de�ined as the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#VKYUD2BM4YTNXAA7P429) A manager with a global mindset can perceive and respond to many different perspectives at the same time rather than being stuck in a domestic mental model that sees everything from one's own limited personal or cultural perspective. One of the best ways managers develop a global mindset is by engaging with people from different cultures. Ken Powell, CEO of General Mills, says being given international positions early in his career convinced him that getting people out of their comfort zone was the best way to develop leaders. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#FBULNZ6Q4811PTAA8485)
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset
the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
This section is based on Schon Beechler and Dennis Baltzley, “Creating a Global Mindset,” Chief Learning Of�icer (May 29, 2008), http://clomedia.com/articles/view/creating_a_global_mindset/1 (http://clomedia.com/articles/view/creating_a_global_mindset/1) (accessed June 26, 2012); Mansour Javidan and Jennie L. Walker, “A Whole New Global Mindset for Leadership,” People & Strategy 35, no. 2 (2012), pp. 36–41; and Stephen L. Cohen, “Effective Global Leadership Requires a Global Mindset,” Industrial and Commercial Training 42, no. 1 (2010), pp. 3–10.
De�inition based on Mansour Javidan and Mary B. Teagarden, “Conceptualizing and Measuring Global Mindset,” Advanced in Global Leadership 6 (2011), pp. 13–39; and Beechler and Baltzley, “Creating a Global Mindset.”
Ken Powell, interviewed by Beth Kowitt, “Move Beyond Your Comfort Zone,” Fortune (May 4, 2009), p. 48.
Despite the mental discomfort and sense of disorientation it might cause, leaders must allow their mental models to be challenged and even demolished. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#WYXEEACGDKT6TFYJ9533) Becoming aware of assumptions and understanding how they in�luence emotions and actions is the �irst step toward being able to shift
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
global mindset the ability of managers to appreciate and in�luence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, or psychological characteristics
mental models and see the world in a new way. Effective leaders learn to continually question their own beliefs, assumptions, and perceptions in order to see things in unconventional ways and meet the challenge of the future head on. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vphjlrhb6y4am7v6g128#UFFJ8RMDTTL364PY2285) Leaders who are unable to see and change their own ineffective mental models often need outside help, as described in this chapter's Leader's Bookshelf .
Anil K. Gupta and Vijay Govindarajan, “Cultivating a Global Mindset,” Academy of Management Executive 16, no. 1 (2002), pp. 116–126.
Hamel, “Why … It's Better to Question Answers Than to Answer Questions”; Geoffrey Colvin, “Managing in Chaos,” Fortune (October 2, 2006), pp. 76–82.
Chapter 9 . Leadership Communication
Your Leadership Challenge After reading this chapter, you should be able to:
Act as a communication champion and a “sensegiver” rather than just as an information processor. Use key elements of effective listening and understand why listening is important to leader communication. Use candor appropriately to improve your communication effectiveness, and recognize and apply the difference between dialogue and discussion. Incorporate metaphor and storytelling into your leadership communications. Select an appropriate communication channel for your message and effectively use social media and nonverbal communication. Communicate in a way that persuades and in�luences others. Effectively communicate during times of stress or crisis.
A group of assembly line employees, factory �loor managers, and quality control experts recently held a meeting in a maintenance closet. The impromptu get-together took place because workers at Honda's Anna, Ohio, engine plant were faced with having to spend more than three hours taking out, repairing, and reinstalling engines in Honda vehicles because of a previously unrecognized defect in a camshaft from a supplier. The meeting went on for several minutes with tempers �laring and petty arguments erupting. Some of the managers thought it was time to give up and just do it the obvious way, but other participants wanted to keep talking things out. When the meeting was over 20 minutes later, the group had found a way to make the camshaft repairs that would tie up only one hour per vehicle. These kinds of spontaneous meetings are called waigaya at Honda, and they are considered indispensable. A company story says the term waigaya was coined by Takeo Fujisawa, the business partner of Honda founder Soichiro Honda, because it sounded like the babble of many people talking at the same time, openly disagreeing with one another and debating ideas and opinions. Honda leaders believe involving everyone in open, candid, fearless communication is essential for �inding the best, most practical way of doing things. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/qftf244mazvl2bw1x779#RNFU88NX6EKPHF0Q2887)
Jeffrey Rothfeder, “For Honda, Waigaya Is the Way,” Strategy + Business (Autumn 2014), http://www.strategy-business.com/article/00269? rssid=organizations_and_people&gko=48bd9 (http://www.strategy-business.com/article/00269?rssid=organizations_and_people&gko=48bd9) (accessed November 6, 2015).
Organizations suffer when people are afraid to speak up, don't care enough to speak up, or �ind that no one is listening. As a leader, you will de�ine your team or organization's communication climate, whether things are discussed openly or suppressed, whether people know and care what is going on in the organization or do not, and whether listening is valued as a key part of the communication process.
Recall that leadership means in�luencing people to bring about change toward a vision, or desired future, for the organization. Leaders communicate to share the vision with others, inspire and motivate them to strive toward the vision, and build the values and trust that enable effective working relationships and goal accomplishment.
Successful leader communication also includes deceptively simple components, such as asking questions, paying attention to nonverbal communication, and actively listening to others. Unfortunately, research shows that many executives are not investing the time and energy to be effective communicators. A survey by AMA Enterprise found that nearly 40 percent of employees feel out of the loop and don't know what is going on in their companies. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/qftf244mazvl2bw1x779#TVZT4T4T5R7KWCC9R266) Moreover, many leaders resist employee feedback because they don't want to hear negative information. Without feedback, leaders can miss important signals that something is going wrong, and they may make decisions that are out of alignment with employee needs or perceptions, making smooth implementation less likely. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/qftf244mazvl2bw1x779#DGPQSM1BF019KNDBW832)
AMA Enterprise, a division of American Management Association, 2012, reported in “Employees Are Clueless about What's Going On at Work,” T + D (June 2012), p. 23.
Studies from the Elliot Leadership Institute, reported in Louise van der Does and Stephen J. Caldeira, “Effective Leaders Champion Communication Skills,” Nation's Restaurant News (March 27, 2006), p. 20; and Dennis Tourish, “Critical Upward Communication: Ten Commandments for Improving Strategy and Decision Making,” Long Range Planning 38 (2005), pp. 485–503.
This chapter describes tools and skills that can be used to overcome the communication de�icit pervading today's organizations. We examine how leaders use communication skills to make a difference in their organizations and the lives of followers.
9-1. How Leaders Communicate Have you ever had a supervisor or instructor whose communication skills were so poor that you didn't have any idea what was expected of you or how to accomplish the job you were asked to do? On the other hand, have you experienced the communication �lair of a teacher, boss, or coach who “painted a picture in words” that both inspired you and clari�ied how to achieve an objective?
Leadership means communicating with others in such a way that they are in�luenced and motivated to perform actions that further common goals and lead toward desired outcomes. Communication is a process by which information and understanding are transferred between a sender and a receiver, such as between a leader and an employee, an instructor and a student, or a coach and a football player. Exhibit 9.1 shows the key elements of the communication process. The sender (such as a leader) initiates a communication by encoding a thought or idea, that is, by selecting symbols (such as words) with which to compose and transmit a message. The message is the tangible formulation of the thought or idea sent to the receiver, and the channel is the medium by which the message is sent. The channel could be a formal report, a blog, a telephone call, an e-mail or text message, or a face-to-face conversation. The receiver decodes the symbols to interpret the meaning of the message. Encoding and decoding can sometimes cause communication errors because individual differences, knowledge, values, attitudes, and background act as �ilters and may create “noise” when translating from symbols to meaning. People can easily misinterpret messages. Feedback is the element of the communication process that enables someone to determine whether the receiver correctly interpreted the message. Feedback occurs when a receiver responds to a leader's communication with a return message. Without feedback, the communication cycle is incomplete. Effective communication involves both the transference and the mutual understanding of information. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/dfsc68ewfmmcrxsjt970#BEQV6M17AMX7RSA64249) As illustrated in Exhibit 9.1 , the nature of effective communication is cyclical, in that a sender and receiver may exchange messages several times to achieve a mutual understanding. The ongoing process of sending, receiving, and feedback to test understanding underlies both management and leadership communication.
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication
a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Bernard M. Bass, Bass & Stogdill's Handbook of Leadership , 3rd ed. (New York: The Free Press, 1990).
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Communication a process by which information and understanding are transferred between a sender and a receiver
Exhibit 9.1. A Circular Model of Interpersonal Communication
Sources: Based on Gabriela Moise, “Communication Models Used in the Online Learning Environment,” The 3rd International Conference on Virtual Learning 2008, ICVL ( http://www.icvl.edu/2008 (http://www.icvl.edu/2008) ), pp 247–254; and Wilbur Schramm, The Process and Effects of Mass Communication , 6th ed. (Urbana, IL: University of Illinois Press, 1965).
9-1a. Management Communication
New Leader Action Memo
Networking is a vital part of leadership information sharing. Answer the questions in Leader's Self-Insight 9.1 to learn whether you network with other people like successful leaders do.
The traditional role of a manager is that of an “information processor.” Managers spend some 80 percent of each working day in communication with others. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/dfsc68ewfmmcrxsjt970#CHKUTE61ABPNPQ9VH613) In other words, 48 minutes of every hour are spent in meetings, on the telephone, or talking informally with others. Managers scan their environments for important written and personal information, gathering facts, data, and ideas, which in turn are sent to subordinates and others who can use them. A manager then receives subordinate messages and feedback to check understanding and determine whether to modify messages for accuracy.
Henry Mintzberg, Managing (San Francisco: Berrett-Koehler Publishers, 2009); and Henry Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973).
Leader's Self-Insight 9.1. Am I Networked?
Instructions : Think about your current life as an employee or as a student. Indicate whether each of the following items is Mostly False or Mostly True for you.
Mostly False Mostly True
Mostly False Mostly True 1. I learn early on about changes going on in the organization that might affect me or my job. 2. I have a clear belief about the positive value of active networking. 3. I am good at staying in touch with others. 4. I network as much to help other people solve problems as to help myself. 5. I am fascinated by other people and what they do. 6. I frequently use lunches to meet and network with new people. 7. I regularly participate in charitable causes. 8. I maintain a list of friends and colleagues to whom I send holiday cards. 9. I build relationships with people of different gender, race, and nationality than myself. 10. I maintain contact with people from previous organizations and school groups. 11. I actively give information to subordinates, peers, and my boss. 12. I know and talk with peers in other organizations.
Scoring and Interpretation
Add the number of Mostly True answers for your score: . A score of 9 or above indicates that you are excellent at networking and can be a networking leader. A score of 3 or below would suggest that you need to focus more on building networks, perhaps work in a slow-moving occupation or organization, or not put yourself in a position of leadership. A score of 4—8 would be about average.
Networking is the active process of building and managing productive relationships. Networking builds social, work, and career relationships that facilitate mutual understanding and mutual bene�it. Leaders accomplish much of their work through networks rather than formal hierarchies.
Source: The ideas for this self-insight questionnaire were drawn primarily from Wayne E. Baker, Networking Smart: How to Build Relationships for Personal and Organizational Success (New York: McGraw-Hill, 1994).
Managers have a huge communication responsibility in directing and controlling an organization. They communicate facts, statistics, and decisions. Effective managers establish themselves at the center of information networks to facilitate the completion of tasks. Leadership communication, however, serves a different purpose.
9-1b. The Leader as Communication Champion
Although leadership communication also includes the components of sending, receiving, and feedback, it is different from management communication. Leaders often communicate the big picture—the vision, as de�ined in Chapter 1 —rather than facts and pieces of information. A leader can be seen as a communication champion. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/dfsc68ewfmmcrxsjt970#GJBRWNPBBH3C526DT187)
Mary Young and James E. Post, “Managing to Communicate, Communicating to Manage: How Leading Companies Communicate with Employees,” Organizational Dynamics (Summer 1993), pp. 31–43; and Warren Bennis and Burt Nanus, Leaders: The Strategies for Taking Charge (New York: Harper & Row, 1985).
A communication champion is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to the vision and strategy. Leaders use communication to unite people around a common sense of purpose and identity and to ensure that the vision and strategy are deeply understood and accepted by employees. This deep understanding and acceptance of organizational direction and purpose is referred to as embeddedness . * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/dfsc68ewfmmcrxsjt970#WWMV6U01SVBHZ2Q0U399) When the vision and strategy are embedded, everyone's daily decisions and actions help move the �irm in the right direction, toward achieving important goals. In many of today's organizations, command-and-control management is counterproductive. People cannot simply be told what to do. They need to understand and accept the vision and strategy so they can align their actions to support the organization's competitive intentions.
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness
when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion
a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness
when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
This discussion is based on Charles Galunic and Immanuel Hermreck, “How to Help Employees ‘Get’ Strategy,” Harvard Business Review (December 2012), p. 24.
New Leader Action Memo
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
communication champion a person who is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to a vision
embeddedness when people throughout the organization are united around a common purpose based on a deep understanding and acceptance of the vision and strategy
As a leader, you can be a communication champion and a sensegiver. You can use verbal, nonverbal, and symbolic communication to unite people around a common vision, facilitate strategic conversations, and build trust.
Leadership communication also shapes how people think about their work and the organization. Leaders are sensegivers . Sensegiving refers to the process of in�luencing how others construct meaning and make sense of the organization and their place in it. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/dfsc68ewfmmcrxsjt970#VBWDJ0WA3ANY3QTK5682) Good leaders not only use communication to inspire people with a vision and instill the values that are necessary for achieving it, they also communicate to help people understand the larger purpose of their own work (�ind meaning) and see how they �it into the organization. Communication champions visibly and symbolically engage in communication-based activities. Whether they walk around asking questions or thoughtfully listen to a subordinate's ideas or problems, the everyday actions of communication champions convey a deep commitment to communication and sensegiving. Communication isn't just about occasional meetings, formal speeches, or presentations. Leaders actively communicate through both words and actions every day. Regular communication is essential for building personal relationships and binding people together to accomplish the vision and purpose. This chapter's Consider This highlights the importance of leaders taking a positive approach to communicating.
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving
This discussion is based on Dennis A. Gioia and Kumar Chittipeddi, “Sensemaking and Sensegiving in Strategic Change Initiation,” Strategic Management Journal 12, no. 6 (September 1991), pp. 433–448; and Anne D. Smith, Donde Ashmos Plowman, and Dennis Duchon, “Everyday Sensegiving: A Closer Look at Successful Plant Managers,” The Journal of Applied Behavioral Science 46, no. 2 (June 2010), pp. 220–244.
Exhibit 9.2 shows the leader-as-communication-champion model. By establishing an open communication climate, asking questions, actively listening to others, applying the practice of dialogue, using candor, and telling stories, leaders facilitate and support strategic conversations that help move the organization forward. Leader communication is purpose-directed in that it directs everyone's attention toward the vision, values, and desired outcomes of the group or organization and persuades people to act in a way to help achieve the vision.
Exhibit 9.2. The Leader as Communication Champion
Consider This! Communication Starts in the Mind and the Heart
The thought manifests as the word,
The word manifests as the deed,
The deed develops into habit,
And the habit hardens into character.
So watch the thought and its way with care,
And let it spring from love
Born out of concern for all things.
The words above echo what the Buddha said more than 2,500 years ago: “We are what we think. All that we are arises with our thoughts. With our thoughts we make the world.” The truth of this verse is timeless: it is truth whether for the past, the present, or the future.
Source: K. Sri Dhammananda, How to Live Without Fear and Worry (Kuala Lumpur, Malaysia: BMS Publications, 1989), p. 192.
the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Sensegiving the process of in�luencing how others make sense of the organization, where they �it within it, and the larger purpose of their work
Leaders use many communication methods, including selecting rich channels of communication and using nonverbal communication. Leaders often use symbolic language and behavior to get their messages across and to in�luence others. For example, President Ronald Reagan was known as a great communicator. In communicating his message about the federal budget, Reagan spoke of a trillion dollars in terms of stacking it next to the Empire State Building. Framed this way, the message rede�ined the meaning of a trillion dollars and took on a new reality for the public.
9-2. Leading Strategic Conversations A strategic conversation refers to people talking across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and the values that can help achieve desired outcomes. Leaders facilitate strategic conversations by (1) asking questions and actively listening to others to understand their attitudes and values, needs, personal goals, and desires; (2) setting the agenda for conversation by underscoring the key strategic themes that are linked to organizational success; and (3) selecting the right communication channels and facilitating dialogue. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#RNQTDUCNUMJH7GM5K164) An example of strategic conversation comes from the U.S. military, which received strong criticism both at home and abroad when the Department of Defense announced the establishment of the United States Africa Command (USAFRICOM).
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation
communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
Phillip G. Clampitt, Laurey Berk, and M. Lee Williams, “Leaders as Strategic Communicators,” Ivey Business Journal (May–June 2002), pp. 51–55.
In the Lead United States Africa Command (USAFRICOM)
When the U.S. Department of Defense announced the establishment of USAFRICOM as a Geographic Combatant Command (GCC) that would assume responsibility over Department of Defense activities on the continent of Africa, most leaders knew it could provoke suspicions and misunderstandings.
It was a seemingly simple reorganization, as these responsibilities had previously been divided among other GCCs. The �irst commander and other leaders of USAFRICOM were �irmly committed to the reorganization as a positive step, but they needed everyone involved to see things that way as well. They implemented a comprehensive communications plan that facilitated a strategic conversation among everyone involved—a wide range of participants from across the United States, Africa, Europe, and the broader international community. Leaders deliberately developed a set of simple, consistent messages in response to a set of questions they asked themselves about the mission, purpose, and nature of USAFRICOM.
They also asked questions of stakeholders, particularly their African partners, whom they considered the most important stakeholder group. The approach “was to give them the voice that they wanted and to know that we were there to listen and understand.” The goal was to support, rather than undermine, “African solutions for African problems.” Rather than offering speci�ic services or describing what they thought Africa should look like in the future, leaders sought to learn their partners' priorities and strategies. Emphasis throughout the early communications strategy was on openness, transparency, candor, and inclusivity. Leaders created a unifying theme of building the team and developed messages that illustrated USAFRICOM as a “listening and learning organization.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#SFHRP0CSVJ5VXCH2W982)
General William E. “Kip” Ward, “Strategic Communication at Work,” Leader to Leader (Winter 2011), pp. 33–38.
Although there remain detractors and critics, USAFRICOM continues to stress openness and transparency and encourages people to check out its work at http://www.africom.mil (http://www.africom.mil) . In other words, the strategic conversation continues. This example illustrates the six key components for facilitating strategic conversations: an open communication climate, asking questions, active listening, dialogue, candor, and using stories for communication. These six elements are described in the following sections.
9-2a. Creating an Open Communication Climate
Open communication means sharing all types of information throughout the organization, especially across functional and hierarchical boundaries. Open communication runs counter to the traditional �low of selective information downward from supervisors to subordinates. Good leaders want communication to �low in all directions. Communication across traditional boundaries enables leaders to hear what followers have to say, which means the organization gains the bene�it of all employees' minds. The same perspectives batted back and forth between top executives don't lead to effective change, the creation of a powerful shared vision, or the network of personal relationships that keeps organizations thriving. New voices and continuous conversation involving a broad spectrum of people revitalize and enhance communication. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#HLFUT100SZ5TLB7XM661)
strategic conversation communication that takes place across boundaries and hierarchical levels about the group or organization's vision, critical strategic themes, and values that can help achieve desired outcomes
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication
leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Open communication leaders sharing all types of information throughout the company and across all levels
Gary Hamel, “Killer Strategies That Make Shareholders Rich,” Fortune (June 23, 1997), pp. 70–84.
New Leader Action Memo
As a leader, you can create an open communication climate by sharing both good and bad information, and you can facilitate communication across groups, departments, and hierarchical levels.
To build an open communication climate, leaders break down conventional hierarchical and departmental boundaries that may be barriers to communication, enabling them to convey a stronger awareness of and commitment to organizational vision, goals, and values. In an open climate, a leader's communication of the vision “cascades” through an organization, as explained in Exhibit 9.3 . People throughout the organization thus have a clear direction and an understanding of how they can contribute. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#NVLS68F6HY577Q0CA958) An open communication climate helps alleviate tension and con�lict between departments, builds trust, reaf�irms employee commitment to a shared vision, and makes a company more competitive.
John Luthy, “New Keys to Employee Performance and Productivity,” Public Management (March 1998), pp. 4–8.
Exhibit 9.3. Why Open the Communication Climate?
An open climate is essential for cascading vision, and cascading is essential because:
Natural Law 1: You Get What You Talk About
A vision must have ample “air time” in an organization. A vision must be shared and practiced by leaders at every opportunity.
Natural Law 2: The Climate of an Organization Is a Re�lection of the Leader
A leader who doesn't embody the vision and values doesn't have an organization that does.
Natural Law 3: You Can't Walk Faster Than One Step at a Time
A vision is neither understood nor accepted overnight. Communicating the vision must be built into continuous, daily interaction so that over time followers will internalize it.
Source: Based on Bob Wall, Robert S. Slocum, and Mark R. Sobol, Visionary Leader (Rocklin, CA: Prima Publishing, 1992), pp. 87–89.
9-2b. Asking Questions
Managers typically think they should be the people with the right answers. Leadership, though, is more about being the person with the right questions . * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#HQTGQRQWC9E9WQN1F553) Many leaders—indeed, most people in general—are unaware of the amazing power of questions. In our society, we're conditioned to come up with answers. Very young children are typically full of questions, but from an early age they're discouraged from asking them. Students are expected to hold up their hands in class to give the right answer, and they're often chastised for an incorrect response. Leaders often assume that if someone comes to them with a problem, their job is to solve it with the correct answer. They mistakenly fear that not having an answer means followers will lose respect for them.
Open communication leaders sharing all types of information throughout the company and across all levels
This discussion is based on Andrew Sobel, “Leading with Questions: Ask, Don't Tell,” Leader to Leader (Winter 2013), pp. 24–29; “The Power of Questions” (Practical Wisdom column), Leadership: The Journal of the Leader to Leader Institute (Spring 2005), pp. 59–60; and Quinn Spitzer and Ron Evans, “The New Business Leader: Socrates with a Baton,” Strategy & Leadership (September–October 1997), pp. 32–38.
What Questions Do Leaders Ask? One purpose of questioning is leader-centered , in that it seeks to inform the leader about what is going on in the organization; investigate speci�ic issues, problems, or opportunities; and gather information, ideas, or insights. This type of questioning is important because it helps leaders tap into the expertise and ideas of followers. With advances in technology and communications, no one person can master all the data and information needed to meet the challenges most organizations face. Even in 1928, when Paul Galvin founded Motorola, he recognized the value of this type of questioning. His son Bob Galvin said his father learned about what was happening in the business in the company cafeteria. “He would always make a point of eating with employees at lunchtime,” Galvin said. “He'd ask them lots of questions about operations, customers, and how to improve quality.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#SWBKBCF6JF98L0G2Z647)
Reported in Sobel, “Leading with Questions.”
Leaders also use questions for another purpose. This approach is follower-centered , in that it seeks to connect with followers, develop new insights, encourage critical thinking, expand people's awareness, and stimulate learning. One study found that 99 percent of top managers surveyed believe that critical thinking skills at all levels are crucial to the success of their organizations. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#BYQUFHTY0EM9UEG27005)
Reported in Spitzer and Evans, “The New Business Leader: Socrates with a Baton.”
Bene�its of Asking Questions Asking the right kinds of questions bene�its both leaders and followers in many ways. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#LMNY8L19MEKG51056248) Questions encourage people to think and empower them to �ind answers, helping to build positive attitudes and follower self-con�idence. Asking questions rather than giving answers provokes critical thought and leads to deeper, more lasting learning. In addition, asking questions shows that leaders care about people on an individual basis, value the opinions and knowledge of others, are open to new ideas, and have faith that people want to contribute to the organization, which helps to build trusting, respectful relationships. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#BUJFK1QLKJKZQBJA2741) People want their leaders to recognize them as individuals and let them be part of something meaningful. Jonathan Kraft, president of the New England Patriots football team, says he and his father, team chairman Robert Kraft, have only one role: “We ask questions just as any manager would, to spur the thinking.” Other than that important job, the Krafts leave the Patriots to the leadership of Coach Bill Belichick, personnel head Nick Caserio, and other team leaders. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#AWMVUCYNDAXZZ5M6Q811)
Based on Sobel, “Leading with Questions: Ask, Don't Tell”; Steve Arneson, “People Leadership: Get to Know Your People Better,” Leadership Excellence (November 2010), p. 18; “The Power of Questions”; and Spitzer and Evans, “The New Business Leader: Socrates with a Baton.”
Sterling Newberry, “Dif�icult Communications: Going Beyond ‘I’ Statements,” Mediate.com (January 2003), http://www.mediate.com/articles/redwing9.cfm (http://www.mediate.com/articles/redwing9.cfm) (accessed July 6, 2009).
Kevin Clark, “Management Secrets of the NFL: The League's Best Teams Share Front-Of�ice Habits,” The Wall Street Journal (September 5, 2012), p. D7.
9-2c. Listening
Just as important as asking questions is listening to the responses. A survey of 800 employees across a variety of industries found that about two-thirds of respondents felt that their opinion was either unwelcome or not valued at work. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#TYVMMKTE7CJ7S2D28557) An open communication climate is not possible if leaders aren't listening. When leaders fail to listen to employees, it sends the signal, “you don't matter,” which decreases commitment and motivation. People are willing to share their ideas, suggestions, and problems when they think someone is listening and genuinely values what they have to say.
Fierce Inc. survey results reported in Phaedra Brotherton, “More Employee Input and Accountability Yield More Effective Practices,” T + D (May 2012), p. 18.
New Leader Action Memo
Evaluate your skills for listening and asking questions by completing the questionnaire in Leader's Self-Insight 9.2 .
Hearing is easy, but really listening is hard. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#YYCUSVJEJMUZP1W64276) Listening involves the skill of grasping and interpreting a message's genuine meaning. Remember that message reception is a vital link in the communication process. However, many leaders take listening for granted and focus their time and energy on learning how to verbalize and present their own ideas more effectively. When talking with someone, they concentrate on formulating what they're going to say next rather than on what is being
said to them. Fortunately, leaders can develop their listening just as they can any other skill. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#YDABS9YZSWX0XKWY0302)
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Seth S. Horowitz, “The Science and Art of Listening,” The New York Times (November 9, 2012), http://www.nytimes.com/2012/11/11/opinion/sunday/why-listening-is-so-much- more-than-hearing.html?_r=0 (http://www.nytimes.com/2012/11/11/opinion/sunday/why-listening-is-so-much-more-than-hearing.html?_r=0) (accessed November 11, 2012).
Bernard T. Ferrari, “The Executive's Guide to Better Listening,” McKinsey Quarterly no. 2 (2012), pp. 50–60; Horowitz, “The Science and Art of Listening”; and Rick Bommelje, “Listening Pays! Achieve Signi�icance Through the Power of Listening,” Leader to Leader (Fall 2013), pp. 18–25.
Leader's Self-Insight 9.2. Listening and Asking Questions
Instructions : Think about how you communicate during a typical day at school or work. Respond to the following statements based on whether they are Mostly False or Mostly True for you. There are no right or wrong answers, so answer honestly.
Mostly False Mostly True 1. I am extremely attentive to what others say. 2. I deliberately show people that I am listening to them. 3. I really enjoy listening very carefully to people. 4. My mind does not wander when someone is talking. 5. I often restate what the person said and ask if I got it right. 6. I usually think about a response while a person is still talking. 7. I often ask people to clarify what they mean. 8. I ask questions in every conversation. 9. I am genuinely curious in conversations about what other people think. 10. During a conversation, I frequently probe for deeper information. 11. I inquire about others' points of view on topics. 12. I don't hesitate to ask what may appear to be dumb questions.
Scoring and Interpretation
Compute two scores from your answers and insert them below. For your listening score, sum 1 point for each Mostly True answer for items 1–5 and for a Mostly False answer to item 6. For your asking questions score, sum 1 point for each Mostly True answer to items 7–11. Insert your two scores below.
Listening score . Asking Questions score .
Your �irst score re�lects your listening habits. Managers face many distractions, which makes it hard to pay attention when someone is speaking. Listening attentively can prevent many communication mistakes. Your second score re�lects your habit of inquiry, which means asking questions to learn more about something or to con�irm your understanding. Asking questions is an important part of an effective leader's communication repertoire, as described in the text. Scores of 5–6 re�lect excellent communication habits. Scores of 0–2 suggest that you may need to work on your communication practices. Scores of 3–4 imply that you are doing okay but have room for improvement.
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Listening the skill of grasping and interpreting a message's genuine meaning
Source: Partially based on William B. Snavely and John D. McNeill, “Communicator Style and Social Style: Testing a Theoretical Interface,” Journal of Leadership and Organizational Studies 14, no. 1 (February 2008), pp. 219–232.
What constitutes good listening? Exhibit 9.4 gives 10 keys to effective listening and illustrates a number of ways to distinguish a bad listener from a good one. A key to effective listening is focus. A good listener's total attention is focused on the message; he isn't thinking about an unrelated problem in the purchasing department, how much work is piled up on his desk, or what to have for lunch. A good listener also listens actively, keeps an open mind, works hard at listening, and uses thought speed to mentally summarize, weigh, and anticipate what the speaker says.
Exhibit 9.4. Ten Keys to Effective Listening
Key Poor Listener Good Listener 1. Listen actively Minimally involved, unfocused Shows interest; nods, asks questions,
paraphrases what is said 2. Keep an open mind Pays attention only to ideas that conform
to own opinions Looks for opportunities and new
learning 3. Resist distractions Is easily distracted Fights distractions; tolerates bad
habits; knows how to concentrate 4. Capitalize on the fact that thought is
faster than speech Tends to daydream with slow speakers Challenges, anticipates, summarizes;
listens between lines to tone of voice 5. Seek understanding Feigns agreement to bring the
conversation to an end Searches for common ground and new
understanding 6. Judge content, not delivery Tunes out if delivery is poor Judges content; skips over delivery
errors 7. Hold one's �ire Spouts solutions before understanding
the problem or question Does not judge or respond until
comprehension is complete 8. Listen for ideas Listens for facts Listens to central themes 9. Work at listening No energy output; passive and laid back Works hard; exhibits active body state,
eye contact 10. Show respect Interrupts; talks over the other person
when trying to get a point across Learns to keep quiet and let the other
person do most of the talking
Sources: Based on “A Field Guide to Identifying Bad Listeners,” McKinsey Quarterly , Issue 2 (2012), p. 112; Bernard T. Ferrari, “The Executive's Guide to Better Listening,” McKinsey Quarterly , Issue 2 (2012), pp. 50–60; Philip Morgan and Kent Baker, “Building a Professional Image: Improving Listening Behavior,” Supervisory Management (November 1985), pp. 34–38; and Sherman K. Okun, “How to Be a Better Listener,” Nation's Business (August 1975), p. 62.
New Leader Action Memo
As a leader, you can learn to be a better listener. You can focus your total attention on what the other person is saying and work hard to listen—use eye contact, ask questions and paraphrase the message, and offer positive feedback.
Effective listening is engaged listening. Good leaders get out of their of�ices and mingle with others, ask questions, set up listening forums where people can say whatever is on their minds, and provide feedback to let people know they have been heard. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#JAMRL65BADZPWP5NG650) Active listening is a daily, ongoing, and vital part of every leader's job. Kevin Sharer, former CEO of Amgen, admits that he was a terrible listener for much of his career. Then he realized that being a good leader is less about convincing others of your point of view and more about respecting and getting the best out of people—and that requires really listening to them. Sharer began regularly visiting and genuinely listening to people throughout the company. He admits it wasn't easy. “You have to change,” he says, “and you have to want to change…. There has to be a certain humility to listen well.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#CQVHVX9GFJFC8FBAG744)
Tom Peters, “Learning to Listen,” Hyatt Magazine (Spring 1988), pp. 16–21.
“Why I'm a Listener: Amgen CEO Kevin Sharer,” (interview), The McKinsey Quarterly no. 2 (April 2012), pp. 61–65.
9-2d. Dialogue
New Leader Action Memo
As a leader, you can use dialogue to help people create a shared sense of meaning and purpose. You can enable people to express their hopes and fears, suspend their convictions and explore assumptions, and become motivated to search for common ground.
In most organizations, there are some issues that are characterized by strong emotions and extreme uncertainty and that can't be resolved by resorting to facts and logic. With these so-called hot topics , the stakes for those involved are high. When hot topics involve whole groups of employees, a type of communication referred to as dialogue can help.
The “roots of dialogue” are dia and logos , which can be thought of as a stream of meaning . In dialogue , people together create a stream of shared meaning that enables them to understand each other and share a view of the world. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#TMYGCR8YVZ4TQYTJK639) People may start out as polar opposites, but by actively listening and talking authentically to one another, they discover their common ground, common issues, and common dreams on which they can build a better future. Most of us have a tendency to infuse everything we hear with our own opinions rather than being genuinely open to what others are saying. In addition, traditional business values in the United States and most other Western countries reward people for forcefully asserting their own ideas and opinions and trying to discredit or contradict others. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#GMKLL88FYUDYG3BP1385) But people can engage in dialogue only when they come to a conversation free of prejudgments, personal agendas, and “right” answers. Participants in a dialogue do not presume to know the outcome, nor do they sell their convictions.
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue
active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue
David Bohm, On Dialogue (Ojai, CA: David Bohm Seminars, 1989).
Bill Isaacs, Dialogue and the Art of Thinking Together (New York: Doubleday, 1999); and “The Art of Dialogue,” column in Paul Roberts, “Live! From Your Of�ice! It's …” Fast Company (October, 1999), pp. 151–170.
One way to understand the distinctive quality of dialogue is to contrast it with discussion. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#CPFLVTHWT5EGX9MEH216) Exhibit 9.5 illustrates the differences between a dialogue and a discussion. Typically, the intent of a discussion is to present one's own point of view and persuade others in the group to adopt it. A discussion is often resolved by logic or by “beating down” opposing viewpoints. Dialogue, on the other hand, requires that participants suspend their attachments to a particular point of view so that a deeper level of listening, synthesis, and meaning can emerge from the group. A dialogue's focus is to reveal feelings and build common ground, with the emphasis on inquiry rather than advocacy.
Based on Glenna Gerard and Linda Teurfs, “Dialogue and Organizational Transformation,” in Kazimierz Gozdz, ed., Community Building: Renewing Spirit and Learning in Business (Pleasanton, CA: New Leaders Press, 1995).
active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
dialogue active sharing and listening in which people explore common ground and grow to understand each other and share a world view
Exhibit 9.5. Dialogue and Discussion: The Differences
Sources: Based on Edgar Schein, “On Dialogue, Culture, and Organizational Learning,” Organizational Dynamics 22, no. 2 (Fall 1993), pp. 40–51; Deborah L. Flick, From Debate to Dialogue: Using the Understanding Process to Transform Our Conversations (Boulder, CO: Orchid Publications, 1998), p. 22; and Glenna Gerard and Linda Teurfs, “Dialogue and Organizational Transformation,” in Community Building: Renewing Spirit and Learning in Business , Kazimierz Gozdz, ed. (Pleasanton, CA: New Leaders Press, 1995).
Dialogue is particularly useful for conversations about hot topics. One example of using dialogue for hot topics occurred at NECX, an online marketplace that was acquired by Converge. Henry Bertolon, cofounder and CEO, introduced dialogue to improve communication after a period of rapid growth led to internal tensions. “We'd have meetings that just melted down,” he says. “Everyone would scream at each other and then leave.” Bertolon hired Wil Calmas, a psychologist with an MBA, to lead a series of programs to get people talking—and listening— to one another on a deeper, authentic level. People were encouraged to express fear, hostility, frustration, and secret wishes—whatever feelings were affecting their lives and work. The dialogue sessions created a safe environment for people to reveal their feelings, explore ideas, and build common ground. Bertolon also believed it helped employees be loose, �lexible, and open to new ideas—ready to respond to the rapid changes taking place all around them. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#AWZLAF2UX7NVAZM5J363)
Scott Kirsner, “Want to Grow? Hire a Shrink!” Fast Company (December–January 1998), pp. 68, 70.
Both forms of communication, dialogue and discussion, can result in organizational change. However, the result of a discussion is limited to a speci�ic topic being deliberated, whereas the result of dialogue is characterized by group unity, shared meaning, and transformed mindsets. This kind of result is far-reaching. A new, common mindset is not the same thing as agreement because it creates a reference point from which subsequent communication can start. As new and deeper solutions are developed, a trusting relationship is built among communicators, which is important to all communication episodes that follow. Dialogue thus transforms communication and, by extension, the organization.
9-2e. Communicating with Candor
A communication approach that can limit the potential for workplace misunderstandings, incivility, and ill will that turn into hot topics is candor. When leaders communicate with candor, they encourage others to do the same. Candor refers to honest, forthright expression of a leader's thinking. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#CYUXT1CL4T1S4BW5R150) Communicating with candor means being direct, honest, and clear about what followers need to do to meet objectives, while also expressing respect for others and not making people feel slighted, controlled, or exploited. Candor is extremely important when dealing with hot topics. Unfortunately, communicating with candor is a problem for many leaders. Jack Welch, speaker, author, and former CEO of
General Electric, says when he asks groups of managers how many of them have received candid performance appraisals, only about 10 percent of people raise their hands. When he asks how many have given candid appraisals to their employees, the results aren't much better. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#NLYRAYYHNLFAMCUJB959)
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor
honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
This discussion is based in part on Jack Welch with Suzy Welch, Winning (New York: HarperBusiness, 2005), Chapter 2.
This discussion is based in part on Jack Welch with Suzy Welch, Winning (New York: HarperBusiness, 2005), Chapter 2.
New Leader Action Memo
Complete the questions in Leader's Self-Insight 9.3 to learn how effective you are at communicating with candor.
Communicating with candor means letting followers know exactly where the leader stands and what the leader expects of them. The appropriate use of candid communication acknowledges the other person's perspective and opinion, yet is very speci�ic about what the leader wants and why. Leaders who communicate with candor keep the focus on the speci�ic perception they have and the effect it has on the leader and organization rather than accusing or blaming the other person. They stick to facts rather than judgments and are very clear about what they want from followers. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#ZJQRRWCJ9ZQ8C60PP463)
E. Raudsepp, “Are You Properly Assertive?” Supervision (June 1992); and M. J. Smith, When I Say No, I Feel Guilty (New York: Bantam Books, 1975).
Leader's Self-Insight 9.3. Do You Speak with Candor?
Instructions : Respond to the following statements based on how you speak to others during personal or work conversations. Answer whether each statement is Mostly True or Mostly False for you. There are no right or wrong answers, so answer honestly.
Mostly False Mostly True 1. I say exactly what I think to people. 2. I never hesitate to hurt people's feelings by telling the truth. 3. I like to be strictly candid about what I say. 4. I am very straightforward when giving feedback. 5. I present evidence for my opinions. 6. I am an extremely frank communicator.
Scoring and Interpretation
Give yourself one point for each Mostly True answer and write your score below.
Candor Score .
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Candor honest, forthright expression of a leader's thinking
Your score re�lects the level of candor with which you communicate. Many people have a hard time giving straightforward opinions and frank feedback because they don't want to hurt a person's feelings nor do they want people to dislike them. Hence the sharing of honest observations is limited. A score of 5–6 on this scale re�lects a habit of candor, which will add to your leadership effectiveness. A score of 3–4 means that you do reasonably well at saying what you think. A score of 0–2 means you may have a hard time speaking straight, and you may want to practice to improve your candor.
In an organization where candid communication is the norm, everything works faster and better. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#NGPD3JRVMBXXRF3Z8090) The Seattle Seahawks football team provides a good illustration of the power of candid communication.
Based on Welch, Winning , Chapter 2.
In the Lead Seattle Seahawks
The Seattle Seahawks are known for having one of the best defenses in NFL football. Having talented players is only part of the formula. Another big reason the Seahawks are so good is the unusual degree of open and honest communication.
Earl Thomas, the team's star safety, says there are a lot of “hard talks,” his term for candid conversations. Because of the blunt honesty players display with one another, a Wall Street Journal reporter said the Seahawks have “perhaps the most emotionally healthy locker room in the NFL.” It's an intentional strategy by coach Pete Carroll and general manager John Schneider. With the Seahawks, whoever sees a mistake or a problem says something about it. Players admit the brutal frankness can sometimes be dif�icult, but in the long run they say it helps them be better on and off the �ield. Many also prefer not having to worry about where they stand. “It lets you be at peace,” one player said. “You are never worried about what guys are thinking about.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#QYYU1FT6882WYBN7D112)
Kevin Clark, “The Seattle Seahawks' Edge: Airing Their Grievances; Brutal Honesty Is the Seattle Defense's Policy,” The Wall Street Journal (January 7, 2015), http://www.wsj.com/articles/the-seattle-seahawks-edge-airing-their-grievances-1420652292 (http://www.wsj.com/articles/the-seattle-seahawks-edge-airing-their- grievances-1420652292) (accessed November 4, 2015).
When everyone feels free to open up and speak frankly, more people get involved in organizational conversations so ideas get debated, adapted, and acted upon more quickly. “It's like being in a good marriage,” said Seahawks defensive end Michael Bennett. “We're continuously learning about each other every day.”
Candid communication also limits common problems such as meaningless meetings, rancorous silence, or ineffective teamwork in other types of organizations. At Taunton Press, a special-interest publishing company, the lack of candor led to endless meetings and decreased productivity. In a small, close-knit company like Taunton, people naturally don't want to offend one another. Yet over time the culture of “terminal niceness” that evolved sabotaged teamwork. Executives hired consultants from Fierce Inc. to help Taunton leaders and employees see that healthy relationships include both confrontation and appreciation. “In an honest and authentic relationship, one must communicate truthfully, and in a collaborative relationship, one must ask candid questions,” says Halley Bock, former president and CEO of Fierce. Over time, Taunton transformed to a culture of candor, collaboration, and accountability. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#RCHT4XTJUHWUFH6D2946)
Halley Bock, “Fierce Communication,” T + D (November 2012), p. 80.
9-2f. The Power of Stories
Native American tribes often made the best storytellers their tribal leaders. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#MQZN1YJLGNDXJSF55086) That's because stories can have tremendous in�luence on people's beliefs, attitudes, and behaviors. Recall the earlier discussion of leaders as sensegivers . Telling stories is the foundation of sensegiving. Storytelling goes hand in hand with listening. Leaders listen to the stories of employees, customers, and others and tap into clues about how to construct their own stories to unite people with purpose and meaning. Stories can help people make sense of complex situations, bind them together in a shared purpose, inspire action, and bring about change in a way that other forms of communication cannot.
This discussion is based on David M. Boje, “Learning Storytelling: Storytelling to Learn Management Skills,” Journal of Management Education 15, no. 3 (August 1991), pp. 279–294; Peter Guber, “Telling Purposeful Stories: An Organization's Most Under-Utilized Competency,” People & Strategy 34, no. 1 (2011), pp. 4–5; Alison Esse, “Response from The Storytellers to Peter Guber's Article,” People & Strategy 34, no. 1 (2011), pp. 7–8; and David Fleming, “Narrative Leadership: Using the Power of Stories,” Strategy & Leadership 29, no. 4 (July–August 2001), pp. 34–36.
New Leader Action Memo
As a leader, use story and metaphor to help people connect emotionally with your message and the key values you want to instill.
Evidence for the compatibility of stories with human thinking was demonstrated by a study at the Stanford Business School. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#NKFF8YWJ45Y4FLV3F691) The goal was to convince MBA students that a company practiced a “no-layoffs” policy. Some students were told only a story related to the company's commitment to avoiding layoffs. A second group was given statistical data showing little turnover compared to competitors. Another group was shown the company's policy statement. A fourth group was provided with statistics and a story combined. Of all these approaches, the students presented with the story alone were most convinced that the company practiced a no-layoffs policy. This is a powerful lesson for leaders. To in�luence people, it is important to win their hearts, and stories are the best way to do that. Leaders who incorporate imagery and elements of story in their everyday language have a more powerful and lasting in�luence than those who simply marshal facts and �igures to support their point.
Howard Gardner, Leading Minds: An Anatomy of Leadership (New York: Basic Books, 1995).
Everyone can learn to use stories, and stories need not be long or carefully constructed to have an impact. A story can be a joke, a simple example illustrating an idea, a historical incident, something from a movie or television show, a personal experience, or something read on a blog or news page. The key point is that it should create an emotional context for getting the leader's message across. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#RTMRGW81Y4H9DF1DS496) One senior leader referred to Lewis and Clark's 1804–1806 expedition through 7,689 miles of uncharted territory to get people lined up in support of a new vision and strategy. Along the way, there would be “mountains,” “rivers,” and “friends and foes alike,” he told them, but just like Lewis and Clark they could adapt to the many twists and turns of the journey. Using the image worked; the entire organization came to embrace the new vision, and people often refer back to the Lewis and Clark story to remember that they are on an adventurous journey. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#TAXHXAZDPENA5SYDB260) Pulling together in the same direction is essential for change to happen, and people come together because of emotion, not logic.
Art Kleiner, “The Art of the Business Narrative” (an interview with Peter Guber), Strategy + Business 63 (Summer 2011), http://www.strategy-business.com/article/00067? gko=3e7b3 (http://www.strategy-business.com/article/00067?gko=3e7b3) (accessed April 29, 2013).
Example told in Fleming, “Narrative Leadership.”
“People are wired for telling and hearing stories,” says Peter Guber, Hollywood �ilm producer, CEO of Mandalay Entertainment Group, and author of Tell to Win: Connect, Persuade, and Triumph with the Hidden Power of Story , which is further described in this chapter's Leader's Bookshelf . “We need to plug into that and use it.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vnuyyb0dnssyqrc2k870#RCPHGXED57HE7U0HZ977)
Kleiner, “The Art of the Business Narrative.”
Leader's Bookshelf Tell to Win: Connect, Persuade, and Triumph with the Hidden Power of Story by Peter Guber
Everybody in a leadership role shares the same problem, Peter Guber says in Tell to Win : “To succeed, you have to persuade others to support your vision, dream, or cause.” Whatever the purpose of a leader communication—motivating employees, engaging customers, or organizing investors—leaders have to “get your listeners' attention, emotionalize your goal as theirs, and move them to act…. You have to reach their hearts as well as their minds.” What's the best way to do that? With a story. For leaders, telling purposeful stories is an everyday requirement.
How to Tell a Purposeful Story
As an entrepreneur, media mogul, and producer of award-winning �ilms including Batman, Midnight Express, The Color Purple , and Rain Man , Guber clearly knows a lot about telling a good story, but he emphasizes that you don't have to be a professional to tell a moving story. Guber gives some guidelines for what makes a successful leader story:
It Has a Goal . Purposeful stories have a call to action. Leaders tell stories to achieve something. They are clear in their minds what they want followers to feel, think, and do because of the story. When Guber started as head of Sony Pictures Entertainment, he says the job of pulling together a disparate group of people spread across the country and overseas
seemed insurmountable. He told the story from the �ilm Lawrence of Arabia , where T.E. Lawrence pulls all the Arab tribal leaders together, to inspire employees to reclaim their heritage and pull together as “one tribe.”
It Is Authentic. The leader has to be motivated by the goal, or it will be impossible to motivate and inspire followers. Being personally connected to the story enables the teller to connect listeners to it. Good storytellers don't follow a script and don't always stay on point. They sometimes shift the story if needed to emotionally bond with the listener and get the point across.
It Is Targeted to the Audience . Build your story about “what's in it for them.” The leader has to know his or her “audience” (followers) to incorporate their interests into the story. By demonstrating that you are interested in what concerns followers, you change passive listeners into active participants in the story.
Why Is Storytelling So Important?
Without stories, leaders have only “transactional elements and no relationship” with followers, says Guber. In Tell to Win , Guber uses not only his own experiences but those of more than 90 other leaders, including famed basketball coach and motivational speaker Pat Riley, Chad Hurley, cofounder and CEO of YouTube, and former U.S. president Bill Clinton, who have used purposeful stories to drive their success. Reading about how these leaders use stories gives a clear sense that a good story can be very simple and can come from anywhere. As Guber says, “Anyone can do it, and everyone does do it!” The key for leaders is to do it purposefully .
Source: Connect to Win , by Peter Guber, is published by Crown Business.
9-3. Communicating to Persuade and In�luence Stories are particularly useful tools for persuading and in�luencing people. Leaders don't communicate just to convey information. They use communication skills to sell others on the vision and in�luence them to behave in ways that achieve goals and help accomplish the vision.
The ability to persuade others is more critical today than ever before. The command-and-control mindset of managers telling people what to do and how to do it is gone. Employees don't just want to know what they should do but why they should do it. In addition, with new collaborative ways of working, many leaders are involved in situations where lines of authority are blurred. Companies such as Union Bank of California, Gerdau Ameristeel, and IBM are adding training programs that help people learn how to lead by in�luence rather than command. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nzyu�ka416tagrkuw182#NHMKGD9AXX83KG3RS445) Leaders can follow four steps to practice the art of persuasion: * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nzyu�ka416tagrkuw182#UNJHK02UP5HM1QCL1613)
Erin White, “Theory & Practice: Art of Persuasion Becomes Key; Managers Sharpen Their Skills as Line of Authority Blurs,” The Wall Street Journal (May 19, 2008), p. B5.
This section is based on Jay A. Conger, “The Necessary Art of Persuasion,” Harvard Business Review (May–June 1998), pp. 84–95.
1. Listen �irst . A study published in the Journal of Research in Personality shows that when people feel that they have been listened to by someone trying to in�luence them, their liking of, trust in, and commitment to that person increases. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nzyu�ka416tagrkuw182#RWYFVJQNBC41ZNZ3D351) Good leaders know that being attentive to others' needs and emotions is the �irst step toward in�luencing them. They realize that most people can't hear what you have to say until they have the chance to say what is on their minds. Leaders ask questions and listen actively and supportively to build rapport, �ind common ground, and get a grasp on how followers may react to their ideas and proposals. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nzyu�ka416tagrkuw182#KLVUZVHX329TW3DME143)
Reported in Tori Rodriguez, “How to Use Your Ears to In�luence People,” Scienti�ic American Mind (November–December 2012), p. 20.
Chris Musselwhite and Tammie Plouffe, “To Have the Most Impact, Ask the Right Questions,” Harvard Business Review Blog (March 1, 2013), http://blogs.hbr.org/cs/2012/11/to_have_the_most_impact_ask_qu.html (http://blogs.hbr.org/cs/2012/11/to_have_the_most_impact_ask_qu.html) (accessed April 26, 2013); Edward T. Reilly, “In�luential Leaders,” Leadership Excellence (January 2013), p. 10; and Stephen R. Covey, The 7 Habits of Highly Effective People (New York: Free Press, 2004).
2. Establish credibility . A leader's credibility is based on the leader's knowledge and expertise as well as his or her relationships with others. When leaders have demonstrated that they make well-informed, sound decisions, followers have con�idence in their expertise. Leaders also build credibility by listening to others, establishing good relationships, and showing that they have others' best interests at heart.
3. Build goals on common ground . To be persuasive, leaders describe how what they're requesting will bene�it others as well as the leader. For example, when David Zugheri wanted to switch to a primarily paperless system at First Houston Mortgage, he emphasized to employees that storing customer records electronically meant they could now work from home when they needed to care for a sick child, or take a vacation and still keep track of critical accounts. “I could literally see their attitudes change through their body language,” Zugheri says. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nzyu�ka416tagrkuw182#FQWL5BV8J4VZ1TS08194) When leaders can't �ind common advantages, it's a good signal that they need to adjust their goals and plans.
Darren Dahl, “Trust Me: You're Gonna Love This: Getting Employees to Embrace New Technology,” Inc. (November 2008), p. 41.
4. Make your position compelling to others . Leaders appeal to others on an emotional level by using symbols, metaphors, and stories to express their messages rather than relying on facts and �igures alone. By tapping into the imaginations of their followers, leaders can inspire people to accomplish amazing results. At NGM Insurance Company, leaders in the claims unit picked up on a statement made by one of the company's independent agents to appeal to people's emotions and imaginations. When discussing how the claims unit should relate to customers, the agent said, “I want my customers to feel your arm go around them when they have a claim.” Leaders used this evocative image to focus employees on reengineering the claims process to provide better, faster, more caring service. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nzyu�ka416tagrkuw182#DFUS16KXH4C4RVVWX727)
John Guaspari, “A Shining Example,” Across the Board (May–June 2002), pp. 67–68.
New Leader Action Memo
As a leader, you can increase your in�luence by listening �irst to build trust and �ind common ground and by establishing your credibility based on knowledge and skills. You can show how your plans will bene�it followers to gain their support.
Persuasion is a valuable communication process that individuals can use to lead others to a shared solution or commitment. To be persuasive and act as communication champions, leaders must communicate frequently and easily with others in the organization. Yet for some people, communication experiences are unrewarding, so they may consciously or unconsciously avoid situations where communication is required. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nzyu�ka416tagrkuw182#HMJPJD4F0WW9NUU82790) The term communication apprehension describes this avoidance behavior and is de�ined as “an individual's level of fear or anxiety associated with either real or anticipated communication with another person or persons.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nzyu�ka416tagrkuw182#KDNALYZR1LZD880R8237)
J. C. McCroskey and V. P. Richmond, “The Impact of Communication Apprehension on Individuals in Organizations,” Communication Quarterly 27 (1979), pp. 55–61.
J. C. McCroskey, “The Communication Apprehension Perspective,” in J. C. McCroskey and J. A. Daly, eds., Avoiding Communication: Shyness, Reticence, and Communication Apprehension (London: Sage Publications, 1984), pp. 13–38.
9-4. Selecting the Correct Communication Channel One key to effective communication is selecting the right channel for relaying the message. A channel is a medium by which a communication message is carried from sender to receiver. A leader may discuss a problem face-to-face, use the telephone, write a memo or letter, use e-mail, send a text message, post a message on a blog or Web page, or put an item in a newsletter, depending on the nature of the message.
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
9-4a. The Continuum of Channel Richness
Research has attempted to explain how leaders select communication channels to enhance communication effectiveness. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#VBRNL6NE0Q12UR1M1853) Studies have found that channels differ in their capacity to convey information. Channel richness is the amount of information that can be transmitted during a communication episode. The channels available to leaders can be classi�ied into a hierarchy based on information richness, as illustrated in Exhibit 9.6 .
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
channel a medium by which a communication message is carried from sender to receiver
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Robert H. Lengel and Richard L. Daft, “The Selection of Communication Media as an Executive Skill,” Academy of Management Executive 2 (August 1988), pp. 225–232; and Richard L. Daft and Robert Lengel, “Organizational Information Requirements, Media Richness and Structural Design,” Managerial Science 32 (May 1986), pp. 554–572.
Exhibit 9.6. A Continuum of Channel Richness
The richness of an information channel is in�luenced by three characteristics: (1) the ability to handle multiple cues simultaneously; (2) the ability to facilitate rapid, two-way feedback; and (3) the ability to establish a personal focus for the communication. Face-to-face discussion is the richest medium because it permits direct experience, multiple information cues, immediate feedback, and personal focus. Face-to- face discussions facilitate the assimilation of broad cues and deep, emotional understanding of the situation. Tony Burns, former CEO of
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Channel richness the amount of information that can be transmitted during a communication episode
Ryder Systems, always preferred handling things face-to-face. “You can look someone in the eyes,” he explains. “You can tell by the look in his eyes or the in�lection of his voice what the real problem or question or answer is.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#EPMMX0JYLDPCF6J3J833) Telephone conversations are next in the richness hierarchy. Eye contact, gaze, posture, and other body language cues are missing, but the human voice still carries a tremendous amount of emotional information.
Ford S. Worthy, “How CEOs Manage Their Time,” Fortune (January 18, 1988), pp. 88–97.
Electronic messaging through e-mail, text messages, and social media such as Twitter is increasingly being used for communications that were once handled over the telephone. Although these channels lack both visual and verbal cues, they allow for rapid feedback and can be personalized. Blogs provide a way to get information to a wide audience and also permit rapid feedback. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#ANYDD8W02UNV7Q4FW067)
John R. Carlson and Robert W. Zmud, “Channel Expansion Theory and the Experiential Nature of Media Richness Perceptions,” Academy of Management Journal 42, no. 2 (1999), pp. 153– 170; and R. Rice and G. Love, “Electronic Emotion,” Communication Research 14 (1987), pp. 85–108.
Print media such as notes and letters can be personalized, but they convey only the cues written on paper and are slow to provide feedback. Impersonal written media, including �liers, bulletins, and standard computer reports, are the lowest in richness. The channels are not focused on a single receiver, use limited information cues, and do not permit feedback.
New Leader Action Memo
As a leader, you can choose rich forms of communication, such as face-to-face or the telephone, when an issue is complex, emotionally charged, or especially important. For a routine, straightforward message, you can use a written or electronic form of communication.
Each communication channel has advantages and disadvantages, and each can be an effective means of communication in the appropriate circumstances. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#LQWW5VXNLJ4BYYCV4359) Channel selection depends on whether the message is routine or nonroutine. Routine communications are simple and straightforward, such as a product price change. Routine messages convey data or statistics or simply put into words what people already understand and agree on. Routine messages can be ef�iciently communicated through a channel lower in richness. Written or electronic communications also are effective when the audience is widely dispersed or when the communication is “of�icial” and a permanent record is required. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#PVRF4W95JE24XDFPY127) On the other hand, nonroutine messages typically concern issues of change, con�lict, or complexity that have great potential for misunderstanding. Nonroutine messages often are characterized by time pressure and surprise. Leaders can communicate nonroutine messages effectively only by selecting a rich channel.
Ronald E. Rice, “Task Analyzability, Use of New Media, and Effectiveness: A Multi-Site Exploration of Media Richness,” Organizational Science 3, no. 4 (November 1994), pp. 502–527.
Richard L. Daft, Robert H. Lengel, and Linda Klebe Treviño, “Message Equivocality, Media Selection and Manager Performance: Implications for Information Systems,” MIS Quarterly 11 (1987), pp. 355–368.
“The more technologically advanced our society becomes, the more we need to go back to the basic fundamentals of human communication.”
—Angela Ahrendts, senior vice president, retail and online stores at Apple Inc.
Leaders should select a channel to �it the message. Following layoffs, for example, people are fearful and worried about their own jobs. Many leaders, not knowing what to say, send out a written notice and hide in their of�ices. Good leaders, on the other hand, know face-to- face communication is the way to keep morale and productivity high. At one construction company that had to lay off employees, the CEO called employees together and told them how the mortgage crisis and downturn in the housing market was affecting their company. He acknowledged that he couldn't promise there wouldn't be more layoffs, but as he explained the situation the emotions in the room became calmer because people felt they knew what was going on. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#MNGHBNRN0YB70HHGW763) Particularly in times of change, if people don't hear what's happening from leaders, they rely on rumors and will often assume the worst. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#AVTH7GL1CRH1WC2KK022)
Laura Raines, “Going Forward after Layoffs: Leaders Need to Reassure Employees, Share Vision of Company's Future,” The Atlanta Journal-Constitution (April 26, 2009), p. G1.
Quint Studor, “Case for Transparency,” Leadership Excellence (April 2010), p. 19.
When a message is highly important, leaders often use redundant communication by sending the same message using different channels. For example, one leader explained a request to an employee in person, then immediately composed a follow-up e-mail to the same
employee that summarized the request in writing. For companywide changes, leaders might hold small group sessions to talk with employees about a new policy, post an article on the intranet and in the newsletter, and use social media to make sure everyone gets the information. By using redundant communication, saying the same thing more than once via multiple channels, leaders add weight to the message and keep the issue at the top of employees' minds. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#SNJPPXAYH591AC6A1174)
Paul M. Leonardi, Tsedal B. Neeley, and Elizabeth M. Gerber, “How Managers Use Multiple Media: Discrepant Events, Power, and Timing in Redundant Communication,” Organization Science 23, no. 1 (January–February 2012), pp. 98–117.
Most leader communication by its very nature is composed of nonroutine messages. Although leaders make good use of all channels, they don't let anything substitute for the rich face-to-face channel when important issues are at stake. However, some companies are also �inding ways to use new forms of electronic communication to complement the richer, ongoing conversations across the organization.
In the Lead Earl's Restaurants Ltd.
Earl's, a Canadian-based chain of casual restaurants with as many as 8,000 workers at its seasonal peak, takes the engagement of its employees seriously—so seriously that it places more emphasis on that measurement than it does on sales �igures. Leaders know happy and committed employees are what drive sales, after all. Earl's used to do an annual survey to make sure all employees felt that they had a chance to be heard, but new technology has given leaders an easier way to �ind out what people are thinking. Earl's now sends out short surveys at least every three months and people can say whatever they want, anonymously.
Using a software tool called Culture Amp, leaders can push short surveys to employees' mobile devices at any time. Being able to remain anonymous helps employees overcome their reluctance to vent about little things or to ask tough questions of leaders. The regular surveys also let people know that the company cares about what they're going through, because leaders follow up on the information they receive. Importantly, the technology seems to be spurring more face-to-face conversation too. Leaders say that since the company started using Culture Amp, employees seem to be talking more with their supervisors in person. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#WCFHFS51WA97CD2A9065)
Christopher Mims, “Bosses Use Anonymous Networks to Learn What Workers Really Think,” The Wall Street Journal (June 21, 2015), http://www.wsj.com/articles/bosses- use-anonymous-networks-to-learn-what-workers-really-think-1434930794 (http://www.wsj.com/articles/bosses-use-anonymous-networks-to-learn-what-workers-really-think- 1434930794) (accessed November 5, 2015).
Earl's uses electronic communication to supplement, not replace, a leader communication style that emphasizes listening to employees. Other companies are also �inding anonymous electronic surveys a good way to give people a comfortable way to say what's on their minds. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#LFZD62J6PGTWBVC9M056)
Christopher Mims, “Bosses Use Anonymous Networks to Learn What Workers Really Think,” The Wall Street Journal (June 21, 2015), http://www.wsj.com/articles/bosses-use- anonymous-networks-to-learn-what-workers-really-think-1434930794 (http://www.wsj.com/articles/bosses-use-anonymous-networks-to-learn-what-workers-really-think-1434930794) (accessed November 5, 2015).
9-4b. Effectively Using Electronic Communication Channels
New Leader Action Memo
As a leader, you can avoid letting electronic communications become a complete substitute for human interactions. You can resist the urge to criticize or complain in an electronic message, and never send an e-mail when you are angry or upset.
Electronic communication has become a fact of life in today's organizations. New technologies provide highly ef�icient ways of communicating and can be particularly useful for routine messages. Text messaging, which allows people to share shorthand messages instantly, has rapidly grown in use and has become more common than e-mail in some organizations. Many of today's leaders also use blogs to keep in closer touch and rebuild trust among employees, customers, shareholders, and the public.
Electronic communication has many advantages, but there are disadvantages as well. The proliferation of electronic media has contributed to poorer communication in many organizations. Employees who work in of�ices down the hall from one another will often send an e-mail or text message rather than communicating face-to-face. One employee reported that he was �ired via e-mail—by a manager who sat �ive feet away in the same of�ice. *
(http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#UDYF4GR89FV30PD8E904) Even for less traumatic messages, electronic methods can increase the potential for communication errors. Leaders can come across as sounding cold, arrogant, or insensitive when they try to discuss delicate or complex issues via e-mail. Things that might be handled smoothly in a face-to-face conversation or over the phone turn into massive problems by fostering resentment, bitterness, and hard feelings. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#NZDGTHAM2XMLE5G7D356)
Anne Fisher, “Readers Weigh In on Rudeness and Speechmaking” (Ask Annie column), Fortune (January 10, 2000), p. 194.
Edward M. Hallowell, “The Human Moment at Work,” Harvard Business Review (January–February 1999), pp. 58–66; Andrea C. Poe, “Don't Touch That ‘Send’ Button!” HR Magazine (July 2003), pp. 74–80; and Elizabeth Bernstein, “You Can Recover From a Snippy Email, But Prepare to Grovel,” The Wall Street Journal (October 21, 2014), http://www.wsj.com/articles/you-can-recover-from-a-snippy-email-but-prepare-to-grovel-1413829668 (http://www.wsj.com/articles/you-can-recover-from-a-snippy-email-but- prepare-to-grovel-1413829668) (accessed November 5, 2015).
Another equally disturbing concern, one psychiatrist argues, is that the growing use of technology for communicating, particularly social media, has created hidden problems for both individuals and organizations by depriving people of the “human moments” that are needed to energize people, inspire creativity, and support emotional well-being. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#HACP8950NG5TRCKRS502) People need to interact with others in physical space to build the connections that create great organizations. Electronic communication is here to stay, and the key for leaders is to bene�it from the ef�iciencies of new technologies while preventing their unintended problems. Here are some tips for effectively using electronic communication:
Combine high-tech and high-touch . Never allow electronic communication to take the place of human connections. People who work together should meet face-to-face on a regular basis, and leaders should get to know their followers in real as well as virtual space. Many companies that use virtual workers require that they come into the of�ice at least once a month for unstructured face time. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#RABFYSHD8M7Z2N73Z467) A real-estate developer in Boston has a free-pizza day once a week when widely scattered workers can come by, sit around the table in his of�ice, and just talk. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#MVULN2WMSXGFPNEGJ457)
Hallowell, “The Human Moment at Work”; Deborah L. Duarte and Nancy Tennant Snyder, Mastering Virtual Teams: Strategies, Tools, and Techniques That Succeed (San Francisco: Jossey-Bass, 2000).
Hallowell, “The Human Moment.”
Consider the circumstances . People who know one another well and have worked together a long time can typically communicate about more complex issues via electronic means than can people who have a new working relationship. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#VCNZQHD2YK7QDFXK9582) When people have a long-term working relationship, there is less potential for misunderstandings and hard feelings. In addition, when all parties involved have a good grasp of the issues being discussed, electronic channels can be used effectively. A leader of a longstanding, well-functioning team could thus use e-mail more extensively than the leader of a team that has just been formed.
Carlson and Zmud, “Channel Expansion Theory and the Experiential Nature of Media Richness Perceptions.”
Think twice before you hit “Send.” Many people feel pressured to respond to electronic messages quickly, which can create unintended problems. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#EALCL66JGYHHY5QWF161) Citigroup recently sent a memo to all employees reminding them to “think before writing, read before sending.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/znlugdw1tccnds500886#DRRLUUWFBR5Q0H9PL459) Slow down and consider whether the message is something you want out there in cyberspace where anyone might read it. Never send an electronic message when you are angry or upset. Always read your messages at least twice.
Mary Lynn Pulley and Jane Hilberry, Get Smart! How E-Mail Can Make or Break Your Career and Your Organization (Colorado Springs, CO: Get Smart! Publishing, 2007).
Reported in Cassell Bryan-Low and Aaron Lucchetti, “George Carlin Never Would've Cut It at the New Goldman Sachs—Firms Ban Naughty Words in Emails; An ‘Unlearnable Lesson’ on Wall Street?” The Wall Street Journal (July 29, 2010).
Hallowell, “The Human Moment at Work.”
Exhibit 9.7 lists some further dos and don'ts concerning subjects appropriate for electronic mail.
Exhibit 9.7. Dos and Don'ts of Electronic Mail
Do
Use e-mail to set up meetings and send agenda materials, to recap spoken conversations, or to follow up on information already discussed face-to-face.
Keep e-mail messages short and to the point. Many people read e-mail on handheld devices, which have small screens.
Use e-mail to transmit standard reports.
Act like a newspaper reporter. Use the subject line to grab the reader's attention and re�lect what the message is about. Put the most important information in the �irst paragraph. Answer any questions—who, what, when, where, why, and how—that are pertinent.
Consider making a quick phone call to clear up confusion rather than setting off a barrage of back-and-forth e-mail messages.
Don't
Use e-mail to discuss something with a colleague who sits across the aisle or down the hall from you. Take the old- fashioned approach of speaking to each other.
Say anything negative about a boss, friend, or colleague via e-mail. And don't forward the negative comments of others.
Use e-mail to start or perpetuate a feud. If you get an e-mail that tempts you to respond in a scathing manner, stop yourself. You may be misinterpreting the message. Even if you're not, take the high road.
Write anything in an e-mail you wouldn't want published in a newspaper. E-mail with sensitive or potentially embarrassing information has an uncanny way of leaking out.
Begin responding to e-mail messages on your smartphone's tiny keyboard the minute you get out of a meeting. Get back to your of�ice, laptop, or tablet, where you can craft a better response in less time.
Sources: Based on “15 Dos and Don'ts” box in Andrea C. Poe, “Don't Touch That ‘Send’ Button,” HR Magazine (July 2001), pp. 74–80; Michael Goldberg, “The Essential Elements of E-Mail,” CIO (June 1, 2003), p. 24; Mary Lynn Pulley and Jane Hilberry, Get Smart! How E-Mail Can Make or Break Your Career and Your Organization (Colorado Springs, CO: Get Smart! Publishing, 2007); and “The Management Tip: 3 Ways to Battle Email Overload,” Harvard Business Review (January 17, 2013), http://hbr.org/tip/2013/01/17/2-ways-to-battle-email-overload (http://hbr.org/tip/2013/01/17/2-ways-to- battle-email-overload) (accessed April 29, 2013).
9-5. Nonverbal Communication
New Leader Action Memo
As a leader, you can symbolize important messages through your appearance, body language, facial expressions, and daily actions. You can be more effective by using management by wandering around. You can get out and mingle with followers and customers to learn about their ideas, problems, and needs through informal observation and conversation.
Leaders don't just communicate in words. Leaders are watched, and their appearance, behavior, actions, and attitudes are symbolic messages to others. Indeed, nonverbal communication , that is, messages transmitted through actions, behavior, facial expressions, and tone of voice, accounts for over one-half of the entire message received in a personal encounter. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vfxjk1jhj6vq55evy998#RUFQYRNK2SNG19UU0743) Even the selection of a communication channel can convey a symbolic message. In other words, people attach meaning to the channel itself. Reports and memos typically convey formality and legitimize a message. Personal visits from a leader are interpreted as a sign of teamwork and caring. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vfxjk1jhj6vq55evy998#DWNVV1SYNRY9JZQ0D615)
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication
messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
Albert Mehrabian, Silent Messages (Belmont, CA: Wadsworth, 1971); and Albert Mehrabian, “Communicating without Words,” Psychology Today (September 1968), pp. 53–55.
Jane Webster and Linda Klebe Treviño, “Rational and Social Theories as Complementary Explanations of Communication Media Choices: Two Policy Capturing Studies,” Academy of Management Journal (December 1995), pp. 1544–1572.
Many people don't realize that they are communicating all the time, without saying a word, by their facial expressions, body language, and actions. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vfxjk1jhj6vq55evy998#AQDUD6TN1CMJYL6JB857) Consider the manager who thought his new boss disliked him and didn't appreciate his hard work and commitment. “I see her talking to other managers, but she never talks to me,” he told a friend, wondering if he should start looking for another job. When he �inally asked his new boss what he could do to improve the relationship, the new leader was surprised. She told him that she considered him one of her most trusted managers and had been thankful to have one person she didn't have to watch over all the time. The new leader had been so busy that she didn't realize her nonverbal communication was sending an inaccurate message to a valued employee. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vfxjk1jhj6vq55evy998#DYJKHTPBCMD11RVQZ746)
Mac Fulfer, “Nonverbal Communication: How to Read What's Plain as the Nose … or Eyelid … or Chin … on Their Faces,” Journal of Organizational Excellence (Spring, 2001), pp. 19–27.
Based on a story in Christopher Hegarty, How to Manage Your Boss (Mill Valley, CA: Whatever Publishing, 1982), pp. 58–59.
Leaders strive to be aware of what they signal to others in addition to verbal messages. Research suggests that if there is a discrepancy between a person's verbal and nonverbal communication, the nonverbal is granted more weight by the interpreter. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vfxjk1jhj6vq55evy998#XXLHKJHRLDV4EW9M1890) Moreover, judgments based on nonverbal communication can occur at lightning speed. One study suggests that people form an opinion based on body language within 115 milliseconds! * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vfxjk1jhj6vq55evy998#ADMGXW6CW5Z7EC3QL177) In interpreting a leader's nonverbal cues, followers determine the extent to which a leader's actions correspond with his or her verbal messages. If a leader talks about customer service but spends no time with customers, followers will likely place little value on service. If a leader talks about valuing employee feedback but stays in her of�ice with the door closed most of the time, followers will doubt the sincerity of her words. One way leaders nonverbally communicate the value of feedback is by practicing management by wandering around (MBWA). * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vfxjk1jhj6vq55evy998#UCUPXDNPN3YB5NRF0849) MBWA means that leaders leave their of�ices and speak directly to employees as they work. For example, Thomas Swidarski, former CEO of Diebold and current chairman and interim CEO of Bancsource Inc., is known to personally drop by employees' desks to ask about their work or see what's on their minds. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vfxjk1jhj6vq55evy998#EKEFGB7ETW158A8R2062) These impromptu encounters send symbolic positive messages to followers that leaders care about their ideas, opinions, and feelings.
I. Thomas Sheppard, “Silent Signals,” Supervisory Management (March 1986), pp. 31–33; and Martha E. Mangelsdorf, “Business Insight (A Special Report); Executive Brie�ing: The Power of Nonverbal Communication” (an interview with Alex Pentland), The Wall Street Journal (October 20, 2008), p. R2.
Reported in Jane Jordan-Meier, “Appearances Do Matter: Leadership in a Crisis,” Leader to Leader (Fall 2012), pp. 16–20.
Thomas H. Peters and Robert J. Waterman Jr., In Search of Excellence (New York: Harper & Row, 1982); and Tom Peters and Nancy Austin, A Passion for Excellence: The Leadership Difference (New York: Random House, 1985).
Carol Hymowitz, “How to Lead after Sudden Rise,” The Wall Street Journal (May 8, 2006).
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
nonverbal communication messages transmitted through action and behavior
9-6. Current Communication Challenges Two current challenges facing leaders are using social media and developing skills for communicating in a crisis.
9-6a. Leadership via Social Media
Everyone knows social media, especially Facebook and Twitter, have changed the way people carry on their social lives. Now they are changing the way people interact in the of�ice, too. Social media refers to a variety of Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content. Kaiser Permanente uses an internal social media platform called IdeaBook that supports blogs, wikis, online video, and chat rooms and provides a way for people to meet and carry on conversations in virtual work spaces. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zyeke2435el8mu1jg691#PDKR2B3LU1R4LKRA3926) When leaders at Internet shoe retailer Zappos realized the economic downturn was hurting their business, CEO Tony Hsieh chose social media to communicate with people about the need to lay off employees. Wanting to get the word out quickly to alleviate stress and uncertainty, Hsieh used redundant communication , as de�ined earlier. He announced the decision and the offer of generous severance packages in an e-mail, on his blog, and with Twitter. Employees being let go were noti�ied personally. It was a dif�icult time, but the response to how leaders handled the situation from both departing staffers and those remaining was generally positive. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zyeke2435el8mu1jg691#LCGGAZHTCRWLNU34N586)
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media
Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Vince Golla, interviewed by David Kiron, “Social Business at Kaiser Permanente: Using Social Tools to Improve Customer Service, Research and Internal Collaboration,” MIT Sloan Management Review (March 6, 2012), http://sloanreview.mit.edu/article/social-tools-improve-service-research-collaboration/ (http://sloanreview.mit.edu/article/social-tools- improve-service-research-collaboration/) (accessed April 30, 2013).
Jeffrey M. O'Brien, “Zappos Knows How to Kick It,” Fortune (February 2, 2009), pp. 54–60.
Tony Hsieh was an early adopter of Twitter, but leaders in general have been slow to embrace all forms of social media. General Electric CEO Jeffrey Immelt, for example, tweeted for the �irst time in September 2012, prompting this response: “@JeffImmelt how come my grandfather got on twitter before you?” Bill George, former Medtronic CEO and a professor at Harvard Business School, says leaders need to consider the use of social media to be an important part of their job description and a tool for being better leaders. “People want CEOs who are real. They want to know what you think,” he says. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zyeke2435el8mu1jg691#JAQVGNQ5KA2HX11H6691)
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Social media Internet-based applications, including social networking, wikis, blogs, and so forth, that allow the creation and sharing of user-generated content.
Leslie Kwoh and Melissa Korn, “140 Characters of Risk: CEOs on Twitter,” The Wall Street Journal (September 26, 2012), p. B1.
IBM's Institute for Business Value interviewed 1,700 top executives and found that they believe “the trend toward openness” will have the greatest impact on their business and job in coming years. People are demanding closer personal relationships with leaders and more open and honest communication. Social media directly support the trend toward openness and transparency and give leaders a new way to connect and build relationships with employees all across the organization and around the world. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zyeke2435el8mu1jg691#GAHWY5JG2A3HNHCZ3005) When people feel that they belong to a community with shared values, their attachment to the organization increases. Leaders should recognize that in today's world, particularly for younger employees, “community” is often built through social media.
Peter Korsten, “Lead via Connections,” Leadership Excellence (August 2012), p. 16.
9-6b. Being Crisis-Ready
Communication is a key part of a leader's job, but at no time is it more crucial than during times of rapid change, uncertainty, or crisis. Everyone hears about the major crises that affect organizations, such as the terrorist bombing at the 2013 Boston Marathon, Volkswagen's 2015 emissions scandal, or the 2011 tsunami and nuclear disaster in Japan, but leaders encounter small crises every day, such as the loss of computer data, charges of racial discrimination, or the need for downsizing.
To be prepared for communicating in a crisis, leaders can develop four skills: * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zyeke2435el8mu1jg691#JQRCKGKZQX7LTAPL2015)
This section is based on Leslie Wayne and Leslie Kaufman, “Leadership, Put to a New Test,” The New York Times (September 16, 2001), Section 3, pp. 1, 4; Jerry Useem, “What It Takes,” Fortune (November 12, 2001), pp. 126–132; Andy Bowen, “Crisis Procedures That Stand the Test of Time,” Public Relations Tactics (August 2001), p. 16; Matthew Boyle, “Nothing Really Matters,” Fortune (October 15, 2001), pp. 261–264; and Jordan-Meier, “Appearances Do Matter: Leadership in a Crisis.”
New Leader Action Memo
As a leader, you can learn to be an effective crisis communicator. By remaining calm and focused, you can acknowledge people's concerns and fears, provide accurate and up-to-date information, and help people see a better tomorrow.
1. Stay calm . Perhaps the most important part of a leader's job in a crisis situation is to absorb people's fears and uncertainties. “You do not pass uncertainty down to your team members,” said Eugene Kranz, the NASA �light director charged with returning the crippled Apollo 13 spacecraft safely to earth in 1970. “No matter what is going on around you, you have to be cooler than cool.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zyeke2435el8mu1jg691#CLYE7ZGC4GP38TH68523)
Quoted in Useem, “What It Takes.”
2. Be visible and supportive . Many leaders underestimate just how important their presence and support is during a crisis. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zyeke2435el8mu1jg691#LSKQML7W6RUZDWS5R741) Being a leader means stepping out immediately, both to reassure followers and respond to public concerns.
Stephen Bernhut, “Leadership, with Michael Useem” (Leader's Edge interview), Ivey Business Journal (January–February 2002), pp. 42–43.
3. Tell the truth . Leaders do their best to determine the facts, and then “get the awful truth out” to employees and the public as soon as possible. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zyeke2435el8mu1jg691#AKDKB8GG24LHEWH76410) Rumor control is critical. Duke University provides an example of the importance of getting the truth out.
Ian I. Mitroff, “Crisis Leadership,” Executive Excellence (August 2001), p. 19.
4. Communicate a vision for the future . People need to feel that they have something to work for and look forward to. Moments of crisis present excellent opportunities for leaders to communicate a vision for the future that taps into people's emotions and unites them toward common goals.
In the Lead Duke University
Duke University was thrust into crisis when three members of its lacrosse team were charged with beating, strangling, and raping an African-American exotic dancer the team had hired for a party where team members were drinking heavily. Duke's reputation had already been tarnished by previous incidents where leaders had failed to respond quickly and appropriately, so handling this crisis could determine whether the university recovered its good name or sank further into the mud.
Duke president Richard Brodhead immediately accepted responsibility for the incident, offered an apology, and began steps for taking corrective action. He indicated that the facts of the rape case were not established and that the players were presumed innocent until proven guilty (charges against all three players were eventually dropped when the victim's story changed). However, Brodhead acknowledged that several members of the lacrosse team had clearly acted inappropriately. From the time the incident happened until the end of the case, Brodhead communicated regularly through various media with students and parents, alumni, employees, and the public. As he explained on 60 Minutes , Brodhead realized he “had to take personal leadership of this issue from day one.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zyeke2435el8mu1jg691#ZLPRX7S303S6S7Z1D487)
John A. Fortunato, “Restoring a Reputation: The Duke University Lacrosse Scandal,” Public Relations Review 34 (2008), pp. 116–123.
Leadership Essentials Communicating effectively is a crucial skill for leaders. Leaders are communication champions who inspire and unite people around a common sense of purpose and identity. They lead strategic conversations that get people talking across boundaries about the vision, key strategic themes, and the values that can help the group or organization achieve desired outcomes.
Six elements that facilitate strategic conversations are an open communication climate, asking questions, active listening, dialogue, candor, and using stories. Open communication is essential for building trust, and it paves the way for more opportunities to communicate with followers, thus enabling the organization to gain the bene�its of all employees' minds. However, leaders must be active listeners to identify strategic issues and build productive relationships that help the organization succeed, and they must be straightforward and candid in communicating with followers.
When active listening and candor spread throughout a group, a type of communication referred to as dialogue occurs. Through dialogue, people discover common ground and together create a shared meaning that enables them to understand each other and share a view of the world. Using imagery and stories in communication helps leaders connect with people on an emotional level and be more in�luential.
Leader communication is purpose-directed, and an important element is persuading others to act in ways that achieve goals and accomplish the vision. Four steps for practicing the art of persuasion are to listen �irst, establish credibility, build goals on common ground, and make your position compelling to others. Leaders select the appropriate communication channels, send redundant communications to reinforce important messages, and use nonverbal as well as verbal communication.
Electronic communication channels present new challenges for leader communication. Electronic channels can be very advantageous if used appropriately, but their use increases the potential for communication errors, and these channels are not effective for complex or sensitive messages.
Current communication challenges leaders face are using social media and communicating effectively in times of uncertainty or crisis. Leaders should consider using social media a part of their job because it can be an important aspect of an open communication climate. Four critical skills for communicating in a crisis are to remain calm, be visible, “get the awful truth out,” and communicate a vision for the future.
Discussion Questions 1. Why do you think storytelling is such a powerful means of communicating for a leader? How is active listening related to
storytelling?
2. What does it mean to say that leaders use communication to act as “sensegivers”? How do you think this differs from conventional management communication?
3. Board members at some companies are opening the lines of communication so shareholders can voice their concerns about executive compensation and corporate governance. Do you think this is a good idea? What might be some risks associated with this type of open communication?
4. A manager in a communication class remarked, “Listening seems like minimal intrusion of oneself into the conversation, yet it also seems like more work.” Do you agree or disagree? Discuss.
5. How does dialogue differ from discussion? Give an example of each from your experience.
6. Some senior executives believe they should rely on written information and computer reports because these yield more accurate data than face-to-face communications do. Do you agree? Discuss.
7. What communication channel would you choose to communicate an impending companywide layoff? News about the company picnic? New corporate quality goals that will require signi�icant changes in how your subordinates perform their tasks? Explain your choices.
8. How do leaders use communication to in�luence and persuade others? Think of someone you have known who is skilled in the art of persuasion. What makes this person an effective communicator?
9. How might leaders use social media to create a sense of community among employees? What do you think are some advantages and disadvantages of a company using social media to communicate with employees?
Leadership at Work
Listen Like a Professional
The fastest way to become a great listener is to act like a professional listener, such as a clinical psychologist who uses listening to heal another person. Therapists drop their own point of view to concentrate on the patient's point of view. The therapist listens totally, drawing out more information rather than thinking about a response.
The next time you are in a conversation in which the other person talks about some problem or concern, practice professional listening by doing the following:
1. Hold a steady gaze on the person's left eye (not the nose or face, but the left eye)—use a soft gaze, not a hard stare.
2. Remove your thoughts and opinions from the conversation—quell your mind chatter and your desire to say something in response.
3. Suspend judgment—rather than critically analyzing what is being said, feel empathy as if you are walking in the other person's shoes.
4. Draw out the other person's thoughts with brief questions and paraphrasing. Repeat the professional listening approach at least three times with different people to get comfortable with it.
List your thoughts on how the other people responded to your listening, and what it felt like to you.
Other person responded:
1.
2.
3.
What I felt:
1.
2.
3.
In Class: The instructor can divide students into pairs—listener and speaker—in class to practice this exercise. The “speaking” students can be asked to talk about some small problem or annoyance they encountered in the previous day or two. The “listening” students can be given instructions to not speak during the �irst trial and instead just maintain a soft gaze into the speaker's left eye and respond only with body language (facial expressions and nods). The speaking students should continue until they have nothing more to say or until they feel an emotional shift and the problem seems to have disappeared. After students switch roles and play both speaker and listener, the instructor can ask the class for perceptions of what happened and what they were feeling during the conversation.
It works well to have the students choose a second pairing and redo the exercise with a new problem. The only difference the second time is that the “listener” role is given fewer restrictions, so the listener can make brief comments such as to paraphrase or ask a short question. The listeners, however, should keep spoken comments to a minimum and de�initely should not offer their own ideas or point of view. After the students �inish, the instructor can gather opinions about what the experience was like for both the speaker and the listener. Key questions include the following: What did it feel like to listen rather than respond verbally to what another person said? What is the value of this professional listening approach? In what situations is professional listening likely to be more or less effective? If the instructor desires, the exercise can be done a third time to help students get more comfortable with a true listening role.
Source: Adapted from Michael Ray and Rochelle Myers, Creativity in Business (New York: Broadway Books, 2000), pp. 82–83.
Leadership Development: Cases for Analysis
The Superintendent's Directive
Educational administrators are bombarded by requests for innovation at all levels. Programs to upgrade math, science, and social science education, state accountability plans, new approaches to administration, and other ideas are initiated by teachers, administrators, interest
groups, reformers, and state regulators. In a school district, the superintendent is the key leader; in an individual school, the principal is the key leader.
In the Carville City School District, Superintendent Porter has responsibility for 11 schools—eight elementary, two junior high, and one high school. After attending a management summer course, Porter sent the following e-mail to the principal of each school:
“Please request that teachers in your school develop a set of performance objectives for each class they teach. A consultant will be providing instructions for writing the performance objectives during the August 10 in-service day. The deadline for submitting the performance objectives to my of�ice is September 21.”
Mr. Weigand, principal of Earsworth Elementary School, forwarded Porter's e-mail to his teachers with the following message:
“Please see the forwarded e-mail from Superintendent Porter. As he explains, you will need to write performance objectives for each course you teach. These are due one month from today. This afternoon, during the in-service meeting, you will receive training on how to write these performance objectives.”
After receiving this e-mail, several teachers at the elementary school responded with a �lurry of hastily written e-mail responses. One well- respected and talented teacher wrote the following e-mail, accidentally sending it to Mr. Weigand instead of her colleagues:
“This is nonsense! I should be spending my time focused on the lesson plan for the new advanced English class the board of education approved. Porter is clueless and has no idea the demands we are facing in the classroom. We never even hear from him until he wants us to complete some empty exercise. I am going to start looking for a school district that values my time!”
Mr. Weigand was stunned by this e-mail, wondering if he was close to losing a valuable teacher who was admired by her peers and others in the school system. He knew this e-mail had been written in haste and that this teacher would be embarrassed to know that he had received it. He was concerned that other teachers may have reacted in similar ways to his e-mail. He also wondered how to respond to the angry e-mail and how to improve morale at the start of a new school year.
Questions 1. Evaluate the e-mail communications of Mr. Porter and Mr. Weigand. To what extent are they communicating effectively about the
new performance objectives? Explain. If you were a teacher, how would you have felt after receiving the e-mail? Why?
2. If you were Mr. Weigand, how would you respond to the angry teacher? Be speci�ic about how you would communicate with her and what you would say. How could he have communicated differently about the performance objectives to in�luence the teachers more positively?
3. Identify the mistakes that the teacher made when composing and sending her e-mail message.
Hunter-Worth
Christmas was fast approaching. Just a short while ago, Chuck Moore, national sales manager for Hunter-Worth, a New York–based multinational toy manufacturer, was con�ident the coming holiday was going to be one of the company's best in years. At a recent toy expo, Hunter-Worth unveiled a new interactive plush toy that was cuddly, high-tech, and tied into a major holiday motion picture expected to be a smash hit. Chuck had thought the toy would do well, but frankly, the level of interest took him by surprise. The buyers at the toy fair raved, and the subsequent pre-order volume was extremely encouraging. It had all looked so promising, but now he couldn't shake a sense of impending doom.
The problem in a nutshell was that the Mexican subsidiary that manufactured the toy couldn't seem to meet a deadline. Not only were all the shipments late so far, but they fell well short of the quantities ordered. Chuck decided to e-mail Vicente Ruiz, the plant manager, about the situation before he found himself in the middle of the Christmas season with parents clamoring for a toy he couldn't lay his hands on.
In a thoroughly professional e-mail that started with a friendly “Dear Vicente,” Chuck inquired about the status of the latest order, asked for a production schedule for pending orders, and requested a speci�ic explanation as to why the Mexican plant seemed to be having such dif�iculty shipping orders out on time. The reply appeared within the hour, but to his utter astonishment, it was a short message from Vicente's secretary. She acknowledged the receipt of his e-mail and assured him the Mexican plant would be shipping the order, already a week late, in the next 10 days.
“That's it,” Chuck fumed. “Time to take this to Sato.” In the message to his boss, he prefaced his original e-mail and the secretary's reply with a terse note expressing his growing concern over the availability of what could well be this season's must-have toy. “Just what do I have to do to light a �ire under Vicente?” he wrote. He then forwarded it all to his supervisor and friend, Michael Sato, the executive vice president for sales and marketing.
Next thing he knew, he was on the phone with Vicente—and the plant manager was furious. “Señor Moore, how dare you go over my head and say such things about me to my boss?” he sputtered, sounding both angry and slightly panicked. It seemed that Michael had forwarded Chuck's e-mail to Hunter-Worth's vice president of operations, who had sent it on to the Mexican subsidiary's president.
That turn of events was unfortunate, but Chuck wasn't feeling all that apologetic. “You could have prevented all this if you'd just answered the questions I e-mailed you last week,” he pointed out. “I deserved more than a form letter—and from your secretary, no less.”
“My secretary always answers my e-mails,” replied Vicente. “She �igures that if the problem is really urgent, you would pick up the phone and talk to me directly. Contrary to what you guys north of the border might think, we do take deadlines seriously here. There's only so much we can do with the supply problems we're having, but I doubt you're interested in hearing about those.” And Vicente hung up the phone without waiting for a response.
Chuck was confused and disheartened. Things were only getting worse. How could he turn the situation around?
Questions 1. Based on Vicente Ruiz's actions and his conversation with Chuck Moore, what differences do you detect in cultural attitudes
toward communications in Mexico as compared with the United States? Is understanding these differences important? Explain.
2. What was the main purpose of Chuck's communication to Vicente? To Michael Sato? What factors should he have considered when choosing a channel for his communication to Vicente? Are they the same factors he should have considered when communicating with Michael Sato?
3. If you were Chuck, what would you have done differently? What steps would you take at this point to make sure the supply of the popular new toy is suf�icient to meet the anticipated demand?
Sources: Based on Harry W. Lane, Charles Foster Sends an E-mail (London, Ontario: Ivey Publishing, 2005); Frank Unger and Roger Frankel, Doing Business in Mexico: A Practical Guide on How to Break into the Market (Council on Australia Latin America Relations and the Department of Foreign Affairs and Trade, 2002), pp. 24–27; and Ignacio Hernandez, “Doing Business in Mexico—Business Etiquette,” MexGrocer.com, www.mexgrocer.com/business-in-mexico.html (http://www.mexgrocer.com/business-in-mexico.html) (accessed September 18, 2006).
Chapter 10. Leading Teams
Your Leadership Challenge After reading this chapter, you should be able to:
Turn a group of individuals into a collaborative team that achieves high performance through a shared mission and collective responsibility. Identify challenges associated with teamwork, and explain why people sometimes have negative feelings about working in a team. Lead a team to high performance by providing a compelling purpose and clear objectives, clarifying roles and responsibilities, designing the team in terms of size and diversity, giving team members decision authority, and providing support and coaching. Understand and handle the stages of team development, and know how to promote cohesiveness and shape productive team norms. Understand the challenges and bene�its of virtual teams and the team leader behaviors that contribute to virtual team effectiveness. Handle con�licts that inevitably arise among members of a team.
Mattel is the world's largest toy company, but sales have been shrinking dramatically in the rapidly changing and increasingly competitive toy industry. Mattel CEO Bryan Stockton, chief brands of�icer Richard Dickson, and other leaders are shaking things up to bring more creativity back to the company. “We need to push ourselves a little further, let ourselves be a little freer, a little less formulaic,” said Stockton. One big part of the overhaul is creating more teamwork. Leaders restructured the company to put big brands like Barbie, Hot Wheels, Fisher Price, and so forth into their own independent divisions. Then, they put the dozens of smaller brands into the “Toy Box,” a separate division where teams will have greater freedom to take risks and experiment with creative ideas. The plan is to let Toy Box teams invent new toys the way a startup company might, without being hampered by too much structure and routine.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kcfvv9syecqvyeshk390#KPGKHLK91LG33ANDW053)
Paul Ziobro, “Floundering Mattel Tries to Make Things Fun Again,” The Wall Street Journal (December 22, 2014), http://www.wsj.com/articles/�loundering-mattel-tries-to-make- things-fun-again-1419305830 (http://www.wsj.com/articles/�loundering-mattel-tries-to-make-things-fun-again-1419305830) (accessed November 6, 2015).
Teams are becoming the basic building blocks of organizations, but teams present greater leadership challenges than does the traditional hierarchical organization. This chapter explores teams and team leadership. We de�ine various types of teams, look at the dilemma of teamwork, and investigate what makes a high-performing team. The chapter then examines how teams develop, explores topics such as cohesiveness and team norms, and considers the various roles that team members must carry out for the team to function well. The new challenge of leading virtual teams is also discussed. The �inal part of the chapter looks at how to manage team con�lict, including using negotiation.
10-1. The Value of Teams Teams are not right for every situation, but much work in organizations is interdependent, which means that individuals and departments rely on other individuals and departments for information or resources in order to accomplish their work. When tasks are highly interdependent, a team can be the best approach for ensuring the level of coordination, information sharing, and exchange of materials necessary for successful task accomplishment. When they are effective, teams can provide bene�its for both organizations and employees through higher productivity, quality improvements, greater �lexibility and speed, a �latter management structure, increased employee involvement and satisfaction, and lower turnover.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#VKBBDUVUV4H9Z63WF994)
Linda I. Glassop, “The Organizational Bene�it of Teams,” Human Relations 55, no. 2 (2002), pp. 225–249; and J. D. Osburn, L. Moran, E. Musselwhite, and J. H. Zenger, Self-Directed Work Teams: The New American Challenge (Homewood, IL: Business One Irwin, 1990).
10-1a. What Is a Team?
A team is a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose to which they are committed and hold themselves mutually accountable.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#MJEJFER1KNNYMXXJ4046) Several key features distinguish a team. For example, a team made up of linguists, psychologists, statisticians, and software engineers at Facebook had a clear purpose (shared goal) of redesigning Facebook's ineffective search engine so it could better understand human (not just computer) language. Team members had to coordinate their efforts and work interdependently to investigate, design, test, and develop a new search engine. The development team was a distinct unit with membership separate from other teams. Members of the team worked together for a period of more than a year to complete the early coding and testing of a new search tool and are continuing their work to perfect the new search engine, which Facebook hopes can be competitive with search leader Google.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#CCCUUEK6ZMCVY4BA9253)
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team
a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
This de�inition is based on J. Richard Hackman, Leading Teams: Setting the Stage for Great Performances (Boston: Harvard Business School Press, 2002); Dawn R. Utley and Stephanie E. Brown, “Establishing Characteristic Differences between Team and Working Group Behaviors,” Institute of Industrial Engineers Annual Conference Proceedings (2010), pp. 1–6; and Carl E. Larson and Frank M. J. LaFasto, Team Work (Newbury Park, CA: Sage Publications, 1989).
Somini Sengupta, “For Search, Facebook Had to Go beyond ‘Robospeak,’” The New York Times (January 28, 2013), http://www.nytimes.com/2013/01/29/business/how-facebook- taught-its-search-tool-to-understand-people.html?pagewanted=all&_r=0 (http://www.nytimes.com/2013/01/29/business/how-facebook-taught-its-search-tool-to-understand-people.html? pagewanted=all&_r=0) (accessed May 3, 2013).
A team is a group of people, but the two are not one and the same. People who do not interact regularly, such as those waiting in line at the company cafeteria or riding together in the elevator, do not compose a team. Even a group of employees whose work is related is not a team unless the members share a common purpose that requires them to depend on each other. In addition, the concept of teamwork implies that people sublimate their individual needs, desires, and egos and synthesize their knowledge, skills, and efforts toward accomplishing a common goal. A professor, coach, or employer can put together a group of people and never build a team. Consider the Miami Heat basketball team. In the spring of 2010, LeBron James, Dwyane Wade, and Chris Bosh were the top scorers on their respective basketball teams. The next year, they were all playing for the Miami Heat. With that kind of talent, the team should have been tough for anyone to beat, but the Heat's dream team opened with a humiliating loss and stumbled through the early weeks of the season. Star players who were used to being in charge at crunch time found themselves working at cross-purposes. Discussing the Heat's loss to the New York Knicks, former Chicago Bulls player Steve Kerr said, “It was a total meltdown. It was, ‘I'm so talented, I'll take over.’ They looked awful.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#EVVDMW8ZJM5MJ51TY335)
Chuck Salter, “What LeBron James and the Miami Heat Teach Us about Teamwork,” Fast Company (April 2011), http://www.fastcompany.com/magazine/155/the-worlds-greatest- chemistry-experiment.html (http://www.fastcompany.com/magazine/155/the-worlds-greatest-chemistry-experiment.html) (accessed April 25, 2011).
Individual stars don't necessarily make a great team, in sports or in business. The Miami Heat struggled with issues that teams in all organizations face: How to get star performers to sublimate their egos and sacri�ice their individual goals? How to bring together the right set of specialties and skills? How to de�ine roles? How to promote cohesiveness and norms of collaboration? and How to create a team that is united in a common mission?* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#RSUULB13DL9XSPYL1685) This chapter's Consider This illustrates the spirit and power of teamwork.
Chuck Salter, “What LeBron James and the Miami Heat Teach Us about Teamwork,” Fast Company (April 2011), http://www.fastcompany.com/magazine/155/the-worlds-greatest- chemistry-experiment.html (http://www.fastcompany.com/magazine/155/the-worlds-greatest-chemistry-experiment.html) (accessed April 25, 2011).
Consider This! Lessons from Geese
Fact 1: As each goose �laps its wings, it creates an “uplift” for the birds that follow. By �lying in a “V” formation, the whole �lock adds 71 percent greater �lying range than if each bird �lew alone.
Lesson: People who share a common direction and sense of community can get where they are going quicker and easier because they are traveling on the thrust of one another.
Fact 2: When a goose falls out of formation, it suddenly feels the drag and resistance of �lying alone. It quickly moves back into formation to take advantage of the lifting power of the bird immediately in front of it.
Lesson: If we have as much sense as a goose, we stay in formation with those headed where we want to go. We are willing to accept their help and give our help to others.
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
team a unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose
Fact 3: When the lead goose tires, it rotates back into the formation and another goose �lies to the point position.
Lesson: It pays to take turns doing the hard tasks and sharing leadership. Like geese, people are interdependent on each other's skills, capabilities, and unique arrangement of gifts, talents, or resources.
Fact 4: The geese �lying in formation honk to encourage those up front to keep up their speed.
Lesson: We need to make sure our honking is encouraging. In groups where there is encouragement, the production is much greater. The power of encouragement (to stand by one's heart or core values and encourage the heart and core values of others) is the quality of honking we seek.
Fact 5: When a goose gets sick, wounded, or shot down, two geese drop out of the formation and follow it down to help and protect it. They stay until it dies or is able to �ly again. Then they launch out with another formation or catch up with the �lock.
Lesson: If we have as much sense as a goose, we will stand by each other in dif�icult times as well as when we are strong.
Source: 1991 Organizational Development Network. Original author unknown.
10-1b. Types of Teams
Teams are found at every level of today's organizations. At Cirque du Soleil, the CEO, chief operating of�icer, chief �inancial of�icer, and vice president of creation function as a top management team to develop, coordinate, and oversee acrobatic troupes that travel to approximately 100 cities on four continents a year. Google assembles teams of three or four employees to assess new ideas and recommend whether they should be implemented. IBM uses teams formed of people specializing in hardware, software, research, and sales to solve speci�ic problems for clients such as Walmart, Charles Schwab, and the Mayo Clinic.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#DHZEXU3T9WST94PFB718) And at Tasty Catering, a family-owned business in Chicago, teams of front-line employees from across the company—chefs and accountants, clerical workers and drivers, supervisors and servers—make all strategic decisions.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#RWFR9KTC0DLXPXJG1957)
Telis Demos, “Cirque du Balancing Act,” Fortune (June 12, 2006), p. 114; Erin White, “How a Company Made Everyone a Team Player,” The Wall Street Journal (August 13, 2007); and David Kirkpatrick, “Inside Sam's $100 Billion Growth Machine,” Fortune (June 14, 2004), pp. 80–98.
“A Company of ‘Level 5’ Leaders,” Inc. (June 2010), pp. 87–88; and Miri McDonald, “Tasty Catering on Driving Engagement through Empowerment and Shared Decision Making,” SmartBlog on Leadership (April 15, 2011), https://smartblogs.com/leadership/2011/04/15/tasty-catering-on-driving-engagement-through-transparency-and-shared- decision-making/ (https://smartblogs.com/leadership/2011/04/15/tasty-catering-on-driving-engagement-through-transparency-and-shared-decision-making/) (accessed June 12, 2013).
Organizations use various types of teams to meet internal needs or external challenges. Exhibit 10.1 illustrates three types of teams used in organizations: functional, cross-departmental, and self-directed.
Exhibit 10.1. Evolution of Teams and Team Leadership
Functional Teams A functional team is part of the traditional vertical hierarchy. This type of team is made up of a supervisor and his or her subordinates in the formal chain of command. Sometimes called a vertical team or a command team, the functional team can include three or four levels of hierarchy within a department. Typically, a functional team makes up a single department in the organization. For example, the quality control department at Blue Bell Creameries in Brenham, Texas, is a functional team that tests all incoming ingredients
to make sure only the best products go into the company's ice cream. A �inancial analysis department, a human resources department, and a sales department are all functional or vertical teams. Each is created by the organization within the vertical hierarchy to attain speci�ic goals through members' joint activities.
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team
Cross-Departmental Teams A cross-departmental team is made up of members from different departments within the organization. These teams are often called cross-functional teams. Cross-departmental teams are typically used for projects that affect several departments and therefore require that many views be considered. Cross-departmental teams facilitate information sharing across functional boundaries, generate suggestions for coordinating the departments represented, develop new ideas and solutions for existing organizational problems, and assist in developing new practices or policies.
a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
functional team a team made up of a supervisor and subordinates in the formal chain of command
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
One type of cross-departmental team is the special-purpose team , sometimes called a project team. Special-purpose teams focus on a speci�ic purpose and disband once the project is completed. They are created outside the formal organization structure to undertake a project of special importance or complexity or to develop a new product or service. The team working on a new search engine at Facebook, described earlier, is a special-purpose team.
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
cross-departmental team team made up of members from different functional departments within an organization
special-purpose team
team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team
New Leader Action Memo
As a leader, you can create a cross-departmental team to handle a project that requires coordination across functional boundaries. Use a special-purpose team for a project of special importance, such as developing a new product or service.
Evolution to Self-Directed Teams Cross-departmental teams may gradually evolve into self-directed teams. Self-directed teams are made up of employees who work with minimum supervision and rotate jobs to produce an entire product or service, or at least one complete aspect or portion of a product or service.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#LVTHKBN1YVZGBQZX5307)
team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
special-purpose team team that focuses on a speci�ic purpose of high importance and disbands once the project is completed; sometimes called a project team
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams
teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
This discussion of self-directed teams is based on Patricia Booth, “Embracing the Team Concept,” Canadian Business Review (Autumn 1994), pp. 10–13; Pierre van Amelsvoort and Jos Benders, “Team Time: A Model for Developing Self-Directed Work Teams,” International Journal of Operations and Production Management 16, no. 2 (1996), pp. 159–170; and Jeanne M. Wilson, Jill George, and Richard S. Wellins, with William C. Byham, Leadership Trapeze: Strategies for Leadership in Team-Based Organizations (San Francisco: Jossey-Bass, 1994).
Exhibit 10.1 illustrates the evolution of teams and team leadership. The functional team groups individuals by common skill and activity within the traditional structure. Leadership is based on the vertical hierarchy. In cross-departmental teams, members have more freedom from the hierarchy, but the team typically is still leader-centered and leader-directed. The leader is most often assigned by the organization and is usually a supervisor or manager from one of the departments represented on the team.
In the next stage of evolution, team members work together without the ongoing direction of managers, supervisors, or assigned team leaders. One interesting example of the use of self-directed teams is tomato processor Morning Star.
In the Lead Chris Rufer, Morning Star
Chris Rufer, the founder of Morning Star, a tomato processor with three factories that produce products for companies such as Heinz and Campbell Soup Company, believes if people can manage the complexities of their own lives without a boss, there is no reason they can't manage themselves in the workplace.
Rufer founded Morning Star based on self-directed teamwork, where no one has a boss and teams of employees negotiate responsibilities with one another. However, as the company grew from the original 24 colleagues (as employees are called) to around 400, problems occurred. Some people had trouble working in an environment with no bosses and no hierarchy. Handling the inevitable con�licts that arise in any workplace was a particular challenge. Thus, Rufer created the Morning Star Self-Management Institute to provide training for people in the principles and systems of self-management.
Every colleague now goes through training, in small groups of 10 to 15 people, to learn how to work effectively as part of a team; how to handle the responsibilities that are typically carried out by managers; how to balance freedom and accountability; how to understand and effectively communicate with others; and how to manage con�licts.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#JSCB5T3V8V4RDH8L6610)
Doug Kirkpatrick, “Self-Management's Success at Morning Star,” T + D (October 2012), pp. 25–27.
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Self-directed teams teams made up of members who work with minimum supervision and rotate jobs to produce a complete product or service
Empirical studies have shown that self-directed teams are associated with higher job satisfaction.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#FWBSU5YTU9AH7E1AF971) Job satisfaction increases partly because working in self-directed teams enables people to feel challenged, �ind their work meaningful, feel more control over their work lives, and develop a stronger sense of identity with the organization.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#XUYU1SGA2NP9JL82N202) However, as the example of Morning Star shows, effective teamwork doesn't just happen. Leaders are responsible for shaping how teams perform, as we will describe later in this chapter. In particular, ongoing training is essential for people to work effectively in self-directed teams.
Heleen van Mierlo, Christel G. Rutte, Michiel A. J. Kompier, and Hans A.C.M. Doorewaard, “Self-Managing Teamwork and Psychological Well-Being: Review of a Multilevel Research Domain,” Group & Organization Management 30, no. 2 (2005), pp. 211–235.
Wilson et al., Leadership Trapeze.
New Leader Action Memo
As a leader, you can use a self-directed team when members are capable of working together without active supervision. Give the team access to the money, equipment, supplies, and information needed to perform its project or task, and empower the team with decision-making authority.
Self-directed teams have access to information and resources needed to perform a complete task and are empowered with decision-making authority to take over duties such as selecting new members, scheduling work or vacations, and evaluating performance. Self-directed teams are typically not completely autonomous, in that organizational leaders set overall direction and monitor the team's work on a regular basis. However, these teams are effectively trained to work with minimum supervision, and members are jointly responsible for making decisions and solving problems. At Lockheed Martin's Missiles and Fire Control division's Pike County Operations in Troy, Alabama, all employees work in self-directed teams that set performance goals and make decisions related to assembling and testing advanced missile systems. Self-directed teams at Pike County Operations have contributed to 100 percent on-time delivery with zero customer rejects for the division.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#DDMGLENRKFH1AKLLH479)
Jill Jusko, “Engaged Teams Keep Lockheed Martin Delivering on Time, Every Time,” IndustryWeek (January 2013), p. 26.
Self-directed teams typically elect one of their own to serve as team leader, and the leader may change each year. Some teams function without a designated leader, so anyone may play a leadership role depending on the situation. For example, the emergency trauma team at Massachusetts General Hospital performs so smoothly that the team switches leaders seamlessly, depending on the crisis at hand. With each new emergency, direction may come from a doctor, intern, nurse, or technician—whoever is particularly experienced with the problem at hand.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ufyna470l8wpreszw270#BFMBQBZ0Y25U5JAS1519)
Kenneth Labich, “Elite Teams Get the Job Done,” Fortune (February 19, 1996), pp. 90–99.
10-2. The Dilemma for Team Members
New Leader Action Memo
Do you enjoy working as part of a team, or do you prefer to do your work individually? Complete Leader's Self-Insight 10.1 to get an idea of your feelings toward teamwork and whether team leadership might present a problem for you.
When leaders at ICU Medical Products announced that the company was shifting to a structure based entirely on teams, the CFO quit.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gcrf0qp7jq9bpa6dq332#ZFXAQ09K0GVMQTGWG970) Some people love the idea of teamwork, others hate it, and many people have both positive and negative emotions about working as part of a team. Leaders can be more effective when they understand three primary reasons teams present a dilemma for people:
We Have to Give Up Our Independence. When people become part of a team, their success depends on the team's success; therefore, they are dependent on how well other people perform, not just on their own individual initiative and actions. In addition, whereas most people are comfortable with the idea of making sacri�ices in order to achieve their own individual success, teamwork demands that they make sacri�ices for group success.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gcrf0qp7jq9bpa6dq332#XCLUD0L5TAMGXV5QT908) The idea is that each person should put the team �irst, even if at times it hurts the individual.
Study by G. Clotaire Rapaille, reported in Karen Bernowski, “What Makes American Teams Tick?” Quality Progress 28, no. 1 (January 1995), pp. 39–42.
We Have to Put Up with Free Riders. Teams are sometimes made up of people who have different work ethics. The term free rider refers to a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work. You might have experienced this frustration in a student project team, where one member put little effort into the project but bene�ited from the hard work of others when grades were handed out. Free riding is sometimes called social loa�ing because some members do not exert equal effort.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gcrf0qp7jq9bpa6dq332#DZVUB165L8ZEWEDL7377) The potential for free riding might be one reason a survey found that 40 to 60 percent of people (depending on gender and age) like working in teams to learn from others, but no more than 36 percent report they like working in teams to complete tasks.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gcrf0qp7jq9bpa6dq332#SDLU940R18GQXKRRG642)
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
Robert Albanese and David D. Van Fleet, “Rational Behavior in Groups: The Free-Riding Tendency,” Academy of Management Review 10 (1985), pp. 244–255.
Reported in Matt Vella, “White Collar Workers Shoulder Together—Like It or Not” (Inside Innovation section: InData), BusinessWeek (April 28, 2008), p. 58.
Teams Are Sometimes Dysfunctional. Some companies have had great success with teams, but there are also many examples of how teams in organizations fail spectacularly.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gcrf0qp7jq9bpa6dq332#NYNKFYQ51EA8XK52Y207) A civilian worker at a large U.S. Air Force base tells of an experience in which the team “streamlined” the process of handling mail by changing it from 8 steps to a ridiculous 19, meaning of�icial mail was handled by more people and getting to its intended recipient even later than before.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gcrf0qp7jq9bpa6dq332#DTQF9LJELW3474905219) Exhibit 10.2
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
free rider a team member who attains bene�its from team membership but does not actively participate in and contribute to the team's work
lists �ive dysfunctions that are common in teams.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gcrf0qp7jq9bpa6dq332#VDXKLZMVV497ZKZ2N890) Over the past few decades, a great deal of research and team experience has produced signi�icant insights into what causes teams to succeed or fail. The evidence shows that how teams are managed plays the most critical role.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gcrf0qp7jq9bpa6dq332#LASKKP58JDF1GKVZF094)
See David H. Freedman, “The Idiocy of Crowds” (What's Next column), Inc. (September 2006), pp. 61–62; “Why Some Teams Succeed (and So Many Don't),” Harvard Management Update (October 2006), pp. 3–4; and Geoffrey Colvin, “Why Dream Teams Fail,” Fortune (June 12, 2006), pp. 87–92.
Jared Sandberg, “Some Ideas Are So Bad That Only Team Efforts Can Account for Them” (Cubicle Culture column), The Wall Street Journal (September 29, 2004).
Patrick Lencioni, The Five Dysfunctions of a Team (New York: John Wiley & Sons, 2002).
“Why Some Teams Succeed (and So Many Don't).”
White, “How a Company Made Everyone a Team Player.”
Exhibit 10.2. Five Common Dysfunctions of Teams
Dysfunction Attitudes and behaviors Lack of trust People don't feel safe to reveal mistakes, share concerns, or express ideas Fear of con�lict People go along with others for the sake of harmony; don't express con�licting opinions Lack of commitment People can't truly commit to decisions because they haven't contributed their true opinions and ideas Avoidance of accountability People don't accept responsibility for outcomes; engage in �inger-pointing when things go wrong Inattention to results Members put personal ambition or the needs of their individual departments ahead of collective results
Source: Based on Patrick Lencioni, The Five Dysfunctions of a Team (New York: John Wiley & Sons, 2002).
Leader's Self-Insight 10.1. Individual or Team?
Instructions: Respond to the following statements with your preferences for working on your job or school assignments. Please answer whether each item is Mostly False or Mostly True for you.
Mostly False Mostly True 1. I prefer to work on a team rather than do tasks individually. 2. Given a choice, I try to work by myself rather than face the hassles of group work. 3. I enjoy the personal interaction when working with others. 4. I prefer to do my own work and let others do theirs. 5. I get more satisfaction from a group victory than an individual victory. 6. Teamwork is not worthwhile when people do not do their share. 7. I feel good when I work with others even when we disagree. 8. I prefer to rely on myself rather than others to do a job or assignment. 9. I �ind that working as a member of a team increases my ability to perform well. 10. It annoys me to do work as a member of a team.
Scoring and Interpretation
For odd-numbered items give yourself 1 point for each Mostly True answer and for even-numbered items give yourself 1 point for each Mostly False answer.
Total Score .
Your score indicates your preference for working as part of a team versus working as an individual. A score of 8–10 suggests a clear preference for working with others on a team. Teams can accomplish tasks far beyond what an individual can do, and working with others can be a major source of satisfaction. A score of 0–3 suggests a clear preference for working alone rather than on a team. On a team you will lose some autonomy and have to rely on others who may be less committed than you. On a team you have to work through other people and you lose some control over work procedures and outcomes. A score of 4–7 suggests you are satis�ied either working on a team or alone. How do you think your preference will affect your career choices and your potential role as a leader?
10-3. Leading a Team to High Performance Smoothly functioning teams don't just happen. They are created and shaped by leaders. Harvard Business School professors studying surgery teams, for example, found that the attitude and actions of the team leader, and the quality of the leader's interactions with team members, are crucial to team effectiveness and the success of the surgery.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#DUSWCAGM1BWT0KB6U436) Teamwork is becoming common in health care, but poor coordination and communication among team members has been a real problem, leading to errors and even patient deaths. The U.S. Department of Defense and the Agency for Healthcare Research and Quality developed a team training program to teach cognitive and interpersonal skills that contribute to better health care teamwork, with signi�icant focus on team leadership. Boston Children's Hospital reduced medical errors by 40 percent after teams began applying the tools learned from the program.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#DDGV86CDYL7P90LW6245)
Studies reported in Amy Edmondson, Richard Bohmer, and Gary Pisano, “Speeding Up Team Learning,” Harvard Business Review (October 2001), pp. 125–132; and Scott Thurm, “Teamwork Raises Everyone's Game—Having Everyone Bond Bene�its Companies More Than Promoting Stars” (Theory & Practice column), The Wall Street Journal (November 7, 2005), p. B8.
Stephen H. Courtright, Greg L. Stewart, and Marcia M. Ward, “Applying Research to Save Lives: Learning from Team Training Approaches in Aviation and Health Care,” Organizational Dynamics 41 (2012), pp. 291–301.
“High-performance teams and organizations do not arise spontaneously. They do not appear overnight. High performance is a process and a mind-set. It requires a methodology and it must be practiced—over and over.”
John Foley, founder and president of John Foley, Inc.; former Marine Corps jet �ighter instructor pilot and lead solo pilot of the Blue Angels jet acrobatics team
To lead any team to high performance, whether in health care, manufacturing, Internet services, or NASCAR racing, leaders incorporate the following elements:* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#WLFR650RA6A1D3DLN181)
These factors are based partly on “Why Some Teams Succeed (and So Many Don't)”; Ruth Wageman, “Critical Success Factors for Creating Superb Self-Managing Teams,” Organizational Dynamics (Summer 1997), pp. 49–61; and Richard Hackman, Leading Teams: Setting the Stage for Great Performances (Boston, MA: Harvard Business School Press, 2002).
1. A Compelling Purpose, Clear Objectives, and Explicit Metrics. To succeed, team members have to know what is expected of them and commit to accomplishing it. High-performing teams have a speci�ic, clearly de�ined purpose and a well-de�ined set of goals, enabling people to come together in a shared undertaking. A team cannot succeed if people are �loundering around wondering why the team exists, or if people are going in different directions rather than pulling together for a common purpose. Team members also need clear metrics so they know how well they are progressing toward meeting goals.
2. A Diversity of Skills and Unambiguous Roles. Effective teams contain the diverse mix of skills, knowledge, and experience needed to perform all the components of the team's project.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#EMZKRN9VT3WRJJQ2W894) In addition, diversity in terms of race, gender, ethnic or cultural background, and other dimensions can contribute to greater innovation and better decision making because the team can draw from wider perspectives.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#ZRHHQZPWK0098XT6V302) Within this diverse mix, however, individual roles and responsibilities are clearly de�ined. Clear roles and expectations for members lead to enhanced cooperation because people aren't butting up against one another in confusion over their duties and responsibilities.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#YMDYZQ9FX1SWH8GNY260)
J. Polzer, W. Swann Jr., and L. Milton, “The Bene�its of Verifying Diverse Identities for Group Performance,” in M. Neale, E. Mannix, and J. Polzer, eds., Research on Managing Groups and Teams: Identity Issues in Groups, Vol. 5 (Stamford, CT: JAI Press, 2003), pp. 91–112.
Warren E. Watson, Kamalesh Kumar, and Larry K. Michaelsen, “Cultural Diversity's Impact on Interaction Process and Performance: Comparing Homogeneous and Diverse Task Groups,” Academy of Management Journal 36 (1993), pp. 590–602; and Gail Robinson and Kathleen Dechant, “Building a Business Case for Diversity,” Academy of Management Executive 11, no. 3 (1997), pp. 21–31.
Lynda Gratton and Tamara J. Erickson, “Eight Ways to Build Collaborative Teams,” Harvard Business Review (November 2007), pp. 101–109.
3. Streamlined Team Size. Although most researchers agree there is no optimal team size, teams function best when they contain just enough members to perform the job, and most experts recommend that teams should err on the side of having too few members rather than too many.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#QMZVHNC9S3E8K2SAH541) Much research has shown that small teams (six or fewer members) perform better than large ones.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#HVLKDSJE58V9TC4DK578) Members on small teams typically ask more questions, exchange more opinions, and exhibit more cooperative behavior. In addition, people in small teams report higher motivation, more job satisfaction, and a greater sense of belonging and cohesiveness. A Gallup poll in the United States found that 82 percent of employees agree that small teams are more productive.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#FQSHFWPACYPHEVK6E145)
Jeffrey T. Polzer, “Leading Teams,” Harvard Business Publishing for Educators, Background Note, Product #403094-PDF-ENG (ordered at http://cb.hbsp.harvard.edu/cb/product/403094-PDF-ENG (http://cb.hbsp.harvard.edu/cb/product/403094-PDF-ENG) ).
This summary of team size research is based on Martin Hoegl, “Smaller Teams—Better Teamwork: How to Keep Project Teams Small,” Business Horizons 48 (2005), pp. 209–214; Lillian Chaney and Julie Lyden, “Making U.S. Teams Work,” Supervision (January 2000), p. 6; Jia Lynn Yang, “The Power of Number 4.6,” part of a special series, “Secrets of Greatness: Teamwork,” Fortune (June 12, 2006), p. 122; M. E. Shaw, Group Dynamics, 3rd ed. (New York: McGraw Hill, 1981); and G. Manners, “Another Look at Group Size, Group Problem Solving, and Group Consensus,” Academy of Management Journal 18 (1975), pp. 715–724.
Gallup poll results reported in “Viva La Difference,” box in Julie Connelly, “All Together Now,” Gallup Management Journal (Spring 2002), pp. 13–18.
4. Decision Authority Over How to Achieve Goals. Although teams need clearly de�ined goals spelled out by leaders, the team itself should have the authority to decide how it will reach those goals. Good leaders share power, information, and responsibility and work to build consensus rather than issuing orders.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#KTTTSECNEAD4KZMFG890) Members of high- performing teams determine together how they will work cooperatively to accomplish objectives and achieve the team's purpose.
Stephen D. Reicher, Michael J. Platow, and S. Alexander Haslam, “The New Psychology of Leadership,” Scienti�ic American Mind (August–September 2007), pp. 23–29.
5. Support and Coaching. Although team leaders have to keep people focused on accomplishing tasks, research shows that the soft leadership skills concerned with building positive relationships are especially important for creating a high-performance team.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jmxh7glzxw3x7d4u8648#AZAPH81VMJH35WRJE956) Team effectiveness, productivity, and learning are strengthened when team leaders provide support to team members, reinforce team identity and meaning, work to maintain trusting interpersonal relationships and group cohesiveness, and offer coaching to enhance members' self-leadership skills. Periodic training that teaches skills such as communication, building relationships, developing productive norms, and resolving con�licts can have a signi�icant impact on team collaboration and performance.
C. Shawn Burke, Kevin C. Stagl, Cameron Klein, Gerald F. Goodwin, Eduardo Salas, and Stanley M. Halpin, “What Type of Leadership Behaviors Are Functional in Teams? A Meta-Analysis,” The Leadership Quarterly 17 (2006), pp. 288–307; Greg L. Stewart, “A Meta-Analytic Review of Relationships between Team Design Features and Team Performance,” Journal of Management 32, no. 1 (February 2006), pp. 29–54; Abhishek Srivastava, Kathryn M. Bartol, and Edwin A. Locke, “Empowering Leadership in Management Teams: Effects on Knowledge Sharing, Ef�icacy, and Performance,” Academy of Management Journal 49, no. 6 (December 2006), pp. 1239–1251; and Gratton and Erickson, “Eight Ways to Build Collaborative Teams.”
New Leader Action Memo
As a leader, you can articulate a clear and compelling vision for the team to help members see their work as meaningful and important. You can de�ine objectives and clarify roles but give people decision-making authority over how to achieve goals. Make room for everyone to contribute and provide people with the training, support, and coaching they need to excel.
These �ive elements are among the most important guidelines for team leaders. The Leader's Bookshelf further discusses characteristics of teams that lead to high performance.
Leader's Bookshelf Great Business Teams: Cracking the Code for Standout Performance by Howard M. Guttman
Management consultant and author Howard Guttman believes high-performance organizations begin with great teams. In his book, Great Business Teams, Guttman draws on research into the inner workings of several dozen high-performance teams at companies such as Johnson & Johnson, L'Oreal, Novartis, and Mars Drinks.
Characteristics of Great Teams
Whether it is a top leadership team, a cross-departmental project team, or a self-directed product development team, Guttman says great teams share �ive key characteristics:
They Are Led by High-Performance Leaders.Leaders of great teams put power and authority in the hands of the team. They see their job as making sure all members are clear about and committed to the business strategy and operational goals, understand their roles and responsibilities, and adhere to speci�ic ground rules for decision making and interpersonal behavior.
They Have Members Who Act as Leaders. Members of great teams act as leaders by embracing responsibility, exerting in�luence to accomplish tasks, and holding one another accountable for results. Everyone's performance—even the leader's—is subject to scrutiny and feedback.
They Abide by Protocols. Ambiguity kills effective teamwork, says Guttman. To achieve high performance, everyone on the team needs to be clear about what the team as a whole is going to accomplish, what each person will contribute, how the team will carry out its tasks, and how members are expected to interact with one another.
They Are Never Satis�ied. On a high-performance team, self-monitoring, self-evaluation, and continually raising the performance bar are the norm.
They Have a Supportive Performance Management System. To get great teamwork, the organization's performance management and reward systems have to support the expected team behaviors.
Why Teams?
Guttman believes today's organizations and the challenges they face are too complex for formal leaders to make all the decisions. He argues that companies can best succeed with distributed leadership, in which key decisions are made by layers of self-directed teams that are jointly accountable for performance.
Source: Great Business Teams, by Howard Guttman, is published by John Wiley & Sons.
10-4. Team Processes Team processes refer to the dynamics that change over time and can be in�luenced by leaders. In this section we discuss stages of development, cohesiveness, and norms. The fourth type of team process, con�lict, will be covered later in the chapter.
10-4a. How Teams Develop
It is important for leaders to understand that teams develop over time.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#TPKYMS186B6ZTENJP847) Research suggests that teams develop over several stages. Exhibit 10.3 shows one model of the stages of team development.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#QARXBB1JTZ2DGK9GR218) These stages typically occur in sequence, although there can be overlap.
Gervase R. Bushe and Graeme H. Coetzer, “Group Development and Team Effectiveness: Using Cognitive Representations to Measure Group Development and Predict Task Performance and Group Viability,” The Journal of Applied Behavioral Science 43, no. 2 (June 2007), pp. 184–212; Kenneth G. Koehler, “Effective Team Management,” Small Business Report (July 19, 1989), pp. 14–16; Connie J. G. Gersick, “Time and Transition in Work Teams: Toward a New Model of Group Development,” Academy of Management Journal 31 (1988), pp. 9–41; and John Beck and Neil Yeager, “Moving beyond Myths,” Training & Development (March 1996), pp. 51–55.
Bruce W. Tuckman, “Developmental Sequence in Small Groups,” Psychological Bulletin 63 (1965), pp. 384–399; and B. W. Tuckman and M. A. Jensen, “Stages of Small Group Development Revisited,” Group and Organizational Studies 2 (1977), pp. 419–427.
Exhibit 10.3. Five Stages of Team Development
Sources: Based on the stages of small group development in Bruce W. Tuckman, “Developmental Sequence in Small Groups,” Psychological Bulletin 63 (1965), pp. 384–399; and B. W. Tuckman and M. A. Jensen, “Stages of Small Group Development Revisited,” Group and Organizational Studies 2 (1977), pp. 419–427.
Forming The forming stage of development is a period of orientation and getting acquainted. Team members �ind out what behavior is acceptable to others, explore friendship possibilities, and determine task orientation. Uncertainty is high because no one knows what the ground rules are or what is expected of them. Members will usually accept whatever power or authority is offered by either formal or informal leaders. The leader's challenge at this stage of development is to facilitate communication and interaction among team members to help them get acquainted and establish guidelines for how the team will work together. It is important at this stage for the leader to make everyone feel comfortable and like a part of the team. Leaders can draw out shy or quiet team members to help them establish relationships with others.
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
Storming During the storming stage, individual personalities emerge more clearly. People become more assertive in clarifying their roles. This stage is marked by con�lict and disagreement. Team members may disagree over their perceptions of the team's mission or goals. The team is characterized by a general lack of unity and cohesiveness. It is essential that teams move beyond this stage or they will never achieve high performance. A recent experiment with student teams con�irms the idea that teams that get stuck in the storming stage perform signi�icantly less well than teams that progress to future stages of development.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#QUCJY57L2KH06TJST725) The leader's role during the storming stage is to encourage participation by each team member and help people �ind their common vision and values. Members need to debate ideas, surface con�licts, disagree with one another, and work through the uncertainties and con�licting perceptions about team tasks and goals. The expression of emotions, even negative ones, helps to build camaraderie and a shared understanding of goals and tasks.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#NDJNM0J4PZ6J02L6R278)
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
forming stage of team development that includes orientation and getting acquainted
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming
stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
Oluremi B. Ayoko, Alison M. Konrad, and Maree V. Boyle, “Online Work: Managing Con�lict and Emotions for Performance in Virtual Teams,” European Management Journal 30 (2012), pp. 156–174.
Oluremi B. Ayoko, Alison M. Konrad, and Maree V. Boyle, “Online Work: Managing Con�lict and Emotions for Performance in Virtual Teams,” European Management Journal 30 (2012), pp. 156–174.
Norming At the norming stage, con�lict has been resolved and team unity and harmony emerge. Consensus develops as to who the natural team leaders are, and members' roles are clear. Team members come to understand and accept one another. Differences are resolved, and members develop a sense of cohesiveness. This stage typically is of short duration and moves quickly into the next stage. The team leader should emphasize openness within the team and continue to facilitate communication and clarify team roles, values, and expectations.
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
storming stage of team development in which individual personalities and con�licts emerge
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming
stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
norming stage of team development in which con�licts have been resolved and team unity emerges
New Leader Action Memo
As a leader, you can guide your team through its stages of development. Early on you can help members know one another, and then encourage participation and common purpose, followed by clarifying goals and expectations. Finally, you can concentrate on helping the team achieve high performance.
Performing During the performing stage, the major emphasis is on accomplishing the team's goals. Members are committed to the team's mission. They interact frequently, coordinate their actions, and handle disagreements in a mature, productive manner. Team members confront and resolve problems in the interest of task accomplishment. At this stage, the team leader should concentrate on facilitating high task performance and helping the team self-manage to reach its goals.
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing
stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
Adjourning The adjourning stage occurs in committees and teams that have a limited task to perform and are disbanded afterward. During this stage, the emphasis is on wrapping up and gearing down. Task performance is no longer a top priority, and leaders frequently focus on team members' social and emotional needs. People may feel heightened emotionality, strong cohesiveness, and depression or regret over the team's disbandment. At this point, the leader may wish to signify the team's disbanding with a ritual or ceremony, perhaps giving out certi�icates or awards to signify closure and completeness.
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
performing stage of team development in which the major emphasis is on accomplishing the team's goals
adjourning
stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
adjourning
When teams are under time pressure, these stages might occur quite rapidly and even overlap. Stages may also be accelerated for virtual teams. For example, at a large consumer goods company with a virtual team of engineers working in the United States and India, leaders started the project with a couple of days of team building to help the team move rapidly through the forming and storming stages. Team members together created a shared vision, developed speci�ic team norms and agreements, built virtual relationships, and clari�ied roles and responsibilities. Cultural education and exercises on virtual communication were also part of the process. The team building process not only helped people reach the performing stage quickly, it also contributed to building cohesiveness, which is generally considered an attractive feature of teams.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#MQGH8TVJJYN5GNH3M956)
This is based on a true story of an anonymous company reported in Vicki Fuller Hudson, “From Divided to Ignited to United,” Industrial Management (May–June 2010), pp. 17–20.
10-4b. Team Cohesiveness
Team cohesiveness is de�ined as the extent to which members are attracted to the team and motivated to remain in it.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#ZYRJPUQLRSW9XGMUW658) Members of highly cohesive teams are committed to team activities, attend meetings, and are happy when the team succeeds. Members of less cohesive teams are less concerned about the team's welfare. Leaders typically want to encourage high cohesiveness in teams.
stage of team development that occurs in committees and teams that have a limited task to perform; the emphasis is on wrapping up, gearing down, and signifying closure
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Shaw, Group Dynamics.
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Team cohesiveness the extent to which members are attracted to the team and motivated to remain in it
Determinants of Cohesiveness Leaders can use several characteristics of team structure and context to in�luence cohesiveness. First is team interaction. When team members have frequent contact, they get to know one another, consider themselves a unit, and become more committed to the team.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#ZDAVG2NMG1BH86CW2568) Second is the concept of shared goals. When team members agree on purpose and direction, they will be more cohesive. The most cohesive teams are those that feel they are involved in something immensely relevant and important. An aerospace executive, recalling his participation in an advanced design team, put it this way, “We even walked differently than anybody else. We felt we were way out there, ahead of the whole world.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#HKGNK3VS5HU229KL3660) Third is personal attraction to the team, meaning that members have similar attitudes and values and enjoy being together.
Daniel C. Feldman and Hugh J. Arnold, Managing Individual and Group Behavior in Organizations (New York: McGraw-Hill, 1983).
Harold J. Leavitt and Jean Lipman-Blumen, “Hot Groups,” Harvard Business Review (July–August 1995), pp. 109–116.
New Leader Action Memo
As a leader, you can facilitate team cohesiveness by providing members with opportunities to interact and know one another. You can use friendly competition with other teams to increase cohesiveness, and work with top leaders to develop high-performance norms for the team.
Two factors in the team's context also in�luence group cohesiveness. The �irst is the presence of competition. When a team is in moderate competition with other teams, its cohesiveness increases as it strives to win. Finally, team success and the favorable evaluation of the team by outsiders add to cohesiveness. When a team succeeds in its task and others in the organization recognize the success, members feel good, and their commitment to the team will be high.
Consequences of Cohesiveness The outcome of team cohesiveness can fall into two categories—morale and performance. As a general rule, morale is higher in cohesive teams because of increased communication among members, a friendly team climate, maintenance of membership because of commitment to the team, loyalty, and member participation in team decisions and activities. High cohesiveness has almost uniformly good effects on the satisfaction and morale of team members.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#EUZT2S6LDNGC5N4U6576)
Amanuel G. Tekleab, Narda R. Quigley, and Paul E. Tesluk, “A Longitudinal Study of Team Con�lict, Con�lict Management, Cohesion, and Team Effectiveness,” Group & Organization Management 34, no. 2 (April 2009), pp. 170–205; Dorwin Cartwright and Alvin Zander, Group Dynamics: Research and Theory, 3rd ed. (New York: Harper & Row, 1968); Elliot Aronson, The Social Animal (San Francisco: W. H. Freeman, 1976); and Thomas Li-Ping Tang and Amy Beth Crofford, “Self-Managing Work Teams,” Employment Relations Today (Winter 1995/96), pp. 29–39.
With respect to performance, studies suggest that teams in which members share strong feelings of connectedness and generally positive interactions tend to perform better.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#QYDPUSXQCBKUGA1E7467) This certainly seems to be the case for the Golden State Warriors basketball team.
Vishal K. Gupta, Rui Huang, and Suman Niranjan, “A Longitudinal Examination of the Relationship between Team Leadership and Performance,” Journal of Leadership and Organizational Studies 17, no. 4 (2010), pp. 335–350; and Marcial Losada and Emily Heaphy, “The Role of Positivity and Connectivity in the Performance of Business Teams,” American Behavioral Scientist 47, no. 6 (February 2004), pp. 740–765.
In the Lead Golden State Warriors
After winning the NBA Championship in June 2015, the Golden State Warriors and coach Steve Kerr kept things just as they were for the 2015–2016 season. The key parts of the team have been together for about three years. Other teams took steps to strengthen their rosters, but the continuity and cohesiveness of the Warriors had the team rated as the No. 1 defense in the league and the No.2 offense.
The success of the Warriors can be attributed not to standout individual performances (although there have been some), but to outstanding teamwork. That teamwork comes partly from having a group of people who really like one another and like being together. When the team is on the road, they go out to eat together, “bonding like Little Leaguers at a pizza party,” as a Wall Street Journal reporter put it. Most professional basketball players go off on their own, but the Warriors make a habit of huge communal meals, deciding when and where to eat with a team-wide group text message.
The camaraderie has made the Warriors one of the best teams in the NBA. It has also made them one of the most pleasant teams to play for and one of the most enjoyable teams to watch. “Chemistry is something you can't fake,” said Warriors forward David Lee. “You either have it or you don't.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#NQGL53BJHXKRHWRCZ701)
Ben Cohen, “Golden State: The Team That Eats Together,” The Wall Street Journal (February 11, 2015), http://www.wsj.com/articles/golden-state-the-team-that-eats- together-1423682960 (http://www.wsj.com/articles/golden-state-the-team-that-eats-together-1423682960) (accessed November 9, 2015); Jared Stearne, “Warriors' Continuity Could Prove More Valuable than Change for the Rockets, Spurs,” Golden State of Mind (November 8, 2015), http://www.goldenstateofmind.com/2015/11/8/9692794/golden-state-warriors-continuity-san-antonio-spurs-houston-rockets (http://www.goldenstateofmind.com/2015/11/8/9692794/golden-state-warriors-continuity-san-antonio-spurs-houston-rockets) (accessed November 9, 2015); and “Warriors-Pistons Preview,” NBA.com (November 9, 2015), http://www.nba.com/warriors/gameday/20151109/preview (http://www.nba.com/warriors/gameday/20151109/preview) (accessed November 9, 2015).
As with the Golden State Warriors, a friendly, positive team environment contributes to performance and productivity as well as member satisfaction in other organizations as well. Cohesive teams can sometimes unleash enormous amounts of employee energy and creativity. One explanation for this is the research �inding that correlates in-person interactions among employees with higher productivity. Among call center teams at Bank of America, for example, productivity rose 10 percent when leaders scheduled more face-to-face interaction time. Simply interacting with others has an energizing effect.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#EEATNV5EWY0YLTLL5906)
Bank of America example from Rachel Emma Silverman, “Tracking Sensors Invade the Workplace; Devices on Workers, Furniture Offer Clues for Boosting Productivity,” The Wall Street Journal (March 7, 2013), http://online.wsj.com/article/SB10001424127887324034804578344303429080678.html (http://online.wsj.com/article/SB10001424127887324034804578344303429080678.html) (accessed May 3, 2013); and studies reported in Tang and Crofford, “Self-Managing Work Teams.”
However, cohesiveness can also decrease performance in some cases. One matter of particular concern is groupthink , which refers to the tendency of people in cohesive groups to suppress contrary opinions. The hesitation of team members to express safety concerns that went against the group consensus has been cited as a contributing factor to the 1986 Challenger space shuttle disaster. People slip into groupthink when the desire for harmony outweighs concerns over decision quality.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#ZBHFF8NPXVSCF7DNK495) Other research suggests that performance in cohesive teams may depend on the relationship between leaders and the work team. One study surveyed more than 200 work teams and correlated job performance with their cohesiveness.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#VWLWHQNT0P280DJVX931) Highly cohesive teams were more productive when team members felt top leader support and less productive when they sensed leader hostility and negativism.
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink
the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
groupthink the tendency of people in cohesive groups to suppress contrary opinions
Shlomo Ben-Hur, Nikolas Kinley, and Karsten Jonsen, “Coaching Executive Teams to Reach Better Decisions,” Journal of Management Development 31, no. 7 (2012), pp. 711–723; and Matt Palmquist, “The Dangers of Too Much Workplace Cohesion,” Strategy + Business (February 10, 2015), http://www.strategy-business.com/blog/The-Dangers-of-Too-Much- Workplace-Cohesion?gko=ef547 (http://www.strategy-business.com/blog/The-Dangers-of-Too-Much-Workplace-Cohesion?gko=ef547) (accessed November 6, 2015).
Stanley E. Seashore, Group Cohesiveness in the Industrial Work Group (Ann Arbor, MI: Institute for Social Research, 1954).
10-4c. Team Norms
A team norm is an informal standard of conduct that is shared by team members and guides their behavior.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#URAV7NZ27G1KALUGH273) Norms are valuable because they provide a frame of reference for what is expected and acceptable.
groupthink the tendency of people in cohesive groups to suppress contrary opinions
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm
an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
J. Richard Hackman, “Group In�luences on Individuals,” in M. Dunnette, ed., Handbook of Industrial and Organizational Psychology (Chicago: Rand McNally, 1976).
Exhibit 10.4 illustrates two common ways in which norms develop.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#GCJA9C71GKC0G9QJX022) Norms begin to develop in the �irst interactions among members of a new team, so �irst behaviors often set a precedent for how the team will interact. At one company, a team leader began his �irst meeting by raising an issue and then “leading” team members until he got the solution he wanted. The pattern became ingrained so quickly into an unproductive team norm that members dubbed meetings the “Guess What I Think” game.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#YQPL24ULMSSN66HH5300)
These are based on Daniel C. Feldman, “The Development and Enforcement of Group Norms,” Academy of Management Review 9 (1984), pp. 47–53.
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
team norm an informal standard of conduct that is shared by team members and guides their behavior
Wilson et al., Leadership Trapeze, p. 12.
Exhibit 10.4. Two Ways Team Norms Develop
Team leaders should use care to shape norms that will help the team be effective. For example, research shows that when leaders have high expectations for collaborative problem solving, teams develop strong collaborative norms.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#WRGA05S1BMK38WYZN226) One powerful way in which leaders in�luence norms is by making explicit statements about the desired team behaviors. When he was CEO of Ameritech, Bill Weiss established a norm of cooperation and mutual support among his top leadership team by telling them bluntly that if he caught anyone trying to undermine the others, the guilty party would be �ired.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xacnuckrxtk871xsk152#CMGY72060URU8RB41008)
Simon Taggar and Robert Ellis, “The Role of Leaders in Shaping Formal Team Norms,” The Leadership Quarterly 18 (2007), pp. 105–120.
Colvin, “Why Dream Teams Fail.”
10-5. What Team Members Must Contribute Now let's turn our attention to understanding the qualities and competencies of team members that contribute to high performance. To understand the need for a variety of skills and competencies, consider the 33 miners who were trapped for months underground after a copper mine collapsed in San José, Chile, in August 2010. The miners organized into several teams in charge of critical activities such as communication with rescue workers, the transport of supplies from above ground, rationing and distribution of food, managing health concerns, and securing the mine to prevent further rock falls. Some team members were clearly focused on helping the trapped miners meet their needs for physical survival, some focused on helping people coordinate their activities, and still others focused on the group's psychological and social needs, helping people maintain hope and a sense of solidarity as the ordeal stretched to a harrowing 69 days. Experts agree that teamwork and leadership were key to the miners' survival.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/tdvpermkhcl78xkje667#FNSKBVNJ5M76ACEB0956)
Matt Moffett, “Trapped Miners Kept Focus, Shared Tuna—Foiled Escape, Bid to Organize Marked First Two Weeks Underground in Chile,” The Wall Street Journal (August 25, 2010); and “Lessons on Leadership and Teamwork—From 700 Meters below the Earth's Surface,” Universia Knowledge @ Wharton (September 22, 2010), http://www.wharton.universia.net/index.cfm?fa=viewArticle&id=1943&language=english (http://www.wharton.universia.net/index.cfm?fa=viewArticle&id=1943&language=english) (accessed September 29, 2010).
10-5a. Essential Team Competencies
New Leader Action Memo
What contributions do you make to a team? Complete the questionnaire in Leader's Self-Insight 10.2 to see which competencies you typically contribute to the success of a team.
Research has identi�ied a number of key competencies needed to make up an effective team.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/tdvpermkhcl78xkje667#JHUYRPP8ACQEL7JUH255) To function well as a team, members of the team should together display each of the following �ive competencies:
These are based on Michael J. Stevens and Michael A. Campion, “The Knowledge, Skill, and Ability Requirements for Teamwork: Implications for Human Resource Management,” Journal of Management 20, no. 2 (1994), pp. 503–530.
1. Goal Setting and Performance Management. First and foremost, team members must have the ability to establish and execute speci�ic, challenging team objectives, as well as ways to monitor and evaluate performance toward meeting objectives.
2. Planning and Coordination. The ability to plan and coordinate is an important determinant of team effectiveness.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/tdvpermkhcl78xkje667#DATR37XWA8RP38LPW600) Members must tightly coordinate and synchronize activities, information, and resources in order to accomplish goals.
R. Oser, G. A. McCallum, E. Salas, and B. B. Morgan, Toward a De�inition of Teamwork: An Analysis of Critical Team Behaviors, Technical Report NTSC 89-004 (Arlington, VA: Of�ice of Naval Research, 1989); and A. S. Glickman, S. Zimmer, R. C. Montero et al., The Evolution of Team Skills: An Empirical Assessment with Implications for Training, Technical Report NTSC 87-016 (Arlington, VA: Of�ice of Naval Research, 1987).
3. Collaborative Problem Solving. Team members need to be able to recognize when a problem requires group participation and then appropriately involve team members in searching for alternatives and devising solutions.
4. Communication. Employees working on individual jobs can sometimes get by with poor communication skills, but the wheels of teamwork keep rolling only with good communication. Members speak their minds, ask questions, seek and provide feedback, and make skillful presentations.
5. Con�lict Resolution. Last, but by no means least, teams need to know how to effectively manage and resolve disagreements. Even in the most cohesive of teams, con�licts will inevitably arise.
Leader's Self-Insight 10.2. Are You a Contributing Team Member?
Instructions: Think about how you have typically behaved and contributed as a member of student or work teams. Respond to the following statements based on how you typically behaved on those teams.
Mostly False Mostly True
Mostly False Mostly True 1. I proposed a clear vision of team purpose. 2. I initiated up-front discussions of team goals and objectives. 3. I suggested corrective actions to improve performance. 4. I helped coordinate team members. 5. I came to meetings well prepared. 6. I followed through on promises and commitments. 7. I was a focused, active listener. 8. I proactively engaged others in problem solving. 9. I gave team members appreciation and support. 10. I praised people for a job well done.
Scoring and Interpretation
These questions pertain to your contributions as a team member as described in the chapter. These items concern various important ways for a team member to contribute to the success of a team. By comparing your scores on the following scales, you may be able to identify the ways you most contribute to a team. To calculate your scores, give yourself 1 point for each Mostly True answer for the items indicated.
A. Goal Setting: Items 1, 2:
B. Performance Management: Items 3, 4:
C. Preparation: Items 5, 6:
D. Communication for Problem Solving: Items 7, 8:
E. Social Support: Items 9, 10:
An effective team must have members who contribute individually. A team must have someone performing each part, but no member is expected to perform all parts. Indeed, if you scored Mostly True on all the questions, you would be playing a leader role on the team. Part A pertains to goal and direction setting, which is often a team leader role. Part B concerns performance management, which is often part of a team leader's role, but team members also contribute in this way. Part C is about your ability to be interdependent with other team members. Part D pertains to communication and problem-solving skills. Part F is about meeting the relationship needs of team members, which is also a team leader role. How do you feel about your contribution to teams? In what ways do you take the initiative to be an effective member? What might you do to be more effective?
10-5b. Team Member Roles
The �ive team competencies re�lect that a team needs members who meet the important needs of the team for both accomplishing its tasks and fostering member unity, satisfaction, and well-being. Recall from Chapter 3 the discussion of situational leadership and the meta- categories of task-oriented and relationship-oriented behaviors described in that chapter (Exhibit 3.2). Task-oriented behavior places primary concern on tasks and production and is generally associated with higher productivity, whereas relationship-oriented behavior emphasizes concern for followers and relationships and is associated with higher employee satisfaction.
For a team to be successful over the long term, both task-oriented behavior and relationship-oriented behavior are required within the team. The task-specialist role is associated with behaviors that help the team accomplish its goal. People who play a task-specialist role often display the following behaviors:
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role
team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
New Leader Action Memo
As a leader, you can make sure that both the task and socioemotional needs of team members are met so that people experience both friendly support and goal accomplishment.
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
task-specialist role team role associated with initiating new ideas, evaluating the team's effectiveness, seeking to clarify tasks and responsibilities, summarizing facts and ideas for others, and stimulating others to action
Initiate Ideas. Propose new solutions to team problems.
Give Opinions. Offer opinions on task solutions; give candid feedback on others' suggestions.
Seek Information. Ask for task-relevant facts.
Summarize. Relate various ideas to the problem at hand; pull ideas together into a summary perspective.
Energize. Stimulate the team into action when interest drops.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/tdvpermkhcl78xkje667#KDCYLJ8D293JKBC1F045)
Robert A. Baron, Behavior in Organizations, 2nd ed. (Boston: Allyn & Bacon, 1986).
The socioemotional role includes behaviors that maintain people's emotional well-being and strengthen the social identity. People who adopt a socioemotional role display the following behaviors:
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role
team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
Encourage. Are warm and receptive to others' ideas; praise and encourage others to draw forth their contributions.
Harmonize. Reconcile group con�licts; help disagreeing parties reach agreement.
Reduce Tension. Tell jokes or in other ways draw off emotions when group atmosphere is tense.
Follow. Go along with the team; agree to other team members' ideas.
Compromise. Will shift own opinions to maintain team harmony.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/tdvpermkhcl78xkje667#SZLRZCNEJPMAJWPKH411)
Robert A. Baron, Behavior in Organizations, 2nd ed. (Boston: Allyn & Bacon, 1986).
Teams with mostly socioemotional roles can be satisfying, but they also can be unproductive. At the other extreme, a team made up primarily of task specialists will tend to have a singular concern for task accomplishment. This team will be effective for a short period of time but will not be satisfying for members over the long run. Effective teams have people in both task-specialist and socioemotional roles. A well-balanced team will do best over the long term because it will be personally satisfying for team members and it will accomplish its tasks.
People tend to take on different roles based on their personalities and interests. Some people naturally lean more toward behaviors that aid in accomplishing tasks, whereas others tend toward behaviors that maintain group harmony and satisfaction. People who can excel at both types of roles often emerge as team leaders. At Marriott, strengthening both task-oriented and relationship-oriented skills is a primary goal for team leader training because teams headed by leaders with both types of skills are typically more productive and innovative.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/tdvpermkhcl78xkje667#FWYLNU56QZDVCMVQK080) In any case, it is the leader's responsibility to make sure both task and socioemotional needs are met, whether through the leader's own behaviors or through the actions and behaviors of other team members.
Reported in Gratton and Erickson, “Ways to Build Collaborative Teams.”
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
socioemotional role team role associated with facilitating others' participation, smoothing con�licts, showing concern for team members' needs and feelings, serving as a role model, and reminding others of standards for team interaction
10-6. Leading a Virtual Team Being a team leader can be particularly challenging when people are scattered in different geographical locations and may be separated by language and cultural differences as well. Virtual teams are a reality for today's leaders. A virtual team is made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information and telecommunications technologies.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#SGABVDXTKJGAL8AMZ846) Virtual teams are sometimes also global teams. A global team is a cross-border work team made up of members of different nationalities whose activities span multiple countries.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#ZJYZJN8CMGMGYC4KF211)
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team
team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
The discussion of virtual teams is based on Anthony M. Townsend, Samuel M. DeMarie, and Anthony R. Hendrickson, “Virtual Teams: Technology and the Workplace of the Future,” Academy of Management Executive 12, no. 3 (August 1998), pp. 17–29; Deborah L. Duarte and Nancy Tennant Snyder, Mastering Virtual Teams (San Francisco: Jossey-Bass, 1999); and Jessica Lipnack and Jeffrey Stamps, “Virtual Teams: The New Way to Work,” Strategy & Leadership (January–February 1999), pp. 14–18. For a recent review of virtual team research, see Lucy L. Gilson, M. Travis Maynard, Nicole C. Jones Young, et al., “Virtual Teams Research: 10 Years, 10 Themes, and 10 Opportunities,” Journal of Management 41, no. 5 (July 2015), pp. 1313–1337.
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
virtual team team made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced information technologies
global team team made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on a global basis
Vijay Govindarajan and Anil K. Gupta, “Building an Effective Global Business Team,” MIT Sloan Management Review 42, no. 4 (Summer 2001), pp. 63–71.
Exhibit 10.5 illustrates the primary differences between conventional types of teams and today's virtual teams. Conventional types of teams discussed earlier in this chapter meet and conduct their interactions face-to-face in the same physical space. Team members typically share similar cultural backgrounds and characteristics. The key characteristics of virtual teams, on the other hand, are (1) spatial distance limits face-to-face interaction and (2) the use of technological communication is the primary means of connecting team members.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#HJNZ40MTHL9MKQKPT546) Members of virtual teams are often scattered in different locations, whether it be different of�ices and business locations around the country or around the world. Team members use e-mail, telephone, text messaging, videoconferencing, Skype, other Internet technologies, and various forms of collaboration software to perform their work rather than meeting face-to-face. Although some virtual teams are made up of only organizational members, virtual teams often include contingent workers, members of partner organizations, customers, suppliers, consultants, or other outsiders. Consider the virtual teams at Smart Balance, the “heart-healthy” food company.
Bradford W. Bell and Steve W. J. Kozlowski, “A Typology of Virtual Teams: Implications for Effective Leadership,” Group & Organization Management 27, no. 1 (March 2002), pp. 14–49.
Exhibit 10.5. Differences between Conventional, Virtual, and Global Teams
Type of Team Spatial Distance Communications Member Cultures Leader Challenge Conventional Colocated Face-to-face Same High Virtual Scattered Mediated Same Higher Global Widely scattered Mediated Different Very high
In the Lead Smart Balance
Smart Balance has about 67 employees, but nearly 400 people work for the company. Smart Balance started by making a buttery spread and now has a line of spreads; all-natural peanut butter; nutrient-enhanced milk, cheese, sour cream, and popcorn; and other products. Leaders decided to use virtual teams, including employees and outside contractors, to enable Smart Balance to innovate and expand rapidly.
Smart Balance keeps product development and marketing in-house but uses contractors to do just about everything else, including manufacturing, distribution, sales, information technology services, and research and testing. Each morning, virtual team members exchange a �lurry of e-mails, text messages, and phone calls to update each other on what took place the day before and what needs to happen today. Leaders spend much of their time building and managing team relationships. Twice a year they hold all-company meetings that include full-time Smart Balance employees and employees of contractors participating in virtual teams. Information is exchanged widely, and leaders make a point of recognizing the contributions of virtual members to the company's success, which helps create a sense of unity and commitment.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#NTNFX0G7CAUU78JTA347)
Joann S. Lublin, “Smart Balance Keeps Tight Focus on Creativity” (Theory & Practice column), The Wall Street Journal (June 8, 2009); and Rebecca Reisner, “A Smart Balance of Staff and Contractors,” BusinessWeek Online (June 16, 2009), http://www.businessweek.com/managing/content/jun2009/ca20090616_217232.htm (http://www.businessweek.com/managing/content/jun2009/ca20090616_217232.htm) (accessed April 30, 2010).
10-6a. Uses of Virtual Teams
New Leader Action Memo
As a leader, you can help a virtual team perform even with limited control and supervision. You can select members who thrive in a virtual environment, arrange opportunities for periodic face-to-face meetings, and ensure that members understand goals, responsibilities, and performance standards.
According to recent surveys, nearly half of all organizations surveyed use virtual teams, and about 80 percent of employees at multinational corporations have been part of a virtual team at some time.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#TDTTA0N24K16ABP36698) Virtual teams may be temporary cross-departmental teams that work on speci�ic projects, or they may be long-term, self-directed teams. One of the primary
advantages of virtual teams is the ability to rapidly assemble the most talented group of people to complete a complex project, solve a particular problem, or exploit a speci�ic strategic opportunity. The diverse mix of people can fuel creativity and innovation. On a practical level, organizations can save employees time and cut travel expenses when people meet in virtual rather than physical space. IBM reported that it saved more than $50 million in travel-related expenses in one recent year by using virtual teams.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#ZSEKSP9WE7VPXNVXH489)
Surveys by Society for Human Resource Management, reported in “Team Relationships, Time Differences Are Hampering Virtual Teams,” T + D (October 2012), p. 18 and Richard Lepsinger and Darleen DeRosa, “How to Lead an Effective Virtual Team,” Ivey Business Journal (May-June 2015), http://iveybusinessjournal.com/how-to-lead-an-effective-virtual- team/ (http://iveybusinessjournal.com/how-to-lead-an-effective-virtual-team/) (accessed November 9, 2015); and Survey by RW3CultureWizard, reported in Golnaz Sadri and John Condia, “Managing the Virtual World,” Industrial Management (January–February 2012), pp. 21–25.
Reported in Sadri and Condia, “Managing the Virtual World.”
10-6b. Challenges of Virtual Teams
Despite their potential bene�its, there is growing evidence that virtual teams are often less effective than teams whose members meet face- to-face.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#EKZYLGW0DUKFEBUZZ435) Studies indicate that, as virtual distance grows, innovative behavior can decline by a whopping 93 percent. Trust drops 83 percent, clarity of roles and objectives falls 62 percent, and project results such as on-time delivery and customer satisfaction decline by about 50 percent.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#GRSZWE6TVR7HGEA4H857) The team leader can make a tremendous difference in how well a virtual team performs, but virtual teams bring signi�icant leadership challenges.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#DEVWTD0GH6L3JRWCH624)
Donna J. Dennis, Deborah Meola, and M. J. Hall, “Effective Leadership in a Virtual Workforce,” T + D (February 2013), pp. 47–51; Karen Sobel Lojeski, Leading the Virtual Workforce: How Great Leaders Transform Organizations in the 21st Century (Hoboken, NJ:, 2010); Stacie A. Furst, Martha Reeves, Benson Rosen, and Richard S. Blackburn, “Managing the Life Cycle of Virtual Teams,” Academy of Management Executive 18, no. 2 (2004), pp. 6–20; R. E. Potter and P. A. Balthazard, “Understanding Human Interaction and Performance in the Virtual Team,” Journal of Information Technology Theory and Application 4 (2002), pp. 1–23; and Kenneth W. Kerber and Anthony F. Buono, “Leadership Challenges in Global Virtual Teams: Lessons from the Field,” SAM Advanced Management Journal (Autumn 2004), pp. 4–10.
Reported in Karen Sobel Lojeski, Leading the Virtual Workforce.
The discussion of these challenges is based on “Team Relationships, Time Differences Are Hampering Virtual Teams”; Dennis et al., “Effective Leadership in a Virtual Workforce”; Bradford S. Bell and Steve W. J. Kozlowski, “A Typology of Virtual Teams: Implications for Effective Leadership,” Group & Organization Management 27, no. 1 (March 2002), pp. 14–49; Lipnack and Stamps, “Virtual Teams: The New Way to Work”; Jon R. Katzenbach and Douglas K. Smith, “The Discipline of Virtual Teams,” Leader to Leader (Fall 2001), pp. 16–25; Lepsinger and DeRosa, “How to Lead an Effective Virtual Team”; and Gilson, et al., “Virtual Teams Research: 10 Years, 10 Themes, and 10 Opportunities.”
Building team relationships and trust is the biggest challenge faced by virtual team leaders. “Being authentic, connecting with others … and all of the interpersonal skills leaders use to build relationships and trust are always important,” one team leader said, but in a virtual environment, “the actions associated with these skills must be deliberate and intentional.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#CDLGGCHP125GMVQ3G949) Virtual team leaders have to trust people to do their jobs without constant supervision, and they learn to focus more on results than on the process of accomplishing them. Too much control can kill a virtual team, so leaders have to give up most of their control and yet at the same time provide guidance, encouragement, support, and development. To be successful, virtual team leaders can master the following skills:* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#GDPQ3KJKEYTDC6XN1207)
Interview in Dennis et al., “Effective Leadership in a Virtual Workforce.”
This discussion is based on Lepsinger and DeRosa, “How to Lead an Effective Virtual Team”; Arvind Malhotra, Ann Majchrzak, and Benson Rosen, “Leading Virtual Teams,” Academy of Management Perspectives 21, no. 1 (February 2007), pp. 60–69; Benson Rosen, Stacie Furst, and Richard Blackburn, “Overcoming Barriers to Knowledge Sharing in Virtual Teams,” Organizational Dynamics 36, no. 3 (2007), pp. 259–273; Marshall Goldsmith, “Crossing the Cultural Chasm; Keeping Communication Clear and Consistent with Team Members from Other Countries Isn't Easy, Says Author Maya Hu-Chan,” Business Week Online (May 31, 2007), http://www.businessweek.com/careers/content/may2007/ca20070530_521679.htm (http://www.businessweek.com/careers/content/may2007/ca20070530_521679.htm) (accessed August 24, 2007); Bradley L. Kirkman, Benson Rosen, Cristina B. Gibson, Paul E. Tesluk, and Simon O. McPherson, “Five Challenges to Virtual Team Success: Lessons from Sabre, Inc.,” Academy of Management Executive 16, no. 3 (2002), pp. 67–79; Penelope Sue Greenberg, Ralph H. Greenberg, and Yvonne Lederer Antonucci, “Creating and Sustaining Trust in Virtual Teams,” Business Horizons 50 (2007), pp. 325–333; and Elizabeth Garone, “Bonding with Remote Workers Valuable Asset,” The Wall Street Journal (May 11, 2008), p. H1.
Select the Right Team Members. Effective virtual team leaders put a lot of thought into getting the right mix of people on the team. Team members need the right mix of technical, interpersonal, and communication skills to work effectively in a virtual environment. In addition, leaders make clear to the team why each member was chosen to participate, thus giving people a basis for trust in others' abilities and commitment. Choosing people who have open, honest, and trusting personalities is also a plus. As with other types of teams, small virtual teams tend to be more cohesive and work together more effectively. However, diversity of views and experiences is also important to the success of a virtual team. Diversity is usually built into virtual teams because when leaders can pick the right people for the job, no matter where they are located, members usually re�lect diverse backgrounds and viewpoints.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#NJQVTFR9FQLE8631S628)
Terri L. Grif�ith and Margaret A. Neale, “Information Processing in Traditional, Hybrid, and Virtual Teams: From Nascent Knowledge to Transactive Memory,” Research in Organizational Behavior 23 (2001), pp. 379–421.
Start Off Right. Leaders make sure people have opportunities to know one another and establish trusting relationships. Studies of virtual teams suggest that an initial face-to-face meeting is one of the best ways to get people to come together as a team and rapidly go through the forming and storming stages of development, as discussed earlier in this chapter.*
(http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#ZKHRRBRJ2Q59E0XAQ406) At Mobil Corporation, leaders bring virtual team members together in one location at the beginning of a project so they can begin to build personal relationships and gain an understanding of their goals and responsibilities. LivePerson Inc., a leading cloud- based platform company, builds in ways for people from around the world to come together face-to-face whenever there seems to be a need for it. “We understand there is a cost to this, but we see real results, so it is a price we willingly pay,” said a senior vice president.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#YEZQUCNUNSFG9LMJH265)
Dennis et al., “Effective Leadership in a Virtual Workforce”; Ron Young, “The Wide-Awake Club,” People Management (February 5, 1998), pp. 46–49; and Steve Schloss, “Listening Is the Most Powerful Connection-Building Tool,” People & Strategy 35, no. 1 (2012), p. 9.
Charlene Marmer Solomon, “Building Teams across Borders,” Workforce (November 1998), pp. 12–17; and Steve Schloss, “Listening Is the Most Powerful Connection- Building Tool.”
Use Technology to Build Relationships. Leaders also apply technology to build relationships.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#NFVMQMJ831HY60AV0921) Leaders hold team meetings using Skype, for example, to enable people to get to know one another and clarify roles and project tasks. They also encourage non-task-related communication, such as the use of online social networking where people can share photos, thoughts, and personal biographies. “Managers often assume that people are mainly interested in what their fellow team members can do, not who they are,” Keith Ferrazi wrote in a Harvard Business Review blog. “Wrong!” Ferrazi and other virtual team experts emphasize the value of non-work-related interactions.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#PMUJG3SQ8DTJP9SWB480) Researchers have also found that round-the-clock virtual work spaces, where team members can access the latest versions of �iles, keep track of deadlines and timelines, monitor one another's progress, and carry on discussions between formal meetings enhance virtual team success.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#PPWKW16BJEZQ56ZKR592)
Richard Lepsinger, “The Virtual Challenge: It's More than Cultural Differences,” People & Strategy 35, no. 1 (2012), pp. 10–11; and Alanah Mitchell, “Interventions for Effectively Leading in a Virtual Setting,” Business Horizons 55 (2012), pp. 431–439.
Keith Ferrazi, “How to Build Trust in a Virtual Workplace,” Harvard Business Review Blog Network (October 8, 2012), http://blogs.hbr.org/cs/2012/10/how_to_build_trust_in_virtual.html (http://blogs.hbr.org/cs/2012/10/how_to_build_trust_in_virtual.html) (accessed May 6, 2013).
Ann Majchrzak, Arvind Malhotra, Jeffrey Stamps, and Jessica Lipnack, “Can Absence Make a Team Grow Stronger?” Harvard Business Review 82, no. 5 (May 2004), pp. 131- 137.
Agree on Ground Rules. Leaders make everyone's roles, responsibilities, and authority clear from the beginning. All team members need to explicitly understand both team and individual goals, deadlines, and expectations for participation and performance. When roles and expectations are clear, trust can develop more easily. It is also important that leaders de�ine a clear context so that people can make decisions, monitor their own performance, and regulate their behavior to accomplish goals. For each virtual team decision, Kevan Hall, CEO of Global Integration, asks team members to summarize the decision, whether they agree with it, and the speci�ic actions they will take as a result of the decision.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#DDNTSA4QDPSB32CHG150) Another important point is shaping norms of respectful interaction. Team members need to agree on communications etiquette, rules for “verbalizing” online when members are shifting mental gears or need more feedback, whether there are time limits on responding to voice mail or e-mail, and so forth.
Kevan Hall, “Culture Is Always Half about Them and Half about Us,” People & Strategy 35, no. 1 (2012), pp. 9–10.
As the use of virtual teams grows, there is growing understanding of what makes them successful. Some experts suggest that leaders solicit volunteers as much as possible for virtual teams, and interviews with virtual team members and leaders support the idea that members who truly want to work as a virtual team are more effective. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/xdjqlhf0h3tnbl598107#DCBQS693ZYNX19F4Z657)
Lynda Gratton, “Working Together … When Apart,” The Wall Street Journal (June 18, 2007), p. R1; and Kirkman et al., “Five Challenges to Virtual Team Success.”
10-7. Handling Team Con�lict As one would expect, there is an increased potential for con�lict among members of virtual teams because of the greater chances for miscommunication and misunderstandings. Studies of virtual teams indicate that how they handle internal con�licts is critical to their success, yet con�lict within virtual teams tends to occur more frequently and take longer to resolve. Moreover, people in virtual teams who communicate by e-mail tend to engage in more inconsiderate behaviors such as name-calling or insults than do people who work face-to- face.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#UGUC9CGATCWB1TSXR726) Some people aren't cut out for virtual teamwork and show a greater propensity for shirking their duties or giving less than their full effort when working in a virtual environment, which can lead to team con�licts.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#TXCSSCTLXRNVYSACP184) Cultural value differences, little face-to-face interaction, and lack of on-site monitoring make it harder to build team identity and commitment.
S. J. Zaccaro and P. Bader, “E-Leadership and the Challenges of Leading E-Teams: Minimizing the Bad and Maximizing the Good,” Organizational Dynamics 31, no. 4 (2002), pp. 377–387; and Yuhyung Shin, “Con�lict Resolution in Virtual Teams,” Organizational Dynamics 34, no. 4 (2005), pp. 331–345.
Debra L. Shapiro, Stacie A. Furst, Gretchen M. Spreitzer, and Mary Ann Von Glinow, “Transnational Teams in the Electronic Age: Are Team Identity and High Performance at Risk?” Journal of Organizational Behavior 23 (2002), pp. 455–467.
Whenever people work together in teams, some con�lict is inevitable. Whether leading a virtual team or a team whose members work side- by-side, bringing con�licts into the open and effectively resolving them is one of the team leader's most important jobs. Con�lict refers to antagonistic interaction in which one party attempts to block the intentions or goals of another.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#XDLXDAH1RPV7J8KDC516) Effective con�lict management has a positive impact on team cohesiveness and performance.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#GRLU0B84YQLRJ3S3U074) High-performing teams typically have lower levels of con�lict, and the con�lict is more often associated with tasks than with interpersonal relationships. In addition, teams that re�lect healthy patterns of con�lict are usually characterized by high levels of trust and mutual respect. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#EBRJMN2F7QEC8KX65194)
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict
antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Stephen P. Robbins, Managing Organizational Con�lict: A Nontraditional Approach (Englewood Cliffs, NJ: Prentice Hall, 1974).
Tekleab et al., “A Longitudinal Study of Team Con�lict, Con�lict Management, Cohesion, and Team Effectiveness.”
Karen A. Jehn and Elizabeth A. Mannix, “The Dynamic Nature of Con�lict: A Longitudinal Study of Intragroup Con�lict and Group Performance,” Academy of Management Journal 44, no. 2 (2001), pp. 238–251.
10-7a. Types of Con�lict
Two basic types of con�lict that occur in teams are task con�lict and relationship con�lict.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#QJWPUDQQBZU27QSF3003) Task con�lict refers to disagreements among people about the goals to be achieved or the content of the tasks to be performed. Two shop foremen might disagree over whether to replace a machine's valve or let it run despite the unusual noise it is making. Or two members of a top management team might disagree about whether to acquire a company or enter into a joint venture as a way to expand globally. Relationship con�lict refers to personal incompatibility that creates tension and feelings of personal animosity among people. For example, a recurring problem for many hospitals that have implemented teams is con�lict between doctors and nurses or other team members. Many physicians are accustomed to being in charge and calling all the shots, and the shift to teamwork has been dif�icult. A survey of hospital administrators
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
Con�lict antagonistic interaction in which one party attempts to thwart the intentions or goals of another
performed for the American College of Physician Executives found that 71 percent reported that disruptive behavior, such as doctors berating nurses for “interrupting” them with questions, surgeons �linging scalpels, or physicians demeaning coworkers they considered incompetent, occurred at least monthly at their hospital.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#PXVR6HFAF6DT0U54U929)
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict
personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Based on K. A. Jehn, “A Multimethod Examination of the Bene�its and Determinants of Intragroup Con�lict,” Administrative Science Quarterly 40 (1995), pp. 256–282; and K. A. Jehn, “A Qualitative Analysis of Con�lict Types and Dimensions in Organizational Groups,” Administrative Science Quarterly 42 (1997), pp. 530–557.
Sandra G. Boodman, “Anger Management Courses Are a New Tool for Dealing with Out-of-Control Doctors,” The Washington Post (March 4, 2013), http://articles.washingtonpost.com/2013-03-04/national/37429827_1_behavior-doctors-nurses-act (http://articles.washingtonpost.com/2013-03- 04/national/37429827_1_behavior-doctors-nurses-act) (accessed May 6, 2013).
In general, research suggests that task con�lict can be bene�icial because it leads to better decision making and problem solving. On the other hand, relationship con�lict is typically associated with negative consequences for team effectiveness.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#YSVGDSM4BPP8BASCZ615) One study of top management teams, for example, found that task con�lict was associated with higher decision quality, greater commitment, and more decision acceptance, while the presence of relationship con�lict signi�icantly reduced those same outcomes.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#UFWZKJA37BF20FTP2442)
A. Amason, “Distinguishing the Effects of Functional and Dysfunctional Con�lict on Strategic Decision Making: Resolving a Paradox for Top Management Teams,” Academy of Management Journal 39, no. 1 (1996), pp. 123–148; Jehn, “A Multimethod Examination of the Bene�its and Determinants of Intragroup Con�lict”; and K. A. Jehn and E. A. Mannix, “The Dynamic Nature of Con�lict: A Longitudinal Study of Intragroup Con�lict and Group Performance,” Academy of Management Journal 44 (2001), pp. 238–251.
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Task con�lict disagreement among people about the goals to be achieved or the content of the tasks to be performed
Relationship con�lict personal incompatibility that creates tension and feelings of personal animosity among people
Amason, “Distinguishing the Effects of Functional and Dysfunctional Con�lict on Strategic Decision Making.”
10-7b. Balancing Con�lict and Cooperation
There is evidence that mild con�lict can be bene�icial to teams.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#VFZQ0H307THSP4U14604) A healthy level of con�lict helps to prevent groupthink, as described earlier, in which people are so committed to a cohesive team that they are reluctant to express contrary opinions. When people in work teams go along simply for the sake of harmony, problems typically result. Thus, a degree of con�lict leads to better decision making because multiple viewpoints are expressed.
Dean Tjosvold, Chun Hui, Daniel Z. Ding, and Junchen Hu, “Con�lict Values and Team Relationships: Con�lict's Contribution to Team Effectiveness and Citizenship in China,” Journal of Organizational Behavior 24 (2003), pp. 69–88; C. De Dreu and E. Van de Vliert, Using Con�lict in Organizations (Beverly Hills, CA: Sage, 1997); and Kathleen M. Eisenhardt, Jean L. Kahwajy, and L. J. Bourgeois III, “Con�lict and Strategic Choice: How Top Management Teams Disagree,” California Management Review 39, no. 2 (Winter 1997), pp. 42–62.
However, con�lict that is too strong, that is focused on personal rather than work issues, or that is not managed appropriately can damage productivity, tear relationships apart, and interfere with the healthy exchange of ideas and information.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#LXNNVSQHW3Z8JLHBL883) Team leaders have to �ind the right balance between con�lict and cooperation, as illustrated in Exhibit 10.6. Too little con�lict can decrease team performance because the team doesn't bene�it from a mix of opinions and ideas—even disagreements—that might lead to better solutions or prevent the team from making mistakes. At the other end of the spectrum, too much con�lict outweighs the team's cooperative efforts and leads to a decrease in employee satisfaction and commitment, hurting team performance. A moderate amount of con�lict that is managed appropriately typically results in the highest levels of team performance.
Koehler, “Effective Team Management”; and Dean Tjosvold, “Making Con�lict Productive,” Personnel Administrator 29 (June 1984), p. 121.
Exhibit 10.6. Balance Con�lict with Cooperation
Source: From Richard L. Daft, Management, 11th ed. (Mason, OH: Southwestern/Cengage Learning, 2014), p. 615
10-7c. Causes of Con�lict
Several factors can lead to con�lict.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#FAZKM95TJ2DBFPG5J620) One of the primary causes of con�lict is competition over resources, such as money, information, or supplies. In similar fashion, con�lict often occurs simply because people are using those resources to pursue differing goals. Goal differences are natural in organizations. For example, the sales department's goals for fast delivery on new orders might con�lict with the manufacturing department's goals for high quality and ef�iciency.
This discussion is based in part on Richard L. Daft, Organization Theory and Design (St. Paul, MN: West, 1992), chapter 13; and Paul M. Terry, “Con�lict Management,” The Journal of Leadership Studies 3, no. 2 (1996), pp. 3–21.
The lack of clear roles and responsibilities can also lead to con�lict. Consider the 2012 multibillion-dollar loss at JPMorgan Chase. Many people wondered how implementation of the company's careful low-risk trading strategy faltered so badly. Ina Drew, the senior banker who has been partly blamed for the problems, had won the complete trust of CEO Jamie Dimon after she steered the company through the 2008 �inancial crisis. However, Drew was out of the of�ice a great deal of time due to illness beginning in 2010, and long-simmering con�licts and divisions over roles and responsibilities emerged. Drew's deputy in New York, Althea Duersten, disagreed with the risky, outsized bets being made by Achilles Macris, the deputy in London, but the London deputy used his stronger personality to shout down
Duersten's objections. One trader underscored the lack of clear roles when he said he “didn't know who to listen to.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#UBPNZAQE5FTU71UEU837)
Jessica Silver-Greenberg and Nelson D. Schwartz, “Discord at Key JPMorgan Unit Is Blamed in Bank's Huge Loss,” The New York Times (May 20, 2012), p. A1.
10-7d. Styles to Handle Con�lict
Teams as well as individuals develop speci�ic styles for dealing with con�lict, based on the desire to satisfy their own concern versus the other party's concern. A model that describes �ive styles of handling con�lict is in Exhibit 10.7. The two major dimensions are the extent to which an individual is assertive versus unassertive and cooperative versus uncooperative in his or her approach to con�lict.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#XHFKFHB8LWSFZAUN9406)
Exhibit 10.7. A Model of Styles to Handle Con�lict
Sources: Based on Kenneth Thomas, “Con�lict and Con�lict Management,“ in Handbook of Industrial and Organizational Behavior, ed. M. D. Dunnette (New York: John Wiley, 1976), p 900; and Nan Peck, “Con�lict 101: Styles of Fighting,” North Virginia Community College Website, September 20, 2005, http://www.nvcc.edu/home/npeck/con�licthome/con�lict/Con�lict101/con�lictstyles.htm (http://www.nvcc.edu/home/npeck/con�licthome/con�lict/Con�lict101/con�lictstyles.htm) (accessed April 13, 2011)
This discussion is based on Kenneth W. Thomas, “Towards Multidimensional Values in Teaching: The Example of Con�lict Behaviors,” Academy of Management Review 2, no. 3 (July 1977), pp. 484–490.
New Leader Action Memo
Which con�lict-handling style do you tend to use most often? Answer the questions in Leader's Self-Insight 10.3 to �ind out. Try to think of con�lict situations you've been involved in where each of the styles might be appropriate.
1. The dominating style (my way) re�lects assertiveness to get one's own way and should be used when quick, decisive action is vital on important issues or unpopular actions, such as during emergencies or urgent cost cutting.
2. The avoiding style (no way) re�lects neither assertiveness nor cooperativeness. It is appropriate when an issue is trivial, when there is no chance of winning, when a delay to gather more information is needed, or when a disruption would be costly.
3. The compromising style (half way) re�lects a moderate amount of both assertiveness and cooperativeness. It is appropriate when the goals on both sides are equally important, when opponents have equal power and both sides want to split the difference, or
when people need to arrive at temporary or expedient solutions under time pressure.
4. The accommodating style (your way) re�lects a high degree of cooperativeness, which works best when people realize that they are wrong, when an issue is more important to others than to oneself, when building social credits for use in later discussions, and when maintaining harmony is especially important.
5. The collaborating style (our way) re�lects a high degree of both assertiveness and cooperativeness. The collaborating style enables both parties to win, although it may require substantial bargaining and negotiation. The collaborating style is important when both sets of concerns are too important to be compromised, when insights from different people need to be merged into an overall solution, and when the commitment of both sides is needed for a consensus.
Leader's Self-Insight 10.3. How Do You Handle Team Con�lict?
Instructions: Think about how you typically handle a dispute or disagreement with a team member, friend, or coworker, and then respond to the following statements based on whether they are Mostly False or Mostly True for you. There are no right or wrong answers, so answer honestly.
Mostly False Mostly True
1. I try hard to win my position. 2. I strongly assert my opinion in a disagreement. 3. I raise my voice to get other people to accept my position. 4. I feel that differences are not worth arguing about. 5. I would usually avoid a person who wants to discuss a disagreement. 6. I would rather keep my views to myself than argue. 7. I give in a little if other people do the same. 8. I will split the difference to reach an agreement. 9. I typically give up some points in exchange for others. 10. I don't want to hurt other people's feelings. 11. I am quick to agree when someone I am arguing with makes a good point. 12. I try to smooth over disagreements. 13. I suggest a solution that includes the other person's point of view. 14. I consider the merits of other viewpoints as equal to my own. 15. I try to include the other person's ideas to create an acceptable solution.
Scoring and Interpretation
Five categories of con�lict-handling strategies are measured in this instrument: dominating, avoiding, compromising, accommodating, and collaborating. By comparing your scores on the following �ive scales, you can identify your preferred or natural con�lict-handling strategy by the highest score.
To calculate your �ive scores, give yourself 1 point for each Mostly True answer for the three items indicated.
Dominating: Items 1, 2, 3:
Avoiding: Items 4, 5, 6:
Compromising: Items 7, 8, 9:
Accommodating: Items 10, 11, 12:
Collaborating: Items 13, 14, 15:
Brie�ly review the text material (pages 314, 315) about these �ive strategies for handling con�lict. Do you agree that your highest score represents the style you use the most? Which strategy do you �ind the most dif�icult to use? How would your con�lict strategy differ if the other person was a family member rather than a team member? Can you think of a situation where a con�lict strategy in which you are weak might be more effective? Explain your scores to another student and listen to the explanation for his or her scores.
Source: Adapted from “How Do You Handle Con�lict?” in Robert E. Quinn et al., Becoming a Master Manager (New York: Wiley, 1990), pp. 221–223.
New Leader Action Memo
As a leader, you can adopt the best approach for handling a team con�lict. Choose among the dominating, avoiding, compromising, accommodating, or collaborating styles based on the degree of assertiveness and cooperativeness needed to manage the situation.
An example of the collaborating style comes from the 2008 Beijing Olympic Games. When building the Beijing National Aquatics Center (typically called the Water Cube), two architectural �irms—one Chinese and the other Australian—developed designs that were totally different. Although this created some tension, instead of �ighting for their own ideas, the two sides came up with a totally new concept that excited everyone. The resulting award-winning building is spectacular.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#QGZCBGTMUKPKV92AP185)
Reported in Amy C. Edmondson, “Teamwork on the Fly,” Harvard Business Review (April 2012), pp. 72–80.
Each of the �ive styles is appropriate in certain cases, and effective team members and leaders vary their style to �it the speci�ic situation and the people involved.
10-7e. Negotiation
One distinctive type of con�lict management is negotiation, whereby people engage in give-and-take discussions and consider various alternatives to reach a joint decision that is acceptable to both parties. Negotiation is typically used when a con�lict is formalized, such as between a union and management.
Ways to Negotiate Con�licting parties may embark on negotiation from different perspectives and with different intentions, re�lecting either an integrative approach or a distributive approach.
Integrative negotiation is based on a win–win assumption, in that all parties want to come up with a creative solution that can bene�it both sides. Rather than viewing the con�lict as a win–lose situation, people look at the issues from multiple angles, consider trade-offs, and try to “expand the pie” rather than divide it. With integrative negotiation, con�licts are managed through cooperation and compromise, which fosters trust and positive long-term relationships. Distributive negotiation, on the other hand, assumes the “size of the pie” is �ixed, and each party tries to get as much of it as possible. One side wants to win, which means the other side must lose. With this win–lose approach, distributive negotiation is competitive and adversarial rather than collaborative, and it does not typically lead to positive long- term relationships.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#NXTGSAR0VV9GHJKN8408)
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation
adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
“Negotiation Types,” The Negotiation Experts Website (June 9, 2010), http://www.negotiations.com/articles/negotiation-types/ (http://www.negotiations.com/articles/negotiation- types/) (accessed September 28, 2010).
Most experts emphasize the value of integrative negotiation for today's collaborative business environment. That is, the key to effectiveness is to see negotiation not as a zero-sum game but as a process for reaching a creative solution that bene�its everyone.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#DCEFY28005P2JX3Z9635)
Rob Walker, “Take It or Leave It: The Only Guide to Negotiating You Will Ever Need,” Inc. (August 2003), pp. 75–82.
Rules for Reaching a Win–Win Solution Achieving a win–win solution through integrative negotiation is based on four key strategies:* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#UHEGQCXEGTFLXP84K278)
Based on Roger Fisher and William Ury, Getting to Yes: Negotiating Agreement Without Giving In (New York: Penguin, 1983); Walker, “Take It or Leave It”; Robb Mandelbaum, “How to Negotiate Effectively,” Inc. (November 1, 2010), http://www.inc.com/magazine/20101101/how-to-negotiate-effectively.html (http://www.inc.com/magazine/20101101/how-to- negotiate-effectively.html) (accessed April 12, 2011); and Deepak Malhotra and Max H. Bazerman, “Investigative Negotiation,” Harvard Business Review (September 2007), pp. 72–78.
Separate the People from the Problem. For successful integrative negotiation, people stay focused on the problem and the source of con�lict rather than attacking or attempting to discredit each other.
Focus on Underlying Interests, not Current Demands. Demands are what each person wants from the negotiation, whereas underlying interests represent the “why” behind the demands. Consider two sisters arguing over the last orange in the fruit bowl. Each insisted she should get the orange and refused to give up (demands). If one sister had asked the other why she wanted the orange (interests), the sisters would have discovered that one wanted to eat it and the other wanted the peel to use for a project. By focusing on interests, the sisters would be able to arrive at a solution that gave each what she wanted.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kplfdm9pxw61yungl421#DLBX7U2S3T1EXU25T989) Demands create yes-or-no obstacles to effective negotiation, whereas underlying interests present problems that can be solved creatively.
Variations of this familiar story have been reported in many publications, including “Getting to the Point with Interest-Based Negotiations,” The Negotiation Skills Company, http://www.negotiationskills.com/articleB4.php (http://www.negotiationskills.com/articleB4.php) (accessed June 25, 2013); and “Negotiating Skills: Win-Win Deals,” Manage Train Learn Website, http://www.managetrainlearn.com/page/win-win-deals (http://www.managetrainlearn.com/page/win-win-deals) (accessed June 25, 2013).
Listen and Ask Questions. A good strategy for most negotiations is to listen and ask questions. Leaders can learn more about their opponent's position, their constraints, and their needs by being quiet or asking questions. Smart negotiators want to learn the other side's constraints so they can help overcome them. Effective negotiators don't dismiss the opposing party's limitation as unreasonable or think “that's their problem.” Rather, they try to come up with a solution for the opponent so both parties can get closer to an agreement.
Insist that Results be Based on Objective Standards. Each party in a negotiation has its own interests and would naturally like to maximize its outcomes. Successful negotiation requires focusing on objective criteria and maintaining standards of fairness rather than using subjective judgments about the best solution.
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Integrative negotiation a cooperative approach to negotiation in which con�licting parties try to reach a win–win solution
Distributive negotiation adversarial negotiation in which con�licting parties compete to win the most resources and give up as little as possible
Leadership Essentials Many leaders are called upon to facilitate teams rather than manage direct-report subordinates. Teams can be effective in providing the coordination and information sharing needed to accomplish interdependent tasks. Functional teams typically are part of the traditional organization structure. Cross-departmental teams include people from different functional areas and are often formed for projects of special importance. Self-directed teams are member-centered rather than leader-centered and - directed.
Teams present a dilemma for many people. Individuals have to give up their independence and sometimes make sacri�ices for the good of the team. Other potential problems are free riders and dysfunctional teams.
The team leader plays a big part in whether a team achieves high performance. Five things leaders provide that contribute to high performance are: compelling purpose and clear objectives, clear roles and diversity of skills, streamlined team size, decision authority over how to achieve goals, and support and coaching.
Teams go through stages of development and change over time. Guiding a team through these stages is an important part of team leadership. In addition, leaders encourage team cohesiveness, help establish productive norms, and make sure people contribute their skills and competencies needed for the team to be effective. Every team must possess the following competencies: goal setting and performance management, planning and coordination, collaborative problem solving, communication, and con�lict resolution. Team members take on various roles that meet both task needs and socioemotional needs.
These principles apply to virtual and global teams as well. However, being a team leader is even more challenging when people are scattered in different geographic locations and may be separated by language and cultural differences. To create effective, smoothly functioning virtual teams, leaders select team members who have the skills and temperaments to work virtually, use technology to build trusting relationships, and agree on ground rules for the team.
All teams experience some con�lict because of scarce resources, goal con�licts, or power and status differences. Leaders try to balance con�lict and cooperation and use varied styles to handle con�lict, including the dominating style, avoiding style, compromising style, accommodating style, and collaborating style. Each style can be effective in certain circumstances.
One type of con�lict management is negotiation. Good leaders try to use integrative negotiation, which is based on a win–win assumption, rather than distributive negotiation, in which each party strives to get as much as it can at the expense of the other party.
Discussion Questions 1. What is the difference between a “team” and a “group”? Describe your personal experience with each.
2. Discuss the differences between a cross-departmental team and a self-directed team. Do you believe self-directed teams could be effectively used in certain types of organizations? Explain.
3. Which of the �ive elements of high-performance teams do you think would be most dif�icult for a leader to implement in a virtual team? Explain.
4. Describe the stages of team development. How would you facilitate a team's development through each stage?
5. How might an individual's dilemma about teamwork be intensi�ied or reduced in a virtual team? As a virtual team leader, what would you do to manage these dilemmas?
6. The chapter suggests that very small teams (say, three to six members) perform better, and most people prefer to work in small teams. However, many companies use teams of 100 or more people to perform complex tasks, such as creating and developing a new product. Do you think a unit of that size can truly function as a team? Discuss.
7. Discuss the relationship between team cohesiveness and performance. As a leader, can you think of speci�ic ways you would encourage norms of cohesiveness and collaboration?
8. Think about a team you have participated in to do a class project or a sports team on which you participated. Can you identify members who played a task-specialist role and those who played a socioemotional role? What behaviors were associated with each?
9.
What style of handling con�lict do you typically use? Can you think of instances where a different style might have been more productive?
10. If you were the leader of a team developing a new computer game, how might you apply negotiation to resolve a con�lict between two strong-willed members related to which features to include in the game?
Leadership at Work
Team Feedback
Think back to your most recent experience working in a team, either at work or school. Write down your answers to the following questions about your role in the team.
What did the team members appreciate about you?
What did the team members learn from you?
What could the team members count on you for?
How could you have improved your contribution to the team?
Evaluate your answers. What is the overall meaning of your answers? What are the implications for your role as a team member? As a team leader?
In Class: “Team Feedback” is an excellent exercise to use for student feedback to one another after a speci�ic team class project or other activities done together during the class. If there were no assigned team activities but students have gotten to know each other in class, they can be divided into groups and asked to provide the information with respect to their participation in the class instead of in the student team.
The instructor can ask the student groups to sit in a circle facing one another. Then one person will volunteer to be the focal person, and each of the other team members will tell that team member the following:
What I appreciate about you
What I learned from you
What I could count on you for
My one suggestion for improvement as a team leader/member
When the team members have given feedback to the focal person, another team member volunteers to hear feedback, and the process continues until each person has heard the four elements of feedback from every other team member.
The key questions for student learning are: Are you developing the skills and behaviors to be a team leader? If not, what does that mean for you? If you are now providing team leadership, how can you continue to grow and improve as a team leader?
Source: Thanks to William Miller for suggesting the questions for this exercise.
Leadership Development: Cases for Analysis
Decision Time
Ben Dooley and Casey Stringer had agreed to stop for coffee in the atrium Starbucks before heading up to the 35th �loor for a board meeting.
“You seem deep in thought,” Ben said, placing the two cups of hot coffee on the table.
“Watching Johnna and Robert in previous board meetings helps me to understand why the folks in Congress can't get anything done,” Casey mused. “Both sides have stated their positions and nothing, nothing will budge them. I dread this meeting. I'd rather have a root canal.”
“Well, while the two giants battle it out, the rest of us will have to work out some sort of compromise. We outsourced manufacturing operations to China several years ago to cut costs and now things are changing rapidly and we have a major decision. Does Bishop's Engineered Plastics make the best of the situation in China …?”
“… Or do we re-shore?” Casey added.
“Someone will have to be the voice of reason today,” Ben said. “Robert Ma has overseen the outsourcing to China and, initially, it was a great move.”
“I agree the cost savings were pretty amazing. The retooling and creation of a state-of-the-art factory in Wenzhou by the Chinese really propelled us to a new level within the industry.”
“Well, 2012 is the Year of the Dragon, and the dragon is having a problem,” Ben replied.
“Yes, Robert is going to have to face the fact that if we stay in China, we have to move from Wenzhou,” Casey pointed out. “The worker shortage is bad and getting worse. The last estimates for that region were one million workers short. As wages go up and other opportunities present themselves, manufacturing jobs are losing their appeal in the cities. In our plant the managers have to come down and work on the lines. That's not good. Now, to try to stave off a mass industrial exodus, the Chinese are offering a stimulus to industries to relocate into the interior of the country. The interior offers more workers and lower wages….”
“And a factory move will delay manufacturing and make shipping even more dif�icult,” Ben replied. “Add to that the Chinese insistence on full payment before shipping, and we're looking at some potentially serious delays.”
“Johnna, on the other hand, is going to argue that the situation in China is an indication that now is the perfect time to re-shore—bring the jobs back to the good old U.S. of A.,” Casey said. “She's going to dig in her heels on this one and you and I know that at least two members of that ‘august’ board are going to back off and let her have her way with no careful analysis of the pros and cons.” I sometimes think Frank is a people pleaser, always agreeable, especially toward Johnna, because she is the chair. And Martha usually doesn't say anything, much less offer an opinion. She stares down at her hands when the going gets heavy.”
“The pros for Johnna are obvious—bring jobs home when jobs are needed, shorten the supply line, reduce shipping costs, offer faster response to customers, and, I believe, offer a better quality product. It is worth a little higher labor cost.”
“And what are the cons?”
“The problems are the higher wages here and the cost of retooling factories in this country that have been down for a few years.”
“But,” Casey asked, “Would we have to build a new factory deep in China's interior? No. And will their interior workforce be adequately trained? I would guess not. The Chinese government will help with building and relocation costs, but still….”
“So both Johnna and Robert have a strong argument and some glaring weaknesses. Is there room in here for a compromise? That's what I would like to see. They would both get something,” opined Ben.
“I don't know. I'm eager to see what each one of them presents. It should be an interesting conversation.”
“Or an afternoon in hell,” Ben said as the two headed for the elevator. “I wonder what you and I might do to help Johnna and Robert resolve this con�lict. What do you think we should do, Casey?”
Questions 1. What styles for handling con�lict appear among the board members? Explain.
2. What options do Ben and Casey have for helping resolve the con�lict between Johnna and Robert? What con�lict styles might they adopt for this meeting?
3. What suggestions would you make to help board members arrive at a good team decision?
Devereaux-Dering Group
Dashing to catch a cab at the corner of Sixth and Vine, the account team was exhilarated. After a quick exchange of high �ives, three of the four jumped into the backseat of a cab to return to the Manhattan of�ices of Devereaux-Dering, a global advertising agency with of�ices in New York, Hong Kong, and Paris. The team couldn't wait to tell their team leader, Kurt Lansing, that they had won the BMW account that morning. The fourth team member, Brad Fitzgerald, stood apart from the animated group, studying his BlackBerry and then hailing a cab for an afternoon �light out of LaGuardia.
After a two-year slump in sales, Devereaux-Dering needed a big score like the BMW account. To drive new business and land high-pro�ile accounts like this one, the company had hired Kurt Lansing, an MBA from Wharton, with prominent status in the advertising industry. His job was to lead a new business team to study the market, develop strategies, and acquire major accounts. Lansing hand-selected four high achievers for his team that represented each area of the business: Brad Fitzgerald, creative director; Trish Roderick, account services; Adrienne Walsh, production manager; and Tyler Green, brand strategy.
“That was a shocker!” said Roderick as she scooted across the backseat of the cab to make room for her teammates. “The client didn't seem too impressed with our presentation until Fitzgerald presented the last set of slides describing the global campaign. They loved it. I think he single-handedly clinched the deal when he presented the tag line for the Asian market,” she said excitedly.
“He's a real whiz, alright,” muttered Green. “The eighth wonder of the world.” Sighing deeply and losing his earlier exuberance, Green said, “We couldn't have bagged the deal without him, and I know we'll all get credit. But none of us knew he planned to present that last part of the global campaign. I know he was working on that tag line late last night, but there was plenty of time this morning to get team input on it. I hate surprises in front of a client. I felt like a fool, even if we did win the business.”
“He's a regular white knight,” chuckled Walsh, “riding in at the last minute to save the day. I suppose we should appreciate him, but he's just so irritating. He snapped at me last week for not telling him about a client who was upset about delays in their ad campaign. I reminded him that I had told him about it in our status meeting, but he wasn't listening at the time. He was glued to his precious BlackBerry, as usual. Why have team meetings if he isn't going to participate?”
Roderick was surprised by her teammates' reaction to Fitzgerald. She thought they had been working well together. She was quickly discovering, however, an undercurrent of resentment. This was the �irst time that she had been exposed to the con�lict that was simmering below the surface. No doubt, Fitzgerald did have a strong ego and aggressive personality. A previously successful entrepreneur, Fitzgerald had a track record of success and was very ambitious. However, she did notice that he didn't show respect for differing opinions or invite collaboration on ideas. She wondered if he was placing his own success above the team's. But why complain if the team was sharing the credit and earning fat bonuses along with him? She was content to go with the status quo. “You know,” she said, “we're darn lucky to be on his team.”
She stared out the cab window at the passing traf�ic and listened to her two teammates continue to grouse. “I should have known something was up when I walked past his of�ice last night and saw him working with the new copywriter. They must have been hashing out the new tag line,” smirked Green. “We are a team, aren't we? The system is bigger than the individual, remember? He doesn't seem too concerned about the welfare of the team—only his own.”
“Well, let's all have a heart-to-heart with Mr. McWhiz,” said Walsh sarcastically. “I'm sure he'll see things our way. We'll give him a brief overview of Teamwork 101. That will go over great!” As the cab pulled to the curb, they tossed the driver a $20 bill and headed to their of�ices on the 40th �loor. They would all stop to see the team leader, Kurt Lansing, �irst.
In the meantime, Lansing smiled broadly when he received Fitzgerald's text message that they had won the BMW account. Sinking back in his chair, he marveled at the cohesiveness and success of his team. All that time building a shared vision and building trust was starting to pay off.
Questions 1. What factors do you think are affecting this team's cohesiveness? Explain.
2. If you were the team leader, what could you do to bring Fitzgerald into the team more and foster better relationships among the team members?
3. As a team member, what would you do? Should the three members of the team confront Fitzgerald with their concerns? Should they inform Kurt Lansing? Explain your answers.
Chapter 11 . Developing Leadership Diversity
Your Leadership Challenge After reading this chapter, you should be able to:
Understand and reduce the dif�iculties faced by minorities in organizations. Apply an awareness of the dimensions of diversity and multicultural issues in your everyday life. Encourage and support diversity to meet organizational needs. Consider the role of cultural values and attitudes in determining how to deal with employees from different cultures or ethnic backgrounds. Break down your personal barriers that may stand in the way of becoming an inclusive leader. Use sponsorship and employee af�inity groups to support female and minority participation and advancement.
Early in Vivek Gupta's leadership career, a young woman fresh out of college came into his of�ice and told him she wanted to be in sales. Gupta had spent “a tough �ive years” in sales, traveling all over India. How could a young woman handle the rigors of such a job, he wondered. That evening, he told his wife about the conversation and that the individual “didn't �it the role” for a sales position. On the advice of his wife, Gupta decided to give the young woman a chance. She turned out to be the best salesperson in the company. The experience changed the way Gupta, now CEO of Zensar Technologies in India, hires and leads people. He realized he was “a biased 25-year- old who grew up in a world that gave more status to men than to women.” Since that day, Gupta has been a strong advocate for giving all people equal opportunities. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zsxhwuy2a76ehtynx140#GZLYVZ2HUB9A6H3P5017)
Adam Bryant, “Vivek Gupta of Zensar Technologies: Beware of Hiring People Just Like You,” The New York Times (March 7, 2015), http://www.nytimes.com/2015/03/08/business/vivek-gupta-of-zensar-technologies-beware-of-hiring-people-just-like-you.html?_r=0 (http://www.nytimes.com/2015/03/08/business/vivek-gupta-of-zensar-technologies-beware-of-hiring-people-just-like-you.html?_r=0) (accessed November 13, 2015).
Leaders at most companies strive to avoid discriminatory policies and practices, but a Harvard Business Review survey found that 93 percent of female respondents and 92 percent of non-Caucasian respondents said they had been treated unfairly at work because of someone else's bias. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zsxhwuy2a76ehtynx140#KNCM76RJNB2UUXUQF872) Today's best leaders realize that diversity sparks innovation, leads to better decision making, and spurs growth. Yet subtle bias and hidden discrimination is still a signi�icant problem in many organizations, and valuing and supporting diverse employees takes intentional effort.
Harvard Business Review Staff, “HBR Survey: Were You Ever Treated Unfairly at Work Because of Someone Else's Bias?” Harvard Business Review (May 2015), p. 19.
Today, every leader needs to understand the complexity of diversity issues, learn to create an inclusive culture, and support the development of minorities for higher-level leadership positions. One of the most important roles for leaders in the coming years will be developing a solid base of diverse leadership talent.
This chapter explores the topic of diversity and multiculturalism. First, we look at the dif�iculties leaders encounter in leading people who are different from themselves. Then we de�ine diversity, explore the value of diversity for organizations, and look at some challenges minorities face in organizations. Next, we examine a style of leadership that can support a more inclusive work environment, take a closer look at global diversity, and explore how leaders can increase their cultural intelligence quotient (CQ). Finally, we discuss the personal stages of leader diversity awareness and some ways leaders can support the career advancement of diverse people in the workplace.
11-1. Leading People Who Aren't Like You How does an African American, Asian, or Hispanic manager lead an all-white workforce, or a female manager lead a workforce of mostly males? How do white male top executives interact effectively and supportively with minority and female colleagues? What happens when a 29-year-old is promoted to a position of authority over a group of mostly 50- to 60-year-old middle managers? As organizations grow increasingly diverse, these questions are being asked more and more often. Consider Kenneth Frazier of Merck, one of only a handful of African American CEOs running Fortune 500 companies, or Cathy Lanier, the white female chief of the Washington, D.C., Metropolitan Police, who leads a mostly black and male workforce.
New Leader Action Memo
Complete the exercise in Leader's Self-Insight 11.1 to learn about the values you will bring to leading people who are diverse and not like you.
The bene�its of diversity, which we will talk about later in this chapter, are one reason the face of America's organizations is beginning to change, with women and minorities slowly moving into upper-level leadership positions. However, there are still many challenges for creating diverse organizations with inclusive cultures. As women and minorities move up the management hierarchy, they're often �inding it a lonely road to travel. Even for someone who has experienced a degree of racism or sexism at lower organizational levels, stepping into a position of higher authority can be a real eye-opener. Racism and sexism in the workplace often show up in subtle ways—the disregard by a subordinate for an assigned chore, a lack of urgency in completing an important assignment, the ignoring of comments or suggestions made at a team meeting. “I could go to a meeting and offer an opinion, and it was like I didn't even say a word,” said Christine Dale. “A guy can offer the same opinion and it's like, ‘Oh, that's brilliant.’ ” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/�jgd6qzcdscqn2a8u695#WSSE2QDSE3Y5G24SW018) Many minority leaders struggle daily with the problem of delegating authority and responsibility to employees who show them little respect.
Quoted in Colleen McCain Nelson, “Poll: Most Women See Bias in the Workplace,” The Wall Street Journal (April 12, 2013), p. A4.
Leader's Self-Insight 11.1. Values Balancing
Instructions : For each of the following pairs of values, select the one that is more descriptive of you. Even if both qualities describe you, you must choose one.
1. Analytical Compassionate
2. Collaborative Decisive
3. Competitive Sociable
4. Loyal Ambitious
5. Resourceful Adaptable
6. Sensitive to others Independent
7. Self-reliant Uniting
8. Helpful Persistent
9. Risk-taker Contented
10. Interested Knowledgeable
11. Responsible Encouraging
12. Tactful Driven
13. Forceful Gentle
14. Participating Achievement oriented
15. Action oriented Accepting
Scoring and Interpretation
The listed words represent two leadership values: “capacity for collaboration” and “personal initiative.” Personal initiative is represented by the �irst word in the odd-numbered rows and the second word in the even-numbered rows. Capacity for collaboration is represented by the �irst word in the even-numbered rows and by the second word in the odd-numbered rows. Add the number of words circled that represent each value and record the number:
Personal Initiative:
Capacity for Collaboration:
Capacity for collaboration represents feminine values in our culture, and if you circled more of these items, you may be undervaluing your personal initiative. Personal initiative represents masculine values, and more circled words here may mean you are undervaluing your capacity for collaboration. How balanced are your values? How will you lead someone with values very different from yours?
Gender is a trait of diversity. How prevalent in organizations are feminine and masculine values? Read the rest of this chapter to learn which values are associated with successful leadership.
Sources: Based on Donald J. Minnick and R. Duane Ireland, “Inside the New Organization: A Blueprint for Surviving Restructuring, Downsizing, Acquisitions and Outsourcing.” Journal of Business Strategy 26 (2005), pp. 18–25; and A. B. Heilbrun, “Measurement of Masculine and Feminine Sex Role Identities as Independent Dimensions.” Journal of Consulting and Clinical Psychology 44 (1976), pp. 183–190.
The cultural values and organizational systems in many companies do not genuinely support and value diversity. By the end of this chapter, we hope you will better understand some of the challenges, as well as some leadership strategies that can help make organizations more inclusive and provide a better working environment for all people.
11-2. Diversity Today The goal for today's leaders is to recognize that each person can bring value and strengths to the workplace based on his or her own combination of diverse characteristics. Organizations establish workforce diversity programs to promote the hiring, inclusion, and career advancement of diverse employees and to ensure that differences are accepted and respected in the workplace.
11-2a. De�inition of Diversity
Workforce diversity means a workforce made up of people with different human qualities or who belong to various cultural groups. From the perspective of individuals, diversity refers to all the ways in which people differ, including dimensions such as age, race, marital status, physical ability, income level, and lifestyle. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#BLZFLRG9DWNHGKC9Z970) Decades ago, most companies de�ined diversity in terms of a very limited set of dimensions, but today's organizations are embracing a much more inclusive de�inition that recognizes a spectrum of differences that in�luence how people approach work, interact with each other, derive satisfaction from their work, and de�ine who they are as people in the workplace. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#PMBJ05UJV7JF6D6SK212)
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity
Marilyn Loden and Judy B. Rosener, Workforce America ! (Homewood, IL: Business One Irwin, 1991); and Marilyn Loden, Implementing Diversity (Homewood, IL: Irwin, 1996).
Anthony Oshiotse and Richard O'Leary, “Corning Creates an Inclusive Culture to Drive Technology Innovation and Performance,” Global Business and Organizational Excellence 26, no. 3 (March–April 2007), pp. 7–21.
Exhibit 11.1 illustrates the difference between the traditional model and a more inclusive model of diversity. The dimensions of diversity shown in the traditional model re�lect primarily inborn differences that are immediately observable, such as race, gender, age, and physical ability. However, the inclusive model of diversity includes all of the ways in which people differ, including dimensions of diversity that can be acquired or changed throughout one's lifetime. These dimensions may have less impact than those in the traditional model but nevertheless affect a person's self-de�inition and worldview and in�luence the way the person is viewed by others.
Exhibit 11.1. Traditional vs. Inclusive Models of Diversity
a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Workforce diversity a workforce made up of people with different human qualities or who belong to various cultural groups
diversity differences among people in terms of age, ethnicity, gender, race, or other dimensions
Source: Based on Anthony Oshiotse and Richard O'Leary, “Coming Creates an Inclusive Culture to Drive Technology Innovation and Performance,” Global Business and Organizational Excellence 26, no. 3 (March/April 2007), pp. 7–21.
For example, veterans of the wars in Iraq and Afghanistan may have been profoundly affected by their military experience and may be perceived differently from other people. An employee living in a public housing project will be perceived differently from one who lives in an af�luent part of town. Women with children are perceived differently in the work environment than those without children. Secondary dimensions such as work style and skill level are particularly relevant in the organizational setting. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#ZKBGWRQKM0ASZDLRY283)
Frances J. Milliken and Luis I. Martins, “Searching for Common Threads: Understanding the Multiple Effects of Diversity in Organizational Groups,” Academy of Management Review 21, no. 2 (1996), pp. 402–433.
11-2b. Changing Attitudes toward Diversity
Attitudes toward diversity are expanding partly because they have to as leaders respond to signi�icant changes in our society, including demographic changes, shifting social values, and globalization. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#UQEFSSFDD8U86S04U569) In the United States, minorities now make up roughly 39 percent of the total population. Around 32 million people speak Spanish at home, and nearly half of these people say they don't speak English very well. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#BXJUK4T3YRD8N4H4G569) Foreign-born workers make up more than 16 percent of the U.S. workforce. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#WKVMTV6RDPJUMC0H5391) Looking ahead, the number of Hispanic employees will grow the most, increasing 18.6 percent by 2020. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#ZJWE5WSGDBUSWBTMB569) Women are a growing part of the workforce and are increasingly demanding more fair and equitable treatment. Polls also show that views about social mores and lifestyles are shifting. The percentage saying society should encourage greater tolerance of people with different lifestyles and backgrounds increased from 29 percent in 1999 to 44 percent in 2013. Support for gay marriage increased to 53 percent from 30 percent in 2004, and same-sex marriage became legal in the United States in June 2015. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#MVJTVRMPUTTDDS66J751)
C. Keen, “Human Resource Management Issues in the '90s,” Vital Speeches 56, no. 24 (1990), pp. 752–754.
U.S. Census Bureau �igures reported in Population Distribution by Race/Ethnicity,” The Henry J. Kaiser Family Foundation, http://kff.org/other/state-indicator/distribution-by- raceethnicity/ (http://kff.org/other/state-indicator/distribution-by-raceethnicity/) (accessed November 13, 2015); and Russ Wiles, “Businesses Encourage Employees to Learn Spanish,” USA Today (December 7, 2008), http://www.usatoday.com/money/workplace/2007-12-08-spanish_n.htm?loc=interstitialskip (http://www.usatoday.com/money/workplace/2007- 12-08-spanish_n.htm?loc=interstitialskip) (accessed March 17, 2008).
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily , “Foreign Born Represented 16.5 Percent of the U.S. Labor Force in 2014, Up from 14.8 Percent in 2005,” http://www.bls.gov/opub/ted/2015/foreign-born-represented-17-percent-of-the-labor-force-in-2014-up-from-15-percent-in-2005.htm (http://www.bls.gov/opub/ted/2015/foreign-born-represented-17-percent-of-the-labor-force-in-2014-up-from-15-percent-in-2005.htm) (accessed November 13, 2015).
Occupational Outlook Handbook, Bureau of Labor Statistics , http://www.bls.gov/ooh/about/projections-overview.htm#laborforce (http://www.bls.gov/ooh/about/projections- overview.htm#laborforce) (accessed June 29, 2012).
Wall Street Journal poll, reported in Colleen McCain Nelson, “Poll: Most Women See Bias in the Workplace,” The Wall Street Journal (April 12, 2013), p. A4.
The other factor contributing to increased acceptance of diversity is globalization. Leaders are emphasizing cross-cultural understanding so that people can work smoothly across borders. “The speed of global business is accelerating diversity,” says Pauline Ning Brody, a Shanghai-born diversity consultant and former director of global sales for Colgate-Palmolive. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#MKUJVJQRJYVY8PWDE698) An unprecedented number of foreign-born CEOs now run major companies in the United States, Britain, and several other countries. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#TKNZJSW5JG6FZ32D8440) Employees with global experience and cultural sensitivity are in high demand because at least some aspect of almost every business today cuts across national boundaries. As the following example shows, corporations aren't the only organizations seeking a diverse workforce to cope with the challenges of globalization.
Edward Iwata, “Companies Find Gold Inside Melting Pot; Diverse Staff Helps Business Run Smoothly across Borders,” USA Today (July 9, 2007), p. B1.
Louise Story, “Seeking Leaders, U.S. Companies Think Globally,” The New York Times (December 12, 2007), p. A1; Justin Martin, “The Global CEO: Overseas Experience Is Becoming a Must on Top Executives' Resumes,” Chief Executive (January–February 2004), p. 24; and G. Pascal Zachary, “Mighty Is the Mongrel,” Fast Company (July 2000), pp. 270–284.
In the Lead Secret Intelligence Service (MI6) and Central Intelligence Agency (CIA)
James Bond need not apply . Britain's secret spy agency, MI6, has embarked on an intense campaign to recruit women and minorities, not the white males who have long been the face of MI6. The agency's recruiting Web site encourages women, including mothers, to apply and assures them they won't be used as “seductresses.” Applications from disabled candidates are also welcomed. But the
biggest push is for ethnic minorities who speak languages such as Arabic, Persian, Mandarin, Urdu, and the Afghan languages of Dari and Pashto.
For intelligence agencies, diversity is considered mission critical . With terrorism being the key challenge, security agencies in the United States as well as Britain and other countries are seeking multicultural employees to act as receptionists, linguists, operational agents, technology of�icers, security guards, and so forth.
For Britain's MI6, the push for more minority applicants is starting to pay off. In 2010, the United Kingdom passed a new Equality Act that strengthens discrimination laws and allows organizations to give preference to minorities. As the head of human resources for MI6 put it “… [all] agencies have to show that they're making positive efforts [to diversify], but for us it means much more.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#FYDNLM78J1RWPNXAR508)
“Britain Recruiters Seek Female Spies,” USA Today (July 12, 2008), http://www.usatoday.com/news/world/2008-07-12-spy_N.htm (http://www.usatoday.com/news/world/2008-07-12-spy_N.htm) (accessed June 5, 2009).
Meanwhile, the U.S. CIA is coming under increasing attack for a homogenous culture that has contributed to intelligence failures. “For most of the agency's existence, the majority of its agents and analysts have been a relatively tight group of Caucasian, Protestant, liberal-arts-educated American males,” say Philippe Silberzahn and Milo Jones, who wrote a book about strategic surprises at the CIA. Few CIA agents speak a foreign language or have foreign travel experience. Retired general David H. Petraeus, who resigned as CIA director in 2012, said “Our key challenge now is to ensure that the CIA's extraordinarily gifted and dedicated workforce is contributing to its full potential. That means we must, at every level, be as inclusive as possible in our composition and in how we make decisions. Intelligence work is teamwork….” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#WKMMYSJZM6MAKPJY2792)
“Lack of Diversity Paralyzed the CIA. It Can Cripple Your Organization, Too,” Guest post by Philippe Silberzahn and Milo Jones, Frederick E. Allen Leadership Blog, Forbes , http://www.forbes.com/sites/frederickallen/2012/04/26/lack-of-diversity-paralyzed-the-cia-it-can-cripple-your-organization-too/ (http://www.forbes.com/sites/frederickallen/2012/04/26/lack-of-diversity-paralyzed-the-cia-it-can-cripple-your-organization-too/) (accessed May 8, 2013); and Petraeus quote from the CIA Web site, https://www.cia.gov/careers/diversity/directors-diversity-commitment.html (https://www.cia.gov/careers/diversity/directors-diversity-commitment.html) (accessed July 19, 2012).
11-2c. The Value of Organizational Diversity
There are clear strategic reasons why the CIA and MI6 have to be more diverse to re�lect the new global reality, but all organizations need diversity of thought to achieve high performance. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#XZWM6MMLSTTJZW4S8868) People who differ in various ways, whether it be race, cultural background, gender, physical ability, educational level, lifestyle, age, marital status, or other dimensions, are more likely to have diverse opinions and perspectives. This diversity of thought means there is a broader and deeper base of ideas, opinions, and experiences for problem solving, creativity, and innovation. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#YGWJDZEBZ36EGR7PT933) According to the results of one study, companies that rate high on creativity and innovation have a higher percentage of women and nonwhite male employees than less innovative companies. Another recent study showed that a team's collective intelligence increases when there are more women members on the team. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#SZCHESWXSC7ASANYG956) Moreover, companies with more diverse top leadership teams outperform their peers �inancially. Researchers analyzed return on equity (ROE) and margins for earnings before interest and taxes (EBIT) for 180 corporations in the United States, France, Germany, and the United Kingdom and found that those with a higher percentage of women and foreign nationals performed signi�icantly better than their peers with less diverse top teams. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#UXNJEWM71V4GR9KLV418)
Thomas E. Poulin, “The Other Diversity,” PA Times , American Society for Public Administration (March 2009), p. 8; and Clayton H. Osborne and Vincent M. Cramer, “Fueling High Performance through Diversity,” Chief Learning Of�icer (November 2005), p. 22.
Yair Holtzman and Johan Anderberg, “Diversify Your Teams and Collaborate: Because Great Minds Don't Think Alike,” Journal of Management Development 30, no. 1 (2011), pp. 75–92.
Taylor H. Cox, Cultural Diversity in Organizations (San Francisco: Berrett-Koehler, 1994); Anita Woolley and Thomas Malone, “What Makes a Team Smarter? More Women,” Harvard Business Review (June 2011), pp. 32–33
Thomas Barta, Markus Kleiner, and Tilo Neumann, “Is There a Payoff from Top-Team Diversity?” McKinsey Quarterly , Issue 2 (April 2012), pp. 13–15.
At Reckitt Benckiser, a U.K.-based producer of home, health, and personal care products, no nationality dominates the top leadership team. Two executives are Dutch, one is German, two are British, one is South African, two are Italian, and one is from India. Leaders believe the diversity of the company's workforce is one reason income increased 17 percent annually, on average, from 1999 to 2010. Recently retired CEO Bart Becht said, “It doesn't matter whether I have a Pakistani, a Chinese person, a Brit, or a Turk, man or woman, sitting in the same room, or whether I have people from sales or something else, so long as I have people with different experiences—because the chance for new ideas is much greater when you have people with different backgrounds.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#MBNP4816A9YDAKSDY206)
Quoted in Herminia Ibarra and Morten T. Hansen, “Are You a Collaborative Leader?” Harvard Business Review (July–August 2011), pp. 69–74.
New Leader Action Memo
As a leader, you can hire and promote people from diverse cultures and with diverse human characteristics. You can use organizational diversity to improve creativity and decision making, better serve customers, and enhance organizational �lexibility.
Diversity can help companies meet the needs of diverse customers. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#HMSMFAPMBCXDNF49J733) Culture plays an important role in determining the goods, entertainment, social services, and household products that people use, so organizations are recruiting minority employees who can understand how diverse people live and what they want and need. Fox Sports, for example, achieves a competitive advantage by segmenting its programs to target speci�ic audience groups, such as Hispanics. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#STNC839FBE1KUTRJT271) In addition, having a diverse workforce can build stronger connections with diverse customers. “Our country's consumer base is so varied,” says Shelley Willingham-Hinton, president of the National Organization for Diversity in Sales and Marketing. “I can't think of how a company can succeed without having that kind of diversity with their employees.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ylmm1pplqwjc5jcgn738#LZVT2H269M52PNCP3309)
Vanessa Lau and Brian Kleiner, “A Diverse Workforce for Diverse Markets,” Industrial Management (July–August 2012), pp. 28–30; Tanzina Vega, “With Diversity Still Lacking, Industry Focuses on Retention,” The New York Times (September 3, 2012); and Orlando C. Richard, “Racial Diversity, Business Strategy, and Firm Performance: A Resource-Based View,” Academy of Management Journal 43, no. 2 (2000), pp. 164–177.
Lau and Kleiner, “A Diverse Workforce for Diverse Markets.”
Quoted in Susan Caminiti, “The Diversity Factor,” Fortune (October 19, 2007), pp. 95–105.
11-3. Challenges Minorities Face
New Leader Action Memo
Take the quiz in Leader's Self-Insight 11.2 to evaluate your personal degree of unconscious bias and think about ways you can become more diversity-aware.
Creating an inclusive environment where all individuals feel respected, valued, and able to develop their unique talents is dif�icult. Most people, including leaders, have a natural tendency toward ethnocentrism , which refers to the belief that one's own culture and subculture are inherently superior to other cultures. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#ZYEESDVCEEDUALA6V784) Recent research by Harvard psychology professor Mahzarin Banaji indicates that the human brain seems to be wired to categorize people by race in the �irst one-�ifth of a second after seeing a face. Banaji's studies suggest that all people have an ingrained propensity to racial bias, even if they are unaware of and even disapprove of such bias. Other studies by social psychologists also suggest that there is a natural tendency among humans to identify themselves with a particular group and to feel somewhat antagonistic and discriminatory toward other groups. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#LRHQHFCQJVNE9308S973) In high school, the jocks are aligned against the geeks, for instance. In hospital cafeterias, the surgeons sit in one area and the medical residents in another. In newspaper of�ices, the editorial folks are antagonistic toward the advertising people. The combination of this natural force toward separation, ethnocentric viewpoints, and a standard set of cultural assumptions and practices creates a number of challenges for minority employees and leaders.
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism
the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
G. Haight, “Managing Diversity,” Across the Board 27, no. 3 (1990), pp. 22–29.
Mahzarin Banaji's research as discussed in Nicholas Kristof, “Our Biased Brains,” The New York Times (May 7, 2015), p. A29; and Atul Gawande, “ Manning the Hospital Barricades: Why Do Groups— Even Groups of Doctors—Hate Each Other?” Slate (June 26, 1998), http://www.slate.com/articles/health_and_science/medical_examiner/1998/06/manning_the_hospital_barricades.html (http://www.slate.com/articles/health_and_science/medical_examiner/1998/06/manning_the_hospital_barricades.html) (accessed July 10, 2013).
Leader's Self-Insight 11.2. Unconscious Bias
Instructions : Think about your typical day-to-day behavior and respond to each of the following items as Mostly False or Mostly True for you.
Mostly False Mostly True 1. I prefer to be in work teams with people who think like me. 2. I have avoided talking about culture differences with people I met from different cultures
because I didn't want to say the wrong thing.
3. My mind has jumped to a conclusion without �irst hearing all sides of a story. 4. The �irst thing I notice about people is the physical characteristics that make them
different from the norm.
5. Before I hire someone, I have a picture in mind of what the person should look like. 6. I typically ignore movies, magazines, and TV programs that are targeted toward groups
and values that are different from mine.
7. When someone makes a bigoted remark or joke, I don't confront them about it. 8. I prefer not to discuss sensitive topics such as race, age, gender, sexuality, or religion at
work.
9. There are people I like but would feel uncomfortable inviting to be with my family or close friends.
10. If I were to seek a mentor, I would want someone culturally similar to myself.
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
ethnocentrism the belief that one's own culture and subculture are inherently superior to other cultures
Scoring and Interpretation
Give yourself 1 point for each Mostly True answer. Each item re�lects an element of “passive bias,” which can cause people different from you to feel ignored or disrespected by you. Your Score: . As a leader, your typical day-to-day behavior will send signals about your biases and values. Some personal biases are active and well known to yourself and others. Other biases are more subtle. Unconscious bias occurs when a person is not aware of her or his own bias and has no intent to express bias, but others may experience bias. Unconscious bias may be more insidious than active discrimination because the person would exclude diverse experiences and people from expression and interaction. The ideal score is zero, but few people reach that ideal. If you scored 3 or less, you are making a good attempt to eliminate your passive and unconscious bias. If you scored 8 or more, you should take a careful look at how you think and act toward people different from yourself. You should consider ways to become more culturally sensitive. The sooner you learn to actively include diverse views and people, the better leader you will be.
Source: Based on Lawrence Otis Graham, Proversity: Getting Past Face Values and Finding the Soul of People (New York: John Wiley & Sons, 1997).
11-3a. Prejudice, Stereotypes, and Discrimination
One signi�icant problem in many organizations is prejudice , which is an adverse feeling or opinion formed without regard for the facts. Prejudiced people tend to view those who are different as de�icient. An aspect of prejudice is stereotyping. A stereotype is a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people. When a leader and company act out prejudicial attitudes toward people who are the targets of their prejudice, discrimination occurs. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#RNEK9HSQMJMW5BPA0502) Paying a woman less than a man for the same work is gender discrimination. Refusing to hire someone because he or she has a different ethnicity is ethnic discrimination. For example, some years ago, a manager at a major bank encountered resistance from senior leaders because she wanted to hire an Indian applicant who wore a turban. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#BVQVZEU846846VAA4920)
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination
treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice
Norma Carr-Ruf�ino, Managing Diversity: People Skills for a Multicultural Workplace (Tucson, AZ: Thomson Executive Press, 1996), p. 92; and Judy Rosener, America's Competitive Secret: Women Managers (New York: Oxford University Press, 1995), pp. 33–34.
Susan Webber, “Fit vs. Fitness,” The Conference Board Review (July–August 2007), pp. 19–25.
Such discrimination is not only unethical but also illegal in the United States. Leaders should be aware that there are a number of federal and state laws that prohibit various types of discrimination. Walmart was hit with a huge class-action lawsuit alleging that the retailer discouraged the promotion of women to management positions and paid them less than men across all job positions. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#GGDPDH2N1YQHJKWT1533) Many other companies, including Texaco, Coca-Cola, General Motors, Mitsubishi, FedEx, eBay, and Abercrombie & Fitch, have been troubled by suits alleging the companies broke laws that prohibit discrimination on the basis of race, gender, age, physical disability, or other diverse characteristics.
Reported in Roger Parloff, “The War over Unconscious Bias,” Fortune (October 15, 2007), pp. 90–102.
Blatant discrimination is not as widespread as in the past, but passive—and sometimes unconscious—bias is still a big problem in the workplace. Consider a report from the National Bureau of Economic Research (titled “Are Emily and Greg More Employable than Lakisha and Jamal?”), which shows that employers sometimes unconsciously discriminate against job applicants based solely on the Afrocentric or African American–sounding names on their resumes. In interviews prior to the research, most human resource managers surveyed said
an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
prejudice an adverse feeling or opinion formed without regard for the facts
stereotype a rigid, exaggerated, irrational, and typically negative belief or image associated with a particular group of people
discrimination treating people differently based on prejudicial attitudes and stereotypes
they expected only a small gap, and some expected to �ind a pattern of reverse discrimination. The results showed instead that white- sounding names got 50 percent more callbacks than African American–sounding names, even when skills and experience were equal. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#DTWJPY5029P37BZ5J522) Similarly, recent research has found that although most men say they have good will toward women in the workplace and want them to succeed, differences in how men and women think and express emotion often lead to unconscious bias. “The male brain has the enviable ability to essentially switch off emotions when desired,” writes Shaunti Feldhahn, author of The Male Factor: The Unwritten Rules, Misperceptions, and Secret Beliefs of Men in the Workplace . When men see someone expressing personal feelings at work, many of them view that person as less business-savvy. For many women, on the other hand, expressing emotion comes naturally and is an authentic part of work as well as personal life. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#SYGEQERKU0K1L7BFM181)
Marianne Bertrand, “Racial Bias in Hiring: Are Emily and Brendan More Employable than Lakisha and Jamal?” Capital Ideas (February 2005), pp. 7–9; and Marianne Bertrand and Sendhil Mullainathan, Are Emily and Greg More Employable than Lakisha and Jamal? (National Bureau of Economic Research Report), as reported in L. A. Johnson, “What's in a Name: When Emily Gets the Job over Lakisha,” The Tennessean (January 4, 2004), p. 14A.
Shaunti Feldhahn, “Cracking the Male Code of Of�ice Behavior,” The New York Times (February 5, 2011), http://www.nytimes.com/2011/02/06/jobs/06pre.html?_r=0 (http://www.nytimes.com/2011/02/06/jobs/06pre.html?_r=0) (accessed May 9, 2013).
New Leader Action Memo
As a leader, you can appreciate differences among people but shed stereotypes and prejudicial attitudes. You can avoid discrimination and view differences among people as positive or neutral.
Sociologist William Bielby proposes that people have innate biases and, left to their own devices, they will automatically discriminate. Unconscious bias theory suggests that white males, for example, will inevitably slight women and minorities because people's decisions are in�luenced by unconscious prejudice. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#UXMJJC0F42GZGSXD9270) It takes intentional leadership actions to change the status quo. Leaders can establish conditions that limit the degree of unconscious bias that goes into hiring and promotion decisions. Corporations such as BP and Becton Dickinson, for example, use tools to measure unconscious as well as conscious bias in their diversity training programs. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#XVPA2VERSTBTX41X4092)
Reported in Michael Orey, “White Men Can't Help It,” BusinessWeek (May 15, 2006), pp. 54, 57.
Johnson, “What's in a Name: When Emily Gets the Job over Lakisha.”
11-3b. The Glass Ceiling
These innate biases can be partially blamed for constructing the glass ceiling , an invisible barrier that separates women and minorities from top leadership positions. When executives are choosing a successor or someone for a top position, they tend to choose someone who is similar to them—and that has typically meant mostly male and mostly white. Women and minorities can look up through the ceiling, but prevailing attitudes are invisible obstacles to their own advancement. Research has also suggested the existence of “glass walls” that serve as invisible barriers to important lateral movement within the organization. Glass walls bar experience in areas such as line supervision or general management that would enable women and minorities to advance to senior-level positions. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#KGYS1U74ZUMGKA09N713)
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
Debra E. Meyerson and Joyce K. Fletcher, “A Modest Manifesto for Shattering the Glass Ceiling,” Harvard Business Review (January–February 2000), pp. 127–136; Julie Amparano Lopez, “Study Says Women Face Glass Walls as Well as Glass Ceiling,” The Wall Street Journal (March 3, 1992), pp. B1, B2; and Joann S. Lublin, “Women at Top Still Are Distant from CEO Jobs,” The Wall Street Journal (February 28, 1996), pp. B1, B8.
Although a few women and minorities have moved into highly visible top leadership positions, such as Ursula Burns at Xerox, Kenneth Chenault at American Express, Ginni Rometty at IBM, and Indra Nooyi at PepsiCo, most women and minorities are still clustered at the bottom of the organizational hierarchy. Women have made signi�icant strides in recent years, but they still represent only a small percentage of top executives and board members in America's 500 largest companies. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#MFTWA8WACPUKLEHPA676) A global study by McKinsey & Company found that in 2011 women held 15 percent of the seats on corporate boards and 14 percent of those on executive committees in the United States. Of the countries surveyed, Norway had the largest percentage of women on corporate boards and executive committees (35 percent and 15 percent, respectively), and Japan the lowest (2 percent and 1 percent). * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#VRKG86E70AXMTL4J4801) In 2009, Ursula Burns
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
glass ceiling an invisible barrier that separates women and minorities from top leadership positions
made history as the �irst African American woman to rise to the top of a Fortune 500 company, but both male and female African Americans and Hispanics continue to hold only a small percentage of all management positions in the United States. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#LRKHBV2F9HJHTT3S2378)
John Beeson and Anne Marie Valerio, “The Executive Leadership Imperative: A New Perspective on How Companies and Executives Can Accelerate the Development of Women Leaders,” Business Horizons 55 (2012), pp. 417–425.
Joanna Barsh, Sandrine Devillard, and Jin Wang, “The Global Gender Agenda,” McKinsey Quarterly (November 2012), http://www.mckinsey.com/insights/organization/the_global_gender_agenda (http://www.mckinsey.com/insights/organization/the_global_gender_agenda) (accessed May 10, 2013).
“African American CEOs of Fortune 500 Companies,” BlackEntrepreneurPro�ile.com , http://www.blackentrepreneurpro�ile.com/fortune-500-ceos (http://www.blackentrepreneurpro�ile.com/fortune-500-ceos) (accessed June 3, 2009); Heidi Evans, “Ursula Burns to Head Xerox, Will Be First Black Woman to Be CEO of Fortune 500 Company,” NY Daily News (May 22, 2009), http://www.nydailynews.com/news/money/ursula-burns-head-xerox-black-woman-ceo-fortune-500-company-article-1.412330 (http://www.nydailynews.com/news/money/ursula-burns-head-xerox-black-woman-ceo-fortune-500-company-article-1.412330) (accessed July 11, 2013); and Barbara Reinhold, “Smashing Glass Ceilings: Why Women Still Find It Tough to Advance to the Executive Suite,” Journal of Organizational Excellence (Summer 2005), pp. 43–55; Jory Des Jardins, “I Am Woman (I Think),” Fast Company (May 2005), pp. 25–26; and Meyerson and Fletcher, “A Modest Manifesto for Shattering the Glass Ceiling.”
Leaders in other countries are struggling with similar diversity issues. A report on executive talent in the United Kingdom, for example, indicates that although employees on the front lines “re�lect the rich diversity of 21st century Britain,” the executive suite is overwhelmingly “white, male, able-bodied, and of a certain age.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#WRAHTS21VXC8E7BLG790) Criticism of gender inequality in Germany is growing, as most European Union countries have narrowed the wage gap between men and women, but pay disparity in Germany has actually increased, according to �igures from Germany's Federal Statistical Of�ice. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#KPTJL9EYE4KF124T9443) Japanese companies face mounting criticism about the scarcity of women in management positions. In Japan, women make up 41 percent of the workforce but occupy less than 3 percent of high-level management positions. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#WPHY7LS3P8WWRA07R938) In India, the situation is also dismal. India's recent economic growth has prompted a closer look at its workforce. Women represent only 24 percent of the workforce and make up about 5 percent of senior-level managers. Moreover, reports suggest that women who enter the business world in India often face intimidating and threatening work environments. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#LKYEX7Y8DMYWALLYQ131)
Anat Arkin, “Hidden Talents,” People Management (July 14, 2006).
“Salary Gap Widens between German Men and Women,” Spiegel Online (March 5, 2010), http://www.spiegel.de/international/europe/gender-inequality-salary-gap-widens- between-german-men-and-women-a-682026.html (http://www.spiegel.de/international/europe/gender-inequality-salary-gap-widens-between-german-men-and-women-a-682026.html) (accessed May 9, 2013); and Sarah Plass, “Wage Gaps for Women Frustrating Germany,” The New York Times (September 3, 2008), p. C1.
Ginny Parker Woods, “Japan's Diversity Problem,” The Wall Street Journal (October 24, 2005), pp. B1, B4.
Sheelah Kolhatkar, “Arrested Development,” Bloomberg Businessweek (February 4–10, 2013), pp. 6–7.
In the United States, some women get off the fast track before they ever encounter the glass ceiling, which has been referred to as the opt- out trend . * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#LBEKHWTWJTAWSXMUY643) In a survey of nearly 2,500 women and 653 men, 37 percent of highly quali�ied women reported that they had voluntarily left the workforce at some point in their careers, compared to only 24 percent of similarly quali�ied men. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#YMZQ97L6EPCWPFH7X552) Women leaders sometimes feel that the cost of climbing the corporate ladder is too high. In her controversial book Lean In , Facebook chief operating of�icer Sheryl Sandberg says many women fall behind in their careers because of their own bad choices, as described further in this chapter's Leader's Bookshelf . However, evidence shows that successful career women often have to give up personal time, outside friendships, or hobbies because they still do most of the child care and housework in addition to their business responsibilities. Exhibit 11.2 shows the discrepancy between high-achieving men and women in terms of the time they devote to domestic duties, based on one survey.
Lisa Belkin, “The Opt-Out Revolution,” The New York Times Magazine (October 26, 2003), pp. 43–47, 58.
Sylvia Ann Hewlett and Carolyn Buck Luce, “Off-Ramps and On-Ramps: Keeping Talented Women on the Road to Success,” Harvard Business Review (March 2005), pp. 43–54.
Exhibit 11.2. Primary Domestic Responsibilities of High-Achieving Men and Women
Source: National Parenting Association, as reported in Sylvia Ann Hewlett, “Executive Women and the Myth of Having It All,” Harvard Business Review (April 2002), pp. 66–73.
Leader's Bookshelf Lean In: Women, Work, and the Will to Lead by Sheryl Sandberg
Lean In , by Facebook COO Sheryl Sandberg, is one of the most controversial books to come out in years. Sandberg acknowledges that women face tremendous barriers in the workplace, but she argues that women also need to break down the barriers within themselves and �ind their own assertiveness. She recounts workplace and social science research proving that bias and institutional barriers exist, but she also presents evidence showing that women hold themselves back. One study, for instance, found that when girls are reminded of their gender prior to taking a test, even by simply checking an “M” or an “F” at the top of the page, they don't perform as well. Gender stereotypes, Sandberg says, are so powerfully ingrained in women that they continue to perpetuate them subconsciously.
How Women Hold Themselves Back
“By lacking self-con�idence, by not raising our hands, and by pulling back when we should be leaning in,” Sandberg writes, women are largely to blame for the fact that “men still run the world.” Here are a few of the career sins Sandberg says women commit:
They Let Insecurity Hold Them Back . Self-con�idence is at the heart of being a leader, taking risks, and becoming powerful. It might be easier for men, Sandberg says, but women can overcome the insecurity that limits them. She describes many times in her career when she felt deeply unsure of herself but pushed through. “I still face situations that I fear are beyond my capabilities,” she writes. “And I still sometimes �ind myself spoken over and discounted while men sitting next to me are not. But now I know how to take a deep breath and keep my hand up.”
They Don't Take Responsibility for Their Success . Societal norms and stereotypes of how women “should” act in the workplace have been around for decades, but they will change only if women take responsibility for rede�ining expectations. Too many women, Sandberg says, get caught in the “tiara syndrome,” expecting to be rewarded for good work rather than seizing opportunities and asking for what they deserve. Women have to assertively “sit at the table” rather than being observers in their own careers.
They Seek Mentors . Having a mentor can be a powerful bene�it to anyone's career, but people should get mentors when they do great work and attract the attention of higher executives who want to help them. “Searching for a mentor has become the professional equivalent of waiting for Prince Charming,” Sandberg says. Rather than expecting to get a mentor in order to excel, the logic women should use is, “excel and you will get a mentor.”
They Leave before They Leave . Women tend to make incremental decisions based on future plans that chip away at their career options. “A law associate might decide not to shoot for partner because someday she hopes to have a family,” she writes. “A sales representative might take a smaller territory or not apply for a management role. Often without even realizing it, the woman stops reaching for new opportunities” because of the long-term future impact. Sandberg pays tribute to women who sideline careers for children, but she emphasizes, “The time to scale back is when a break is needed or a child arrives—not before, and certainly not years in advance.”
What's the Answer?
“I believe that female leaders are key to the solution,” writes Sandberg. She says things will get better for everyone when there are more women in high-level positions who can change organizational cultures from within. For that to happen, women have to overcome the inner barriers that are holding them back.
Source: Lean In: Women, Work, and the Will to Lead , by Sheryl Sandberg, is published by Alfred A. Knopf.
New Leader Action Memo
As a leader, you can �ight ethnocentric attitudes. You can create an environment in which people value diverse ways of thinking, dressing, or behaving, and you can help break down prejudice, stereotypes, and the glass ceiling.
Although some women voluntarily leave the fast track, there are many who genuinely want to move up the corporate ladder but �ind their paths blocked. Fifty-�ive percent of executive women surveyed by Catalyst said they aspire to senior leadership levels. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#WPKJS44F17WRX5YBB370) In addition, a survey of 103 women voluntarily leaving executive jobs in Fortune 1000 companies found that corporate culture was cited as the number-one reason for leaving. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#MGLY8LDWZ9VBC3HQH588) The greatest disadvantages for women leaders stem largely from prejudicial attitudes and a heavily male-oriented corporate culture. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#QVGKAKW50J7ZPCMBK231) Consider the experiences of Inga Beale, now CEO of Lloyd's of London.
Sheila Wellington, Marcia Brumit Kropf, and Paulette R. Gerkovich, “What's Holding Women Back?” Harvard Business Review (June 2003), pp. 18–19.
The Leader's Edge/Executive Women Research 2002 survey, reported in “Why Women Leave,” Executive Female (Summer 2003), p. 4.
Reinhold, “Smashing Glass Ceilings”; Des Jardins, “I Am Woman (I Think)”; and Alice H. Eagly and Linda L. Carli, “The Female Leadership Advantage: An Evaluation of the Evidence,” The Leadership Quarterly 14 (2003), pp. 807–834.
In the Lead Inga Beale, Lloyd's of London
When Inga Beale began her career in the insurance industry in the early 1980s, she was the only woman in a group of 30 insurance underwriters. “[You] had to be quite male in your behavior,” Beale says. When Beale complained about posters of half-naked women that had been put up around the of�ice, her male colleagues responded by plastering them across her chair and computer.
In 2013, Beale was appointed as the �irst female CEO of Lloyd's of London, where women weren't allowed in the underwriting room until 1972 and even in the early 1980s, she says, “you couldn't get inside the Lloyd's building as a woman wearing trousers.” Beale's experiences as a female leader in a heavily male-dominated industry have made her very aware of the challenges women and minorities face, as well as the unconscious bias that can go into hiring and promotion decisions. “You only have to look at the stats around the hiring of musicians in orchestras; as soon as they do it anonymously behind a screen, they hire double the amount of women,” she says. Beale is working with a new human resources director at Lloyd's to �ind ways to minimize unconscious bias.
Beale says she turned down the �irst management position offered to her partly because, like many women, a male-oriented culture made her feel that she didn't have the skills. It was only after a female leader took her out to dinner and asked why she had turned down the job that she began developing the self-con�idence and assertiveness to move into a leadership position. Beale believes diversity is essential throughout an organization. Lloyd's cannot be successful in today's global world, she says, “if we keep hiring the same people from the same backgrounds.” In addition, she considers conversations about how to make people feel included an important part of her leadership responsibility. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#BAWFK5T9DAP6LTMZA643)
Sonia Kolesnikov-Jessop, “Developing the Con�idence to Move Up,” The New York Times (June 21, 2015), http://www.nytimes.com/2015/06/22/business/international/developing-the-con�idence-to-move-up.html?_r=0 (http://www.nytimes.com/2015/06/22/business/international/developing-the-con�idence-to-move-up.html?_r=0) (accessed November 16, 2015); Alistair Gray, “Inga Beale, Lloyd's of London CEO: In Search of New Risks,” Financial Times (November 15, 2015), http://www.ft.com/intl/cms/s/0/6a588e60-8af5-11e5-8be4- 3506bf20cc2b.html#axzz3rfmuAX8w (http://www.ft.com/intl/cms/s/0/6a588e60-8af5-11e5-8be4-3506bf20cc2b.html#axzz3rfmuAX8w) (accessed November 16, 2015); and Alistair Gray, “Inga Beale, The Steely Trailblazer Shaking Up a Masculine Bastion,” Financial Times (December 20, 2013), http://www.ft.com/cms/s/0/7b2265d0-68ac-11e3- bb3e-00144feabdc0.html#ixzz3rfnC6jxV (http://www.ft.com/cms/s/0/7b2265d0-68ac-11e3-bb3e-00144feabdc0.html#ixzz3rfnC6jxV) (accessed November 16, 2015).
Other organizations are also looking for ways to help women and minorities succeed in leadership positions. MetLife uses a leadership development program called Leadership Circles speci�ically to advance and support women with high potential. “Companies need to support these women, or they may go somewhere else,” said one program participant. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#ZKVVE5FK5X66QWLSG351) Many organizations have found that high-performing women leave the company when they fail to receive opportunities for growth and advancement. Companies need women leaders more than ever in today's environment because of the strengths they bring to leadership, as we will discuss in the following section. Organizations such as McKinsey & Company, Bain & Company, and Boston Consulting Group have implemented initiatives including mentoring, professional development programs, and �lexible work options to lure back women who left as part of the opt-out trend. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/bvdqd2xauwtxnn89j017#CVWQV0TX5F4SL4BL6180)
Joelle K. Jay and Amber Barnes, “Rising Above the Glass Ceiling,” T + D (January 2013), pp. 52–55.
Beeson and Valerio, “The Executive Leadership Imperative”; Leslie Kwoh, “McKinsey Tries to Recruit Mothers Who Left the Fold,” The Wall Street Journal (February 19, 2013), http://online.wsj.com/article/SB10001424127887323764804578314450063914388.html (http://online.wsj.com/article/SB10001424127887323764804578314450063914388.html) (accessed May 10, 2013).
11-4. Ways Women Lead Studies show that organizations with more women leaders have up to 65 percent higher �inancial results than those without female representation. There is increasing evidence that companies where women make up a signi�icant percentage of board members and senior management perform better than those with only a few women in high-level positions. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#KWEMD3Q2ND33BS4QT522) There has been growing interest in what leadership approach women use that contributes to these positive outcomes. Women often use a style of leadership that is different from men's and that is highly effective in today's turbulent, culturally diverse environment. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#TMUSMCGC86X22P0BB902)
Reported in Sharon Hadary and Laura Henderson, “Lead Boldly!” Leadership Excellence (January 2013), pp. 16–17; and studies reported in Avivah Wittenberg-Cox and Alison Maitland, “Financial Diversity: Why Women in Business Became the Solution, Not the Problem; Numbers of Top Female Executives Are Falling Yet Evidence Suggests They May Hold the Key to Corporate Success,” The Guardian (February 5, 2008), p. 23; and Dwight D. Frink, Robert K. Robinson, Brian Reithel, Michelle M. Arthur, Anthony P. Ammeter, Gerald R. Ferris, David M. Kaplan, and Hubert S. Morrisette, “Gender Demography and Organization Performance: A Two-Study Investigation with Convergence,” Group & Organization Management 28, no. 1 (March 2003), pp. 127–147.
Sharon Hadary and Laura Henderson, How Women Lead (McGraw-Hill 2013); Carol Kinsey Goman, “What Men Can Learn from Women about Leadership in the 21st Century,” The Washington Post (August 10, 2011), http://articles.washingtonpost.com/2011-08-10/national/35271442_1_female-leaders-leadership-women (http://articles.washingtonpost.com/2011-08-10/national/35271442_1_female-leaders-leadership-women) (accessed May 10, 2013); Judy B. Rosener, America's Competitive Secret: Women Managers (New York: Oxford University Press, 1995); Judy B. Rosener, “Ways Women Lead,” Harvard Business Review (November–December 1990), pp. 119–125; Sally Helgesen, The Female Advantage: Women's Ways of Leadership (New York: Currency/Doubleday, 1990); Joline Godfrey, “Been There, Doing That,” Inc. (March 1996), pp. 21–22; Chris Lee, “The Feminization of Management,” Training (November 1994), pp. 25–31; and Bernard M. Bass and Bruce J. Avolio, “Shatter the Glass Ceiling: Women May Make Better Managers,” Human Resource Management 33, no. 4 (Winter 1994), pp. 549–560.
There is some evidence that men may become less in�luential in the U.S. workforce, with women becoming dominant players, because women's approach is more attuned to the needs and values of a multicultural environment. For example, there's a stunning gender reversal in U.S. education, with girls taking over almost every leadership role from kindergarten to graduate school. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#VCGXY12FTQBRK1DEG563) Hanna Rosin, journalist and author of The End of Men , suggests that women are more adaptable and easier to educate. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#AJXWXQ6WBSUMEX3KR390) Empirical studies do show that women students are more achievement oriented, less likely to skip classes, spend more time studying, and typically earn higher grades. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#PUJE8719S1DR304VC940) This chapter's Consider This box takes a closer look at various ways in which women appear to be outpacing men in the United States.
Reported in Tamar Lewin, “The New Gender Divide: At Colleges, Women Are Leaving Men in the Dust,” The New York Times (July 9, 2006), Section 1, p. 1; and Mary Beth Marklein, “College Gender Gap Widens: 57% Are Women,” USA Today (October 20, 2005), p. A1.
Hanna Rosin, The End of Men—and the Rise of Women (New York: Riverhead/Penguin 2012); Hanna Rosin, “The End of Men,” The Atlantic (July–August 2010), http://www.theatlantic.com/magazine/archive/2010/07/the-end-of-men/308135/ (http://www.theatlantic.com/magazine/archive/2010/07/the-end-of-men/308135/) (accessed May 10, 2013).
Lewin, “At Colleges, Women Are Leaving Men in the Dust”; and Jon Swartz, “Women Break to Front of Tech,” USA Today (July 10, 2008), http://www.usatoday.com/money/companies/management/2008-07-10-women-ceos_N.htm (http://www.usatoday.com/money/companies/management/2008-07-10-women- ceos_N.htm) (accessed July 11, 2008).
Consider This! Are Men Failing?
Here are some recent observations in the United States that suggest men are falling behind in today's world:
In 1954, 96 percent of men between the ages 25 and 54 worked. In 2012, that number was down to 80 percent.
Men still dominate the top of organizational hierarchies, but women are gaining in other areas.
Of the 15 fastest-growing professions, 12 of them are dominated by women.
Although men still earn more, men's incomes have generally declined in the past decade while women's have grown. Women in their 20s earn more money than men in the same age group.
In 2011, 57 percent of bachelor's degrees, 60 percent of master's degrees, 51 percent of Ph.D. degrees, 48 percent of law degrees, and 45 percent of MBAs went to women. Among 25- to 29-year-olds, 32 percent of women have college degrees, compared to 27 percent of men.
Both Republican and Democratic political consultants say that, all else being equal, women candidates are now more desirable than men.
Overall, women's participation in both the labor force and civic affairs has steadily increased since the mid-1950s, whereas men's participation has slowly but steadily declined.
When there is a major upheaval in society, the people who were at the top of the old order of things (men) tend to cling to the old ways, whereas the people who were on the bottom (women) experience a burst of energy and take advantage of new opportunities. Are men failing? Or is this just a course correction that will have men and women making equal contributions to society?
Sources: Based on Hanna Rosin, The End of Men—and the Rise of Women (New York: Riverhead/Penguin 2012); David Brooks, “Why Men Fail,” The New York Times (September 10, 2012), http://www.nytimes.com/2012/09/11/opinion/brooks-why-men-fail.html?_r=0 (http://www.nytimes.com/2012/09/11/opinion/brooks-why-men-fail.html?_r=0) (accessed May 10, 2013); U.S Department of Education statistics reported in David Wessel, “The Positive Economics of ‘Leaning In,’ ” The Wall Street Journal (April 4, 2013), p. A4; Michelle Conlin, “The New Gender Gap,” BusinessWeek (May 26, 2003), pp. 74–82; and Molly Ball, “A Woman's Edge: Why Both Political Parties Now Think That Voters Prefer Female Candidates,” The Atlantic (May 2013), pp. 15–17.
11-4a. Women as Leaders
According to James Gabarino, an author and professor of human development at Cornell University, women are “better able to deliver in terms of what modern society requires of people—paying attention, abiding by rules, being verbally competent, and dealing with interpersonal relationships in of�ices.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#PVJGYMG3XXJS44TVT924) His observation is supported by the fact that female leaders are typically rated higher by subordinates on interpersonal skills as well as on factors such as task behavior, communication, ability to motivate others, and goal accomplishment. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#PRHCLTFWXWWNQ7ME2956)
Quoted in Michelle Conlin, “The New Gender Gap,” BusinessWeek (May 26, 2003), pp. 74–82.
Kathryn M. Bartol, David C. Martin, and Julie A. Kromkowski, “Leadership and the Glass Ceiling: Gender and Ethnic Group In�luences on Leader Behaviors at Middle and Executive Managerial Levels,” The Journal of Leadership and Organizational Studies 9, no. 3 (2003), pp. 8–19; Bass and Avolio, “Shatter the Glass Ceiling”; and Rochelle Sharpe, “As Leaders, Women Rule,” BusinessWeek (November 20, 2002), pp. 75–84.
“Diversity: the art of thinking independently together.”
Malcolm Forbes (1919–1990), American businessman and publisher of Forbes magazine
As illustrated in Exhibit 11.3 , one survey of followers rated women leaders signi�icantly higher than men on several characteristics that are crucial for developing fast, �lexible, adaptive organizations. Female leaders were rated as having more idealized in�luence, providing more inspirational motivation, being more individually considerate, and offering more intellectual stimulation. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#ZRYE8GD37MSYE4E4N833) Idealized in�luence means that followers identify with and want to emulate the leader; the leader is trusted and respected, maintains high standards, and is considered to have power because of who she is rather than what position she holds. Inspirational motivation is derived from the leader who appeals emotionally and symbolically to employees' desire to do a good job and help achieve organizational goals. Individual consideration means each follower is treated as an individual but all are treated equitably; individual needs are recognized, and assignments are delegated to followers to provide learning opportunities. For example, one of the strengths of Cynthia Carroll, who from 2007 to 2013 was the �irst female CEO of global mining company Anglo American, is “getting the most out of each individual.” Carroll also brought a new mindset to Anglo American to help the company become more global in its approach, re�lecting intellectual stimulation. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#MJFQY589MHCY2M7PC959) Intellectual stimulation means questioning current methods and challenging employees to think in new ways. In addition to these qualities, women leaders were judged by subordinates in the survey as more effective and satisfying to work for and were considered able to generate extra levels of effort from employees.
Bass and Avolio, “Shatter the Glass Ceiling.”
Cynthia Carroll, “Why Different Is Better,” Newsweek (January 29, 2007), p. E4.
Exhibit 11.3. Comparison of Male and Female Leaders by Their Subordinates
Source: Based on Bernard M. Bass and Bruce J. Avolio, “Shatter the Glass Ceiling: Women May Make Better Managers,” Human Resource Management 33, no. 4 (Winter 1994), pp. 549–560.
11-4b. Is Leader Style Gender-Driven?
Several researchers have examined the question of whether women lead differently than men. Although they are broad generalizations, social science research suggests that predominantly communal qualities, such as compassion and kindness, are more associated with women in general and predominantly agentic qualities, such as assertiveness and competitiveness, are more associated with men. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#BBEEQC4H93ULDXUK1603) Refer to Leader's Self- Insight 11.1 earlier in the chapter to see if your values are more communal or agentic.
Reported in Carol Kinsey Goman, “What Men Can Learn from Women.”
Leadership traits traditionally associated with white, American-born males include aggressiveness or assertiveness, rational analysis, and a “take charge” attitude. Male leaders tend to be competitive and individualistic and prefer working in vertical hierarchies. They rely on formal authority and position in their dealings with subordinates.
Some women also re�lect these characteristics, of course, but research has found that, in general, women prefer less competitive environments than men, tend to be more collaborative, and are more concerned with relationship building, inclusiveness, participation, and caring. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#NXXAWZSZFQKK79UMT856) Female leaders such as Deborah Kent, the �irst woman to head a vehicle assembly plant for Ford Motor, or Terry Kelly, CEO of W. L. Gore & Associates, are often more willing to share power and information, to encourage employee development, and to strive to enhance others' feelings of self-worth. “It does no good have a diverse workforce if you don't listen to their opinions and thoughts,” says Kent. “I treat people the way I want to be treated.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#YSVEZAXJ17UP7AHJ9689)
The study on competitiveness was reported in Hal R. Varian, “The Difference between Men and Women, Revisited: It's about Competition,” The New York Times (March 9, 2006), p. C3. For reviews and analyses of the research on gender differences in leadership, see Hadary and Henderson, “Lead Boldly!”; Nicole Z. Stelter, “Gender Differences in Leadership: Current Social Issues and Future Organizational Implications,” The Journal of Leadership Studies 8, no. 4 (2002), pp. 88–99; and Alice H. Eagly, Mary C. Johannesen-Schmidt, and Marloes L. van Engen, “Transformational, Transactional, and Laissez-Faire Leadership Styles: A Meta-Analysis Comparing Women and Men,” Psychological Bulletin 129, no. 4 (July 2003), p. 569ff.
Quoted in Lena Williams, “A Silk Blouse on the Assembly Line? (Yes, the Boss's),” The New York Times (February 5, 1995), Business Section, p. 7.
New Leader Action Memo
As a leader, you can choose to employ an interactive, collaborative leadership style. You can develop personal relationships with your followers and make everyone feel like an important part of things.
Professor and author Judy B. Rosener has called women's approach to leadership interactive leadership . * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#ZWRY9UCAJ5UD7GXGF800) The leader favors a consensual and collaborative process, and in�luence derives from relationships rather than position power and authority. Some psychologists have suggested that women may be more relationship oriented than men because of different psychological needs stemming
from early experiences. This difference between the relationship orientations of men and women has sometimes been used to suggest that women cannot lead effectively because they fail to exercise power. However, whereas male leaders may associate effective leadership with a top-down command-and-control process, women's interactive leadership seems appropriate for the future of diversity, globalization, and learning organizations. Cindy Szadokierski applies interactive leadership to handle the complex and demanding job of managing operations for United Airlines in Chicago.
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
Based on Rosener, America's Competitive Secret , pp. 129–135.
In the Lead Cindy Szadokierski, United Airlines
Twenty-�ive years ago, Cindy Szadokierski quit her job teaching high school French and went to work as a reservations agent for United Airlines. Today, she is vice president in charge of operations for United's largest hub at O'Hare International Airport.
After joining the company, Szadokierski served in positions of increasing responsibility, including being general manager of United's hub at Washington's Dulles International Airport. From the beginning of her career with United, Szadokierski wanted to be in operations because she liked the idea of bridging the gap between what goes on in the �ield and what happens at headquarters. At O'Hare, where she oversees 4,000 employees and 600 �lights a day, her favorite times are the weekly afternoon walkabouts on the O'Hare ramp and the weekly morning strolls through the terminal. Why? Because they give her a chance to connect with employees and customers. Pete McDonald, chief operating of�icer of United's parent, UAL Corporation, says there were serious operations problems at O'Hare, so they put “the most communicative person” in the job. “She's everywhere. She talks to everybody,” said Don Wolfel, president of United's mechanics union at O'Hare.
Szadokierski's approach to leadership is more collaborative than command-and-control. In addition to learning from employees and customers, Szadokierski emphasizes regular meetings with her leadership team to talk about what's going right, what's going wrong, and how to collaboratively �ix any problems. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#MAXG6ZC5SYLZYVKV1519)
Susan Carey, “More Women Take Flight in Airline Operations,” The Wall Street Journal (August 14, 2007), p. B1; Ann Therese Palmer, “Teacher Learns All About Airline; United VP Began as Reservations Clerk, Rose through Ranks,” Chicago Tribune (December 24, 2006), p. 3; Paul Merrion, “Cindy Szadokierski,” Crain's Chicago Business (May 5, 2007), http://www.chicagobusiness.com/article/20070505/ISSUE02/100027750/cindy-szadokierski (http://www.chicagobusiness.com/article/20070505/ISSUE02/100027750/cindy-szadokierski) (accessed May 10, 2013).
Although the values associated with interactive leadership, such as inclusion, relationship building, and caring, are generally considered “feminine” values, interactive leadership is not gender-speci�ic. These values are becoming increasingly valuable for both male and female leaders. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/yhzyvn7ns0adbldz2950#VNDNU5QGQWZ2Z48L5837) Any leader can learn to adopt a more inclusive style by paying attention to nonverbal behavior and developing skills such as listening, empathy, cooperation, and collaboration.
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
interactive leadership a leadership style in which people develop personal relationships with followers, share power and information, empower employees, and strive to enhance others' feelings of self-worth
Susan J. Wells, “A Female Executive Is Hard to Find,” HR Magazine (June 2001), pp. 40–49; Hadary and Henderson, “Lead Boldly!”; Goman, “What Men Can Learn from Women”; and Helgesen, The Female Advantage .
11-5. Global Diversity
New Leader Action Memo
Social value differences can signi�icantly affect leadership, working relationships, and organizational functioning. Answer the questions in Leader's Self-Insight 11.3 to better understand the social values of your classmates or coworkers.
One of the most rapidly increasing sources of diversity is globalization, which means that leaders are confronting diversity issues across a broader stage than ever before. For leaders interacting with people from other cultures, even something as seemingly simple as a handshake can be confusing, as illustrated in Exhibit 11.4 . If the proper way to shake hands can vary so widely, no wonder managers have trouble knowing how to act when doing business with people from or in other countries.
Exhibit 11.4. How Do You Shake Hands?
Culture Preferred Style of Handshake Asian Gentle (shaking hands is unfamiliar and uncomfortable for some Asians; the exception is the Korean,
who usually prefers a �irm handshake) British Soft French Light and quick; repeated on arrival and departure; not offered to superiors German Brusque and �irm; repeated on arrival and departure Latin American Moderate grasp; repeated frequently Middle Eastern Gentle; repeated frequently North American Firm
From Bridging Cultural Barriers for Corporate Success by Sondra Thiederman. Copyright © 1991. Lexington Books. Reprinted by permission of the author.
Leader's Self-Insight 11.3. Social Values
Instructions : Different social groups (work colleagues, family, professional groups, and national, religious, and cultural groups) are all around us. Focus on the group of individuals whom you consider to be your colleagues (e.g., team members, coworkers, classmates). Respond to each of the following statements and indicate its level of importance to your colleague group on the scale of (1) Not at all important to (5) Very important.
How Important Is It: Not at All Important
Very Important
1. To compromise one's wishes to act together with your colleagues? 1 2 3 4 5 2. To be loyal to your colleagues? 1 2 3 4 5 3. To follow norms established by your colleagues? 1 2 3 4 5 4. To maintain a stable environment rather than “rock the boat”? 1 2 3 4 5 5. To not break the rules? 1 2 3 4 5 6. To be a specialist or professional rather than a manager? 1 2 3 4 5 7. To have an opportunity for high earnings? 1 2 3 4 5 8. To have an opportunity for advancement to higher-level jobs? 1 2 3 4 5 9. To work with people who cooperate well with one another? 1 2 3 4 5 10. To have a good working relationship with your leader? 1 2 3 4 5 11. To have a leader who gives detailed instructions? 1 2 3 4 5 12. To avoid disagreement with a leader? 1 2 3 4 5
Scoring and Interpretation
There are four subscale scores that measure the four social values described by Hofstede. For the dimension of individualism– collectivism, compute your average score based on responses to questions 1, 2, and 3. For the dimension of uncertainty avoidance, compute your average score based on responses to questions 4, 5, and 6. For the dimension of masculinity–femininity, reverse score your responses to questions 9 and 10 (5 = 1, 4 = 2, 2 = 4, and 1 = 5) and then compute your average score for questions 7, 8, 9, and 10. For the dimension of power distance, compute the average score for questions 11 and 12.
My average social value scores are:
Individualism–collectivism (I–C) .
Uncertainty avoidance (UA) .
Masculinity–femininity (M–F) .
Power distance (PD) .
An average score of 4 or above on the I–C scale means that collectivism is a social value in your colleague group, and a score of 2 or below means that the value of individualism dominates. A score of 4 or above on the UA scale means that your group values the absence of ambiguity and uncertainty ( high uncertainty avoidance ), and a score of 2 or below means that uncertainty and unpredictability are preferred. A score of 4 or above on the M–F scale means that masculinity is a social value in your colleague group, and a score of 2 or below means that the value of femininity dominates. A score of 4 or above on the PD scale means that high power distance , or hierarchical differences, is a social value in your colleague group, and a score of 2 or below means that the value of low power distance , or equality, dominates.
Compare your four scores to one another to understand your perception of the different values. On which of the four values would you like to score higher? Lower? Analyze the speci�ic questions on which you scored higher or lower to analyze the pattern of your group's social values. Show your scores to a student from another country and explain what they mean. How do your social values differ from the social values of the international student? How do these social values differ across the nationalities represented in your class?
Sources: Adapted from Geert Hofstede, Culture's Consequences (London: Sage Publications, 1984); and D. Matsumoto, M. D. Weissman, K. Preston, B. R. Brown, and C. Kupperbausch, “Context-Speci�ic Measurement of Individualism–Collectivism on the Individual Level: The Individualism–Collectivism Interpersonal Assessment Inventory,” Journal of Cross-Cultural Psychology 28, no. 6 (1997), pp. 743–767.
Leaders can get a handle on the challenges of global diversity by understanding the sociocultural environment and by developing a higher cultural intelligence quotient (CQ) to know how to behave appropriately.
11-5a. The Sociocultural Environment
Social and cultural differences may provide more potential for dif�iculties and con�licts than any other source. For instance, after hundreds of mostly Somali Muslim employees walked out to protest not being allowed extra break times to pray during Ramadan, leaders at a JBS Swift & Company meatpacking plant in Omaha, Nebraska, altered their policies so the workers could pray at the appropriate times. That, however, led to protests by non-Muslim workers, who alleged “preferential treatment,” causing leaders to reconsider allowing extra breaks for prayer. The tensions and con�licts led to a near-riot, and Swift's leaders were working overtime to resolve the issues between the different groups. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#NSEWYSLV0KMHVV8S9256)
“Muslim Leader: 150 Workers Fired over Prayer Dispute in Nebraska,” USA Today (September 19, 2009), http://www.usatoday.com/news/religion/2008-09-19-muslim-prayer- business_N.htm (http://www.usatoday.com/news/religion/2008-09-19-muslim-prayer-business_N.htm) (accessed September 20, 2008).
Cultural factors have also created problems for leaders in some U.S. corporations trying to transfer their diversity policies and practices to European divisions. Policies designed to address diversity issues in the United States don't take into consideration the complex social and cultural systems in Europe. In Britain, for example, class distinctions are as big an aspect of diversity as race, gender, or disability. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#YLGFUUKULB6LYWHQ5577) Even the meaning of the term diversity can present problems. In many European languages, the closest word implies separation rather than the inclusion sought by U.S. diversity programs. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#MZEQ5J8FJV8S1T9GL532) Foreign �irms doing business in the United States face similar challenges understanding and dealing with diversity issues. C. R. “Dick” Shoemate, chairman and CEO of Best Foods, says, “It takes a special kind of leadership to deal with the differences in a multicountry, multicultural organization….” Best Foods uses cross-border assignments and extensive individual coaching to train people to lead a multicultural workforce. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#RTCD80Q50NERGA71C391)
Kevin Maguire, “Harriet Harman's Equality Bill Signposts the Route to a Better Britain,” Mirror.co.uk (April 29, 2009), http://www.mirror.co.uk/news/columnists/maguire/2009/04/29/harriet-harman-s-equality-bill-points-to-the-route-for-a-better-britain-115875-21316506 (http://www.mirror.co.uk/news/columnists/maguire/2009/04/29/harriet-harman-s-equality-bill-points-to-the-route-for-a-better-britain-115875-21316506) (accessed June 5, 2009).
Helen Bloom, “Can the United States Export Diversity?” Across the Board (March/April 2002), pp. 47–51.
Reported in “Molding Global Leaders,” Fortune (October 11, 1999), p. 270.
11-5b. Social Value Systems
Research done by Geert Hofstede on IBM employees in 40 countries discovered that mindset and cultural values on issues such as individualism versus collectivism strongly in�luence organizational and employee relationships and vary widely among cultures. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#ZHCGECZ3S7B8PFF14684) Exhibit 11.5 shows examples of how countries rate on four signi�icant dimensions.
Geert Hofstede, “The Interaction between National and Organizational Value Systems,” Journal of Management Studies 22 (1985), pp. 347–357; and G. Hofstede, “The Cultural Relativity of the Quality of Life Concept,” Academy of Management Review 9 (1984), pp. 389–398.
Exhibit 11.5. Rank Orderings of 10 Countries along Four Dimensions of National Value System
Country Power * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#DGCERNEE8S0XP4UJQ316)
Uncertainty * (http://content.thuz
Australia 7 7 Costa Rica
8 2 (tie)
France 3 2 (tie) India 2 9 Japan 5 1 Mexico 1 4 Sweden 10 10 Thailand 4 6 United States
6 8
1= highest power distance; 10 = lowest power distance
1 = highest uncertainty avoidance; 10 = lowest uncertainty avoidance
1 = highest individualism; 10 = highest collectivism
1 = highest masculinity; 10 = highest femininity
From Dorothy Marcic, Organizational Behavior and Cases , 4th ed. (St. Paul, MN: West, 1995). Based on Geert Hofstede, Culture's Consequences (London: Sage Publications, 1984); and Cultures and Organizations: Software of the Mind (New York: McGraw-Hill, 1991).
Power distance . High power distance means people accept inequality in power among institutions, organizations, and individuals. Low power distance means people expect equality in power. Countries that value high power distance are Malaysia, the Philippines, and Panama. Countries that value low power distance include Denmark, Austria, and Israel.
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance
how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
Uncertainty avoidance . High uncertainty avoidance means that members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity. Low uncertainty avoidance means that people have a high tolerance for the unstructured, the unclear, and the unpredictable. High uncertainty avoidance cultures include Greece, Portugal, and Uruguay. Singapore and Jamaica are two countries with low uncertainty avoidance values.
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
power distance how much people accept equality in power; high power distance re�lects an acceptance of power inequality among institutions, organizations, and individuals; low power distance means people expect equality in power
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance
Individualism and collectivism . Individualism re�lects a value for a loosely knit social framework in which individuals are expected to take care of themselves. Collectivism is a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests. Countries with individualist values include the United States, Great Britain, and Canada. Countries with collectivist values are Guatemala, Ecuador, and Panama.
the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
uncertainty avoidance the degree to which members of a society feel uncomfortable with uncertainty and ambiguity and thus support beliefs and behaviors that promise certainty and conformity
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism
a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Masculinity and femininity . Masculinity re�lects a preference for achievement, heroism, assertiveness, work centrality, and material success. Femininity re�lects the values of relationships, cooperation, group decision making, and quality of life. Japan, Austria, and Mexico are countries with strong masculine values. Countries with strong feminine values include Sweden, Norway, Denmark, and the former Yugoslavia. Both men and women subscribe to the dominant value in masculine or feminine cultures.
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Individualism a value for a loosely knit social framework in which individuals are expected to take care of themselves
Collectivism a preference for a tightly knit social framework in which people look out for one another and organizations protect their members' interests
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity
a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Terry Neill, a managing partner at a London-based change management practice, uses Hofstede's �indings in his work with companies. Based on his experiences with global companies such as Unilever PLC, Royal Dutch Shell, and BP, Neill points out that the Dutch, Irish, Americans, and British are generally quite comfortable with open argument. However, Japanese and other Asian employees often feel uneasy or even threatened by such directness. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#DEGSHBKV7ZK5U1T1T405) In many Asian countries, leaders perceive the organization as a large family and emphasize cooperation through networks of personal relationships. In contrast, leaders in Germany and other central European countries typically strive to run their organizations as impersonal, well-oiled machines. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#VRLNK6UPJLMDTCRP3101) How leaders handle these and other cultural differences can have tremendous impact on the satisfaction and effectiveness of diverse employees.
Debby Young, “Team Heat,” CIO (September 1, 1998), Section 1, pp. 43–51.
Geert Hofstede, “Cultural Constraints in Management Theories,” excerpted in Dorothy Marcic and Sheila M. Puffer, Management International: Cases, Exercises, and Readings (St. Paul, MN: West Publishing, 1994), p. 24.
11-5c. Developing Cultural Intelligence
Although understanding the sociocultural environment and social value differences is crucial, a person cannot expect to know everything necessary to be prepared for every conceivable situation. Thus, in a multicultural environment, leaders will be most successful if they are culturally �lexible and able to easily adapt to new situations and ways of doing things. In other words, they need a high CQ. Cultural intelligence refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#FARE7ZTHZM757PTUU162) Developing a high CQ enables a person to interpret unfamiliar situations and adapt quickly. Rather than a list of global “dos and don'ts,” CQ enables a person to ferret out clues to a culture's shared understandings and respond to new situations in culturally appropriate ways.
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Masculinity a preference for achievement, heroism, assertiveness, work centrality, and material success
Femininity a preference for relationships, cooperation, group decision making, and quality of life
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence
The discussion of cultural intelligence is based on P. Christopher Earley and Elaine Mosakowski, “Cultural Intelligence,” Harvard Business Review (October 2004), p. 139ff; Ilan Alon and James M. Higgins, “Global Leadership Success through Emotional and Cultural Intelligence,” Business Horizons 48 (2005), pp. 501–512; P. C. Earley and Soon Ang, Cultural Intelligence: Individual Actions across Cultures (Stanford, CA: Stanford Business Books, 2003); and David C. Thomas and Kerr Inkson, Cultural Intelligence: People Skills for Global Business (San Francisco: Berrett-Koehler, 2004).
Cultural intelligence includes three components that work together: cognitive, emotional, and physical. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#BXUS1JPM6A0N1UCHA012) The cognitive component involves a person's observational and learning skills and the ability to pick up on clues to understanding. The emotional aspect concerns one's self-con�idence and self-motivation. A leader has to believe in his or her ability to understand and assimilate into a different culture. Dif�iculties and setbacks are triggers to work harder, not a cause to give up. The third component, the physical, refers to a person's ability to shift his or her speech patterns, expressions, and body language to be in tune with people from a different culture. Most people aren't equally strong in all three areas, but maximizing CQ requires that they draw upon all three facets.
These components are from Earley and Mosakowski, “Cultural Intelligence.”
Developing a high CQ requires that a leader be open and receptive to new ideas and approaches. Working in a different country is one of the best ways people can stretch beyond their comfort zones and develop a broader, more global perspective. One study found that people who adapt to global management most easily are those who have grown up learning how to understand, empathize, and work with others
the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
Cultural intelligence the ability to use reasoning and observation to interpret unfamiliar situations and devise appropriate behavioral responses
who are different from themselves. For example, Singaporeans consistently hear English and Chinese spoken side by side. The Dutch have to learn English, German, and French, as well as Dutch, to interact and trade with their economically dominant neighbors. English Canadians must not only be well versed in American culture and politics, but they also have to consider the views and ideas of French Canadians, who, in turn, must learn to think like North Americans, members of a global French community, Canadians, and Quebecois. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#BGEFJTZKZPA1U19J3797) People who have grown up without this kind of language and cultural diversity, which includes most leaders in the United States, typically have more dif�iculties with foreign assignments, but willing managers from any country can learn to open their minds and appreciate other viewpoints.
Karl Moore, “Great Global Managers,” Across the Board (May–June 2003), pp. 40–43.
11-5d. Leadership Implications
A study of executives in �ive countries found that although the globalization of business seems to be leading to a convergence of managerial values and attitudes, executives in different countries differ signi�icantly in some areas, which can create problems for leadership. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#FBQPLKN2K2HAE222D548) To lead effectively in a diverse global environment, leaders should be aware of cultural and subcultural differences. Chapter 3 examined contingency theories of leadership that explain the relationship between leader style and a given situation. It is important for leaders to recognize that culture affects both style and the leadership situation. For example, in cultures with high uncertainty avoidance, a leadership situation with high task structure as described in Chapter 3 is favorable, but those in low uncertainty avoidance cultures prefer less-structured work situations. Research into how the contingency models apply to cross-cultural situations is sparse. However, all leaders need to be aware of the impact that culture may have and consider cultural values in their dealings with employees and colleagues.
Alison M. Konrad, Roger Kashlak, Izumi Yoshioka, Robert Waryszak, and Nina Toren, “What Do Managers Like to Do?” Group & Organization Management 26, no. 4 (December 2001), pp. 401–433.
New Leader Action Memo
As a leader, you can develop cultural intelligence. You can study other languages and cultures and form relationships with people from different countries. You can learn to be sensitive to differences in social value systems and �ind creative ways to address delicate diversity issues.
How leader behavior is perceived differs from culture to culture. For example, there is tremendous variation across countries in what people expect leaders to do and be. For example, should leaders be experts who provide precise answers to their employees' questions or should they instead be facilitators who help employees discover solutions rather than providing them with direct answers? The answer varies from country to country, and problems can occur when unaware leaders from one culture interact with employees from another. For example, most leaders in the United States think merely providing answers limits subordinates' initiative and creativity. In France, though, leaders believe they should give exact answers in order to maintain their credibility as experts. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#HPSNX0GM750712C7H758) If a leader from the United States working in France tells an employee she doesn't know the answer and suggests the employee consult with someone else about the problem, the employee might conclude that the U.S. leader is incompetent. Similarly, employees in the United States working for a French boss might consider the boss egotistical when he continually provides speci�ic answers rather than offering suggestions for how to �ind solutions to a problem. Exhibit 11.6 gives some examples of how the leader's role varies across countries based on whether leaders are expected to provide answers to employee questions.
Based on Nancy Adler, International Dimensions of Organizational Behavior , 5th ed. (Mason, OH: South-Western, 2008), pp. 49–52.
Exhibit 11.6. Are Leaders Expected to Be Experts?
Source: André Laurent, “The Cultural Diversity of Western Conceptions of Management,” International Studies of Management and Organization 13, no. 1–2 (Spring–Summer, 1983), pp. 75–96. Adapted from ADLER, International Dimensions of Organizational Behavior , 5E.
Other behavioral misunderstanding can also trip up leaders. An American manager nearly blew a deal with a Korean company because he complained directly to higher-level executives when he had dif�iculty getting the information he needed from his Korean counterparts. In the United States, such an approach would be acceptable, but in Korea, it was seen as a sign of disrespect. The lower-level Korean managers were horri�ied and embarrassed, the upper-level managers were offended, and the crisis was resolved only when top executives from the United States made a trip to Korea to apologize and show respect. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vxgqm9gyn6bvw41jp239#QBZF58G97SKWJG2GS993)
Reported in Jeanne Brett, Kristin Behfar, and Mary C. Kern, “Managing Multicultural Teams,” Harvard Business Review (November 2006), pp. 84–91.
11-6. Becoming an Inclusive Leader One goal for today's global organizations is to ensure that all people—women, ethnic minorities, younger people, gays and lesbians, the disabled, older people, racial minorities, as well as white males—are given equal opportunities and treated with fairness and respect. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/wmya77qgyzqaanvgv927#EYAC4VDGE0SBHP56M096) The following example describes how big technology companies such as Google and Intel are beginning to respond to growing criticism about the lack of diversity in their organizations.
Renee Blank and Sandra Slipp, “The White Male: An Endangered Species?” Management Review (September 1994), pp. 27–32; and Sharon Nelton, “Nurturing Diversity,” Nation's Business (June 1995), pp. 25–27.
In the Lead Google and Intel
Laszlo Bock, Google's head of human resources, says “you don't usually see outright manifestations of bias,” at the company. “Occasionally you'll have some idiot do something stupid and hurtful, and I like to �ire those people.” But Bock and other Google leaders know it's the hidden and often unconscious biases that can be the real problem. Google began diversity training workshops for all employees in 2013 to help people confront and overcome the bias hidden within themselves, with particular focus on how unconscious biases affect hiring and promotion decisions. Although there are few explicit results yet, Google leaders say just acknowledging the problem is starting to shift Google to a more inclusive culture
At Intel, leaders are taking even more concrete steps. In early 2015, the company announced a goal of increasing the number of women, African Americans, Hispanics, and other minority groups by at least 14 percent within �ive years. “This is the right time to make a bold statement,” said Intel CEO Brian M. Krzanich. Intel also set up a $300 million fund to be used to improve diversity in Intel's workforce, attract more women and minorities to the technology �ield, and make the industry more open to minorities. The Rev. Jesse L. Jackson, Sr., who led a campaign to pressure technology companies on diversity, welcomed Intel's bold move and believes it will compel other companies to follow their lead. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/wmya77qgyzqaanvgv927#WQTHV159VXT5W4275974)
Farhad Manjoosept, “Exposing Hidden Bias at Google,” The New York Times (September 25, 2014), p. B1; Nick Wing�ield, “Intel Budgets $300 Million for Diversity,” The New York Times (January 6, 2015), p. B1; and Jena McGregor, “Google Admits It Has a Diversity Problem,” The Washington Post (May 29, 2014), https://www.washingtonpost.com/news/on-leadership/wp/2014/05/29/google-admits-it-has-a-diversity-problem/ (https://www.washingtonpost.com/news/on- leadership/wp/2014/05/29/google-admits-it-has-a-diversity-problem/) (accessed November 17, 2015).
Google and Intel are certainly not alone in needing to address the lack of diversity in their organizations. The workforce and leadership at most large technology companies are overwhelmingly male and primarily white and Asian. Leaders hope bringing the problem into the open is a start toward a more diverse technology industry. Leaders in other industries are also struggling to increase diversity and inclusiveness.
Leaders vary in their sensitivity and openness to other cultures, attitudes, values, and ways of doing things. Exhibit 11.7 shows a model of �ive stages of individual diversity awareness and actions. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/wmya77qgyzqaanvgv927#TXBK97NN0B10LK97X598) The continuum ranges from a defensive, ethnocentric attitude, in which leaders meet the minimum legal requirements regarding af�irmative action and sexual harassment, to a complete understanding and acceptance of people's differences, in which leaders value diversity as an inherent part of the organizational culture.
Based on M. Bennett, “A Developmental Approach to Training for Intercultural Sensitivity,” International Journal of Intercultural Relations 10 (1986), pp. 179–196.
Exhibit 11.7. Stages of Personal Diversity Awareness
Source: Based on M. Bennett, “A Developmental Approach to Training for Intercultural Sensitivity,” International Journal of Intercultural Relations 10 (1986), pp. 179–196.
People at stage 1 see differences as a threat against their own comfortable worldview and frequently use negative stereotyping or express prejudicial attitudes. Leaders at this stage of diversity awareness consider themselves successful if their legal record is good. They may view women and minorities as a “problem” that must be dealt with. Typically, these leaders promote a few minorities to executive-level jobs to meet legal requirements. At stage 2, people try to minimize differences and focus on the similarities among all people. This is the stage where unconscious and subtle bias is most evident because people have moved beyond openly prejudicial attitudes. Leaders don't adequately recognize or respond to the challenges minorities and women face in the organization. When an individual moves to stage 3 of diversity awareness, he or she accepts cultural differences and recognizes the validity of other ways of thinking and doing things. Here, leaders become proactive and acknowledge that addressing issues of gender, race, disability, and so forth is important not just for the minority employees but also for the health of the organization. They recognize that women and minorities can bring needed insight into developing and marketing products for new customers, so they look for ways to attract and retain high-quality minority employees. In stage 3 organizations, more women and minorities make it to high-level positions, and leaders begin providing diversity training to all employees.
When people reach stage 4, they are able to empathize with people who are different from themselves and can comfortably shift from one cultural perspective to another. Leaders at this stage make a strong commitment to broad equality and community and rectify the undervaluation and underutilization of women and minorities. Leaders make a genuine attempt to develop policies and practices that are inclusive rather than exclusive. For example, a series of highly publicized incidents of racial discrimination at Denny's Restaurants in the early 1990s spurred leaders to implement diversity programs and provide serious diversity awareness training at every level of the company. Today, Denny's is a model for diversity. By 2014, 46 percent of Denny's franchises were minority-owned, and minorities made up 44 percent of overall management. Since 1993, the company has spent over $1.6 billion with minority- and women-owned suppliers. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/wmya77qgyzqaanvgv927#KCKFF6GB352Q03G7D905) The results of Denny's diversity initiatives have far exceeded expectations and have moved Denny's leaders toward stage 5 of the diversity awareness scale in Exhibit 11.7 .
“Diversity Speaks,” Denny's Web site, http://dennysdiversity.com/about.asp (http://dennysdiversity.com/about.asp) (accessed November 17, 2015); Irwin Speizer, “Diversity on the Menu,” Workforce Management (November 2004), p. 41; and Jim Adamson, “How Denny's Went from Icon of Racism to Diversity Award Winner,” Journal of Organizational Excellence (Winter 2000), pp. 55–68.
New Leader Action Memo
As a leader, you can advance to higher stages of diversity awareness and action. You can commit to valuing diversity and providing equal opportunities for everyone.
At stage 5 of diversity awareness, people are capable of integrating differences and adapting both cognitively and behaviorally. It is at this stage where leaders can create organizations that are gender- and color-blind. All employees are judged on their competence, and stereotypes and prejudices are completely erased. No group of employees feels different or disadvantaged. Stage 5 represents the ideal leader and organization. Although it may seem unreachable, many of today's best leaders are striving to achieve this stage of diversity awareness and acceptance. The commitment of top leaders is critical to building organizations that embrace diversity in all aspects of the business.
11-7. Ways to Encourage the Advancement of Women and Minorities Personal diversity awareness is the �irst step to creating a culture that embraces inclusion and enables all people to reach their potential, thereby enabling the organization to perform at its best. Leaders have tried a variety of approaches to encourage an inclusive culture. Two effective options for getting more minority representation at higher levels are employee af�inity groups and minority sponsorship.
11-7a. Employee Af�inity Groups
Employee af�inity groups are based on social identity, such as gender or race, and are organized to focus on the concerns of employees from speci�ic groups. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#TPRHZRLV2648EFGE7917) These groups are sometimes called diversity networks or employee resource groups . Employee af�inity groups let persons of similar background share common experiences and success strategies, enabling them to make greater contributions to the organization and advance their careers. Af�inity groups �irst emerged in the 1970s, primarily to focus on the recruitment and retention of African Americans. Today, they have evolved to incorporate employees from a wide variety of backgrounds. Cisco Systems has groups that provide leadership and growth opportunities for Asians, African Americans, women, Middle Eastern employees, veterans, Latinos, gays and lesbians, the disabled, and others. The company's 11 af�inity groups represent more than 18 percent of 72,000 Cisco employees worldwide. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#ACSKPUBDX37MCVBXC300)
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups
This de�inition and discussion is based on Raymond A. Friedman, “Employee Network Groups: Self-Help Strategy for Women and Minorities,” Performance Improvement Quarterly 12, no. 1 (1999), pp. 148–163; and Joann S. Lublin, “To Climb the Ladder, Try Joining a Group,” The Wall Street Journal (December 26, 2012), p. B6.
Lublin, “To Climb the Ladder, Try Joining a Group”; and “Employee Resource Groups,” Cisco Systems, http://www.cisco.com/web/about/ac49/ac55/diversity_inclusion_employee.html (http://www.cisco.com/web/about/ac49/ac55/diversity_inclusion_employee.html) (accessed May 13, 2013).
Af�inity groups pursue a variety of activities, such as meetings to educate top leaders, mentoring programs, networking events, training sessions and skills seminars, minority intern programs, and community volunteer activities. These activities give people a chance to meet, interact with, and develop social and professional ties to others throughout the organization, which often includes in�luential executives and key decision makers. Af�inity groups are a powerful way to reduce social isolation for women and minorities, help these employees be more effective, and enable members to achieve greater career advancement. Studies con�irm that these groups can be important tools for helping organizations retain managerial-level minority employees. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#AHXVK3WQN0ZLV0XCM212)
Raymond A. Friedman and Brooks Holtom, “The Effects of Network Groups on Minority Employee Turnover Intentions,” Human Resource Management 41, no. 4 (Winter 2002), pp. 405– 421; and Raymond A. Friedman, Melinda Kane, and Daniel B. Corn�ield, “Social Support and Career Optimism: Examining the Effectiveness of Network Groups among Black Managers,” Human Relations 51, no. 9 (1998), pp. 1155–1177.
Important characteristics of effective af�inity groups are that they involve senior leaders in group events and that they �ind ways to directly contribute to organizational effectiveness. As president of Cisco's Latino group, Conexión, Guillermo Diaz Jr. transformed it from a “social club with a happy hour” into a business resource, in�luencing Spanish-speaking customers and organizing conferences for Latino IT leaders. Three years later, Diaz was promoted to a vice president position. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#REHT9R07WLNCU6KK7933) At BT (formerly called British Telecom), members of the disability network, Able2, trained installation engineers to let visually impaired customers feel the box before it was installed. “Rather than developing slightly arti�icial programmes that give the networks visibility, they get noticed for all the right reasons because they are helping the business,” Caroline Walters, BT's director of people and policy, says of the new approach to af�inity groups. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#ANBV7NWJZYLFQR7ZE468)
Lublin, “To Climb the Ladder, Try Joining a Group.”
Hashi Syedain, “Premium Bonds,” People Management (September 2012), pp. 23–26.
New Leader Action Memo
As a leader, you can support the personal development and career advancement of women and minorities by creating and encouraging employee af�inity groups. Use sponsorship to help high-potential minority employees reach higher levels.
Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
Employee af�inity groups Groups based on social identity that focus on concerns of employees from speci�ic groups and enable them to make greater contributions to the organization
When employee af�inity groups raise their sights from providing personal support to enabling people to bring value to the business, it helps both the organizations and the individuals involved. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#FBGG9MC04NRA4VND1202) Anne F. Ackerley earned a promotion to chief marketing of�icer of BlackRock, the world's largest money manager by assets, largely because of the role she played in the company's af�inity group for women and the exposure it gave her to senior leaders. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#RCDEA5D21UQK1WB73394) Ackerley continued to advance in her career, and in 2015 she was a managing director and head of BlackRock's US & Canada De�ined Contribution (USDC) Group. When people feel that they are making genuine contributions and have a chance to advance in their careers because of it, engagement soars. “At some of our events, the buzz in the room is magni�icent,” said Shakrat Alli, chairwoman of Britain's Crown Prosecution Service's af�inity group for African Americans (the National Black Crown Prosecution Association). “People return to the workplace with the sense that everything is possible.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#DFXPM1KVSW6BPYB4Q557)
Elizabeth Wasserman, “A Race for Pro�its,” MBA Jungle (March–April 2003), pp. 40–41.
Lublin, “To Climb the Ladder, Try Joining a Group.”
Syedain, “Premium Bonds.”
11-7b. Minority Sponsorship
Another bene�it of employee af�inity groups is that people often obtain sponsors through their af�iliation with the groups. Ken Wilson, a vice chairman and member of BlackRock's powerful global advisory committee, for example, became a sponsor for Anne Ackerley after seeing her in action with the company's women's group, and he supported her career and eventually helped her get the promotion to chief marketing of�icer. Ackerley's work with the women's network, says Wilson, “gave her a �irm-wide pro�ile. She wasn't that well known [before].” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#NEFFS4GMFQA6UYR6F080)
Lublin, “To Climb the Ladder, Try Joining a Group.”
Sponsorship refers to strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's advancement to higher organizational levels. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#CGXLL9W632GS0F842446) Sponsorship is mentorship on steroids. Mentors are important because they offer advice and guidance, but a sponsor actually advocates on behalf of the protégé and connects the individual to important people and assignments. Because they go out on a limb, sponsors expect outstanding performance and unwavering commitment. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#UJJN8RHZ8YGFM90XM824)
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship
strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sylvia Ann Hewlett, “Mentors Are Good. Sponsors Are Better,” The New York Times (April 13, 2013), http://www.nytimes.com/2013/04/14/jobs/sponsors-seen-as-crucial-for- womens-career-advancement.html?_r=0 (http://www.nytimes.com/2013/04/14/jobs/sponsors-seen-as-crucial-for-womens-career-advancement.html?_r=0) (accessed May 13, 2013); and Stephanie Castellano, “Sponsoring Career Success for Minority Workers,” T + D (November 2012), p. 18.
Hewlett, “Mentors Are Good. Sponsors Are Better.”
Sylvia Hewlett, author of Forget a Mentor, Find a Sponsor , led a two-year study that shows that sponsorship makes a measurable difference in career advancement. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#DGCPTVD1HD1R1RLZS061) Sponsors make sure their protégés get considered for important projects and have opportunities to show what they can do. In addition, people with sponsors are more likely to ask for stretch assignments, request salary increases, and seek opportunities. Yet only 5 percent of minorities have sponsors compared to 21 percent of white employees. Just as with job promotions, when senior leaders pick someone to sponsor, they almost automatically turn to people like themselves. Companies such as American Express, AT&T, Citigroup, Credit Suisse, Deloitte, Genentech, and Morgan Stanley have made sponsorship more accessible for minorities by making sure senior executives know of high-potential female and minority candidates. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/gldwdusgwrpzew5rb480#JBTS6CPTQAEMB28KT655)
Sylvia Hewlett, Forget a Mentor, Find a Sponsor: The New Way to Fast-Track Your Career (Boston: Harvard Business Review Press, 2013).
Hewlett, “Mentors Are Good. Sponsors Are Better.”
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Sponsorship strong support from a powerfully positioned executive who is willing to put his or her reputation on the line to promote an individual's career advancement
Leadership Essentials One main point of this chapter is that diversity is a fact of life in today's world, and leaders can create change in organizations to keep pace with the changing environment. The U.S. population, the workforce, and the customer base are changing. In addition, organizations are operating in an increasingly global world, which means dealing with diversity on a broader stage than ever before.
Diversity is de�ined as all the ways in which people differ. This de�inition has been broadened in recent years to be more inclusive and to recognize a broad spectrum of characteristics. The inclusive de�inition of diversity embraces not only dimensions such as gender and race but also characteristics such as work style, nationality, and income level.
There are several reasons why organizations are recognizing the need to value and support diversity. Diversity of thought provides a broader and deeper base of experience for problem solving and is essential to keep organizations thriving in today's rapidly changing environment. A diverse workforce helps organizations build better relationships with diverse customers and helps develop employee potential. One aspect of diversity of recent interest is women's style of leadership, referred to as interactive leadership. The values associated with interactive leadership, such as inclusion and relationship building, are emerging as valuable qualities for both male and female leaders in the twenty-�irst century.
Today's leaders face signi�icant challenges leading people who are different from themselves. The �irst step for leading diverse people is understanding the hardships that people who do not �it the mainstream white, U.S.-born, male culture often endure. These include prejudice, stereotypes, discrimination, and the glass ceiling.
Another important issue is global diversity. Leaders can be aware of the impact culture may have, understand social and cultural value differences, and develop cultural intelligence.
People differ in their level of diversity awareness and their sensitivity to other cultures, values, and ways of doing things. Leaders evolve through stages of personal diversity awareness and action ranging from minimum efforts to meet af�irmative action guidelines to valuing diversity as an integral part of organizational culture. Strong, culturally sensitive leadership is the only way organizations can become inclusive.
The ultimate goal for leaders in the twenty-�irst century is to build organizations as integrated communities in which all people feel encouraged, respected, and committed to common purposes and goals. Employee af�inity groups and sponsorship are two important ways leaders can support the participation and advancement of women and minority employees.
Discussion Questions 1. Do you agree with sociologist William Bielby that people have innate biases and will automatically discriminate if left to their own
devices? Discuss.
2. Why is diversity of thought important for today's organizations? Do you think an organization can have diversity of thought if all employees are of the same race and approximately the same age and background?
3. What is interactive leadership, and why might this approach be increasingly important for all leaders in the twenty-�irst century?
4. Discuss ways in which low power distance as a social value among followers could affect their interaction with a leader who displays high power distance.
5. Why do you think many women opt out from seeking higher levels of corporate leadership? Discuss why you think this either is or is not a trend that might hurt organizations over the next decade.
6. Take another look at this chapter's Consider This box. What might be some reasons men seem to be falling behind in today's world? If this is true, why is it that women are still so poorly represented at higher organizational levels?
7. Why is it important for today's leaders to develop cultural intelligence? Do you think a leader who has never had experience with people different from himself or herself can develop the ability to smoothly adapt to culturally different ways of thinking and behaving? Discuss.
8. Recall a leader you worked for. At what stage of personal diversity awareness (refer to Exhibit 11.7 ) was this leader? Explain. At what stage of diversity awareness are you?
9. Do you think people and organizations can ever become gender- and color-blind? Discuss.
10. The chapter described a con�lict at a meatpacking plant over providing break times for Muslims to pray. How might leaders accommodate the needs of diverse groups without offending other groups or appearing to show favoritism?
Leadership at Work
Personal Diversity
Each of us feels different in many ways from the average behavior or expectations that other people seem to value. This re�lects our own feelings of diversity. The differences you feel compared to others could be about your physical characteristics (height, age, skin color) but also could re�lect a difference in your thinking style, feelings, personality, or behavior, especially when you feel different from what other people expect or what you perceive are the social norms. Write in the following list six ways you feel different from others:
1. 4. 2. 5. 3. 6.
Now answer the following questions with respect to your perceived diversity.
What are your feelings about being different?
Which elements of diversity are you proud of? Why?
What element would you like to change to be less diverse? Why?
How do your differences contribute to a student team or work organization?
In Class: This exercise can be adapted for group discussion in class about underlying diversity. The instructor can ask students to sit in teams of three to �ive members in a circle facing each other. A student (focal person) then volunteers to describe the ways he or she feels different from others based on the previous list. Other students take turns providing feedback to the focal person on what the perceived differences mean to them with respect to team or class contributions. Each student takes a turn as the focal person, describing their feelings of being different and hearing feedback from others on the perception and impact of those differences.
Here are the key questions for this exercise: What did you learn about perceived diversity and interpersonal relations? What does it mean when our differences appear larger to ourselves than they appear to others? How does personal diversity affect team or organizational performance? (A list can be written on the board.)
Leadership Development: Cases for Analysis
True to Myself
Ethney Gentry was thrilled to have in�iltrated the ultimate good old boy network, landing a job with a mid-size Tulsa-based oil company. Armed with solid credentials and what she considered the strengths of female leadership—listening, collaboration, consensus building, and organization—she looked forward to her �irst meeting with the company's retiring �irst female manager, Alexis Bale.
Alexis offered a �irm, almost painful handshake and a cup of coffee.
“I've been looking forward to meeting you, Alexis,” Ethney said.
“It's Alex.”
“Oh, I didn't know.” Ethney took a sip of piping hot coffee with a sudden vague feeling of discomfort. The �irst moments of this much- anticipated meeting seemed awkward and somewhat strained.
“I'll be honest with you,” Alex said as she walked around and sat in the oversized chair behind her desk. “You're here for the same reason I was here. When our founder, Champ Luman, died twelve years ago, his three middle-aged daughters, referred to throughout the company as the girls , became major shareholders. They pushed hard for the inclusion of a woman in management. That was me. Now it's you.”
Ethney tried to show no reaction as she set her cup on the desk. “Are you implying that I was selected over more quali�ied male candidates?”
“No. I was not on the selection team. I've seen your resume and you are an excellent addition to the organization. But quali�ications aside, you and I ful�ill, shall we say—the ‘diversity’ requirements for an otherwise all-male club.”
Ethney could not believe the undisguised cynicism of the woman across the desk. She was torn between a desire to get up and march out of the of�ice and a desire to stay and hear the entire lecture. She decided to take the high road. “My understanding was that you have been very successful here,” she said.
“I suppose so.” Alex gazed up at the numerous photographs showing oil rigs scattered across the Oklahoma plains. “I learned to play the game,” she said somewhat wistfully and then suddenly turned and looked at Ethney. “I'm not trying to intimidate you. But I think that coming in, you should understand some things.”
“Such as?”
“Such as … don't be too eager with your ideas or opinions. When I started, I intended to jump right in and contribute. The men resented it. I was considered a ‘pushy broad’ as one gentleman told me to my face. The reaction to me was harsh. They may have been stuck with me, but these guys could marginalize me, make sure I didn't count, and make sure I knew it.”
“What did you do?”
“I stewed awhile and �inally tried the opposite tactic. I jumped up to get coffee for everyone. I sought the wise counsel of their opinions before daring to make a suggestion in meetings. I played the female image that was in their minds. I felt like an idiot. I kowtowed till I thought I would throw up.”
“How did they react?”
“I was no longer marginalized. But I wasn't respected either. I had quietly stepped back and accepted my place .”
“Why didn't you just quit?”
“Because I knew that's exactly what they wanted me to do. And I'm just stubborn enough not to give them what they wanted.”
Ethney took a deep breath and shook her head. “This sounds like the 1950s. I can't believe men in management act like this.”
“Uh-huh. It may be a little better now, but they are still throwbacks to Mad Men .”
“So how did you develop this reputation for success if you went from being ignored to being a doormat?”
“Have you met Bill Ledson?” Ethney nodded, took a sip of coffee, and leaned forward, waiting to hear the secret of success.
“At an industry meeting in Houston, his wife, Margaret, got tipsy, cornered me, and drawled, ‘Listen, Honey. I've been around oil men all my life. My daddy and his daddy were oil men. You're going to have to wise up and take the plunge—become one of the boys. It's the only way you'll ever be accepted.’ She reminded me that I'm on their turf. Margaret told me, ‘Honey, as a wife and hostess for this crowd, I've talked more football than you can imagine. I hate football. I hang on for the commercials. But they don't know that. Bill doesn't know that. Me and God—we're the only ones who know that. Trust me,’ she said. ‘These guys do get down to some serious business, but not until they grouse about how Oklahoma State was robbed of its chance to play LSU for the national championship.’ ”
“Isn't that trivializing the men in this company?” Ethney asked.
Alex shrugged. “It worked. I became Alex and I became one of the guys. And, over time, I came to be treated with grudging respect, and promotions followed. I held the room spellbound for �ifteen minutes at the last board meeting with my theory that Texas A&M joined the Southeastern Conference in order to up their chances for better bowls because the BCS favors the SEC. Later, when I submitted my ideas for improving coordination of teams in the oil �ields, they thought it was brilliant ! I'm one of them!”
Ethney nodded, somewhat impressed.
“Take my advice. Change your name. Ethney is too girlie. What's your middle name?”
“Madison.”
“Be Madison.” Alex walked Ethney to the door and shook her hand. The meeting was over.
As the door closed behind her, Ethney's feelings about what she had just heard ranged from bewilderment to anger to depression. She sold out. All of these women sold out. They can't even be who they are. I am an experienced, educated, quali�ied, capable woman. I don't want to be Madison , Ethney thought con�idently and pushed the elevator button.
The elevator opened and she stepped inside. What have I gotten myself into ?
Questions
1. If you were Ethney, how would you try to conduct yourself at the oil company? Why do you think your approach would be successful?
2. Do you think male-dominated cultures like this one still exist? Do you think women have to plot a strategy to be accepted? Would you adopt a strategy in which you acted different from your normal personality? Why?
3. What does it mean to be “True to yourself”? Is being true to yourself more important than achieving personal career success in a male-dominated company? Is it okay to enable the continuation of an “unhealthy” work environment for women? Why?
The Trouble with Bangles
Leela Patel was standing by her machine, as she had for eight hours of each working day for the past six years. Leela was happy; she had many friends among the 400 or so women at the food processing plant. Most of them were of Indian origin like herself, although Asian women formed less than a �ifth of the female workforce. Leela was a member of a �ive-woman team that reported to supervisor Bill Evans.
Leela saw Evans approaching now, accompanied by Jamie Watkins, the shop steward. “Hello, Leela; we've come to explain something to you,” Evans began. “You must have heard about the accident last month when one of the girls caught a bangle in the machine and cut her wrist. Well, the Safety Committee has decided that no one will be allowed to wear any bangles, engagement rings, earrings, or necklaces at work—only wedding rings, sleepers for pierced ears, and wristwatches will be allowed. So I'm afraid you'll have to remove your bangles.” Leela, as was her custom, was wearing three bangles—one steel, one plastic, and one gold. All the married Asian women wore bangles, and many of the English girls had also begun wearing them. Leela explained that she was a Hindu wife and the bangles were important to her religion.
“Don't make a fuss, Leela,” Evans said between clenched teeth. “I've already had to shout at Hansa Patel and Mira Desai. Why can't you all be like Meena Shah? She didn't mind taking her bangles off; neither did the English girls.” Leela could see that Evans was very angry, so, almost in tears, she removed the bangles. When the two had moved off, however, she replaced the gold bangle and carried on with her work.
Within two or three days, the plant manager, Sam Jones, noticed that all the Asian women were wearing their bangles again—some, in fact, were wearing more than ever before. “I'm staggered by the response that this simple, common-sense restriction on the wearing of jewelry has brought,” Jones remarked to the regional race relations employment advisor. “I have had several deputations from the Asian women protesting the ban, not to mention visits by individuals on the instruction of their husbands. In addition, I've just had a letter from something called the Asian Advisory Committee, asking that the ban be lifted until we meet with their representatives. The strength of this discontent has prompted me to talk to you. Jewelry constitutes both a safety and a hygiene hazard on this site, so it must be removed. And I'm afraid if I talk to this Asian Committee, they'll turn out to be a bunch of militants who'll cause all sorts of trouble. At the same time, we can't afford any work stoppages. What do you suggest?”
Several days later, the advisor had arranged for Mr. Singh from the local Council for Community Relations to talk to Jones and other managers. Singh explained that in his opinion there were no obstacles arising from religious observance that prevented implementation of the ban on bangles. However, he pointed out, the bangles do have a custom base that is stronger than the English tradition base for wedding rings. “The bangles are a mark not only of marriage but of the esteem in which a wife is held by her husband. The more bangles and the greater their value, the higher her esteem and the greater her social standing. The tradition also has religious overtones, since the wearing of bangles by the wife demonstrates that each recognizes the other as ‘worthy’ in terms of the ful�illment of their religious obligations. This position is further complicated in that women remove their bangles if they are widowed, and some fear that the removal of the bangles may lead to their husbands' deaths.”
Questions 1. What is your initial reaction to this story? Why do you think you had this reaction?
2. Based on this limited information, how would you rate this organization in terms of developing leadership diversity? Discuss.
3. If you were a top executive at this company, how would you handle this problem?
Source: Adapted from “Bangles,” in Allan R. Cohen, Stephen L. Fink, Herman Gadon, and Robin D. Willits, Effective Behavior in Organizations: Cases, Concepts, and Student Experiences , 7th ed. (Burr Ridge, IL: McGraw-Hill Irwin, 2001), pp. 413–414.
Chapter 12 . Leadership Power and In�luence
Your Leadership Challenge After reading this chapter, you should be able to:
Use power and politics to help accomplish important organizational goals. Practice aspects of charismatic leadership by pursuing a vision or idea that you care deeply about and want to share with others. Apply the concepts that distinguish transformational from transactional leadership. Use coalitional leadership to build alliances that can help you achieve important goals for the organization. Call upon characteristics of Machiavellian-style leadership when tough actions are needed to bene�it the organization in dif�icult times. Explain the difference between soft power and hard power and identify speci�ic types of power in organizations. Describe structural, human resource, political, and symbolic frames of reference and identify your dominant leadership frame. Know how to increase power through political activity and use the in�luence tactics of appealing to a higher vision, rational persuasion, friendliness, reciprocity, developing allies, and direct persuasion.
When top executives at Minneapolis-based HealthFitness needed to quickly implement a new technology platform, they turned to some of the company's most powerful people to help ease the transition. HealthFitness, which provides corporate health services, had a lot riding on the $30 million project, so they needed everything to go smoothly. The top leaders knew they did not have the clout to quickly get everyone on board with the new initiative. So, they depended on a group of staff members identi�ied as “in�luencers,” or employees who are well-connected, well-liked, and trusted throughout the organization. The company brought 30 in�luencers together and provided them with training and detailed information about the project so they could help build positive buzz. It's a strategy that many companies are using to spread information, help with dif�icult transitions such as mergers, or get employees on board with new projects.
The rise of social media has brought attention to the importance of connections that can't be seen on an organization chart. “There's this whole underground world,” said Kristin Kassis, a managing partner at Work Wise LLC, a consulting �irm that has helped companies identify in�luencers. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/wmwc5t8va8vj0b7hp755#SQZW7G5FZ0W3M5DV0129) In organizations, people who are friendly to others, willing to listen and collaborate, like to help others, and enjoy interacting with people from across the organization typically have strong in�luence. All leaders use power and in�luence to get their jobs done, but power often depends on much more than a job title.
Rachel Feintzeig, “Of�ice ‘In�luencers’ Are in High Demand,” The Wall Street Journal (February 12, 2014), http://www.wsj.com/articles/SB1000142405270230387450457937531368029081 (http://www.wsj.com/articles/SB1000142405270230387450457937531368029081) (accessed November 17, 2015).
This chapter explores the topic of leadership power and in�luence in detail. The chapter opens with a consideration of four types of in�luential leadership. We next examine what we mean by the terms power and in�luence , consider different leader frames of reference that affect how leaders think about and use power, look at the differences in using soft power versus hard power, and outline ways leaders exercise power and in�luence through political activity. Finally, we brie�ly consider some ethical aspects of using power and in�luence.
12-1. Four Kinds of In�luential Leadership New leaders often think of leadership power as something granted by an organization through the leader's position. However, leaders also have power that doesn't depend on job authority, and they in�luence people through a variety of means. Four types of in�luential leadership that rely on a leader's personal style and relationships are transformational, charismatic, coalitional, and Machiavellian-style leadership.
12-1a. Transformational Leadership
Transformational leadership is characterized by the ability to bring about signi�icant change in both followers and the organization. Transformational leaders have the ability to lead changes in an organization's vision, strategy, and culture as well as promote innovation in products and technologies.
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
One way to understand transformational leadership is to compare it to transactional leadership. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#GEEL3K5FDNLU6S9XR097) The basis of transactional leadership is a transaction or exchange process between leaders and followers. The transactional leader recognizes followers' needs and desires and then clari�ies how those needs and desires will be satis�ied in exchange for meeting speci�ied objectives or performing certain duties. Thus, followers receive rewards for job performance, whereas leaders bene�it from the completion of tasks. Transactional leaders focus on the present and excel at keeping the organization running smoothly and ef�iciently. They are good at traditional management functions such as planning and budgeting and generally focus on the impersonal aspects of job performance. Transactional leadership can be quite effective. However, because it involves a commitment to “follow the rules,” transactional leadership maintains stability within the organization rather than promoting change.
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
Transformational leadership leadership characterized by the ability to bring about signi�icant change in followers and the organization
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership
The terms transactional and transformational leadership are from James MacGregor Burns, Leadership (New York: Harper & Row, 1978); and Bernard M. Bass, “Leadership: Good, Better, Best,” Organizational Dynamics 13 (Winter 1985), pp. 26–40.
Transactional skills are important for all leaders. However, in a world in which success often depends on continuous change, organizations also need transformational leadership. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#NDMJ2PTHCY8MH8BX0496) Rather than analyzing and controlling speci�ic transactions with followers using rules, directions, and incentives, transformational leadership focuses on intangible qualities such as vision, shared values, and ideas in order to build relationships, give larger meaning to separate activities, and inspire people to participate in the change process. Transformational leadership is based on the personal values, beliefs, and qualities of the leader rather than on an exchange process between leaders and followers.
This discussion is based on Bernard M. Bass, “Theory of Transformational Leadership Redux,” Leadership Quarterly 6, no. 4 (1995), pp. 463–478; Noel M. Tichy and Mary Anne Devanna, The Transformational Leader (New York: John Wiley & Sons, 1986); Lloyd Moman Basham, “Transformational and Transactional Leaders in Higher Education,” SAM Advanced Management Journal (Spring 2012), pp. 15–23; and Badrinarayan Shankar Pawar and Kenneth K. Eastman, “The Nature and Implications of Contextual In�luences on Transformational Leadership: A Conceptual Examination,” Academy of Management Review 22, no. 1 (1997), pp. 80–109.
New Leader Action Memo
As a leader, you can act like a transformational leader by rallying people around an inspiring vision, expressing optimism about the future, helping followers develop their potential, and empowering people to make change happen.
a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
transactional leadership a transaction or exchange process between leaders and followers
Studies support the idea that transformational leadership has a positive impact on follower development, performance, and even organizational pro�itability. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#ENYD5AVVNED1AV9JL327) Moreover, transformational leadership skills can be learned as they are not ingrained personality characteristics. Transformational leadership differs from transactional leadership in four signi�icant areas. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#VFMMQLE7YKVJTN2R9110)
See Taly Dvir, Dov Eden, Bruce J. Avolio, and Boas Shamir, “Impact of Transformational Leadership on Follower Development and Performance: A Field Experiment,” Academy of Management Journal 45, no. 4 (2002), pp. 735–744; Ronald F. Piccola and Jason A. Colquitt, “Transformational Leadership and Job Behaviors: The Mediating Role of Core Job Characteristics,” Academy of Management Journal 49, no. 2 (2006), pp. 327–340; and Jens Rowold and Kathrin Heinitz, “Transformational and Charismatic Leadership: Assessing the Convergent, Divergent, and Criterion Validity of the MLQ and CKS,” Leadership Quarterly 18 (2007), pp. 121–133.
Based on Bass, “Theory of Transformational Leadership Redux”; Bernard M. Bass, “From Transactional to Transformational Leadership: Learning to Share the Vision,” Organizational Dynamics 18, no. 3 (Winter 1990), pp. 19–31; Francis J. Yammarino, William D. Spangler, and Bernard M. Bass, “Transformational Leadership and Performance: A Longitudinal Investigation,” Leadership Quarterly 4, no. 1 (Spring 1993), pp. 81–102; and B. M. Bass, “Current Developments in Transformational Leadership,” The Psychologist-Manager Journal 3, no. 1 (1999), pp. 5–21.
1. Transformational leadership paints a grand vision of a desired future and communicates it in a way that makes the pain of change worth the effort . * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#TECTGFUEG6CCL4ZLB627) The most signi�icant role of the transformational leader may be to articulate a vision that is signi�icantly better than the old one and to enlist others in sharing the dream. It is the vision that launches people into action and provides the basis for the other aspects of transformational leadership. Without vision, there can be no transformation.
Noel M. Tichy and Mary Anne Devanna, The Transformational Leader (New York: John Wiley & Sons, 1986), pp. 265–266.
2. Transformational leadership inspires followers to go beyond their own self-interests for the good of the group . Transformational leaders motivate people to do more than originally expected. They make followers aware of the importance of change goals and outcomes and, in turn, enable them to transcend their own immediate interests for the sake of the whole organization.
3. Transformational leadership elevates the concerns of followers from lower-level physical needs (such as for safety and security) to higher-level psychological needs (such as for self-esteem and self-actualization) . Lower-level needs are met through adequate wages, safe working conditions, and other considerations, but the transformational leader also pays attention to each person's need for growth and development. Therefore, the leader sets examples and assigns tasks not only to meet immediate needs but also to elevate followers' needs and abilities to a higher level and link them to the organization's mission.
4. Transformational leadership develops followers into leaders . Instead of strictly controlling people, transformational leaders strive to bring out the best in followers. They rally people around the mission and vision and de�ine the boundaries within which followers can operate with greater freedom to accomplish goals. They enlist followers in identifying problems and help them look at things in new ways so they can bring about productive change to reach the vision.
New Leader Action Memo
Complete the questions in Leader's Self-Insight 12.1 to learn how a supervisor of yours rates on transformational leadership. Then, answer the questions for how you would behave in a leadership situation.
Effective leaders exhibit both transactional and transformational leadership patterns. They accentuate not only their abilities to build a vision and empower and energize others, but also the transactional skills of designing structures, control systems, and reward systems that can help people achieve the vision. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#PSKCPVQHXM0MXV5MT506)
Manfred F. R. Kets De Vries, “Charisma in Action: The Transformational Abilities of Virgin's Richard Branson and ABB's Percy Barnevik,” Organizational Dynamics (Winter 1998), pp. 7– 21; and Basham, “Transformational and Transactional Leaders in Higher Education.”
Leader's Self-Insight 12.1. Transformational Leadership
Instructions : Think of a situation in which someone (boss, coach, teacher, group leader) was in a leadership position over you. Indicate whether each of the following items is Mostly False or Mostly True for you.
In general, the leader over me:
Mostly False Mostly True 1. Listened carefully to my concerns 2. Showed conviction in his/her values 3. Helped me focus on developing my strengths 4. Was enthusiastic about our mission 5. Provided coaching advice for my development 6. Talked optimistically about the future 7. Encouraged my self-development 8. Fostered a clear understanding of important values and beliefs 9. Provided feedback on how I was doing 10. Inspired us with his/her plans for the future 11. Taught me how to develop my abilities 12. Gained others' commitment to his/her dream
Scoring and Interpretation
These questions represent two dimensions of transformational leadership. For the dimension of develops followers into leaders , sum your Mostly True responses to questions 1, 3, 5, 7, 9, and 11. For the dimension of inspires followers to go beyond their own self- interest , sum your Mostly True responses for questions 2, 4, 6, 8, 10, and 12.
The scores for my leader are:
Develops followers into leaders:
Inspires followers to go beyond their own self-interest:
These two scores represent how you saw your leader on two important aspects of transformational leadership. A score of 5 or above on either dimension is considered high because many leaders do not practice transformational skills in their leadership or group work. A score of 2 or below would be below average. Compare your scores with those of other students to understand your leader's practice of transformational leadership. How do you explain your leader's score?
Remember, the important learning from this exercise is about yourself, not your leader. Analyzing your leader is simply a way to understand the transformational leadership concepts. How would you rate on the dimensions of developing followers into leaders or inspiring followers to go beyond their own self-interest ? These are dif�icult skills to master. Answer the 12 questions for yourself as a leader. Analyze your pattern of transformational leadership as revealed in your 12 answers.
Sources: These questions are based on B. Bass and B. Avolio, Multifactor Leadership Questionnaire , 2nd ed. (Mind Garden Inc.) and P. M. Podsakoff, B. MacKenzie, R. H. Moorman, and R. Fetter, “Transformational Leader Behaviors and Their Effects on Followers, Trust in Leader Satisfaction, and Organizational Citizenship Behaviors,” Leadership Quarterly 1, no. 2 (1990), pp. 107–142.
12-1b. Charismatic Leadership
Charisma has been called “a �ire that ignites followers' energy and commitment, producing results above and beyond the call of duty.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#JJJJ7P5QP9K1PYDZ0387) Charismatic leaders have an emotional impact on people and inspire them to do more than they would normally do, despite obstacles and personal sacri�ice. Their passion for a mission inspires people to follow them and motivates people to transcend their own interests for the sake of achieving the goal. Whereas transformational leadership seeks to increase follower engagement and empowerment, charismatic leadership typically instills both awe and submission in followers. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#GTRQU5FCSHDHUJJU7714) Transformational leadership motivates people not just to follow the leader personally but also to believe in the need for change and be willing to make sacri�ices for the sake of the vision rather than just out of admiration for the leader.
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Katherine J. Klein and Robert J. House, “On Fire: Charismatic Leadership and Levels of Analysis,” Leadership Quarterly 6, no. 2 (1995), pp. 183–198.
Rakesh Khurana, “The Curse of the Superstar CEO,” Harvard Business Review (September 2002), pp. 60–66.
New Leader Action Memo
As a leader, you can use aspects of charismatic leadership by articulating a vision, making personal sacri�ices to help achieve it, and appealing to people's emotions more than to their minds. Expand your charismatic potential by pursuing activities that you genuinely love.
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charismatic leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacri�ice
Charisma can be used for good or ill, but applied wisely and ethically, it can lift the entire organization's level of energy and performance. Although charisma itself cannot be learned, there are aspects of charismatic leadership that anyone can use. For one thing, charisma comes from pursuing activities that you have a true passion for. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#CHZVSRV4HWY1CRYMG441) Charismatic leaders are engaging their emotions in everyday work life, which makes them energetic, enthusiastic, and attractive to others. For example, Sir Richard Branson, founder and chairman of Virgin Group, which includes about 400 companies, never gets involved in a new business unless it is something he has fun doing. His enthusiasm rubs off on everyone around him. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#WTRP17YGPHQ9NPLCB590) The late Steve Jobs, former CEO of Apple, who commanded a rock-star-like following and was more than once called “the model of a charismatic leader,” was intensely passionate about Apple and its products. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#GSDW242MK5V8PXSQ7493)
Jerry Porras, Steward Emery, and Mark Thompson, “The Cause Has Charisma,” Leader to Leader (Winter 2007), pp. 26–31.
Carmine Gallo, “7 Tips from Charismatic Leaders,” AskMen.com , http://www.askmen.com/money/successful_100/142b_success.html (http://www.askmen.com/money/successful_100/142b_success.html) (accessed May 17, 2013).
Steve Moore, “Not Bad for a Hippie Dropout,” Management Today (March 2009), p. 27; Connie Guglielmo, “What Makes Steve Jobs Run?” National Post (May 17, 2008), p. FW-8; and “Editorial: Apple—and U.S.—Need Steve Jobs,” McClatchy-Tribune Business News (January 18, 2009).
A number of studies have identi�ied the unique qualities of charismatic leaders, documented the impact they have on followers, and described the behaviors that help them achieve remarkable results. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#EKCZ8ZSHLYV047VSG029) Exhibit 12.1 compares distinguishing characteristics of charismatic and noncharismatic leaders. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#FKFNPCB96NBD9Z7DL062)
Jay A. Conger, Rabindra N. Kanungo, and associates, Charismatic Leadership: The Elusive Factor in Organizational Effectiveness (San Francisco: Jossey-Bass, 1988); Robert J. House and Jane M. Howell, “Personality and Charismatic Leadership,” Leadership Quarterly 3, no. 2 (1992), pp. 81–108; Klein and House, “On Fire: Charismatic Leadership and Levels of Analysis”; Harold B. Jones, “Magic, Meaning, and Leadership: Weber's Model and the Empirical Literature,” Human Relations 54, no. 6 (June 2001), pp. 753–771; and Boas Shamir, Michael B. Arthur, and Robert J. House, “The Rhetoric of Charismatic Leadership: A Theoretical Extension, A Case Study, and Implications for Future Research,” Leadership Quarterly 5, no. 1 (1994), pp. 25– 42.
The following discussion is based primarily on Conger et al., Charismatic Leadership .
Exhibit 12.1. Distinguishing Characteristics of Charismatic and Noncharismatic Leaders
Noncharismatic Leaders Charismatic Leaders Likability: Shared perspective makes leader likable Shared perspective and idealized vision make
leader likable and an honorable hero worthy of identi�ication and imitation
Relation to status quo: Tries to maintain status quo Creates atmosphere of change Future goals: Limited goals not too discrepant from status quo Idealized vision that is highly discrepant from
status quo Articulation: Weak articulation of goals and motivation to
lead Strong and inspirational articulation of vision and motivation to lead
Behavior: Uses available means to achieve goals within framework of the existing order
Uses unconventional means to transcend the existing order
In�luence: Primarily authority of position and rewards Transcends position; personal power based on expertise and respect and admiration for the leader
Source: Adapted from Jay Conger and Rabindra N. Kanungo and Associates, Charismatic Leadership: The Elusive Factor in Organizational Effectiveness (San Francisco: Jossey-Bass, 1988), p. 91.
Charismatic leaders articulate an idealized vision of a better future. They have an ability to communicate complex ideas and goals in clear, compelling ways, so that people understand and identify with their message. Charismatic leaders also act in unconventional ways and use unconventional means to transcend the status quo and create change. The �inal quality shared by charismatic leaders is that their source of in�luence comes from personal characteristics rather than a formal position of authority. People admire, respect, and identify with the leader and want to be like him or her. Although charismatic leaders may be in formal positions of authority, charismatic leadership transcends formal organizational position because the leader's in�luence is based on personal qualities rather than the power and authority granted by the organization.
12-1c. Coalitional Leadership
Transformational and charismatic leadership both suggest it is the individual leader who acts as a catalyst for bringing about valuable change toward achieving a goal or vision. Yet in most cases, successful change results from the efforts of a coalition of people rather than those of a single leader. Coalitional leadership involves building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#YYAG1GZJMLT81M4UY853) Coalitional leaders observe and understand patterns of interaction and in�luence in the organization. They are skilled at developing connections with a broad network of people and can adapt their behavior and approach to diverse people and situations.
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership
leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
This discussion is based on Stephen Friedman and James K. Sebenius, “Organizational Transformation: The Quiet Role of Coalitional Leadership,” Ivey Business Journal (January–February 2009), p. 1; Gerald R. Ferris, Darren C. Treadway, Pamela L. Perrewé, Robyn L. Brouer, Ceasar Douglas, and Sean Lux, “Political Skill in Organizations,” Journal of Management (June 2007), pp. 290–320; Vadim Liberman, “Mario Moussa Wants You to Win Your Next Argument,” Questioning Authority column, Conference Board Review (November–December 2007), pp. 25–26; Samuel B. Bacharach, “Politically Proactive,” Fast Company (May 2005), p. 93; and Lauren Keller Johnson, “Debrie�ing Jay Conger: Exerting In�luence without Authority,” Harvard Management Update (December 2003), pp. 3–4.
Coalitional leaders develop positive relationships both within and outside the organization, and they spend time learning others' views and building mutually bene�icial alliances. Coalition building seems to be especially important in the political arena. For example, Abraham Lincoln is considered by historians to be one of America's greatest presidents partly because he listened carefully to a broad range of people both inside and outside of his immediate circle when the nation was so bitterly divided over the Civil War. He included people who didn't agree with him and were critical of his goals and plans. On the other hand, some scholars have suggested that George W. Bush squandered his chance to be a great president when he failed to listen to a broad range of other people and involve them in decisions related to the Iraq War. The failure to reach out and build a coalition left the country deeply divided when Iraq became a quagmire, and Bush left of�ice with the lowest poll ratings since opinion surveys of outgoing presidents began in the 1930s. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#BQWSMGXEGCT1PW009344) As for President Barack Obama, the jury is still out on how his presidency will be evaluated. However, Obama was criticized for failing to develop relationships with even his biggest donors and leaving the coalition building with Democrats on Capitol Hill and others to Vice President Joe Biden. Obama was widely viewed as a loner who preferred policy to people and consulted primarily with a close circle of advisors, although some reports indicated that he liked to listen to a wide range of people when considering important decisions. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#CPTSCYREP3VBMEFDM528)
Nancy F. Koehn, “Lincoln's School of Management,” The New York Times (January 26, 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 (http://www.inc.com/hitendra-wadhwa/lessons-in-leadership-how-abraham-lincoln-became-americas-greatest-president.html) (accessed March 4, 2013); and Gil Troy and Karl Moore, “Leading from the Centre: What CEOs Can Learn from U.S. Presidents,” Ivey Business Journal (September–October, 2010), http://www.iveybusinessjournal.com/topics/leadership/leading- from-the-centre-what-ceos-can-learn-from-u-s-presidents (http://www.iveybusinessjournal.com/topics/leadership/leading-from-the-centre-what-ceos-can-learn-from-u-s-presidents) (accessed May 21, 2013).
Scott Wilson, “Obama, the Loner President,” The Washington Post (October 7, 2011), http://articles.washingtonpost.com/2011-10-07/opinions/35280751_1_president-obama- politics-obama-administration (http://articles.washingtonpost.com/2011-10-07/opinions/35280751_1_president-obama-politics-obama-administration) (accessed October 8, 2011); and Peter Nicholas, “Obama's Insular White House Worries His Allies,” The Los Angeles Times (December 24, 2010), http://articles.latimes.com/2010/dec/24/nation/la-na-obama-insular- presidency-20101225 (http://articles.latimes.com/2010/dec/24/nation/la-na-obama-insular-presidency-20101225) (accessed December 25, 2010).
Failing to build a coalition can allow con�lict and disagreements to derail a leader's decision, particularly if the opposition builds a powerful coalition of its own. An investigative report by The New York Times , for example, suggests that the strong coalitional power of a union leader prevented New York City government of�icials from implementing their plans to solve problems at the Rikers Island jail complex.
In the Lead Norman Seabrook, Riker's Island
“I came to think that my wardens believed Norman was more important to their career than I was,” said a former commissioner for the New York City Department of Correction. He was referring to Norman Seabrook, the president of the Correction Of�icers' Benevolent Association, who wields tremendous power using coalitional smarts combined, some say, with intimidation.
Leaving aside the matter of what have been called Seabrook's bullying tactics, there is no doubt that he is a skilled coalitional leader. He invests tremendous time and energy building loyalty among the union membership, and he spends just as much time forging alliances with high-ranking uniformed of�icers and commission of�icials, as well as with powerful city and state leaders. Recently, Seabrook has begun speaking regularly with New York City Mayor Bill de Blasio about department policy.
Seabrook has achieved positive results for New York City correction of�icers, who have seen large gains in pay and bene�its, as well as promotions to higher levels in the department. Yet some current and former city of�icials say Seabrook's power is also the biggest obstacle to curbing the excessive violence and corruption at the Riker's Island jail complex. After Florence Finkle, the chief investigator for the Department of Correction, announced plans before a roomful of senior of�icials and union leaders to crack down on the abuse at Riker's, Seabrook began a campaign that eventually led to Finkle being forced out. She was replaced by a former police department of�icial, who was also a childhood friend of Seabrook's. Some say one of Finkle's problems was a failure to pay attention to negotiating the department's politics and building a coalition.
Mayor de Blasio and his handpicked correction commissioner, Joseph Ponte, have vowed to overhaul the corrections department and end the abuse at Riker's. One of the biggest challenges, however, will be working effectively with Seabrook, who “has
Coalitional leadership leadership that involves developing allies and building a coalition of people who support the leader's goals and can help in�luence others to implement the leader's decisions and achieve the goals
outmaneuvered a long line of mayors and commissioners over the years.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#HRMPF4XW8RL5ZM3UB844)
Michael Schwirtz and Michael Wineripdec, “At Riker's, a Roadblock to Reform,” The New York Times (December 15, 2014), p. A1.
The issues with the New York City Department of Correction and Riker's Island are complicated and beyond the scope of this text. However, the example of Norman Seabrook illustrates how coalitional leadership increases power and helps leaders accomplish their goals. Leaders always have to anticipate resistance, talk with people all across the organization, and make sure their decisions will bene�it the overall organization.
Leaders can be more successful if they follow four steps for effective coalitional leadership: * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#FNTWCRECEWY1YYUB9798)
Friedman and Sebenius, “Organizational Transformation: The Quiet Role of Coalitional Leadership.”
1. Coalitional leaders do lots of interviews . Leaders conduct informal interviews with people from all across the organization to gather information and get a clear sense of the challenges and opportunities they face. In addition to interviews, leaders talk informally with people whenever they get a chance.
2. Coalitional leaders visit customers and other stakeholders . Coalitional leaders also solicit the views and input of customers as well as other potentially in�luential stakeholders, such as board members, government agencies, creditors, or others. Jan Frank found that this was a big part of her job bringing change to California's State Compensation Insurance Fund. When Frank took over, the agency was reeling from �inancial scandal, ethical violations, and a criminal investigation. In addition to talking with managers, employees, and board members, Frank also met regularly with lawmakers and regulators to solicit their input regarding how to repair the agency's credibility. She knew their support was crucial to achieving what she wanted for the agency. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#UKQVMJVSXGNFEE4B6441)
Cari Tuna, “Repairing an Agency's Credibility,” The Wall Street Journal (March 23, 2009), p. B6.
3. Coalitional leaders develop a map of stakeholder buy-in . Leaders typically �ind that there are some people who strongly support their goals and plans, some who adamantly oppose them, and a large percentage who could swing either way. As illustrated in Exhibit 12.2 , in mapping the level of buy-in for any signi�icant change, about 10 percent of people can typically be classi�ied as advocates , those stakeholders inside and outside the organization who are strong supporters and will help lead the change effort. Another 10 percent might be partners , who support and encourage the change but will not actively lead it. Twenty percent are typically strongly opposed to the change. These resisters might even disrupt or sabotage change efforts. The remaining 60 percent are classi�ied as observers because they have a neutral attitude toward the proposed ideas and changes. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#UAGCQE3MVJSC29ERD998)
These data are adapted from materials supplied by ExperiencePoint Inc. in conjunction with the Global Tech simulation, 2007.
4. Coalitional leaders break down barriers and promote cross-silo cooperation . The �inal critical step in coalitional leadership is continually breaking down barriers and promoting cooperation and collaboration across departments, divisions, and levels. For example, when Colin Powell was U.S. chairman of the Joint Chiefs of Staff, he regularly brought together the heads of the Army, Air Force, Navy, and Marines so they could understand one another's viewpoints. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#JZZQWFVKCXZG9RHYE536)
Friedman and Sebenius, “Organizational Transformation.”
Exhibit 12.2. Mapping Stakeholder Buy-In
Source: Data are adapted from materials supplied by ExperiencePoint, Inc., in conjunction with the GlobalTech simulation, 2007.
12-1d. Machiavellian-Style Leadership
Niccolò Machiavelli was an Italian philosopher, historian, and political strategist who wrote The Prince in 1513 as a guide for political leaders of the day on how to acquire and use power. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#YGHSMK0RXQ7LX1JFM822) The term Machiavellian is often associated with unscrupulous, even diabolical behavior aimed at increasing one's power for personal gain, but in reality Machiavelli's essential argument in The Prince is that the welfare of the state must come �irst and foremost and that leaders must often do tough, even ruthless things in the spirit of the ends justifying the means. In other words, power is a tool used for securing the safety and stability of the organization. Despite the emphasis today on agreeableness and collaboration, many organizational leaders, scholars, and politicians agree with Machiavelli that it isn't possible in an imperfect world to lead with “perfectly clean hands.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#TQNJ1HMWVHE2QX66X790)
This discussion is based on Howard Hill, “Machiavellian-Style Leadership,” The Times and Democrat (August 8, 2009), http://thetandd.com/news/opinion/machiavellian-style- leadership/article_c8ea4911-839a-5c48-b1d9-c7e80ed3734f.html (http://thetandd.com/news/opinion/machiavellian-style-leadership/article_c8ea4911-839a-5c48-b1d9- c7e80ed3734f.html) (accessed May 18, 2013); David Brooks, “Florence and the Drones,” The New York Times (February 7, 2013), http://www.nytimes.com/2013/02/08/opinion/brooks-�lorence-and-the-drones.html?_r=0 (http://www.nytimes.com/2013/02/08/opinion/brooks-�lorence-and-the-drones.html?_r=0) (accessed May 20, 2013); and Tamara L. Gillis, “Machiavelli for Modern Times: An Interpretation of Machiavelli's The Prince for the College President and the Public Relations Of�icer,” Elizabethtown College, 1997, http://users.etown.edu/g/gillistl/nickmach.html (http://users.etown.edu/g/gillistl/nickmach.html) (accessed May 9, 2013).
Brooks, “Florence and the Drones.”
Jeffrey Pfeffer, Stanford University professor and an expert on organizational power and politics, refers to the need for leaders to use bare- knuckle strategies to attain the clout they need to accomplish great things. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#RFREP2G6NXH5GWY4A018) As further described in the Leader's Bookshelf selection for this chapter, Pfeffer believes that despite laudable personal achievements, power and politics almost always trump performance as a source of impact, so leaders had better be comfortable acquiring and using these tools. In today's less- hierarchical organizations, leaders actually need more power than before to in�luence people. When Zia Yusuf, president and CEO of Streetline Inc., was an executive vice president at SAP, he advised and taught the people who worked for him how to court favor with the top 50 people in the company. Yusuf knew that having people in high places increases power and helps accomplish goals. Yusuf was in charge of an initiative that linked suppliers, users, and developers and had to in�luence many people that he had no formal authority over, not only from across SAP but from many different organizations. He says he succeeded because he was skilled at what he called “organizational dynamics”—the ability to in�luence people to get them to do what needed to be done. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#YMKNACU4772QVE9A1395)
Jeffrey Pfeffer, “Power Play,” Harvard Business Review (July–August, 2010), pp. 84–92.
Pfeffer, “Power Play”; and Jeffrey Pfeffer, “Don't Dismiss Of�ice Politics—Teach It,” The Wall Street Journal (October 24, 2011), http://online.wsj.com/article/SB10001424053111904060604576570574190457198.html (http://online.wsj.com/article/SB10001424053111904060604576570574190457198.html) (accessed May 21, 2013).
Leader's Bookshelf Power: Why Some People Have It and Others Don't by Jeffrey Pfeffer
Managers may be granted positions of authority, but real power doesn't just fall into a person's hands. It takes ambition, resolve, energy, and skill to accumulate the power a leader needs to be effective and successful, Jeffrey Pfeffer says in Power: Why Some People Have It and Others Don't . Think doing a good job gets you power? Think again. As Pfeffer puts it, “welcome to the real world —not necessarily the world we want, but the world that exists.”
Power in the Real World
To accumulate power, you need to get noticed. Here are some of Pfeffer's tips for doing so.
Play Up to the Boss . Pfeffer advises regularly asking people who have power what aspects of your job they think are most crucial and how they think you should be doing them. This is one tactic for making your boss and other people with power feel good about themselves. “The surest way to keep your position and to build a power base is to help those with more power enhance their positive feelings about themselves.” In Pfeffer's view, �lattery really can get you everywhere.
Master the Art of Networking . Try to forge a link between different parts of the company or between the company and important outsiders so that you become the center of a network. Build relationships with people that you can help and who can help you with information and resources. Playing the political game is necessary for acquiring power and getting things done.
Be Forceful but Pick Your Battles Carefully . People who appear forceful and self-con�ident gain power, whereas those who seem uncertain fade away. Something as simple as interrupting others in a meeting expresses con�idence. Pfeffer says Andy Grove of Intel used to insist that his brilliant but shy managers attend wolf school where they “learned how to lean into a superior's face and shout out an idea or proposal.”
Judiciously Break Some Rules . “The practice of �louting rules and violating norms actually creates power, as long as the culprit gets away with the behavior,” says Pfeffer. The rules favor the people who make the rules—those who already have power, and they don't always bene�it those who want to acquire it.
Is This the Right Way for a Leader to Act?
Pfeffer's book has been criticized for failing to acknowledge that too much focus on obtaining power—and power itself—can be corrupting. Yet, as Pfeffer points out, without power leaders and organizations cannot hope to succeed. In addition, Pfeffer cites research showing that powerful people are wealthier, have more friends, enjoy a better quality of life, and even live longer, healthier lives. He offers this book as a how-to manual for getting and keeping power.
Source: Power: Why Some People Have It and Others Don't , by Jeffrey Pfeffer, is published by HarperCollins.
As discussed in the previous sections, many types of leadership are used to in�luence people. Each style—transformational, charismatic, coalitional, and Machiavellian—relies on different assumptions and behaviors. With Machiavellian-style leadership, the leader is willing to use any means necessary to preserve and protect the well-being of the organization. The characteristics of Machiavellian-style leaders include the following: * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#DATYJF6M4Q8106STF393)
These are based on Gillis, “Machiavelli for Modern Times”; Hill, “Machiavellian-Style Leadership”; Ozan O� rmeci, “Machiavelli's Ideal Leadership,” Caspian Weekly (February 18, 2011), http://en.caspianweekly.org/main-subjects/turkish-foreign-policy/3731-machiavellis-ideal-leadership-.html (http://en.caspianweekly.org/main-subjects/turkish-foreign- policy/3731-machiavellis-ideal-leadership-.html) (accessed May 20, 2013); and Suzanne Evans, “How Machiavelli Saved My Family,” The Wall Street Journal (April 6, 2013), p. C1.
1. They are always on guard for risks and threats to their power . Machiavellian-style leaders assume that people are basically �ickle, greedy, and deceitful, so the leader is always alert to shifting loyalties and is not above using manipulation or pitting people against one another to retain or acquire more power to achieve goals.
2. They don't mind being feared . Machiavelli warned that striving to be the most-liked leader can back�ire when dif�icult times call for tough actions. By being too merciful and generous, leaders can ultimately allow disorder to destroy the organization.
3. They will use deception if necessary . The Machiavellian-style leader has no problem maintaining or using power by deceptive means to ensure the safety of the organization.
4.
They use rewards and punishments to shape behavior . Machiavellian-style leaders don't mind exploiting the fears and desires of people to get them to follow the rules and do what is necessary for the overall good.
Like coalitional leaders, Machiavellian-style leaders are highly political, but whereas coalitional leaders focus on reaching out and working with others, Machiavellian-style leaders typically focus on gaining and using individual power. They may strive to gain control over information and resources such as jobs, rewards, �inancial support, and materials so that people depend on them for what they need, which increases their power. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#ZYCDK8EZG02HMG7XG831) These leaders may also use any means necessary to preserve their power, but they do so because they believe the organization can be secure only if it has powerful leaders. There are times in every organization when tough, even bare-knuckle leadership is needed. The following example describes how one woman says she used Machiavellian-style leadership to save her family.
R. E. Emerson, “Power-Dependence Relations,” American Sociological Review 27 (1962), pp. 31–41.
In the Lead The Evans Family
Suzanne Evans was newly married, �inishing a dissertation for her Ph.D. in history, and caring for four children under the age of 8. It was total chaos, but like many mothers dealing with blended families, Evans was trying to be kind and generous to the children. “Yet as I read The Prince ,” she says, “I realized that the more things I gave them, the more they expected and the less grateful they became.”
Evans decided that a tough Machiavellian-style approach might be just what was needed to control the chaos that was threatening to tear her family apart. Here are some of the actions she took based directly on maxims she read in The Prince .
Guard against a reputation for being too generous : On previous shopping trips, if she didn't buy the children whatever they wanted, they would pitch temper tantrums. The next time they went to Target, she gave each one $10 and told them they could spend it on whatever they wanted but to use it wisely because it was all they were getting.
Divide and conquer : To get her son Daniel to do better in school, Evans pitted him and her daughter Teddy in a not-so- friendly competition. When Teddy brought home a nearly perfect report card, she was rewarded with a celebratory dinner at her favorite restaurant. Daniel, whose report card wasn't so good, got nothing except a reminder that he lost to his younger sister.
Use punishment : Having children obey certain rules that ensure their safety is always important but even more so with a special needs child. When 5-year-old Katie, who has Down syndrome, kept trying to escape from the house unless she was watched constantly, Evans took action. She led her straight to her room and announced that whenever she broke the rule, she would have to stay in her room for half an hour. “Every. Single. Time.”
Be deceptive : Evans desperately needed a break, and she and her husband needed some time alone. To avoid the whining and crying that would ensue if the children weren't allowed to go along, Evans told them “that their dad and I were going away for the weekend on a business trip. And I didn't feel a bit guilty about it.”
The strategies worked. Shopping trips went much more smoothly, and the children learned the value of money. By the end of the school year, both Daniel and Teddy brought home excellent report cards. The tough approach with Katie kept her from trying to sneak out of the house and kept her safe. And Evans and her husband had a great weekend away while the children wore out their grandparents. “When I returned home, I was well-rested and relaxed … and having a happy, relaxed mom always bene�its a child,” Evans says. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#MQQM37MA0RWBF50X0839)
Evans, “How Machiavelli Saved My Family.”
New Leader Action Memo
Do you have characteristics associated with Machiavellian-style leadership? Complete the questionnaire in Leader's Self-Insight 12.2 to �ind out.
Although Machiavellian-style leadership appears to be the approach most motivated to gain and use power, all leaders rely on the use of power to in�luence others and get things done. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vvkhcfsz6seuwf5pz811#XVXQL6PCCKFN7H1FU897) In the following sections, we examine various types of power and how leaders apply power through in�luence tactics.
James MacGregor Burns, Leadership (New York: Harper & Row, 1978).
Leader's Self-Insight 12.2. What's Your Mach?
Instructions : Leaders differ in how they view human nature and the tactics they use to get things done through others. Answer the following questions based on how you view others. Think carefully about each question and be honest about what you feel inside. Please answer whether each item is Mostly False or Mostly True for you.
Mostly False Mostly True 1. Overall, it is better to be humble and honest than to be successful and dishonest. 2. If you trust someone completely, you are asking for trouble. 3. A leader should take action only when it is morally right. 4. A good way to handle people is to tell them what they like to hear. 5. There is no excuse for telling a white lie to someone. 6. It makes sense to �latter important people. 7. Most people who get ahead as leaders have led very moral lives. 8. It is better to not tell people the real reason you did something unless it bene�its you to do
so.
9. The vast majority of people are brave, good, and kind. 10. It is hard to get to the top without sometimes cutting corners.
Scoring and Interpretation
To compute your Mach score, give yourself one point for each Mostly False answer to items 1, 3, 5, 7, and 9, and one point for each Mostly True answer to items 2, 4, 6, 8, and 10. These items were drawn from the works of Niccolò Machiavelli, an Italian political philosopher who wrote The Prince in 1513 to describe how a prince can gain the power to protect and control his kingdom. From 8 to 10 points suggests a high Machiavellian score. From 4 to 7 points indicates a moderate score, and 0 to 3 points would indicate a low “Mach” score. Successful political intrigue at the time of Machiavelli was believed to require behaviors that today might be considered manipulative. A high Mach score today does not mean a sinister or vicious person but probably means the person has a cool detachment, sees life as a game, and is not personally engaged with people. Discuss your results with other students, and talk about whether politicians in local or federal government, or top executives in a company like Bear Stearns, discussed in Chapter 6 , would likely have a high or a low Mach score.
Source: Adapted from R. Christie and F. L. Geis, Studies in Machiavellianism (New York: Academic Press, 1970).
12-2. Using Hard versus Soft Power Power is often de�ined as the potential ability of one person to in�luence others to carry out orders * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#DXLWNG2D805PGVXXY374) or to do something they otherwise would not have done. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#LFDX62C08UVEDRACH931) Other de�initions stress that power is the ability to achieve goals or outcomes that power holders desire. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#YCUZM7FJ881S8JNBJ376) “Simply put, [power is] the ability to have things your way.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#ZVTJ0VTXMMFXS6BEN306) The achievement of desired outcomes is the basis of the de�inition used here. Power is the potential ability of one person in an organization to in�luence other people to bring about desired outcomes. It is the potential to in�luence others within the organization with the goal of attaining desired outcomes for power holders.
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Robert A. Dahl, “The Concept of Power,” Behavioral Science 2 (1957), pp. 201–215.
W. Graham Astley and Paramijit S. Pachdeva, “Structural Sources of Intraorganizational Power: A Theoretical Synthesis,” Academy of Management Review 9 (1984), pp. 104–113; and Abraham Kaplan, “Power in Perspective,” in Robert L. Kahn and Elise Boulding, eds., Power and Con�lict in Organizations (London: Tavistock, 1964), pp. 11–32.
Gerald R. Salancik and Jeffrey Pfeffer, “The Bases and Use of Power in Organizational Decision Making: The Case of the University,” Administrative Science Quarterly 19 (1974), pp. 453– 473.
Pfeffer, “Power Play.”
Power can be categorized as either hard power or soft power . Hard power is power that stems largely from a person's position of authority. This is the kind of power that enables a supervisor to in�luence subordinates with the use of rewards and punishments, allows a manager to issue orders and expect them to be obeyed, or lets a domineering CEO force through his or her own decisions without regard for what anyone else thinks. This is the approach to power typically taken by Machiavellian-style leaders. Transformational, charismatic, and coalitional leaders also use hard power, but they rely more often on soft power, which is based on personal characteristics and interpersonal relationships. Similarly, Machiavellian-style leaders also sometimes use soft power.
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power the potential ability of one person to in�luence other people to bring about desired outcomes
Power is realized through the processes of politics and in�luence. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#UZAMS32TW45BA56XA123) In�luence refers to the effect a person's actions have on the attitudes, values, beliefs, or actions of others. Whereas power is the capacity to cause a change in a person, in�luence may be thought of as the degree of actual change. For example, as a child you may have had the experience of playing a game you didn't really want to play because one person in the group in�luenced others to do what he or she wanted. Or you may have changed your college major because of the in�luence of someone important in your life, or shifted your beliefs about some social issue based on the in�luence of political or religious leaders.
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
Earle Hitchner, “The Power to Get Things Done,” National Productivity Review 12 (Winter 1992/93), pp. 117–122.
12-2a. Speci�ic Types of Power
Most discussions of power include �ive types that are available to leaders. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#JKLFPT3YZPTVUV26T324) Exhibit 12.3 illustrates the �ive types of leader power, categorized as either hard power or soft power. Hard power includes legitimate, reward, and coercive power, which are de�ined largely by the organization's policies and procedures. However, it is important to remember that position power and leadership are not the same thing. As we discussed in Chapter 1 , a person might hold a formal position of authority and yet not be a leader.
John R. P. French Jr., and Bertram Raven, “The Bases of Social Power,” in D. Cartwright and A. F. Zander, eds., Group Dynamics (Evanston, IL: Row Peterson, 1960), pp. 607–623.
Exhibit 12.3. Five Types of Leader Power
Hard Power Soft Power Legitimate : Based on leader holding a formal position or title. People accept leader's right to issue orders or direct activities.
Expert : Based on leader's special knowledge or skills. People trust and respect decisions because of leader's expertise.
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
In�luence the effect a person's actions have on the attitudes, values, beliefs, or actions of others
Hard Power Soft Power Reward : Based on leader having the ability to provide or withhold rewards. People comply in order to obtain desired rewards.
Referent : Based on leader's personal characteristics. People admire and respect leader, like to be around him or her, and adopt the leader's viewpoint.
Coercive : Based on leader's ability to punish or to recommend punishment. People follow orders to avoid punishments.
Effective leaders don't rely solely on the hard power of their formal position to in�luence others. Soft power includes expert power and referent power, as shown in the exhibit. In today's world, soft power is, more than ever, the tool of the leader. Consider that Jeffrey Immelt, CEO of General Electric, considers himself a failure if he exercises his formal authority more than seven or eight times a year. The rest of the time, Immelt is using softer means to persuade and in�luence others and to resolve con�licting ideas and opinions. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#UNRFPBAULERZX697K730) Even the United States military is talking about the importance of building relationships rather than using brute force. Former Defense Secretary Robert Gates, for instance, says that in the battle for hearts and minds abroad, the United States has to be “good at listening to others” rather than just good at kicking down doors, and the Army's new stability operations �ield manual openly talks about the value of soft power. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#VZJTUSL5NEKAN3DM8738) Wesley Clark, former supreme commander of NATO who led the mission against Serb president Slobodan Milosevic, suggests that, for leaders in businesses as well as nations, building a community of shared interests should be the �irst choice rather than using threats, intimidation, and raw power. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#CQTWK1MSF8VD0QKA8376)
Reported in Liberman, “Mario Moussa Wants You to Win Your Next Argument.”
Anna Mulrine, “Harnessing the Brute Force of Soft Power,” US News & World Report (December 1–8, 2008), p. 47.
Wesley Clark, “The Potency of Persuasion,” Fortune (November 12, 2007), p. 48.
Each of the �ive types of leader power illustrated in Exhibit 12.3 is discussed in detail in the following paragraphs.
New Leader Action Memo
As a leader, you can expand your personal power by developing good relationships and acquiring advanced knowledge and experience. You can use power to gain the commitment of others to achieve the vision. Use position power when appropriate, but don't overdo it.
Legitimate Power Legitimate power is the authority granted from a formal position in an organization. For example, once a person has been selected as a supervisor, most employees accept that they are obligated to follow his or her direction with respect to work activities. Certain rights, responsibilities, and prerogatives accrue to anyone holding a formal leadership position. Followers accept the legitimate rights of formal leaders to set goals, make decisions, and direct activities.
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power
Reward Power Power that stems from the authority to bestow rewards on other people is called reward power . For example, appointed leaders may have access to formal rewards, such as pay increases or promotions. Moreover, organizations allocate huge amounts of resources downward from top leaders. Leaders control resources and their distribution. Lower-level followers depend on leaders for the �inancial and physical resources to perform their tasks. Leaders with reward power can use rewards to in�luence subordinates' behavior.
authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
Legitimate power authority granted from a formal position
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power authority to bestow rewards on other people
reward power
Coercive Power The opposite of reward power is coercive power . It refers to the power to punish or recommend punishment. Supervisors have coercive power when they have the right to �ire or demote subordinates, criticize, or withhold pay increases. For example, if a salesman does not perform as well as expected, the sales manager has the coercive power to criticize him, reprimand him, put a negative letter in his �ile, and hurt his chance for a raise. Coercive power is the negative side of legitimate and reward power.
authority to bestow rewards on other people
reward power authority to bestow rewards on other people
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
Expert Power Power resulting from a leader's special knowledge or skill regarding tasks performed by followers is referred to as expert power . When a leader is a true expert, subordinates go along with recommendations because of his or her superior knowledge. Based on one scholar's research, leaders who are high in expert power are three times more in�luential than those without this type of power. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#TEMUPP0ZK84Z73JDB395) Leaders at supervisory levels often have experience in the production process that gains them promotion. At top management levels, however, leaders may lack expert power because subordinates know more about technical details than they do. People throughout the organization with expertise and knowledge can use it to in�luence or place limits on decisions made by people above them in the organization. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#MXTN4AS3VTEDHK2VS754)
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
coercive power authority to punish or recommend punishment
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power
Terry R. Bacon, “Power at Work,” Leadership Excellence (July 2011), p. 6. Bacon's The Elements of Power: Lessons on Leadership and In�luence (New York: AMACOM, 2011), discusses various types of leadership power that derive from personal and organizational sources.
Jeffrey Pfeffer, Power in Organizations (Marsh�ield, MA: Pitman Publishing, 1981).
Referent Power This kind of power comes from leader personality characteristics that command followers' identi�ication, respect, and admiration so they want to emulate the leader. When workers admire a supervisor because of the way he or she deals with them, the in�luence is based on referent power. Referent power depends on the leader's personal characteristics rather than on a formal title or position and is especially visible in the area of charismatic leadership. Consider the power of Patricia (Pattie) Sellers, who is the brains— and the brawn—behind Fortune magazine's 50 Most Powerful Women rankings.
authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
expert power authority resulting from a leader's special knowledge or skill
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power
authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
In the Lead Patricia Sellers, Fortune Magazine
She rubs elbows with Sheryl Sandberg, Indra Nooyi, and Warren Buffett. Never heard of her? Maybe that's because she's the one sometimes writing the splashy articles that are featured on the cover of Fortune magazine, rather than being the subject of them. Patricia Sellers, who is known as Pattie to friends, joined Fortune in 1984, two years out of college, and has been exploring power in her stories ever since. Over those years, she has also consistently expanded her own power based on expertise, relationships, and personal style.
“She is just unabashed in her hunt, her quest, for the perfect story,” said Sue Callaway, Sellers's former editor. Sellers came up with the idea of ranking the most powerful women in 1998 and sold it to the higher-ups at Fortune , and to high-ranking women themselves, based on her enthusiasm and the credibility she had built with her journalism. A year later, a passionate desire to connect women and give them a chance to talk about the big business issues of the day led her to start Fortune 's annual Most Powerful Women Summit.
Known for being somewhat shy early in her career, Sellers now charms conference attendees as easily as if they are old friends (and by now, many of them are). “I get invited to a lot of things,” Warren Buffett said, “but this is the one I clear the calendar for.” At the 2011 event, Buffett sat patiently waiting because a photographer wanted a shot of him with Sellers. Many people would have dropped everything to do the photo shoot, but part of Sellers's power comes from treating everyone the same. She was busy with other guests. The “Oracle of Omaha” had to wait, just like anyone else would. He didn't mind. “She gets together women that no one else has ever gotten together before,” he says. “And she makes you feel good about it.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#EXCPWHSVHB9D9LAUV215)
Lillian Cunningham, “The Rolodex That Rede�ined Power,” The Washington Post (December 23, 2011), http://articles.washingtonpost.com/2011-12- 23/national/35287278_1_fortune-indra-nooyi-sheryl-sandberg (http://articles.washingtonpost.com/2011-12-23/national/35287278_1_fortune-indra-nooyi-sheryl-sandberg) (accessed May 21, 2013).
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Referent power authority based on personality characteristics that command followers' attention, respect, and admiration so that they want to emulate the leader
Charismatic leadership, described earlier, is intensely based on the relationship between leader and followers and relies heavily on either referent or expert power. However, all good leaders make use of these types of power rather than using position power alone. The Consider This box talks about the far-reaching impact of referent power.
12-2b. Follower Responses to the Use of Power
Leaders use the various types of power to in�luence others to do what is necessary to accomplish organizational goals. The success of any attempt to in�luence is a matter of degree, but there are three distinct outcomes that may result from the use of power: compliance, resistance, and commitment, as illustrated in Exhibit 12.4 . * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pgzu7ubhdez4atldp781#MPSHJ0WBWAEHC47SN383)
The following discussion is based on Gary A. Yukl and T. Taber, “The Effective Use of Managerial Power,” Personnel (March–April 1983), pp. 37–44.
Exhibit 12.4. Responses to the Use of Power
When people successfully use hard, position power (legitimate, reward, coercive), the response is compliance. Compliance means that people follow the directions of the person with power, whether or not they agree with those directions. They will obey orders and carry out instructions even though they may not like it. The problem is that in many cases, followers do just enough work to satisfy the leader and may not contribute their full potential. Recall our earlier de�inition of observers in the discussion of coalitional leadership. These people don't actively resist or sabotage the leader's efforts, but they don't fully participate in achieving the vision. However, if the use of hard power, especially the use of coercion, exceeds a level people consider legitimate, some followers will actively resist the attempt to in�luence. Resistance means that employees will deliberately try to avoid carrying out instructions or will try to disobey orders. Thus, the effectiveness of leaders who rely solely on position power is limited.
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance
the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Consider This! The Ripple Effect
Do you want to be a positive in�luence in the world? First, get your own life in order. Ground yourself in this single principle so that your behavior is wholesome and effective. If you do that, you will earn respect and be a powerful in�luence.
Your behavior in�luences others through a ripple effect. A ripple effect works because everyone in�luences everyone else. Powerful people are powerful in�luences.
If your life works, you in�luence your family.
If your family works, your family in�luences the community.
If your community works, your community in�luences the nation.
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
Compliance following the directions of the person with power, regardless of how much agreement there is with that person's directions
Resistance the act of disobeying orders or deliberately avoiding carrying out instructions
If your nation works, your nation in�luences the world.
If your world works, the ripple effect spreads throughout the cosmos.
Source: John Heider, The Tao of Leadership: Leadership Strategies for a New Age (New York: Bantam Books, 1985), p. 107. Copyright 1985 Humanic Ltd., Atlanta, GA. Used with permission.
“Power is of two kinds. One is obtained by the fear of punishment and the other by acts of love. Power based on love is a thousand times more effective and permanent than the one derived from fear of punishment.”
Mahatma Gandhi
The follower response most often generated by soft, personal, and interpersonal power (expert, referent) is commitment. People become partners or advocates , rather than resisters or observers, as de�ined earlier. Commitment means that followers adopt the leader's viewpoint and enthusiastically carry out instructions. Needless to say, commitment is preferred to compliance or resistance. Although compliance alone may be enough for routine matters, commitment is particularly important when the leader is promoting change. Change carries risk or uncertainty, and follower commitment helps to overcome fear and resistance associated with change efforts. Successful leaders exercise both personal and position power to in�luence others.
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
Commitment adopting the leader's viewpoint and enthusiastically carrying out instructions
12-3. Increasing Power through Political Activity Acquiring and using power is largely a political process. Politics involves activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#UCQY7B2RK1F6D0SCM176) Politically skillful leaders strive to understand others' viewpoints, needs, desires, and goals, and use their understanding to in�luence people to act in ways that help the leader accomplish his or her goals for the team or organization. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#LXQDBLW2SXMKUTD24671)
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Pfeffer, Power in Organizations , p. 70.
Gerald R. Ferris, Darren C. Treadway, Robert W. Kolodinsky, Wayne A. Hochwarter, Charles J. Kacmar, Ceasar Douglas, and Dwight D. Frink, “Development and Validation of the Political Skill Inventory,” Journal of Management 31, no. 1 (February 2005), pp. 126–152.
For example, leaders at most organizations engage in some degree of political activity aimed at in�luencing government policies and decisions because government choices represent a critical source of uncertainty for businesses as well as nonpro�it organizations. *
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
Politics activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices
(http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#ZKAW83QG48G80QGBU505) Consider BAE Systems, where leaders have launched a lobbying campaign along with dozens of the company's suppliers to reverse Pentagon decisions that will cut military spending for production of BAE's Bradley line of �ighting vehicles. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#HRMMVS5P4KK73491M347)
See Amy J. Hillman and Michael A. Hitt, “Corporate Political Strategy Formulation: A Model of Approach, Participation, and Strategy Decisions,” Academy of Management Review 24, no. 4 (1999), pp. 825–842, for an examination of organizational approaches to political action.
Dion Nissenbaum, “Cut Defense? A Fight Begins,” The Wall Street Journal (April 23, 2013), p. B1.
Individuals also engage in political activity within organizations. Although some people have a negative view of politics, the appropriate use of political behavior serves organizational goals. Politics is a natural process for resolving differences among organizational interest groups. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#UMWDWN4YB0SXEH6DZ221) Political behavior can be either a positive or a negative force. Uncertainty and con�lict are natural in organizations, and politics is the mechanism for accomplishing things that can't be handled purely through formal policies or position power.
Jeffrey Pfeffer, Managing with Power: Politics and In�luence in Organizations (Boston, MA: Harvard Business School Press, 1992); Amos Drory and Tsilia Romm, “The De�inition of Organizational Politics: A Review,” Human Relations 43 (1990), pp. 1133–1154; Donald J. Vredenburgh and John G. Maurer, “A Process Framework of Organizational Politics,” Human Relations 37 (1984), pp. 47–66; and Lafe Low, “It's Politics, as Usual,” CIO (April 1, 2004), pp. 87–90.
12-3a. Leader Frames of Reference
The appropriate use of power and politics to get things done is an important aspect of leadership. Before exploring political tactics, let's consider leadership frames of reference and how a political approach combines with other leadership philosophies.
A frame is a perspective from which a leader views the world, and it in�luences how the leader interacts with followers, makes decisions, and exercises power. Four leader frames of reference illustrated in Exhibit 12.5 are structural, human resource, political, and symbolic. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#VJUAXBMS5HZ3M7HUK183) Leaders often begin with a limited structural perspective and develop the other frames as they mature and climb higher in their leadership development, thus achieving a more balanced mindset and approach.
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame
a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
This section is based on Lee G. Bolman and Terrence E. Deal, Reframing Organizations: Artistry, Choice, and Leadership (San Francisco: Jossey-Bass, 1991); and L. G. Bolman and T. E. Deal, “Leadership and Management Effectiveness: A Multi-Frame, Multi-Sector Analysis,” Human Resource Management 30, no. 4 (Winter 1991), pp. 509–534.
Exhibit 12.5. Four Leader Frames of Reference
Sources: Based on Lee G. Bolman and Terrence E. Deal, Reframing Organizations (San Francisco: Jossey-Bass, 1991); and L. G. Bolman and T. E. Deal, “Leadership and Management Effectiveness: A Multi-Frame, Multi-Sector Analysis,” Human Resource Management 30, no. 4 (Winter 1991), pp. 509–534. Thanks to Roy Williams for suggesting the stair sequence.
The Structural Frame The organization as a machine is the dominant image in the structural frame of reference. Leaders strive for machine-like ef�iciency and value hard data and analysis for decision making. The structural frame places emphasis on plans, goal setting, and clarifying expectations as a way to provide order, ef�iciency, and stability. Leaders rely heavily on the power and authority granted through their organizational position to in�luence others (position power), and they emphasize clear job descriptions, rules and procedures, and administrative systems. This frame views the organization as a rational system and strives for clarity of direction and control of results.
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
frame a perspective from which a leader views the world; in�luences how the leader interacts with followers, makes decisions, and exercises power
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame
The Human Resource Frame According to the human resource frame , people are the organization's most valuable resource. This frame de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs. Leaders do not rely solely on their position power to exert in�luence. Instead, they focus on relationships and often lead through empowerment and engagement. Leaders use the human resource perspective to involve followers and give them opportunities for personal and professional development. The images in this view are a sense of family, belonging, and the organization as a clan.
a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
structural frame a leader frame of reference that places emphasis on planning, setting goals, and clarifying expectations as a way to provide order, ef�iciency, and stability
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
The Political Frame The political frame views organizations as arenas of ongoing con�lict or tension over the allocation of scarce resources. Leaders spend their time networking and building coalitions to in�luence decisions and actions. As with the coalitional leadership style we discussed earlier in this chapter, leaders with this frame of reference strive to build a power base, and they use both position and personal power to achieve desired results. The mindset in the political frame is to be aware of the organization as a jungle. Power and politics are considered a natural and healthy part of organizational life.
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
human resource frame a leader frame of reference that de�ines problems and issues in interpersonal terms and looks for ways to adjust the organization to meet human needs
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame
a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
New Leader Action Memo
Use each of the structural, human resource, political, and symbolic frames of reference to maximize your leadership effectiveness. Complete the questionnaire in Leader's Self-Insight 12.3 to understand your dominant frame.
The Symbolic Frame To use full leadership potential requires that leaders also develop a fourth frame of reference—the symbolic frame —in which leaders perceive the organization as a system of shared meaning and values. Rather than relying only on the use of formal power or the use of political tactics, leaders focus on shared vision, culture, and values to in�luence others. The dominant image is to see the organization as theater. Leaders are concerned with spirit and meaning, and they focus on harnessing followers' dreams and emotions for the bene�it of the organization and all of its people.
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
political frame a leader frame of reference that views the organization as an arena of con�lict or tension over the allocation of scarce resources
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
Each of the four frames of reference provides signi�icant possibilities for enhancing leadership effectiveness, but each is incomplete. Many new leaders have not yet developed a political frame. Leaders can �irst understand their own natural frame, recognize its limitations, and then learn to integrate multiple frames to achieve their full leadership potential.
Leader's Self-Insight 12.3. Your Leadership Orientation
Instructions : This questionnaire asks you to describe yourself as a leader. For each of the following items, give the number 4 to the phrase that best describes you, 3 to the item that is next best, and on down to 1 for the item that is least like you.
1. My strongest skills are:
a. Analytical skills
b. Interpersonal skills
c. Political skills
d. Flair for drama
2. The best way to describe me is:
a. Technical expert
b. Good listener
c. Skilled negotiator
d. Inspirational leader
3. What has helped me the most to be successful is my ability to:
a. Make good decisions
b. Coach and develop people
c. Build strong alliances and a power base
d. Inspire and excite others
4. What people are most likely to notice about me is my:
a. Attention to detail
b. Concern for people
c. Ability to succeed in the face of con�lict and opposition
d. Charisma
5. My most important leadership trait is:
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
symbolic frame a leader frame of reference that perceives the organization as a system of shared meaning and focuses on shared vision, culture, and values to in�luence others
a. Clear, logical thinking
b. Caring and support for others
c. Toughness and aggressiveness
d. Imagination and creativity
6. I am best described as:
a. An analyst
b. A humanist
c. A politician
d. A visionary
Scoring and Interpretation
Compute your scores as follows:
Structural = 1a + 2a + 3a + 4a + 5a + 6a =
Human Resource = 1b + 2b + 3b + 4b + 5b + 6b =
Political = 1c + 2c + 3c + 4c + 5c + 6c =
Symbolic = 1d + 2d + 3d + 4d + 5d + 6d =
Your answers reveal your preference for four distinct leader orientations or frames of reference. The higher your score, the greater your preference. A low score may mean a blind spot. “Structural” means to view the organization as a machine that operates with ef�iciency to be successful. “Human Resource” means to view the organization primarily as people and to treat the family well to succeed. “Political” means to view the organization as a competition for resources and the need to build alliances to succeed. “Symbolic” means to view the organization as a system of shared meaning and values and to succeed by shaping the culture.
Do you view politics in a positive or negative light? Most new leaders succeed �irst by using either or both of the structural or people orientations. New leaders often have a blind spot about politics. As managers move up the hierarchy, they learn to be more political or they miss out on key decisions. The symbolic view usually comes last in a leader's development. Compare your scores to those of other students and see which orientations are more widely held.
Source: Reframing Organizations: Artistry, Choice, and Leadership , 5e, Bolman. Copyright © 2013 Lee G. Bolman. Reproduced with permission of John Wiley & Sons, Inc.
12-3b. Political Tactics for Asserting Leader In�luence
A leader's power is useless unless it is applied to in�luence others to implement decisions, facilitate change, and accomplish goals, which requires both skill and willingness. Not all attempts to use power result in actual in�luence. Some power moves are rejected by followers, particularly if they are seen to be self-serving. Leaders have to determine the best approach for using their power—that is, the approach that is most likely to in�luence others—by considering the individuals, groups, and situations involved. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#KJUDB44NTRULJLLHT717) In addition, they understand the basic principles that can cause people to change their behavior or attitudes.
Tony Manning, “The Art of Successful In�luence: Matching In�luence Strategies and Styles to the Context,” Industrial and Commercial Training 44, no. 1 (2012), pp. 26–34; and John R. Carlson, Dawn S. Carlson, and Lori L. Wadsworth, “The Relationship between Individual Power Moves and Group Agreement Type: An Examination and Model,” SAM Advanced Management Journal 65, no. 4 (Autumn 2000), pp. 44–51.
Leaders often use a combination of in�luence strategies, and people who use a wider variety of tactics are typically perceived as having greater power and in�luence. One survey of a few hundred leaders identi�ied more than 4,000 different techniques by which these people were able to in�luence others to do what the leader wanted. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#RKEYP5QR52NVV0LPY043) However, the myriad successful in�luence tactics used by leaders fall into basic categories of in�luence actions. Exhibit 12.6 lists six principles for asserting leader in�luence. Notice that most of these involve the use of soft, personal power rather than relying solely on hard, position power or the use of rewards and punishments.
D. Kipnis, S. M. Schmidt, C. Swaf�in-Smith, and I. Wilkinson, “Patterns of Managerial In�luence: Shotgun Managers, Tacticians, and Bystanders,” Organizational Dynamics 12, no. 3 (Winter 1984), pp. 58–67.
Exhibit 12.6. Six Principles for Asserting Leader In�luence
New Leader Action Memo
As a leader, you can use political activity to achieve important organizational goals when there is uncertainty or disagreement about choices. You can develop connections with powerful people by volunteering for dif�icult projects and serving on committees.
1. Appeal to a vision or higher purpose . One effective way to attract people to new behaviors or to make signi�icant changes is to frame the request in a way that emphasizes the vision or higher purpose of the change. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#NPAYPXT7AXM2YB3VA354) Providing people with meaning can help them see that the effort of doing what you ask is worthwhile. For example, Matt Van Vranken, president of Spectrum Health Hospital Group, needed a way to in�luence 10,000 overworked, stressed-out health-care professionals to go beyond their job descriptions and provide exceptional patient service. One key approach he uses to in�luence people to make the right decision is to connect what they do to the welfare of individual patients. Every so often, Van Vranken brings groups of employees together to hear former patients talk about their experiences and how the actions of individual workers affected their health and well-being. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#BWKVSQ0ENSKYDFP2L542)
Based on Joseph Grenny, David Max�ield, and Andrew Shimberg, “How to Have In�luence,” MIT Sloan Management Review 50, no. 1 (Fall 2008), pp. 47–52.
Based on Joseph Grenny, David Max�ield, and Andrew Shimberg, “How to Have In�luence,” MIT Sloan Management Review 50, no. 1 (Fall 2008), pp. 47–52.
2. Use rational persuasion . Perhaps the most frequently used in�luence tactic is rational persuasion, which means using facts, data, and logical arguments to persuade others that a proposed idea or request is the best way to complete a task or accomplish a desired goal. It can be effective whether the in�luence attempt is directed upward toward superiors, downward toward subordinates, or horizontally, because most people have faith in facts and analysis. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#BRNQ01RB235GX8WY5944) Rational persuasion is most effective when a leader has technical knowledge and expertise related to the issue (expert power), although referent power is also used. Frequently, some parts of a rational argument cannot be backed up with facts and �igures, so people have to believe in the leader's credibility to accept his or her argument.
Kipnis et al., “Patterns of Managerial In�luence”; Manning, “The Art of Successful In�luence: Matching In�luence Strategies and Styles to the Context”; and Pfeffer, Managing with Power , Chapter 13.
3. Help people to like you . We all know it's easier to say yes to someone we like than to someone we don't like. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#CTJZFDHRLNWVJBQU3799) One author of a book on in�luence tells a story about an American working in Saudi Arabia, who learned that getting information or action from government of�ices was easy when he'd drop by, drink tea, and chat for a while. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#AYHD7RD3EKNESKEVC517) Cultural values in Saudi Arabia put great emphasis on personal relationships, but people in all cultures respond to friendliness and consideration. When a leader listens, shows concern for what others want and need, �inds common ground, demonstrates respect, and treats people fairly, people are more likely to want to help and support the leader by doing what he or she asks. In addition, most people will like a leader who makes them feel good about themselves. Leaders never underestimate the importance of praise.
This discussion is based partly on Robert B. Cialdini, “Harnessing the Science of Persuasion,” Harvard Business Review (October 2001), pp. 72–79; and Edward T. Reilly, “In�luential Leaders: They Follow Five Proven Steps,” Leadership Excellence (January 2013), p. 10.
Judith Tingley, The Power of Indirect In�luence (New York: AMACOM, 2001), as reported by Martha Craumer, “When the Direct Approach Back�ires, Try Indirect In�luence,” Harvard Management Communication Letter (June 2001), pp. 3–4.
4. Rely on the rule of reciprocity . A primary way to turn power into in�luence is to share what you have—whether it be time, resources, services, or emotional support. There is much research indicating that most people feel a sense of obligation to give something back in return for favors others do for them. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#NKDY5HWWKY9HMVUDM805) This is one reason that organizations like Northrup Grumman, Kraft Foods, and P�izer make donations to the favorite charities of House and Senate members. Leaders attempt to curry favor with lawmakers whose decisions can signi�icantly affect their business. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#DUGCTB2HHPS05ZGX5947) The “unwritten law of reciprocity” means that leaders who do favors for others can expect others to do favors for them in return. Leaders also elicit the cooperative and sharing behavior they want from others by �irst demonstrating it with their own actions. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#JZVST0CNHDN74AM3Q338) Some researchers argue that the concept of exchange—trading something of value for what you want—is the basis of all other in�luence tactics. For example, rational persuasion works because the other person sees a bene�it from going along with the plan, and making people like you is successful because the other person receives liking and attention in return. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#ZCEN30BYTRHXQ0XJL808)
Robert B. Cialdini, In�luence: Science and Practice , 4th ed. (Boston, MA: Allyn & Bacon, 2001); Cialdini, “Harnessing the Science of Persuasion”; Allan R. Cohen and David L. Bradford, “The In�luence Model: Using Reciprocity and Exchange to Get What You Need,” Journal of Organizational Excellence (Winter 2005), pp. 57–80; and Jared Sandberg, “People Can't Resist Doing a Big Favor—Or Asking for One” (Cubicle Culture column), The Wall Street Journal (December 18, 2007), p. B1.
Raymond Hernandez and David W. Chen, “Keeping Lawmakers Happy through Gifts to Pet Charities,” The New York Times (October 19, 2008), p. A1.
Cialdini, “Harnessing the Science of Persuasion.”
Cohen and Bradford, “The In�luence Model.”
5. Develop allies . Reciprocity also plays an important role in developing networks of allies, people who can help the leader accomplish his or her goals. Leaders can in�luence others by taking the time to talk with followers and other leaders outside of formal meetings to understand their needs and concerns, as well as to explain problems and describe the leader's point of view. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#SVDHTK229Z5ZRR54J037) Leaders consult with one another and reach a meeting of minds about a proposed decision, change, or strategy. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#HQUCGVK34S0U9BBH3641) A leader can expand his or her network of allies by reaching out to establish contact with additional people. Some leaders expand their networks through the hiring, transfer, and promotion process. For example, when Michael Corbat became CEO of Citigroup in 2012, he asked some of the former CEO's top allies to resign and reduced the responsibilities of others so he could put his own trusted advisors in key roles. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#QANGRBXJ8JK46F4R0336) Identifying and placing in key positions people who are sympathetic to the desired outcomes of the leader can help achieve the leader's goals.
Pfeffer, Power in Organizations , p. 70.
V. Dallas Merrell, Huddling: The Informal Way to Management Success (New York: AMACOM, 1979).
Suzanne Kapner, “New CEO Shuf�les the Deck at Citi,” The Wall Street Journal (January 8, 2013), p. C1.
One study found that political skill, particularly network building, has a positive impact both on followers' perceptions of a leader's abilities and performance and on the actual, objective performance of the work unit. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#LQBLXGHV7EJNSX1N7299) Sheila Bair, former chairman of the Federal Deposit Insurance Corporation (FDIC), enhanced her reputation and power base by courting allies to support her views on how to �ix the troubled U.S. �inancial system. Her efforts also expanded the agency's power. Under her leadership, the FDIC gained broad new powers to police large �inancial institutions, including installing examiners at �inancial �irms to monitor managers' activities. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#QCAL27JMN0LBVEVMW750)
Ceasar Douglas and Anthony P. Ammeter, “An Examination of Leader Political Skill and Its Effect on Ratings of Leader Effectiveness,” Leadership Quarterly 15 (2004), pp. 537–550.
Mark DeCambre, “Bair Breaks Rank—FDIC Chief Challenges Geithner, Treasury Plan,” The New York Post (March 20, 2009), p. 39; Joanna Chung, “Bair Lobbies for Stronger Position,” Financial Times (June 12, 2009), p. 6; and Deborah Solomon, “Bair's Legacy: An FDIC with Teeth,” The Wall Street Journal (July 7, 2011), p. C1.
6. Ask for what you want . Sheila Bair, now president of Washington College, also employs another technique for in�luencing people, which is to be clear about what you want and openly ask for it. Leaders have to be willing to sometimes argue forcefully to persuade others to their point of view. Even opponents praise Bair's knack for being forceful at the right times in order to achieve her goals. If leaders are not willing to ask and persuade, they seldom get the results they want. Political activity is effective only when the leader's vision, goals, and desired changes are made explicit so the organization can respond. Leaders can use their courage to be assertive, saying what they believe to persuade others. In addition, leaders can use techniques of persuasion such as listening, building goals on common ground, and appealing to people's emotions, as described in Chapter 9 , to get what they want. Machiavellian-style leaders may even manipulate people's emotions, such as activating peer pressure or phrasing a request in a way that emphasizes the potential loss rather than the potential gain. People will often go along with the request because people respond more strongly to a potential loss (loss aversion) than to a gain, as described in Chapter 8 . * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#WBPES9VZKER0VFNMR979)
Based on ideas in Heidi Grant Halvorson, “How to Be a Better Boss in 2013,” The Wall Street Journal (January 2, 2013), http://online.wsj.com/article/SB10001424127887323635504578215391693878364.html (http://online.wsj.com/article/SB10001424127887323635504578215391693878364.html) (accessed May 21, 2013).
New Leader Action Memo
As a leader, you can in�luence others by using rational persuasion, developing allies, and expanding your expertise and credibility. Remember that people respond to friendliness and consideration, and they typically feel obligated to return favors.
Leaders can use an understanding of these tactics to assert in�luence and get things done. When leaders ignore political tactics, they may �ind themselves failing without understanding why. For example, at the World Bank, Paul Wolfowitz tried to wield power without building the necessary relationships he needed to assert in�luence.
In the Lead Paul Wolfowitz, World Bank
After former Deputy Secretary of Defense Paul Wolfowitz lost his bids to become defense secretary or national security advisor in the Bush administration, he jumped at the chance to be the new president of World Bank. But Wolfowitz doomed his career at World Bank from the start by failing to develop relationships and build alliances.
Most World Bank leaders had been in their positions for many years when Wolfowitz arrived, and they were accustomed to “promoting each other's interests and scratching each other's backs,” as one board member put it. Wolfowitz came in and tried to assert his own ideas, goals, and formal authority without considering the interests, ideas, and goals of others. He quickly alienated much of the World Bank leadership team and board by adopting a single-minded position on key issues and refusing to consider alternative views. Rather than attempting to persuade others to his way of thinking, Wolfowitz issued directives to senior bank of�icers, either personally or through his handpicked managers. Several high-level of�icers resigned following disputes with the new president.
Eventually, the board asked for Wolfowitz's resignation. “What Paul didn't understand is that the World Bank presidency is not inherently a powerful job,” said one former colleague. “A bank president is successful only if he can form alliances with the bank's many �iefdoms. Wolfowitz didn't ally with those �iefdoms. He alienated them.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/fnue58n2zfuejwa2z210#VYWL0CFDBQWPQD320795)
Steven R. Weisman, “How Battles at Bank Ended ‘Second Chance’ at a Career,” The New York Times (May 18, 2007), p. A14.
New Leader Action Memo
As a leader, you can be ethical in your use of power and politics. You can build long-term productive relationships to achieve important goals and bene�it the entire team or organization.
Wolfowitz realized too late that he needed to use a political approach rather than trying to force his own agenda. Even when a leader has a great deal of power, political tactics are more effective than force for turning power into in�luence.
12-4. Don't Take Power Personally Harry Truman once said that leadership is the ability to get people to do what they don't want to do and like it. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zzjrj8eqsdt4kntvc477#DNEJKTJX5Z2H2CFGX700) His statement raises an important issue: Leadership is an opportunity to use power and in�luence to accomplish important organizational goals, but power can also be abused. People and organizations get hurt when leaders fall into the temptation to use power for their own bene�it rather than for the good of the whole.
Quoted in Allan R. Cohen, Stephen L. Fink, Herman Gadon, and Robin D. Willits, Effective Behavior in Organizations , 7th ed. (New York: McGraw-Hill Irwin, 2001), p. 254.
One consideration is the difference between personalized leaders and socialized leaders. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zzjrj8eqsdt4kntvc477#QARTRECU2Z125MSBJ936) This distinction refers primarily to the leader's approach to the use of power. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zzjrj8eqsdt4kntvc477#FHWDXBZQ3WSG4PYRP860) Personalized leaders are typically sel�ish, impulsive, and exercise power for their own self-centered needs and interests rather than for the good of the organization. Socialized leaders exercise power in the service of higher goals that will bene�it others and the organization as a whole. Personalized leaders are characterized as self-aggrandizing, nonegalitarian, and exploitative, whereas socialized leaders are empowering, egalitarian, and supportive. Personalized behavior is based on caring about self; socialized behavior is based on valuing others.
This section is based on Robert J. House and Jane M. Howell, “Personality and Charismatic Leadership,” Leadership Quarterly 3, no. 2 (1992), pp. 81–108; Jennifer O'Connor, Michael D. Mumford, Timothy C. Clifton, Theodore L. Gessner, and Mary Shane Connelly, “Charismatic Leaders and Destructiveness: An Historiometric Study,” Leadership Quarterly 6, no. 4 (1995), pp. 529–555; 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 & Organizational Studies 17, no. 1 (February 2010), pp. 33–43.
For a discussion of personalized and socialized power, see David C. McClelland, Power: The Inner Experience (New York: Irvington, 1975). A recent review of McClelland's research related to the use of power is in D. Keith Denton, “Enhancing Power,” Industrial Management (July–August 2011), pp. 12–17.
A speci�ic area in which the unethical use of power is of increasing concern for organizations is sexual harassment. People in organizations depend on one another—and especially on leaders—for many resources, including information, cooperation, and even their jobs. When access to resources seems to depend on granting sexual favors or putting up with sexually intimidating or threatening comments, the person in a dependent position is being personally violated, whether or not the leader actually withholds the resources. Consider the U.S. military, which is embroiled in a nasty sexual harassment and abuse scandal. In May 2013, the Pentagon released an embarrassing and shameful report detailing pervasive sexual abuse in the military, estimating a rate of about 500 men and women assaulted each week during 2012. Although many of these were assaults by fellow soldiers, some were also by of�icers. For example, an Army of�icer in charge of sexual abuse prevention at Fort Hood, Texas, was under investigation for allegedly assaulting two soldiers and forcing another into prostitution. Moreover, statistics showed that the system of military justice perpetuated the crime. Commanding of�icers often decided to dismiss charges or decrease penalties. Two Air Force three-star generals tossed out jury convictions for sexual assault, in one instance saying the defendant couldn't possibly be guilty because he was “a doting father and husband.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zzjrj8eqsdt4kntvc477#LGJMCHXNH4JVRKE4B211) Sexual harassment and sexual abuse are not just unethical; they are illegal and represent a clear abuse of power.
Tom Vanden Brook and Gregg Zoroya, “Why the Military Hasn't Stopped Sexual Abuse,” USA Today (May 15, 2013), http://www.usatoday.com/story/news/2013/05/15/why-the- military-hasnt-stopped-sexual-abuse-/2162399/ (http://www.usatoday.com/story/news/2013/05/15/why-the-military-hasnt-stopped-sexual-abuse-/2162399/) (accessed May 21, 2013).
However, there are many other situations in organizations that are not so clear-cut, and leaders may sometimes have dif�iculty differentiating ethical from unethical uses of power and politics. Exhibit 12.7 summarizes some criteria that can guide ethical actions. First and foremost is the question of whether the action is motivated by self-interest or whether it is consistent with the organization's goals. One Internet company has a rule that any employee can be terminated for a political act that is in the individual's own self-interest rather than in the interest of the company or that harms another person in the organization. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/zzjrj8eqsdt4kntvc477#EJUFMAESWDMWFL9V7394) Once a leader answers this primary question, there are several other questions that can help determine whether a potential in�luence action is ethical, including whether it respects the rights of individuals and groups affected by it, whether it meets the standards of fairness, and whether the leader would want others to behave in the same way. If a leader answers these questions honestly, they can serve as a guide to whether an intended act is ethical.
Rodes Fishburne, “Stop the Politics,” Forbes ASAP (April 3, 2000), p. 126.
Exhibit 12.7. Guidelines for Ethical Action
Sources: Based on G. F. Cavanaugh, D. J. Mobert, and M. Valasques, “The Ethics of Organizational Politics,” Academy of Management Journal (June 1981), pp. 363–374; and Stephen P. Robbins, Organizational Behavior , 8th ed. (Upper Saddle River, NJ: Prentice Hall, 1998), p. 422.
In the complex world of organizations, there will always be situations that are dif�icult to interpret. The most important point is for leaders to be aware of the ethical responsibilities of having power and take care to use their power to help rather than harm others. Leaders should think not in terms of getting their own way but rather in terms of building long-term productive relationships that can achieve goals and bene�it the entire organization.
Leadership Essentials This chapter looked at how leaders use power and political processes to in�luence others and get things done. Four types of in�luential leadership that rely strongly on a leader's personal characteristics and relationships are transformational, charismatic, coalitional, and Machiavellian-style leadership. Charismatic leaders have an emotional impact on people. They create an atmosphere of change, articulate an idealized vision of the future, inspire faith and hope, and frequently incur personal risks to in�luence followers. Transformational leaders also create an atmosphere of change, and they inspire followers not just to follow them personally but also to believe in the vision. Transformational leaders inspire followers to go beyond their own self-interest for the good of the whole. Coalitional leadership involves developing a coalition of people who can help in�luence others to implement the leader's decisions and achieve the leader's desired goals. To have broad in�luence, leaders develop relationships with others, listen to others' needs and goals, and promote cooperation. Machiavellian-style leadership is based on the belief that leaders must often do tough, even ruthless, things in the spirit of protecting the organization. Machiavellian leaders focus on acquiring individual power more than on collaborating with others.
All leaders use power and politics to in�luence people and accomplish goals. Power is the ability to in�luence others to reach desired outcomes. Power can be characterized as either hard power or soft power . Hard power includes legitimate, reward, and coercive power, which are associated with a leader's formal position of authority. Soft power includes expert and referent power, which are based on the leader's knowledge, expertise, and personal qualities. Three distinct outcomes may result from the use of power: compliance, resistance, and commitment. The effective use of hard, position power generally leads to follower compliance, whereas the excessive use of position power—particularly coercive power—may result in resistance. The follower response most often generated by personal power is commitment.
Power is acquired, developed, and exercised through political activities. Having a political perspective on the organization is important because leaders need to use politics to accomplish important goals. A political perspective can be combined with other leader frames of reference. Frames of reference in�luence how the leader interacts with followers, makes decisions, and exercises power. Four leader frames of reference are structural, human resource, political, and symbolic. Leaders typically begin with a structural frame and develop other frames of reference as they mature in their leadership responsibilities and understanding.
Leaders use a wide variety of in�luence tactics, but they fall within some broad categories based on general principles for asserting in�luence. Six principles for asserting leader in�luence are appeal to a higher vision, rational persuasion, liking and friendliness, reciprocity, developing allies, and direct appeal. One important consideration for leaders is how to use power and politics ethically and responsibly. Ethical leaders use power to serve the organization's goals, respect the rights of individuals and groups, and strive to be fair in their dealings with others.
Discussion Questions 1. Lord Acton, a British historian of the late nineteenth century, said that “power tends to corrupt; absolute power corrupts
absolutely,” suggesting that a person's sense of morality lessens as his or her power increases. Do you agree? Considering this idea, is it ethical for leaders to try to increase their power? Discuss.
2. How do you feel about personally using Machiavellian-style leadership? What do you see as some positive and negative aspects of Machiavellian-style leadership?
3. What do you consider the most important difference between transformational leadership and transactional leadership? Between transformational and charismatic leadership? How is transformational leadership similar to charismatic leadership?
4. Assume you are on a search committee to replace the CEO of a large �inancial services �irm that is recovering from problems related to the mortgage crisis. Which do you think would be most valuable for a new top leader trying to solve the problems within the organization—charismatic, transformational, coalitional, or Machiavellian-style leadership? What about for a new top leader of a small private university? Discuss.
5. Which of the four organizational frames of reference do you most admire? How do you think this frame of reference could be bene�icial or detrimental to your leadership capability?
6. A recent magazine article suggested that young college graduates just entering the workforce are refusing to “play the political game.” Why might this be the case? If politics is important for getting things done, can these people succeed as leaders? Discuss.
7. Which types of power would you rely on to implement an important decision quickly? Which types would you consider most valuable for sustaining power over the long term?
8. Describe ways in which you might increase your personal power.
9. Which of the six in�luence tactics would you be most comfortable with as leader of a study group? Of a work team? Discuss.
10. A leadership observer said in an interview that most women leaders view power differently than men do and prefer a collaborative, relationship-oriented use of power. If this is the case, what does it suggest about women leaders' ability to accomplish goals? What does it suggest about women's ability to rise to higher organizational levels? Discuss.
Leadership at Work
Circle of In�luence
How do you personally try to in�luence others? Think carefully about how you get others to agree with you or do something you want. Watch the way you in�luence others in a team, at home, or during your work. Make a list of your in�luence tactics:
1. 4. 2. 5. 3. 6.
Of the in�luence and political tactics discussed in the chapter, which ones do you typically not use?
During the next two days, your assignment is to (1) monitor the in�luence tactics you typically use and (2) try one new tactic that you don't normally use. The new in�luence tactic you will try is:
Another important concept is called the circle of in�luence . Think carefully about the people who have in�luence over you . These people are your circle of in�luence. You may have one circle of in�luence at work, another at home, and others for your social life or career. Write down the people who would have some in�luence over you at work or school:
This is your circle of in�luence.
A person's circle of in�luence can be important when you really want to in�luence that person. If someone doesn't respond to your normal in�luence attempts, think about identifying the individual's circle of in�luence—the people who have in�luence over him or her. You can then in�luence people in the “circle” as an indirect way to in�luence the person you want to change.
Pick an individual at work or school, or even your instructor, and plot out that person's circle of in�luence. List the key people you believe are in the person's circle of in�luence:
How would you get more information on the person's true circle of in�luence?
How can you use your knowledge of the person's circle to have in�luence over him or her? What are the possible disadvantages of using this approach to in�luence someone?
In Class: The instructor can ask students to sit in small groups of three to �ive people and share the circles of in�luence they identi�ied for themselves. After listing the circle of in�luence at work or school, students can also talk about the circles of people who might in�luence them in their professional, social, or family activities. Key questions for this discussion are, What are the common themes in the students' circles of in�luence? When and how could the circle idea be applied to in�luence someone? How might it be misapplied and back�ire on your effort to in�luence another?
Leadership Development: Cases for Analysis
The Suarez Effect
Pat Talley stood and watched, with grudging admiration, as Carmelita Suarez worked the room. Sharp, charming, and armed with a personality that left an indelible memory, Carmelita at one moment had the ear of CEO Chris Blount and the next could be observed smiling and studying something on her electronic notebook with the executive assistant of a major board member.
“She's amazing,” Kent Schlain whispered to Pat as he gave him a cocktail. “I like to observe and learn. She's a real education in of�ice politics.”
“We're not in politics,” Pat answered somewhat defensively. “We're in IT.”
“Come on, Pat.” Kent teased. “Tell me she doesn't worry you. Everyone knows she's your main competition for the CIO job.”
Pat smirked, took a sip from his scotch and water, and said sarcastically, “I'm worried . Satis�ied?”
Walking away from Kent's mischievous goading, Pat's usual con�idence suffered a �leeting twinge of fear. No. I'm OK. I'm OK , he thought. I have more expertise than anyone, including Carmelita, and I'm not afraid to lay down the law to get projects completed .
After weeks of speculation, interviews, on-site visits by top execs, and endless waiting, a decision on the new CIO was to be made and announced by CEO Blount this week during the annual meeting. Although Mans�ield, Inc. boasted an extraordinarily talented IT group, company insiders and industry watchers agreed that the decision would come down to a choice between Carmelita Suarez and Pat Talley.
To this point, Pat carried the con�idence of a sterling 20-year record with Mans�ield. Technically gifted, he was one of the team members that designed and implemented the company's original IT system and had been a major player throughout the years in guiding its growth and expansion. Task oriented almost to a fault, Pat built a reputation as a guy who relentlessly analyzed needs and then charged ahead until the job was completed—usually under budget. His special strength lay in the twin areas of electronic security and risk management.
Pat considered technical expertise and competence to be the quali�ications for the position as CIO, as he explained during a recent interview with executives and board members. “Our work and reputation should be the only considerations,” Pat emphasized. “My job is not to schmooze and glad hand. I'm not running for public of�ice. I'm running an IT division.”
Over the years, Pat maintained strictly de�ined areas of work and friendship and, in fact, could count on one hand the number of casual, work-related friendships he had developed over 20 years. He was proud of his ability to compartmentalize these areas so that personal relationships had no bearing on management decisions. He considered this an important part of his reputation as a fair but tough leader. He demanded excellence and could be unforgiving in his attitude toward those with less technology interest or expertise.
The word politics was odious to Pat Talley, and he considered of�ice politics a waste of time. However, at company gatherings such as this, he also carried a slight chip on his shoulder, aware that, despite his importance to the company, he was only on the periphery of this group —not excluded , but not really included either. The signi�icance of this particular meeting—and now watching Suarez put on a clinic in of�ice politics—only increased those feelings for Pat, making him defensive and uncharacteristically concerned about his future.
Could of�ice politics really be the deciding factor , he suddenly wondered. Carmelita knows her stuff. She does her research and stays on top of the latest trends and products in IT. She can handle any situation, particularly those sticky people problems that arise within teams or with suppliers . Pat smiled ruefully. Heck, I've even brought her in a time or two .
Now, as he stood and observed the activity in the room, he watched as his rival moved effortlessly among individuals and various groups. I feel like I'm watching “Survivor.” Does the guy who trusts his own abilities win, or is it the one who builds coalitions and alliances? He shook his head as if to shake off the imagery. That was stupid. This is not a reality television show. This is corporate America. Do your job. I've built my reputation on that, and I'll stand by that .
His attention snapped back as Carmelita handed him a fresh scotch and water. “You could use a fresh one,” she said, smiling and pointing to his empty glass. “I guess tomorrow's the big day and I wanted to come by and wish you well. These are exciting days for the company and for IT, and whichever way it goes tomorrow I look forward to working together. Cheers.”
“Same here,” he answered. Their glasses clinked together in a toast. Dang, she's good , Pat thought.
Questions 1. Who do you think the CEO should appoint as CIO? Why?
2. Is Pat sabotaging his career by thinking of relationship building as “of�ice politics” that takes the focus away from day-to-day work? What advice would you give Pat, who is not a natural relationship builder?
3. What sources of power do Pat and Carmelita seem to use in the company? Which person do you believe will be more in�luential as CIO? Explain.
Waite Pharmaceuticals
Amelia Lassiter is chief information of�icer at Waite Pharmaceuticals, a large California-based company. In an industry where it generally takes $500 million and 10 to 12 years to bring a new drug to market, companies such as Waite are always looking for ways to increase productivity and speed things up. After about eight months on the job, Lassiter suggested to company president James Hsu that Waite implement a new global knowledge-sharing application that promises to cut development time and costs in half. She has done extensive research on knowledge-sharing systems and has talked closely with an IT director at global powerhouse Novartis, a company on the cutting edge in pharmaceuticals and animal health care, as well as other diverse products. The Novartis director believes the knowledge- sharing system plays an important role in that company's competitiveness.
Hsu presented the idea to the board of directors, and everyone agreed to pursue the project. He has asked Lassiter to investigate �irms that could assist Waite's IT department in developing and implementing a global knowledge-sharing application that would be compatible with Waite's existing systems. Hsu explained that he wants to present the information to the board of directors for a decision next month.
Lassiter identi�ied three major �irms that she believed could handle the work and took a summary of her �indings to Hsu's of�ice, where she was greeted by Lucy Lee, a young, petite, attractive woman who served as a sort of executive assistant to Hsu. Word was that the relationship between Lee and Hsu was totally proper, but besides the value of her good looks, no one in the company could understand why she was working there. Her lack of talent and experience made her a liability more than a help. She was very deferential to Hsu but condescending to everyone else. Lee was a constant source of irritation and ill will among managers throughout the company, but there was no doubt that the only way to get to Hsu was through Lucy Lee. Lee took the information from Lassiter and promised the president would review it within two days.
The next afternoon, Hsu called Lassiter to his of�ice and asked why Standard Systems, a small local consulting �irm, was not being considered as a potential provider. Lassiter was surprised—Standard was known primarily for helping small companies computerize their accounting systems. She was not aware that they had done any work related to knowledge-sharing applications, particularly on a global basis. Upon further investigation into the company, she learned that Standard was owned by an uncle of Lucy Lee's, and things began to fall into place. Fortunately, she also learned that the �irm did have some limited experience in more complex applications. She tried to talk privately with Hsu about his reasons for wanting to consider Standard, but Hsu insisted that Lee participate in all his internal meetings. At their most recent meeting, Hsu insisted that Standard be included for possible consideration by the board.
During the next two weeks, representatives from each company met with Hsu, his two top executives, and the IT staff to explain their services and give demonstrations. Lassiter had suggested that the board of directors attend these presentations, but Hsu said they wouldn't have the time and he would need to evaluate everything and make a recommendation to the board. At the end of these meetings, Lassiter prepared a �inal report evaluating the pros and cons of going with each �irm and making her �irst- and second-choice recommendations. Standard was dead last on her list. Although the �irm had some excellent people and a good reputation, it was simply not capable of handling such a large and complex project.
Lassiter offered to present her �indings to the board, but again, Hsu declined her offer in the interest of time. “It's best if I present them with a �inal recommendation; that way, we can move on to other matters without getting bogged down with a lot of questions and discussion. These are busy people.” The board meeting was held the following week. Lassiter was shocked when the president returned from the meeting and informed her that the board had decided to go with Standard Systems as the consulting �irm for the knowledge- sharing application.
Questions 1. How would you explain the board's selection of Standard Systems?
2. Discuss the types, sources, and relative amount of power for the three main characters in this story.
3. How might Lassiter have increased her power and in�luence over this decision? If you were in her position, what would you do now?
Sources: Based on “Restview Hospital,” in Gary Yukl, Leadership , 4th ed. (Upper Saddle River, NJ: Prentice Hall, 1998), pp. 203–204; “Did Somebody Say Infrastructure?” in Polly Schneider, “Another Trip to Hell,” CIO (February 15, 2000), pp. 71–78; and Joe Kay, “Digital Diary,” Part I, http://www.forbes.com/asap/2000 (http://www.forbes.com/asap/2000) (accessed November 19, 2000).
Part 5. The Leader as Social Architect
Chapter 13 . Creating Vision and Strategic Direction
Your Leadership Challenge After reading this chapter, you should be able to:
Explain the relationship among vision, mission, strategy, and mechanisms for execution. Create your personal leadership vision. Use the common themes of powerful visions in your life and work. Describe four basic approaches for framing a noble purpose that followers can believe in. Understand how leaders formulate and implement strategy. Apply the elements of effective strategy.
At a recent managers' meeting focusing on vision and strategy, Twitter CEO Dick Costolo drew three circles on a whiteboard to illustrate “how the company should be described going forward.” One circle, he said, represented core users of Twitter; another represented those who visited the site but didn't log in; and the third circle represented people who saw Twitter content embedded on other sites. Managers, hearing about the so-called “geometrically eccentric circles” idea for the �irst time, were confused. Nothing new there. Confusion and frustration has been mounting at Twitter as Costolo struggles to de�ine a coherent mission, vision, and strategy for the company. Twitter has become a household word and is a popular social media tool used by millions. Yet growth has slowed and the company continues to lose money. Pressure from investors is mounting. Costolo's tendency to easily bounce from one idea to the next worked great during Twitter's formative years, but it has hampered his ability to establish a clear identity and direction for the company. “It's like this tension within the company in terms of what they want to be and how they want to do things,” said Walter Price, a senior portfolio manager of Allianz Global's Technology Fund. After weeks of management meetings debating how to sum up the three circles idea to investors, Costolo articulated the vision as “to build the world's largest audience.” He continues working with other top leaders to de�ine a clear strategic plan that managers can follow. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/buuvm8eb0tzsvy07v003#KPXT12600PKFAW2QS721)
Yoree Koh and Kirsten Grind, “Twitter CEO Dick Costolo Struggles to De�ine Vision,” The Wall Street Journal (November 6, 2014), http://www.wsj.com/articles/twitter-ceo-dick- costolo-struggles-to-de�ine-vision-1415323289 (http://www.wsj.com/articles/twitter-ceo-dick-costolo-struggles-to-de�ine-vision-1415323289) (accessed November 23, 2015).
Can Dick Costolo and his leadership team formulate a solid vision and strategic plan that will ease the confusion and frustration and move Twitter forward? One of the most important functions of a leader is to articulate and communicate a powerful vision that will motivate and energize people toward the future and then help them implement the plans that will achieve that future. In this chapter, we �irst provide an overview of the leader's role in creating the organization's future by stimulating both vision and action. Then, we examine what vision is, the underlying themes that are common to effective visions, and the steps to creating a powerful vision. The distinction between vision and the organization's mission is also explained. Finally, we discuss how leaders formulate and execute a strategy to achieve the vision.
13-1. The Leader's Job: Looking Forward Many cars and mobile phones have built-in GPS systems that will guide you to the restaurant, business, or residence you're trying to get to. If you take a wrong turn, the unit will reset and report something like “recalculating route.” That's similar to what leaders do. They look forward and recalculate the route when it is necessary to keep the organization thriving. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#SHZTF1M7KKQXG0F2A856) Superior organizational performance is not a matter of luck. It is determined largely by the choices leaders make. Top leaders are responsible for knowing the organization's environment, considering what it might be like in 5 or 10 years, and setting a direction for the future that everyone can believe in. Lorraine Monroe, former principal of the renowned Frederick Douglass Academy in Harlem and founder of the Lorraine Monroe Leadership Institute, refers to a leader as “the drum major, the person who keeps a vision in front of people and reminds them of what they're about.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#UDNC1DUM5PMD98CQ8052)
This image comes from Lisa Haneburg, “Recalculating the Route,” The Conference Board Review (March–April 2009), p. 13.
Keith H. Hammonds, “The Monroe Doctrine,” Fast Company (October 1999), pp. 230–236.
13-1a. Stimulating Vision and Action
In the waiting lounge of a �ine lakeside restaurant, a sign reads, “Where there is no hope in the future, there is no power in the present.” The owner explains its presence there by telling the story of how his small, picturesque village with its homes and businesses was sacri�iced to make way for a �lood-control project. After losing their �ight to reverse the decision, most business leaders simply let their businesses decline and die. Soon, the only people who came to the village did so to eat at the cheery little diner, whose owner became the butt of jokes because he continued to work so hard. Everyone laughed when he chose to open a larger and fancier restaurant on the hill behind the village. Yet, when the �lood-control project was �inally completed, he had the only attractive restaurant on the edge of a beautiful, newly constructed lake that drew many tourists. Anyone could have found out, as he did, where the edge of the lake would be, yet most of the business owners had no vision for the future. The restaurant owner had a vision, and he took action on it.
New Leader Action Memo
As a leader, you can combine vision with action. You can make a difference for your team or organization by both having big dreams and transforming them into signi�icant strategic action.
Hopes and dreams for the future are what keep people moving forward. Read the story in the Consider This box for some insight into the importance of vision as a window to the world that followers may not see. Leaders not only tap into dreams for the future; to make a real difference, they link those dreams with strategic actions . Vision has to be translated into speci�ic goals, objectives, and plans so that employees know how to move toward the desired future. An old English churchyard saying applies to organizations as it does to life:
Life without vision is drudgery .
Vision without action is but an empty dream .
Action guided by vision is joy and the hope of the earth . * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#KSTKUFUR1M32WQUG9915)
Quoted in Pat McHenry Sullivan, “Finding Visions for Work and Life,” Spirit at Work (April 1997), p. 3.
Consider This! Opening a Window to a Brighter World
A blind man was brought to the hospital. He was both depressed and seriously ill. He shared a room with another man, and one day asked, “What is going on outside?” The man in the other bed explained in some detail about the sunshine, the gusty winds, and the people walking along the sidewalk. The next day, the blind man again asked, “Please tell me what is going on outside today.” The roommate responded with a story about the activities in a park across the way, the ducks on the pond, and the people feeding them. The third day and each day thereafter for two weeks, the blind man asked about the world outside and the other man answered, describing a different scene. The blind man enjoyed these talks, and he grew happier learning about the world seen through the window.
Then the blind man's roommate was discharged from the hospital. A new roommate was wheeled in—a tough-minded businessman who felt terrible, but wanted to get work done. The next morning, the blind man said, “Will you please tell me what is going on outside?” The businessman didn't feel well, and he didn't want to be bothered to tell stories to a blind man. So he responded assertively, “What do you mean? I can't see outside. There is no window here. It's only a wall.”
The blind man again became depressed, and a few days later he took a turn for the worse and was moved to intensive care.
Source: Based on a story the author heard at a spiritual service in Santa Fe, New Mexico.
Exhibit 13.1 illustrates four possibilities of leadership in providing direction. Four types of leaders are described based on their attention to vision and attention to action. The person who is low both on providing vision and stimulating action is uninvolved , not really a leader at all. The leader who is all action and little vision is a doer . He or she may be a hard worker and dedicated to the job and the organization, but the doer is working blind. Without a sense of purpose and direction, activities have no real meaning and do not truly serve the organization, the employees, or the community. The dreamer , on the other hand, is good at providing a big idea with meaning for self and others. This leader may effectively inspire others with a vision, yet he or she is weak on executing strategic action. The vision in this case is only a dream, a fantasy, because it has little chance of ever becoming reality. To be an effective leader , one both dreams big and transforms those dreams into signi�icant strategic action, either through one's own activities or by hiring other leaders who can effectively execute the vision and strategy.
Exhibit 13.1. Linking Strategic Vision and Strategic Action
Source: Based on William D. Hitt, The Leader–Manager: Guidelines for Action (Columbus, OH: Battelle Press, 1988), p. 7.
13-1b. Strategic Leadership
Strategic leadership is one of the most critical issues facing organizations. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#MGCU3UNSRU1CDLREX191) Strategic leadership means the ability to anticipate and envision the future, maintain �lexibility, think strategically, and work with others to initiate changes that will create a competitive advantage for the organization in the future. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#VZBXTLN1SR9LY8MCX543) In a fast-changing world, leaders are faced with a bewildering array of complex and ambiguous information, and no two leaders will see things the same way or make the same choices.
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership
R. Duane Ireland and Michael A. Hitt, “Achieving and Maintaining Strategic Competitiveness in the 21st Century: The Role of Strategic Leadership,” Academy of Management Executive 13, no. 1 (1999), pp. 43–57; M. Davids, “Where Style Meets Substance,” Journal of Business Strategy 16, no. 1 (1995), pp. 48–60; and R. P. White, P. Hodgson, and S. Crainer, The Future of Leadership (London: Pitman Publishing, 1997).
Ireland and Hitt, “Achieving and Maintaining Strategic Competitiveness.”
The complexity of the environment and the uncertainty of the future can overwhelm a leader. In addition, many leaders are inundated with information and overwhelmed by minutiae. They may have dif�iculty �inding the quiet time needed for “big-picture thinking.” One study looked at the time executives in various departments spend on long-term, strategic activities and found discouraging results. In the companies studied, 84 percent of �inance executives' time, 70 percent of information technology (IT) executives' time, and 76 percent of operational managers' time is focused on routine, day-to-day activities. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#LSJF86HVHA32AEPQ2798) Another study found that, on average, senior executives spend less than 3 percent of their energy on building a corporate perspective for the future. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#CFLEPWQHAR35U0XHN132) Yet no organization can thrive for the long term without a clear viewpoint and framework for the future.
Louisa Wah, “The Dear Cost of ‘Scut Work,’” Management Review (June 1999), pp. 27–31.
Gary Hamel and C. K. Prahalad, “Seeing the Future First,” Fortune (September 5, 1994), pp. 64–70.
New Leader Action Memo
As a leader, you can learn to think strategically. You can anticipate and envision the future, and you can initiate changes that can help the group or organization thrive over the long term.
Exhibit 13.2 illustrates the levels that make up the domain of strategic leadership. Strategic leadership is responsible for the relationship of the external environment to choices about vision, mission, strategy, and their execution. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#AQLNMUKPHB8HGXAVG419) At the top of Exhibit 13.2 is a clear, compelling vision of where the organization wants to be in 5 to 10 years. A vision is an aspiration for the future and answers the question “Where are we headed?” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#FESFQLG7TH0WBVFNC002) The vision works in concert with the company's mission—its core values, purpose, and reason for existence. Mission answers the question, “Who are we as an organization?” The next level in Exhibit 13.2 , strategy, responds to the question, “How do we achieve the vision?” Strategy provides direction for translating the vision into action and is the basis for the development of speci�ic mechanisms to help the organization achieve goals. Execution speci�ies “What do we do right now?” Strategies are intentions, whereas execution is through the basic organizational architecture (structure, incentives) that makes things happen. Each level of the hierarchy in Exhibit 13.2 supports the level above it. Each part of this framework will be discussed in the remainder of this chapter.
Ray Maghroori and Eric Rolland, “Strategic Leadership: The Art of Balancing Organizational Mission with Policy, Procedures, and External Environment,” The Journal of Leadership Studies 4, no. 2 (1997), pp. 62–81.
Pieter Klaas Jagersma, “Aspiration and Leadership,” Journal of Business Strategy 28, no. 1 (2007), pp. 45–52.
the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Strategic leadership the ability to anticipate and envision the future, maintain �lexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future
Exhibit 13.2. The Domain of Strategic Leadership
Strategic leadership doesn't come naturally, but leaders can develop the necessary skills for thinking strategically and navigating uncertainty: * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#YXMPR0L4K5TRVM2P8894)
Anticipate threats and opportunities . Effective leaders are continuously scanning the environment—talking to customers and other outsiders, researching the industry and markets, and so forth—so they don't miss important signs of change that could help or hurt the organization.
Challenge the status quo . Strategic thinkers question their own and others' assumptions and mental models, as we discussed in Chapter 5 . They examine problems or opportunities from many perspectives.
Interpret trends . Leaders look for patterns in what they see and hear and seek new insights rather than accepting the easy answer. One food company executive was developing a marketing plan for the company's low-carb cake line, but she noticed that most of the customers she talked to kept mentioning problems with eating too much sugar. She worked with other leaders and came up with a highly pro�itable change in the product mix from low-carb to sugar-free cakes.
Achieve alignment . Leaders have to get buy-in among employees and other stakeholders who may have different, even con�licting views and interests. To achieve the vision, everyone must be aligned in the same direction.
This discussion is based heavily on Paul J. H. Schoemaker, Steve Krupp, and Samantha Howland, “Strategic Leadership: The Essential Skills,” Harvard Business Review (January–February, 2013), pp. 131–134.
To improve strategic leadership, leaders can identify weak points in these skills and work toward correcting them. John Riccitiello, former CEO of Electronic Arts (EA), talks about the importance of these leader skills.
In the Lead John Riccitiello, Electronic Arts
Several years ago, John Riccitiello saw that EA was in trouble. Social networks and smartphones were threatening the traditional video game business, and people in the company were scared. Riccitiello had a realization that as a leader, “you need to paint a picture that everyone can buy into, even though you're not sure yourself it's going to work because you're trying to see the other side of a technology transition.”
Riccitiello listens to people both inside and outside the organization to try to make sure he's not heading left when he should be heading right, but he understands that being a leader in a fast-changing industry requires continual adjustment. He is honest with people and tells them that charting a new direction means that sometimes it may be only 70 percent certain because of the uncertainty of the industry, but he emphasizes that everyone has to be 100 percent committed to the direction and know that leaders will pull back and make adjustments when they learn something isn't working. Riccitiello successfully steered EA through a major transformation from console games to the world of smartphones and tablets by aligning everyone in the same direction. In a large organization, he says, “you're mostly painting a picture for a lot of people for whom you're just a concept…. So you've got to �ind a way to be incredibly consistent, so when other people repeat the same thing it conjures up the same image for everyone else.” Without a vision that everyone understands and buys into, people can �ind themselves pulling in opposite directions—that makes it tough for the company to get where it needs to go. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#SVRQAG3SXFDPB875T102)
Adam Bryant, “The Importance of Painting a Clear Picture” (an interview with John Riccitiello), The New York Times (November 26, 2011), http://www.nytimes.com/2011/11/27/business/electronic-arts-chief-on-painting-a-consistent-picture.html?pagewanted=all&_r=0 (http://www.nytimes.com/2011/11/27/business/electronic-arts-chief-on-painting-a-consistent-picture.html?pagewanted=all&_r=0) (accessed June 4, 2013).
Riccitiello resigned in 2013, saying he felt it was time for a new top leader to take EA to the next phase of growth. During his time with EA, Riccitiello took some bold and risky moves. Some paid off and some didn't, but his approach to strategic leadership was generally positive for the company. One person who worked closely with Riccitiello on shaping strategy says, “The truth is that the game industry continues to pivot very rapidly. EA is in a good place but it requires a lot of energy and laser focus…. He's been pivoting the company hard for many years, but the industry keeps pivoting faster.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#YYNXZAFQFAJ8PU9JU617)
Daniel Nye Grif�iths, “John Riccitiello Steps Down as EA CEO—Why, and What Now?” Forbes (March 18, 2013), http://www.forbes.com/sites/danielnyegrif�iths/2013/03/18/john- riccitiello-steps-down-as-ea-ceo/ (http://www.forbes.com/sites/danielnyegrif�iths/2013/03/18/john-riccitiello-steps-down-as-ea-ceo/) (accessed June 4, 2013); and Kim-Mai Cutler, “EA CEO John Riccitiello Steps Down over ‘Shortcomings’ in Financial Performance,” TechCrunch (March 18, 2013), http://techcrunch.com/2013/03/18/ea-ceo-john-riccitiello-steps-down- larry-probst-becomes-executive-chairman/ (http://techcrunch.com/2013/03/18/ea-ceo-john-riccitiello-steps-down-larry-probst-becomes-executive-chairman/) (accessed June 4, 2013).
Firm strategic leadership is essential for organizations to be effective. Consider that the Conference Board reported that 40 percent of all IT development projects are canceled before they are completed, at a signi�icant cost to organizations, and the primary factor explaining their failure is ineffective strategic leadership. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mqmnmey9e5g3jdk4u369#FCVR47RHSJUYSL1X7058)
Conference Board study, reported in John J. Sosik, Don I. Jung, Yair Berson, Shelley D. Dionne, and Kimberly S. Jaussi, “Making All the Right Connections: The Strategic Leadership of Top Executives in High-Tech Organizations,” Organizational Dynamics 34, no. 1 (2005), pp. 47–61.
13-2. Leadership Vision A vision is an attractive, ideal future that is credible yet not readily attainable. It is an ambitious view of the future that everyone involved can believe in, one that can realistically be achieved, yet one that offers a future that is better in important ways than what now exists. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#PPPUQZXL0UMKZP9B6825) Strong, inspiring visions have been associated with higher organizational performance and greater employee motivation and satisfaction. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#BKDEDLQP1H43L02U6826) After the �inancial crisis, leaders at Standard Chartered Bank, which had been a regular takeover target for some years, came out with a brief vision statement, “Here for good,” that re�lected a dual aspiration: staying around for the long term, and doing good in the world. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#QZKS60UQX59GBJ9EA685) The vision �ired people's imaginations and renewed their sense of pride. Other examples of this type of brief, compelling, and slogan-like vision include Coca-Cola's “A Coke within arm's reach of everyone on the planet,” Canon's “Beat Xerox,” and Komatsu's “Encircle Caterpillar.” These visions can be easily communicated and understood by everyone in the organization and serve to motivate all employees.
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
Burt Nanus, “Leading the Vision Team,” The Futurist (May–June 1996), pp. 20–22; Warren Bennis and Burt Nanus, Leaders: The Strategies for Taking Charge (New York: Harper & Row, 1985); and Burt Nanus and Stephen M. Dobbs, Leaders Who Make a Difference: Essential Strategies for Meeting the Non-Pro�it Challenge (San Francisco: Jossey-Bass, 1999).
R. J. Baum, E. A. Locke, and S. Kirkpatrick, “A Longitudinal Study of the Relations of Vision and Vision Communication to Venture Growth in Entrepreneurial Firms,” Journal of Applied Psychology 83 (1998), pp. 43–54; studies reported in Anthony Bell, “Using Vision to Shape the Future,” Leader to Leader (Summer 2007), pp. 17–21; and Sharda Prashad, “The Value Chain,” Canadian Business (February 17–March 2, 2009), pp. 65–69.
Nathaniel Foote, Russell Eisenstat, and Tobias Fredberg, “The Higher Ambition Leader,” Harvard Business Review (September 2011), pp. 94–101.
Exhibit 13.3 lists a few more brief vision statements that let people know where the organization wants to go in the future. Not all successful organizations have such short, easily communicated slogans, but their visions are powerful because leaders paint a compelling picture of where the organization wants to go. The vision expressed by civil rights leader Martin Luther King, Jr., in his “I Have a Dream” speech is a good example of how leaders paint a vision in words. King articulated a vision of racial harmony, where discrimination was nonexistent, and he conveyed the con�idence and conviction that his vision would someday be achieved. Courage and conviction are characteristics of successful visionary leaders. Vision isn't magic; it relies on skills and qualities that leaders can develop.
Exhibit 13.3. Examples of Brief Vision Statements
Apple : To make a contribution to the world by making tools for the mind that advance humankind.
Four Seasons : Achieve �irst-choice ranking among guests.
BAE Systems (defense company) : To protect those who protect us.
Virginia Department of Transportation : Keep Virginia moving.
Deloitte Touche Tohmatsu : To be recognized as the best professional services �irm in the world.
Ukrop's Food Group : To be a world-class provider of food and services.
United Way : Improve lives by mobilizing the caring power of communities.
Sources: These examples are from Pieter Klass Jagersma, “Aspiration and Leadership,” Journal of Business Strategy 28, no. 1 (2007), pp. 45–52; Douglas A. Ready and Emily Truelove, “The Power of Collective Ambition,” Harvard Business Review (December 2011), pp. 95–102; “We Protect Those Who Protect Us,” York Daily Record , May 12, 2010, http://www.ydr.com/ci_15067292 (http://www.ydr.com/ci_15067292) (accessed May 16, 2013); James G. Clawson, Level Three Leadership: Getting Below the Surface , 4th ed. (Upper Saddle River, NJ.: Pearson/Prentice Hall, 2009), pp. 120–124; Sooksan
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
vision an attractive, ideal future that is credible yet not readily attainable
Kantabutra and Gayle C. Avery, “The Power of Vision: Statements That Resonate,” Journal of Business Strategy 31, no. 1 (2010), pp. 37–45; and Nancy Lublin, “Wordplay,” Fast Company (November 2009), p. 86.
Leaders in nonpro�it organizations also create visions so people know where the organization wants to go. For example, leaders at the Greater Chicago Food Depository have a vision of transforming the nonpro�it agency from an organization that just feeds the hungry to one that helps end hunger. The agency sponsors an intense 12-week program aimed at teaching low-income, low-skilled workers the basics of cooking, along with life skills such as punctuality, teamwork, commitment, and personal responsibility, with the goal of landing each person a good job. The vision of helping people change their lives has energized employees in a way that simply providing food to low-income clients never did. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#JPMFUC40AN5T8KU66196) Vision is just as important for nonpro�it agencies like the Greater Chicago Food Depository, the United Way, and the Salvation Army as it is for businesses such as Coca-Cola, Google, or General Electric. Indeed, nonpro�its sometimes need vision even more than do businesses, since they operate without the regular feedback provided by pro�it and loss. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#RBCKJYW9K9E6ED8DZ818)
Roger Thurow, “Different Recipe; To Tackle Hunger, a Food Bank Tries Training Chefs,” The Wall Street Journal (November 28, 2006), pp. A1, A13; and Joseph Weber, “Waging War on Hunger,” BusinessWeek (May 16, 2005), pp. 94, 96.
Andrea Kilpatrick and Les Silverman, “The Power of Vision,” Strategy & Leadership 33, no. 2 (2005), pp. 24–26.
In Exhibit 13.4 , vision is shown as a guiding star, drawing everyone along the same path toward the future. Vision is based in the current reality but is concerned with a future that is substantially different from the status quo. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#TEGPJCQGVY5XBK0QS621) Taking the group or organization along this path requires leadership. Compare this to rational management (as described in Chapter 1 ), which leads to the status quo.
Andrew Douglas, John O. Burtis, and L. Kristine Pond-Burtis, “Myth and Leadership Vision: Rhetorical Manifestation of Cultural Force,” The Journal of Leadership Studies 7, no. 4 (2001), pp. 55–69.
Exhibit 13.4. The Nature of the Vision
Source: Based on William D. Hitt, The Leader–Manager: Guidelines for Action (Columbus, OH: Battelle Press, 1988).
13-2a. What Vision Does
New Leader Action Memo
Go to Leader's Self-Insight 13.1 and answer the questions to learn where you stand with respect to a personal vision.
Vision works in a number of important ways. An effective vision provides a link between today and tomorrow, serves to energize employees and focus their attention, provides meaning for people's work, and sets a standard of excellence and integrity in the organization. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#RFHCF0BPBWT44D89U196)
This section is based on Burt Nanus, Visionary Leadership (San Francisco: Jossey-Bass, 1992), pp. 16–18; and Richard L. Daft and Robert H. Lengel, Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations (San Francisco: Berrett-Koehler, 1998).
Leader's Self-Insight 13.1. My Personal Vision
Instructions : How much do you think about the positive outcomes you want in your future? Do you have a personal vision for your life? Indicate whether each of the following items is Mostly False or Mostly True for you.
Mostly False Mostly True 1. I can describe a compelling image of my future. 2. Life to me seems more exciting than routine. 3. I have created very clear life goals and aims. 4. I feel that my personal existence is very meaningful. 5. In my life, I see a reason for being here. 6. I have discovered a satisfying “calling” in life. 7. I feel that I have a unique life purpose to ful�ill. 8. I will know when I have achieved my purpose. 9. I talk to people about my personal vision. 10. I know how to harness my creativity and use my talents.
Scoring and Interpretation
Add the number of Mostly True answers for your score: . A score of 7 or above indicates that you are in great shape with respect to a personal vision. A score of 3 or below would suggest that you have not given much thought to a vision for your life. A score of 4–6 would be about average.
Creating a personal vision is dif�icult work for most people. It doesn't happen easily or naturally. A personal vision is just like an organizational vision in that it requires focused thought and effort. Spend some time thinking about a vision for yourself and write it down.
Sources: The ideas for this questionnaire were drawn primarily from Chris Rogers, “Are You Deciding on Purpose?” Fast Company (February/March 1998), pp. 114–117; and J. Crumbaugh, “Cross-Validation of a Purpose-in-Life Test Based on Frankl's Concepts,” Journal of Individual Psychology 24 (1968), pp. 74–81.
Vision Links the Present to the Future Vision connects what is going on right now with what the organization aspires to. A vision is always about the future, but it begins with the here and now. At Google, employees are guided by a vision of unifying data and information around the world, one day totally obliterating language barriers via the Internet. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#APNJYG81SCQAKJ7A5250) They create services that meet current needs, but they also strive to envision and create products and services that encourage other, broader applications.
Alan Deutschman, “Can Google Stay Google?” Fast Company (August 2005), pp. 62–68.
In organizations, the pressures to meet deadlines, make the big sale, solve immediate problems, and complete speci�ic projects are very real. Some have suggested that leaders need “bifocal vision,” the ability to take care of the needs of today and meet current obligations while also aiming toward dreams for the future. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#GWSKPY75QQEA93C4S891) The ability to operate on both levels can be seen in a number of successful companies, such as DuPont. Top executives routinely review short-term operational goals
with managers throughout the company, re�lecting a focus on the present. However, DuPont has succeeded over the long haul because of its leaders' ability to keep an eye on the future and shift gears quickly to take advantage of new opportunities. Since its beginning, DuPont's business portfolio has shifted from gunpowder to specialty chemicals, and today, the company has moved into biotechnology and life sciences. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#BRPE3R4QYSXJR4KNQ105)
Oren Harari, “Looking Beyond the Vision Thing,” Management Review (June 1997), pp. 26–29; and William D. Hitt, The Leader-Manager: Guidelines for Action (Columbus, OH: Battelle Press, 1988), p. 54.
Nancy Chambers, “The Really Long View,” Management Review (January 1998), pp. 11–15; and Arie de Geus, “The Living Company,” Harvard Business Review (March–April 1997), pp. 51– 59.
Vision Energizes People and Focuses Attention When people have a clear picture of where the organization wants to be in the future, they can help take it there. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#FCTP594DWP2K2K9EY325) Many people commit their time and energy voluntarily to projects they believe in—a political campaign, community events, or environmental causes, for example. These same people often leave their energy and enthusiasm at home when they go to work because they don't have anything to inspire them. A clear vision lets people know what they should be doing and, just as importantly, what they should not be doing. Sometimes, what is left out or “not done” is just as valuable as what is done for building the desired future. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#QULH2VP81LGY9V9Q1073) Consider TeamBank, a rapidly growing and pro�itable subsidiary of the German Volksbanken Raiffeisenbanken Group. The innovative �inancial services company has a vision to “be a responsible partner for fair consumer �inancing.” Based on the vision, managers have chosen to stay out of point-of- sale �inancing, often used for purchases of cars or expensive consumer electronics, because they know people often sign loans on impulse that they later cannot repay. Similarly, employees know not to consider socioeconomic scores of residential areas when offering loans because this goes against the company's vision. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#NYTG41P37CB9K9KPL335)
Robert S. Kaplan, “What to Ask the Person in the Mirror,” Harvard Business Review (January 2007), pp. 86–95.
Matthew E. May, “The Art of Adding by Taking Away,” The New York Times (January 19, 2013), http://www.nytimes.com/2013/01/20/jobs/matthew-may-on-the-art-of-adding-by- taking-away.html?_r=0 (http://www.nytimes.com/2013/01/20/jobs/matthew-may-on-the-art-of-adding-by-taking-away.html?_r=0) (accessed January 20, 2013).
Christoph H. Loch, Fabian J. Sting, Arnd Huchzermeier, and Christiane Decker, “Finding the Pro�it in Fairness,” Harvard Business Review (September 2012), pp. 111–115.
Vision Gives Meaning to Work Vision needs to transcend the bottom line to provide employees with a sense of meaning and purpose. People are generally not willing to make emotional commitments just for the sake of increasing pro�its, but they are often eager to commit to something truly worthwhile, something that makes life better for others or improves their communities. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#QWRT28LQVTSVC72ZZ732) Consider Henry Ford's original vision for Ford Motor Company:
Nanus, Visionary Leadership , p. 16; and Gregory Gull, “Gravity of Vision: It Brings Unity or Wholeness,” Leadership Excellence (February 2012), p. 16.
I will build a motor car for the great multitude…. It will be so low in price that no man making a good salary will be unable to own one and enjoy with his family the blessings of hours of pleasure in God's open spaces…. When I'm through, everybody will be able to afford one, and everyone will have one. The horse will have disappeared from our highways, the automobile will be taken for granted [and we will give many people] employment at good wages. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#GHFAB49N93R99MAZY085)
James C. Collins and Jerry I. Porras, “Building Your Company's Vision,” Harvard Business Review (September–October 1996), pp. 65–77 (quote on p. 74).
Employees were motivated by Ford's vision because they saw an opportunity to make life better for themselves and others.
People want to �ind signi�icance and dignity in their work. Even employees performing routine tasks can �ind pride in their work when they have a larger purpose for what they do. For example, an insurance clerk who thinks of her job as helping victims of �ire or burglary put their lives back in order will feel very differently than one who thinks of his job as “processing insurance claims.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#PUFU9NHQKVMGQ3BLH442) “People want to accomplish great things,” advises former UPS CEO Michael L. Eskew. “They want to make a difference.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#AYZB8BV4C16QVWJN4729)
Roger E. Herman and Joyce L. Gioia, “Making Work Meaningful: Secrets of the Future-Focused Corporation,” The Futurist (December 1998), pp. 24–26.
“What I Know Now,” an interview with Michael L. Eskew by Paul B. Brown, Fast Company (November 2008), p. 108.
New Leader Action Memo
As a leader, you can articulate an optimistic vision for the future that will inspire and challenge people to give their best, set a standard of excellence and integrity, and help people �ind meaning in their work. Evaluate your potential for visionary leadership by completing the questionnaire in Leader's Self-Insight 13.2 .
Vision Establishes a Standard of Excellence and Integrity A powerful vision frees people from the mundane by providing them with a challenge that requires them to give their best. A quote from Antoine Saint-Exupery illustrates this aspect of leader vision: “A rock pile ceases to be a rock pile the moment a single man contemplates it, bearing within him the image of a cathedral.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#ZPHZCMKJYJ9SQN8QH608) Vision also provides a measure by which employees can gauge their contributions to the organization. Most workers welcome the chance to see how their work �its into the whole. Think of how frustrating it is to watch a movie when the projector is out of focus. Today's complex, fast-changing business environment often seems just like that—out of focus. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#GRGKUC48TWPFNQKV7912) A vision is the focus button. It clari�ies an image of the future and lets people see how they can contribute. A vision presents a challenge—asking people to go where they haven't gone before.
Antoine Saint-Exupery, Pilote de Guerre (1942); as quoted in Michael M. Reuter and John H. Shannon, “Leadership Think: Imagine the Unimaginable,” Leadership Excellence (November 2012), p. 8.
James M. Kouzes and Barry Z. Posner, The Leadership Challenge: How to Get Extraordinary Things Done in Organizations (San Francisco: Jossey-Bass, 1988), p. 98.
Leader's Self-Insight 13.2. Visionary Leadership
Instructions : Think about a situation in which you either assumed or were given a leadership role in a group. Imagine your own behavior as a leader. To what extent do the following statements characterize your leadership? Indicate whether each of the following items is Mostly False or Mostly True for you.
Mostly False Mostly True 1. I have a clear understanding of where we are going. 2. I work to get others committed to our desired future. 3. I initiate discussion with others about the kind of future I would like us to create together. 4. I show others how their interests can be realized by working toward a common vision. 5. I look ahead and forecast what I expect in the future. 6. I make certain that the activities I manage are broken down into manageable chunks. 7. I seek future challenges for the group. 8. I spend time and effort making certain that people adhere to the values and outcomes
that have been agreed on.
9. I inspire others with my ideas for the future. 10. I give special recognition when others' work is consistent with the vision.
Scoring and Interpretation
The odd-numbered questions pertain to creating a vision for the group. The even-numbered questions pertain to implementing the vision. Calculate your score for each set of questions. Which score is higher? Compare your scores with those of other students.
This questionnaire pertains to two dimensions of visionary leadership. Creating the vision has to do with whether you think about the future, whether you are excited about the future, and whether you engage others in the future. Implementing the vision is about the extent to which you communicate, allocate the work, and provide rewards for activities that achieve the vision. Which of the two dimensions is easier for you? Are your scores consistent with your understanding of your own strengths and weaknesses? What might you do to improve your scores?
Good visions clarify and connect to the core values and ideals of the organization and thus set a standard of integrity for employees. A good vision brings out the best in people by illuminating important values, speaking to people's hearts, and letting them be part of something bigger than themselves.
13-2b. Common Themes of Vision
Four themes are common to powerful, effective visions: they have broad, widely shared appeal; they help organizations deal with change; they re�lect high ideals; and they de�ine both the organization's destination and the basic rules to get there.
Vision Has Broad Appeal Although it may seem obvious that a vision can be achieved only through people, many visions fail to adequately involve employees. Isolated top leaders may come up with a grand idea that other employees �ind ridiculous, or they might forget that achieving the vision requires understanding and commitment throughout the organization. The vision cannot be the property of the leader alone. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#RTGJYV50TVGY676QF994) The ideal vision is identi�ied with the team or organization as a whole. It “grabs people in the gut” and motivates them to work toward a common end. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#EDCV6B500XAXLM6JS573) Admiral Vernon Clark, the former chief of naval operations we described in Chapter 4 , involved sailors in the vision of creating a twenty-�irst-century U.S. Navy that is “strategically and operationally agile, technologically and organizationally innovative, networked at every level, highly joint [with the other services], and effectively integrated with allies” by emphasizing each individual's personal role. “What we do matters,” he told them. “We do it because it's important and we are people of service. We are committed to something larger than ourselves: the protection of America's interests around the world and democracy.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#PUQWLBHCXJYCHAEM0952)
Marshall Sashkin, “The Visionary Leader,” in Jay Conger and Rabindra N. Kanungo, eds., Charismatic Leadership: The Elusive Factor in Organizational Effectiveness (San Francisco: Jossey- Bass, 1988), pp. 122–160.
James C. Collins and Jerry I. Porras, “Organizational Vision and Visionary Organizations,” California Management Review (Fall 1991), pp. 30–52.
Vernon Clark quoted in Michael Lee Stallard and Jason Pankau, “To Boost Performance, Connect with the Core,” Leader to Leader (Summer 2010), pp. 51–57.
Vision Deals with Change Effective visions help the organization achieve bold change. Online retailer Amazon.com's early vision was to be “Earth's largest bookstore.” That aspiration achieved, the company expanded into all types of merchandise. However, by 2004, Jeff Bezos was exploring a radical idea for a retailer: he wanted Amazon to make the hardware people could use to buy Amazon's stuff. A few years later, the Kindle and Kindle Fire were born. Jateen Parekh, who joined Amazon to help develop the Kindle, recalls Bezos asking him What should Amazon be doing in 20 years? “The fact that the CEO was thinking that far out was huge,” Parekh says. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#KTJTQ16TRM9QGNGAP948) Change can be frightening, but a clear sense of direction helps people face the dif�iculties and uncertainties involved in the change process. When employees have a clear and consistent guiding vision, everyday decisions and actions throughout the organization respond to current problems and challenges in ways that move the organization toward the future. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#FKCPQC1BTNFBE5ULL977)
Brad Stone, “The Omnivore,” Bloomberg BusinessWeek (October 3–9, 2011), pp. 58–65.
Neville Pritchard, “Commitment to Purpose—The Catalyst for Organisation Change and Performance,” Industrial and Commercial Training 42, no. 7 (2010), pp. 360–365.
Vision Re�lects High Ideals Good visions are idealistic. Vision is an emotional appeal to our fundamental human needs and desires—to feel important and useful, to believe we can make a real difference in the world. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#UMVNJ6V1JNHQJUX3D413) Visions that portray an uplifting future have the power to inspire and energize people. For example, when John F. Kennedy announced a vision for NASA to send a man to the moon by the end of the 1960s, NASA had only a small amount of the knowledge it would need to accomplish the feat. Yet in July 1969, the vision became a reality. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#GEJP8L0S2AA9XPN6E457) A business example comes from Qualcomm, where former CEO Paul Jacobs articulated an idealistic vision to improve the capacity of wireless networks by 1,000 times, as well as provide tiny home equivalents of cellular broadcast towers. Since there is growing demand for wireless data transmission, leaders believe some of that traf�ic can be moved to home bases that are about the size of a deck of cards and would plug into a home computer or Wi-Fi connection. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#LLVXV3ASVXWVUKXH8446)
Nanus, Visionary Leadership , p. 26; John W. Gardner, “Leadership and the Future,” The Futurist (May–June 1990), pp. 9–12; and Bennis and Nanus, Leaders: The Strategies for Taking Charge , p. 93.
Gardner, “Leadership and the Future.”
Don Clark, “Boss Talk: Qualcomm CEO Envisions Cell Base Stations in Your Home,” The Wall Street Journal (December 11, 2012), http://online.wsj.com/article/SB10001424127887324339204578173332194107300.html (http://online.wsj.com/article/SB10001424127887324339204578173332194107300.html) (accessed June 3, 2013).
People at Qualcomm have been developing the technology to make the vision a reality. When every person understands and embraces a vision, the organization becomes self-adapting. Although each person acts independently, everyone is working in the same direction. In the new sciences, this is called the principle of self-reference. Self-reference means that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole. Thus, the vision serves to direct and control people for the good of themselves and the organization.
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Vision De�ines the Destination and the Journey A good vision for the future includes speci�ic outcomes that the organization wants to achieve. It also incorporates the underlying values that will help the organization get there. For example, a private business school might specify certain outcomes such as a top-20 ranking, placing 90 percent of students in summer internships, and getting 80 percent of students into jobs by June of their graduating year. Yet in the process of reaching those speci�ic outcomes, the school wants to increase students' knowledge of business, ethical values, and teamwork, as well as prepare them for lifelong learning.
Additionally, the vision may espouse underlying values such as no separation between �ields of study or between professors and students, a genuine concern for students' welfare, and adding to the body of business knowledge. A good vision includes both the desired future outcomes and the underlying values that set the rules for achieving them.
Consider how the vision for Microsoft under new CEO Satya Nadella re�lects many of these common themes.
In the Lead Satya Nadella, Microsoft
Bill Gates started Microsoft with a grand vision for software, and for much of its history Microsoft remained primarily a software company. Windows and Microsoft Of�ice dominated the PC era. But times have changed, and Microsoft has a bold, expansive vision that leaders hope will make the company as dominant in the new environment as was its software in the PC world.
Microsoft will continue to make Windows and software for Windows, but now it also makes hardware, including its own smartphones and Surface devices, as well as applications for iOS, Apple's mobile operating system. Moreover, Microsoft is working on numerous innovative hardware products that don't serve current customers but could create entirely new market niches. CEO Satya Nadella and other leaders believe the future of computing will be fragmented, even chaotic. Under Nadella, Microsoft is willing to make big bets on new technologies and try new products even if they might fail. Rather than killing new ideas because of cost or time concerns, leaders are embracing forward-looking, risky projects. When the team working on the HoloLens, the �irst fully un- tethered holographic computer, introduced the then-secret project to Nadella, they were worried he would kill it, but Nadella said right away, “We are going to create a new product category, and this is the type of thing that Microsoft should be working on.”
People at Microsoft have been reenergized by a vision of being a leader in future-de�ining technologies. Achieving the vision requires that people collaborate extensively both within the company and with outsiders, even with main rivals Apple and Google. Researchers and engineers are working closely together so that experimental technologies get developed into new products rather than languishing in the lab. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#HXCJQXYGLDQ15V2YF644)
Farhad Manjoo, “Microsoft's Rule-Breaking Vision of Myriad Devices,” The New York Times (October 22, 2015), p. B1; and Nick Wing�ield, “Microsoft (Yes, Microsoft) Has a Far- Out Vision,” The New York Times (April 30, 2015), http://www.nytimes.com/2015/05/03/technology/microsoft-yes-microsoft-has-a-far-out-vision.html?_r=0 (http://www.nytimes.com/2015/05/03/technology/microsoft-yes-microsoft-has-a-far-out-vision.html?_r=0) (accessed November 25, 2015).
13-2c. Leader Steps to Creating a Vision
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
Self-reference a principle stating that each element in a system will serve the goals of the whole system when the elements are imprinted with an understanding of the whole
New Leader Action Memo
As a leader, you can co-create a shared vision so that every individual, team, and department is moving in the same direction. You can help people see the values, activities, and objectives that will attain the vision.
In innovative companies, leaders co-create the vision with followers so that everyone is intimately involved in building the desired future. With co-creation, everyone can identify with the vision and have a deeper understanding and commitment to achieving it. In addition, co- creation demonstrates that leaders value the thoughts, ideas, dreams, and power of others. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#ZYYM726X1L5LP1UVU872)
Gregory Gull, “Lead with Vision: Develop Your Thinking Skills,” Leadership Excellence (November 2011), p. 9; and Dave O'Connell, Karl Hickerson, and Arun Pillutla, “Organizational Visioning: An Integrative Review,” Group & Organization Management 36, no. 1 (2011), pp. 103–125.
To co-create a vision, leaders share their personal visions with others and encourage others to express their dreams for the future. This requires openness, good listening skills, and the courage to connect with people on an emotional level. A leader's ultimate responsibility is to be in touch with the hopes and dreams that drive employees and �ind the common ground that binds personal dreams into a shared vision for the organization. The vision becomes the common thread connecting people, involving them personally and emotionally in the organization. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#XVWEM9YRDSGJ5BUD7512) Leaders use the following steps to co-create a vision: * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#MBYVZA9CR781DZ5T8774)
1. Target a vision for a desired future . Vision typically begins with the leader, who has a vivid and compelling idea of where the team or organization should go. The leader has to be excited by the idea before anyone else will be. To target a vision, spend time imagining where you want the organization to be and what it will look and feel like when it gets there.
2. Co-create the vision . Even though leaders get the ball rolling, they don't present a fully formed vision to followers. People want visions of the future that re�lect their own dreams and hopes. Consult as many people from different areas as possible to learn what frustrates them, what energizes them, and what they want the future to be like. Use focus groups or other mechanisms to get people talking about the future and what they want it to be.
3. Identify strengths . Put together a list of what the organization does well and the things people are proud of. Based on talks with people across the organization or what comes out of focus groups, list past achievements, skills, resources, and so forth that might be assets in achieving the desired future. Create a vision that builds on and extends the current strengths of the organization.
4. Write a �irst draft . It's important to get something down in writing, but make sure people know it is a draft that needs feedback. Write from the heart, remembering that it is emotion that drives people. Aim for something great and put yourself into the future you are envisioning.
5. Solicit feedback and create the �inal vision statement . The vision statement may go through several drafts before it is �inal. The important thing is that everyone has a chance to provide feedback.
6. Share the vision widely . Communicate broadly and often, using multiple channels. During the Civil War, Abraham Lincoln was a master at preaching the vision of an America that offered equality, freedom, and a fair chance for all. Through speeches, writings, and conversations, at every conceivable opportunity, he reminded people of the basic principles on which the nation was founded. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jzngmqmkr5316jkcl379#CZWAA1YGUEPQEYLHF023)
Donald T. Phillips, Lincoln on Leadership: Executive Strategies for Tough Times (New York: Warner Books, 1992), pp. 162–165.
Peter M. Senge, The Fifth Discipline: The Art and Practice of the Learning Organization (New York: Doubleday/Currency, 1990), pp. 205–225.
This is based on Tara Jones, “What's Your Vision?” Leadership Excellence (March 2010), pp. 6–7; James M. Kouzes and Barry Z. Posner, “To Lead, Create a Shared Vision,” Harvard Business Review (January 2009), pp. 20–21; Robert P. Hewes, “Power of Visioning,” Leadership Excellence (October 2012), p. 14; and Ari Weinzweig, “Step into the Future,” Inc. (February 2011), http://www.inc.com/magazine/20110201/creating-a-company-vision.html (http://www.inc.com/magazine/20110201/creating-a-company-vision.html) (accessed June 4, 2013).
13-3. Mission Mission is not the same thing as a company's vision, although the two work together. The mission is the organization's core broad purpose and reason for existence. It de�ines the company's core values and reason for being, and it provides a basis for creating the vision. Whereas vision is an ambitious desire for the future, mission is what the organization “stands for” in a larger sense.
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
13-3a. What Mission Does
Whereas visions grow and change, the mission persists in the face of changing technologies, economic conditions, or other environmental shifts. It serves as the glue that holds the organization together in times of change and guides strategic choices and decisions about the future. The mission de�ines the enduring character—the spiritual DNA—of the organization. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#BEVV0XL4C7NVXRG88042) The mission that John D. Rockefeller established for the Rockefeller Foundation—to promote the well-being of mankind throughout the world—still stands 100 years after the organization was founded. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#QGED0QJU4AVVCW4Z4055) For Johnson Development Corporation, founded by former basketball star Earvin “Magic” Johnson in 1993 as part of Magic Johnson Enterprises, the mission has always been to be the nation's foremost development company through enrichment of underserved markets. Some retailers see urban communities as economic wastelands, but Johnson sees them as lands of opportunity. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#WBCN8RBSLXDUN40QW937)
Susan Ellingwood, “On a Mission,” Gallup Management Journal (Winter 2001), pp. 6–7; and Jim Collins, “What Do You Stand For? It's Not Just about What You Make,” Leadership Excellence (October 2011), p. 5.
Judith Rodin, “Anniversaries Are Not to Be Wasted,” Harvard Business Review (November 2012), p. 36.
Stephen Xavier, “Great Leaders,” Leadership Excellence (December 2010), p. 13.
Particularly in today's environment, people are drawn to companies that have a compelling purpose. Companies with strong missions that give people purpose, such as Medtronic's “To restore people to full life and health” or Liberty Mutual Company's “Helping people live safer, more secure lives” typically attract better employees, have better relationships with external parties, and perform better in the marketplace over the long term. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#XSCV71NCSKEL8HWYC279) This chapter's Leader's Bookshelf describes an interesting snack food company with a mission of spreading kindness as well as fruit and nut bars.
Bill George, “The Company's Mission Is the Message,” strategy + business 33 (Winter 2003), pp. 13–14; and Jim Collins and Jerry Porras, Built to Last: Successful Habits of Visionary Companies (New York: HarperBusiness, 1994).
Leader's Bookshelf Do the KIND Thing: Think Boundlessly, Work Purposefully, Live Passionately By Daniel Lubetzky
When he launched KIND Healthy Snacks in 2004, Daniel Lubetzky's main product was fruit-and-nut bars, but making snacks wasn't the main purpose of the organization. Lubetzky founded and built the company with a mission of promoting a kinder world. As the son of a Holocaust survivor, Lubetzky grew up hearing stories from his father about life in a concentration camp. He says his father “made sure to remind me about the occasions of kindness when in the worst and darkest moments, people were being kind to him.” One story recalled a German soldier who gave him a potato. “He could have gotten in trouble for throwing that potato at the �loor to my father. But he threw that potato at him. It was one of those moments where my dad felt—as he told us when we were kids—that that potato gave him the sustenance maybe to live.”
Lubetzky decided early on that he wanted to create a company that, as its core purpose, inspired people to live a kind life and spread kindness. In his book, Do the KIND Thing , Lubetzky points out that all leaders can incorporate kindness into their organizations.
Lessons for Being KIND
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
mission the organization's core broad purpose and reason for existence
Lubetzky organizes his book around the principles used to build the company—purpose, grit, truth and discipline, keeping it simple, originality, transparency and authenticity, empathy, trust, and ownership and resourcefulness. Here are a few of Lubetzky's lessons for leaders:
Use the Power of Thinking with AND. The fundamental tenet of KIND Snacks is that you can have a snack that tastes good AND is good for you. The notion of thinking with AND rather than OR is the heart of Lubetzky's philosophy. He says leaders should remember that they can be successful professionally AND show empathy and kindness to those around them. “You don't have to accept the way things are,” he says. “All you need to do is ask: Why does it have to be that way? When your default thinking is ‘AND’ instead of ‘or,’ you start to break down the roadblocks that prevent you from getting more out of life.”
Think of Empathy as a Business Skill. Lubetzky points out that simply acknowledging how someone else feels and sees things can help that person see your side of things, thus enabling people to reach a fair outcome to a dispute. Leader empathy is also necessary for building a loyal culture because it shows that leaders care about employees as people. KIND builds in ways to show care, such as the KINDOs program (their version of “kudos”). Each month team members celebrate a colleague for doing things the KIND way. Sometimes the recognition is based on job performance, but other celebrations focus on how a team member handled a situation with kindness and respect or demonstrated a key company value.
Set a Precedent for Openness and Honesty. At KIND, leaders are open and honest with employees and they expect the same in return. Transparency builds a culture of healthy discussion, in which people are expected to provide honest feedback to leaders and colleagues and feel comfortable challenging anyone else's ideas, even the CEO's. At KIND, candid feedback is seen as a way to help people develop to their fullest potential.
Conclusion
Lubetzky's company motto is: “Do the kind thing for your body, your taste buds and your world.” In Do the KIND Thing he outlines key principles for how leaders can build a sustainable business and a thriving social enterprise.
Source: Do the Kind Thing , by Daniel Lubetzky, is published by Ballantine Books.
Recall the discussion of intrinsic rewards from Chapter 8 . When people connect their jobs to a higher cause or purpose, the work itself becomes a great motivator. The Gallup organization's Q12 study, also discussed in Chapter 8 , has found that when employees believe the company's mission makes their job important, they are typically more engaged with their work, feel a greater sense of pride and loyalty, and are more productive. Exhibit 13.5 compares the Gallup results for those who agree that the mission makes their job important to those who do not feel that the mission of the company makes their job important. The differences are quite striking. For example, 60 percent of respondents who agreed that the mission makes their job important reported feeling engaged with their work, whereas none of the respondents who disagreed felt engaged with their work. Sixty-six percent would recommend their company's products or services, compared to only 20 percent of those who did not believe the mission made their job important. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#WJNLVZ46JJA7Q5EWA211)
Ellingwood, “On a Mission.”
Exhibit 13.5. The Power of a Strong Mission
Source: Susan Ellingwood, “On a Mission,” Gallup Management Journal (Winter 2001), pp. 6–7.
“Great companies must have a noble cause. Then it's the leader's job to transform that noble cause into such an inspiring vision that it will attract the most talented people in the world to want to join it.”
Steve Jobs (1955–2011), cofounder and former CEO of Apple
Typically, the mission is made up of two critical parts: the core values and the core purpose. The core values guide the organization “no matter what.” The mission also includes the company's core purpose . Leaders take care when de�ining a core purpose so that the organization can grow and change. Consider Zenith and Motorola. Both were once successful makers of televisions, but while Zenith stayed there, Motorola continued to move forward to microprocessors, integrated circuits, and other products and became one of the most highly regarded companies in the world. The difference is that Zenith de�ined its purpose as “making television sets” whereas Motorola de�ined its purpose as “applying technology to bene�it the public.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#NCUECPU440N6M3BX9729)
Collins “What Do You Stand For?”
The core values and core purpose are frequently expressed in a mission statement . Exhibit 13.6 shows the mission and values for A�lac, an insurance company that serves more than 50 million people around the world. A�lac uses the slogan “We've got you under our wing” to encapsulate the company's commitment to be there for policyholders in their time of need.
Exhibit 13.6. A�lac's Mission and Values
Source: http://www.a�lac.com/abouta�lac/corporateoverview/ourphilosophy.aspx (http://www.a�lac.com/abouta�lac/corporateoverview/ourphilosophy.aspx)
13-3b. A Framework for Noble Purpose
An effective mission statement doesn't just describe products or services; it captures people's idealistic motivations for why the organization exists. Most successful companies have missions that proclaim a noble purpose of some type, such as Mary Kay's “to enrich the lives of women,” or Walmart's mission “to give ordinary folk the chance to buy the same things as rich people.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#JQHPE3HJFS6PXU5FD141)
Art Kleiner, George Roth, and Nina Kruschwitz, “Should a Company Have a Noble Purpose?” The Conference Board Review (January–February 2001).
New Leader Action Memo
As a leader, you can keep in mind what the organization stands for in a broader sense—its core purpose and values—and create the vision around that central mission.
Leaders are responsible for framing a noble purpose that inspires and leads followers to high performance and helps the organization maintain a competitive advantage. As management expert Gary Hamel puts it: “A noble purpose inspires sacri�ice, stimulates innovation, and encourages perseverance. In so doing, it transforms great talent into exceptional accomplishment.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#WDBVNKK42DQTQR4PZ662) Moreover, a noble purpose uplifts people and gives them a sense that what they are doing matters and makes a positive difference in the world.
Gary Hamel, “Hole in the Soul: Leaders Either Cause It or Fix It,” Leadership Excellence (October 2011), p. 3.
Exhibit 13.7 describes four basic approaches leaders take in framing an organizational purpose that can tap into people's desire to contribute and feel that their work is worthwhile. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#GMAKS7VAZ80TEGACT089) Each of these approaches is described in more detail in the following paragraphs.
This discussion is based on Nikos Mourkogiannis, “The Realist's Guide to Moral Purpose,” strategy+business 41 (Winter 2005), pp. 42–53; and Nikos Mourkogiannis, “Purpose: The Starting Point of Great Leadership,” Leader to Leader (Spring 2007), pp. 26–32.
Exhibit 13.7. A Leader's Framework for Noble Purpose
Purpose Description Basis for Action Examples Discovery Finding the new Pioneer, entrepreneur Google, 3M, Samsung Excellence Being the best Ful�illment Berkshire Hathaway, AlliedSignal, Apple Altruism Providing service Happiness Dollar General, Dannon Milk Products Heroism Being effective Achievement Microsoft, Southwest Airlines, ExxonMobil
Source: Based on Nikos Mourkogiannis, Purpose: The Starting Point of Great Companies (New York: Palgrave Macmillan, 2006); and Nikos Mourkogiannis, “The Realist's Guide to Moral Purpose,” strategy + business Issue 41 (Winter 2005), pp. 42–53.
Discovery Many people are inspired by the opportunity to �ind or create something new. Discovery for its own sake can serve as a noble purpose, as it does for employees at Google, where people are energized by the psychic rewards they get from working on intellectually stimulating and challenging technical problems. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#WHPEBJ65RUL2ZB3QK832) As another example, leaders at Samsung Electronics reenergized the company by focusing employees on discovery rather than imitation, transforming Samsung into a world-class innovator rather than a manufacturer known for cheap, low-quality knockoffs. Samsung invests heavily in research and development and even began threatening Apple's dominance in smartphones with the innovative features in its Galaxy phones. The shift in purpose has led to amazing results at Samsung. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#FYET0LRD1LFCZNRJL987) This type of purpose inspires people to see the adventure in their work and experience the joy of a pioneering or entrepreneurial spirit.
Deutschman, “Can Google Stay Google?”
Brian X. Chen, “Samsung Emerges as a Potent Rival to Apple's Cool,” The New York Times (February 10, 2013), http://www.nytimes.com/2013/02/11/technology/samsung- challenges-apples-cool-factor.html?pagewanted=all (http://www.nytimes.com/2013/02/11/technology/samsung-challenges-apples-cool-factor.html?pagewanted=all) (accessed February 11, 2013); Bill Breen, “The Seoul of Design,” Fast Company (December 2005), pp. 90–99; and Peter Lewis, “A Perpetual Crisis Machine,” Fortune (September 19, 2005), pp. 58–76.
Excellence With this approach, rather than emphasizing discovery, leaders focus people on being the best, both on an individual and an organizational level. AlliedSignal's mission, for example, is to “be one of the world's premier companies: distinctive and successful in everything we do.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#BQPMJXJ7D3BTU1VWQ539) For these companies, excellence is de�ined by the work itself rather than by customers. Indeed, organizations that pursue excellence would rather turn customers away than compromise their quality. Consider Apple, another company with excellence as a purpose. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#DAQUCNMLZ2VZAH7AX905) The company has always built high-quality, cleverly designed computers, yet it holds less than 10 percent of the personal computer market. Leaders would like to increase their share of the market, but they aren't willing to sacri�ice their commitment to high quality and what they consider superior technology. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#LNYHNHW0Y2PSHZJXE536) In companies with excellence as a guiding purpose, managers and employees are treated as valuable resources and provided with support to perform at their peak. People are motivated by the opportunity to experience intrinsic rewards and personal ful�illment.
Cited in David K. Carr, Kelvin J. Hard, and William J. Trahant, Managing the Change Process: A Field Book for Change Agents, Consultants, Team Leaders, and Reengineering Managers , Exhibit 6.2 (New York: McGraw Hill, 1996).
Mourkogiannis, “Purpose: The Starting Point of Great Leadership.”
Steve Lohr, “Apple, a Success at Stores, Bets Big on Fifth Avenue,” The New York Times (May 19, 2006), p. C1; and Michael V. Copeland, “The Apple Ecosystem,” Fortune (November 23, 2009), pp. 102–109.
Altruism Many nonpro�it organizations are based on a noble purpose of altruism because they emphasize serving others, but businesses can use this approach as well. For example, leaders at Dollar General stress the purpose of giving low-income people a good deal, not just making sales and pro�its. The U.S. division of the giant global food company Danone, Dannon Milk Products, has a mission of “bringing
health to the greatest number of people across America through our products' bene�its.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#PPDRFNST93T7Y18N2584) Even �inancial services companies, frequently perceived as being exploitative, can operate based on a noble purpose of altruism, as illustrated by Germany's TeamBank, introduced earlier in the chapter.
Reported in Douglas A. Ready and Emily Truelove, “The Power of Collective Ambition,” Harvard Business Review (December 2011), pp. 94–102.
In the Lead TeamBank, Volksbanken Raiffeisenbanken Group
The vision for TeamBank, “to be a responsible partner for fair consumer �inancing,” grows out of its mission to serve the country as an honorable �inancial services company. Leaders at TeamBank, a subsidiary of the German Volksbanken Raiffeisenbanken Group, rejected the assumption that it is impossible for a bank to make money by being fair, and even generous, to its customers.
They overhauled the consumer credit product, called easyCredit, to compete on the concept of fairness rather than price. It offers a 30-day customer retraction period, eliminates the penalty on partial repayments, and offers protection packages that allow for short repayment extensions. There are no hidden fees, and terms can be adjusted to re�lect unexpected changes in the borrower's circumstances. Many credit processes are handled personally so that if people fall behind in making payments, customer advisers can work with them to �ind a solution rather than threatening them with legal action. When loans become delinquent, TeamBank offers customers the opportunity to make minimal payments that will get them back on the road to �inancial stability and avoid damaging their credit ratings. “We try to help as long as we see goodwill on the customer's side,” a manager said. A customer council, made up of 14 volunteer customers and one representative from a consumer protection nongovernmental organization (NGO), provides ongoing feedback to TeamBank leaders about how well the company is living up to its mission and values.
TeamBank rejects pro�itable products and features that are inconsistent with its values of transparency, honesty, and fairness. Now the number-three consumer �inance provider in the German market, TeamBank is both pro�itable and growing. Moreover, the delinquency rate is much lower than the industry average. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#PSHZZC00HM2TRCN1J742)
Loch et al., “Finding the Pro�it in Fairness.”
TeamBank's mission and values clearly place it in the category of altruism as a guiding purpose. In addition to its business practices, the company provides �inancial literacy education to high school students all across Germany and sponsors a lecture series on �inance and economics for a local university. Any company that puts a high premium on customer service can be considered to fall in this category as well. Marriott, for instance, encapsulates its purpose in the slogan, “The Spirit to Serve.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#UNAQDQ90RXH9RMSUH241) The basis of action for this type of purpose is to increase personal happiness. Most people feel good when they are doing something to help others or make their communities or the world a better place.
Mourkogiannis, “The Realist's Guide to Moral Purpose.”
Heroism The �inal category, heroism, means the company's purpose is based on being strong, aggressive, and effective. Companies with this basis of noble purpose often re�lect almost an obsession with winning. Bill Gates imbued Microsoft with a goal of putting the Windows operating system into every personal computer, for example. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/hldbjps6rd2san9pm089#ZPYP928G3H9TRP6NC543) At General Electric, former CEO Jack Welch wanted the company to strive to be number one or number two in each industry in which it did business. As another example, Southwest Airlines was founded with a heroic goal of winning against much larger competitors such as American and Delta. With this approach, the basis of action is people's desire to achieve and to experience self-ef�icacy , as described in Chapter 8 . People want to feel capable of being effective and producing results.
Mourkogiannis, “The Realist's Guide to Moral Purpose.”
Companies that remain successful over the long term have leaders who lead with a noble purpose. A well-chosen noble purpose taps into the emotions and instincts of employees and customers and can contribute to better morale, greater innovativeness, and higher employee and organizational performance.
13-4. The Leader as Strategist-in-Chief Strong missions that re�lect a noble purpose and guiding visions are both important, but they are not enough alone to make strong, powerful organizations. For organizations to succeed, leaders have to translate vision, values, and purpose into action, which is the role of leader as strategist-in-chief. Strategic management refers to the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#QCZWDZGAX10K9HVPF777)
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
John E. Prescott, “Environments as Moderators of the Relationship between Strategy and Performance,” Academy of Management Journal 29 (1986), pp. 329–346.
When leaders link vision and strategic action, they can make a real difference for their organization's future. Research has shown that strategic thinking and planning for the future can positively affect a company's performance and �inancial success. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#JDTGQSWB0XDKEPM6W419) One study found that as much as 44 percent of the variance in pro�itability of major �irms can be attributed to strategic leadership. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#RFKWRA7MCZSTCGDNG025)
C. Chet Miller and Laura B. Cardinal, “Strategic Planning and Firm Performance: A Synthesis of More Than Two Decades of Research,” Academy of Management Journal 37, no. 6 (1994), pp. 1649–1665.
Sydney Finkelstein and Donald C. Hambrick, Strategic Leadership: Top Executives and Their Effect on Organizations (St. Paul, MN: West Publishing, 1996), p. 23.
13-4a. How to Achieve the Vision
To formulate a strategy, leaders ask questions such as “Where is the organization now? Where does the organization want to be? What changes and trends are occurring in the competitive environment? What courses of action can help us achieve our vision?” Strategy can be de�ined as the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals and achieve the vision. Leaders have to be clear on the organization's purpose and vision before they can adopt an effective strategy. Strategy involves making decisions every day based on what the organization wants to do and be. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#TGHKJBKU6D6WRCM7H820)
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategic management the set of decisions and actions used to formulate and implement speci�ic strategies that will achieve a competitively superior �it between the organization and its environment so as to achieve organizational goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy
Cynthia A. Montgomery, “Strategist-in-Chief,” Leadership Excellence (July 2012), p. 12.
the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
Strategy the general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
New Leader Action Memo
As a leader, you can prepare for the future based on trends in the environment today. Don't be afraid to think radically. You can shift your strategies to �it changing conditions.
Developing Effective Strategy To develop strategy, leaders actively listen to people both inside and outside the organization, and they examine trends and discontinuities in the environment that can be used to gain an edge. Rather than reacting to environmental changes, strategic leaders study the events that have already taken place and act based on their anticipation of what the future might be like. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#UQRF5YQAN8EMUTCU2227) When leaders rely solely on formal strategic planning, competitor analysis, or market research, they miss new opportunities. Consider that when Ted Turner �irst talked about launching a 24-hour news and information channel in the 1970s, many dismissed him as delusional. Every source of conventional wisdom, from market research to broadcast professionals, said the idea was crazy and bound to fail. Yet Turner looked at emerging social and demographic trends, listened to his intuition, and launched a global network that generates 35 percent gross margins. Other media leaders had the same information, but they didn't interpret it the same way or formulate the same strategy to tap into emerging trends. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#CPEYR1TR7W6S64S6F575) Good leaders anticipate, look ahead, and prepare for the future based on trends they see in the environment today, which often requires radical thinking.
Ireland and Hitt, “Achieving and Maintaining Strategic Competitiveness.”
Oren Harari, “Catapult Your Strategy over Conventional Wisdom,” Management Review (October 1997), pp. 21–24.
Of course, leaders should also use hard analysis to help set a course for the future. They strive to develop industry foresight based on trends in technology, demographics, government regulation, values, and lifestyles that will help them identify new competitive advantages. Situation analysis, for example, includes a search for SWOT—strengths, weaknesses, opportunities, and threats—that affect organizational performance. Leaders using situation analysis obtain external information from a variety of sources, such as customers, government reports, suppliers, consultants, or association meetings. They gather information about internal strengths and weaknesses from sources such as budgets, �inancial ratios, pro�it-and-loss statements, and employee surveys.
Sometimes leaders have to shift their strategy several times before they get it right. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#BMFFLF1XFCGJPEMCZ513) In addition, strategy necessarily changes over time to �it shifting environmental conditions.
Christopher Hoenig, “True Grit,” CIO (May 1, 2002), pp. 50–52.
Elements of Strategy To improve the chances for success, leaders develop strategies that focus on three qualities: core competence, developing synergy, and creating value for customers.
An organization's core competence is something the organization does extremely well in comparison to competitors. Leaders identify the organization's unique strengths—what makes their organization different from others in the industry. L.L. Bean succeeds with a core competence of excellent customer service and a quality guarantee. Leaders at Family Dollar focus on a core competence of operational ef�iciency that enables them to keep costs low.
core competence something the organization does extremely well in comparison to competitors
core competence something the organization does extremely well in comparison to competitors
core competence something the organization does extremely well in comparison to competitors
Synergy occurs when organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone. As a result the organization may attain a special advantage with respect to cost, market power, technology, or employee skills. Synergy was the motivation for Yahoo to buy mobile app startups, for example, to obtain both the products and the engineering talent. Another way companies gain synergy is through alliances and partnerships. Leaders at Coinstar, the company behind Redbox movie rentals, take this approach. As rentals of physical videos declined, the Redbox division partnered with Verizon Communications on a service that combines DVD rental and streaming video, bene�iting both companies. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#BUYJQRD3JP56603CZ116)
core competence something the organization does extremely well in comparison to competitors
core competence something the organization does extremely well in comparison to competitors
core competence something the organization does extremely well in comparison to competitors
core competence something the organization does extremely well in comparison to competitors
core competence something the organization does extremely well in comparison to competitors
core competence something the organization does extremely well in comparison to competitors
core competence something the organization does extremely well in comparison to competitors
core competence something the organization does extremely well in comparison to competitors
core competence something the organization does extremely well in comparison to competitors
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Nick Wing�ield, “Thinking Outside the Redbox,” The New York Times (February 18, 2012), p. B1.
Focusing on core competencies and attaining synergy help companies create value for their customers. Value can be de�ined as the combination of bene�its received and costs paid by the customer. *
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
(http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#FJVAPB7U4DA9229CM461) For example, Panera Bread doesn't have the lowest costs for sandwiches and other food and drink products, but it works hard to create an environment where people want to spend time. “If you give people food they want, in an environment that they want, they will spend a dollar or two more, they will go out of their way for it,” says CEO Ron Shaich. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#UAWY9C8GN6ENQ3K8M396) Delivering value to the customer is at the heart of strategy.
Value the combination of bene�its received and costs paid by the customer
Value the combination of bene�its received and costs paid by the customer
Value the combination of bene�its received and costs paid by the customer
Value the combination of bene�its received and costs paid by the customer
Value the combination of bene�its received and costs paid by the customer
Value the combination of bene�its received and costs paid by the customer
Value the combination of bene�its received and costs paid by the customer
Value the combination of bene�its received and costs paid by the customer
Value the combination of bene�its received and costs paid by the customer
Value the combination of bene�its received and costs paid by the customer
Gregory M. Bounds, Gregory H. Dobbins, and Oscar S. Fowler, Management: A Total Quality Perspective (Cincinnati, OH: South-Western, 1995), p. 244; and Michael Treacy, “You Need a Value Discipline—But Which One?” Fortune (April 17, 1995), p. 195.
“Not by Bread Alone” (an interview with Ron Shaich by Corey Hajim), Fortune (July 10, 2006), p. 126.
Strategy formulation integrates knowledge of the environment, vision, and mission with the company's core competence in such a way as to attain synergy and create value for customers. When these elements are brought together, the company has an excellent chance to succeed in a competitive environment. But to do so, leaders have to ensure that strategies are executed—that actual behavior within the organization re�lects the desired direction.
Value the combination of bene�its received and costs paid by the customer
Value the combination of bene�its received and costs paid by the customer
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
13-4b. How to Execute
Strategy execution means that leaders use speci�ic mechanisms, techniques, or tools for directing organizational resources to accomplish strategic goals. This is the basic architecture for how things get done in the organization. Strategy execution, sometimes called implementation , is the most important as well as the most dif�icult part of strategic management, and leaders must carefully and consistently manage the execution process to achieve results. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#WDAK2RDL0GVFYNC7V710) One survey found that only 57 percent of responding �irms reported that managers successfully implemented the new strategies they had devised over the past three years. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#RWLUACDHUJF9YS36W617) Other research has estimated that as much as 70 percent of all business strategies never get implemented, re�lecting the complexity of strategy execution. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#NAVEXLL9XM7E7U5P2414) Following the merger of Burlington Northern Railroad and the Atchison, Topeka, and Santa Fe Railway, leaders worked hard to create a vision and strategy to guide the new BNSF Railway, along with a system to ensure strategy execution.
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy formulation integrating knowledge of the environment, vision, and mission with the core competence in such a way as to attain synergy and create customer value
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution
putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
L. J. Bourgeois III and David R. Brodwin, “Strategic Implementation: Five Approaches to an Elusive Phenomenon,” Strategic Management Journal 5 (1984), pp. 241–264; Anil K. Gupta and V. Govindarajan, “Business Unit Strategy, Managerial Characteristics, and Business Unit Effectiveness at Strategy Implementation,” Academy of Management Journal 27, no. 1 (1984), pp. 25–41; and Michael K. Allio, “A Short Practical Guide to Implementing Strategy,” Journal of Business Strategy 26, no. 4 (2005), pp. 12–21.
2004 Economist survey, reported in Allio, “A Short, Practical Guide to Implementing Strategy.”
M. Corboy and D. O'Corrbui, “The Seven Deadly Sins of Strategy,” Management Accounting 77, no. 10 (1999), pp. 29–33.
In the Lead BNSF Railway
BNSF Railway is one of the largest railroads in North America, covering more than 32,000 miles spread out over 28 states and two Canadian provinces. When the company was formed from the merger of two railroads, leaders faced tremendous complexity as they struggled to integrate two different cultures as well as various transportation systems, accounting processes, maintenance practices, and other processes and systems. They started with setting the direction for change—a guiding vision—and then developed a set of practices to make sure everyone was aligned with the vision and strategy.
The BNSF Vision is “to realize the tremendous potential of BNSF Railway by providing transportation services that consistently meet the customer's expectations.” The vision reminds all employees that the customer comes �irst. Next, leaders developed a list called Evidences of Success , so everyone could measure how well the company was achieving the vision. The list measures progress in four key groups—customers, employees, owners, and communities—and keeps people moving forward in a positive way. Leaders also developed a set of Shared Values to articulate the types of behaviors expected of everyone in the company.
BNSF leaders systematically communicated the Vision, Evidences of Success, and Shared Values in varied ways and provided training at all levels so people could incorporate the expected behaviors and values into their processes, decisions, and activities. They also created a Pyramid of Success that tied the company's short- and long-term strategic goals to team and individual goals. By helping people understand their role in achieving the vision and strategic goals, BNSF makes sure everyone in the organization is focused in the right direction. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#LZSM3T7YQJJDEZVV7826)
Jeanne Michalski, “BNSF's Leadership Engine,” Organizational Dynamics 42 (2013), pp. 35–45.
New Leader Action Memo
Strategic management is one of the most critical jobs of a leader, but leaders may exhibit different strategy styles that can be effective. Leader's Self-Insight 13.3 lets you determine your strengths based on two important ways leaders can bring creativity to strategic management.
The Vision, Shared Values, and Evidences of Success continue to be the principal guiding statements for BNSF. The company continues an annual training process for all employees. It also holds people accountable for the behaviors through its performance management processes, considering both “what needs to be done” and “how things are done.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#XFGA23A2TW4VP1U1U332)
Jeanne Michalski, “BNSF's Leadership Engine,” Organizational Dynamics 42 (2013), pp. 35–45.
Leader's Self-Insight 13.3. Your Strategy Style
Instructions : Think about how you handle challenges and issues in your current or a recent job. Then circle A or B for each of the following items, depending on which is generally more descriptive of your behavior. There are no right or wrong answers. Respond to each item as it best describes how you respond to work situations.
1. When keeping records, I tend to
A. be very careful about documentation.
B. be more haphazard about documentation.
2. If I run a group or a project, I
A. have the general idea and let others �igure out how to do the tasks.
B. try to �igure out speci�ic goals, timelines, and expected outcomes.
3. My thinking style could be more accurately described as
A. linear thinker, going from A to B to C.
B. thinking like a grasshopper, hopping from one idea to another.
4. In my of�ice or home, things are
A. here and there in various piles.
B. laid out neatly or at least in reasonable order.
5. I take pride in developing
A. ways to overcome a barrier to a solution.
B. new hypotheses about the underlying cause of a problem.
6. I can best help strategy by making sure there is
A. openness to a wide range of assumptions and ideas.
B. thoroughness when implementing new ideas.
7. One of my strengths is
A. commitment to making things work.
B. commitment to a dream for the future.
8. For me to work at my best, it is more important to have
A. autonomy.
B. certainty.
9. I work best when
A. I plan my work ahead of time.
B. I am free to respond to unplanned situations.
10. I am most effective when I emphasize
A. inventing original solutions.
B. making practical improvements.
Scoring and Interpretation
For Strategic Innovator style, score one point for each A answer circled for questions 2, 4, 6, 8, and 10 and for each B answer circled for questions 1, 3, 5, 7, and 9. For Strategic Adaptor style, score one point for each B answer circled for questions 2, 4, 6, 8, and 10, and for each A answer circled for questions 1, 3, 5, 7, and 9. Which of your two scores is higher and by how much? The higher score indicates your strategy style.
Strategic Innovator and Strategic Adaptor are two important ways leaders bring creativity to strategic management. Leaders with an adaptor style tend to work within the situation as it is given and improve it by making it more ef�icient and reliable. They succeed by building on what they know is true and proven. Leaders with the innovator style push toward a new paradigm and want to �ind a new way to do something. Innovators like to explore uncharted territory, seek dramatic breakthroughs, and may have dif�iculty accepting an ongoing strategy. Both innovator and adaptor styles are essential to strategic management, but with different approaches. The Strategic Adaptor asks, “How can I make this better?” The Strategic Innovator asks, “How can I make this
different?” Strategic Innovators often use their skills in the formulation of whole new strategies, and Strategic Adaptors are often associated with strategic improvements and strategy execution.
If the difference between the two scores is 2 or less, you have a mid-adaptor/innovator style, and work well in both areas. If the difference is 4–6, you have a moderately strong style and probably work best in the area of your strength. And if the difference is 8– 10, you have a strong style and almost certainly would want to work in the area of your strength rather than in the opposite domain.
Sources: Adapted from Dorothy Marcic and Joe Seltzer, Organizational Behavior: Experiences and Cases (Cincinnati: South-Western, 1998), pp. 284– 287; and William Miller, Innovation Styles (Dallas, TX: Global Creativity Corporation, 1997). The adaptor/innovator concepts are from Michael J. Kirton, “Adaptors and Innovators: A Description and Measure,” Journal of Applied Psychology 61, no. 5 (1976), p. 623.
Leader Tools for Strategy Execution By making sure everyone understands the Vision, Values, and Strategic Pyramid, and applies them in day-to-day operations, BNSF leaders provide followers with line of sight to the organization's strategic objectives, which means followers see and understand the goals and how their actions will contribute to achieving them. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#RNEGDZ64D3YB774SE909) Leaders create the environment that determines whether people understand and feel committed to achieving strategic objectives. The following techniques can help leaders effectively implement strategy: * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#MSEY3FZ8L2DGJ0PBQ797)
1. Create ongoing communication . Leaders must communicate about the strategy continuously so that people throughout the organization can understand and internalize it. One strategy thinker says effective strategy execution requires that you “communicate 21 times.” When you are “mind-numbingly bored with talking about your strategy,” people will take it seriously and feel con�ident acting on it. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#ZGJU1LD87P29AQURK729)
Azzarello, “New Strategy?”
2. Teach the “why.” Leaders explain why they decided to do what they are doing. Followers are busy doing the everyday work of the organization and often don't think about the big picture. Leaders have to persuade people of the business reasons for the new vision and strategy.
3. Explain what this new thing means to each person . People are often fearful of change, and that includes fear of a new strategic direction. Leaders can anticipate people's fears and questions—what will be expected of me? will I lose my job? will my job duties and responsibilities change?—and address them head on. In addition, good leaders ask people what they are thinking and feeling.
4. Tell what is not changing . It is often a good idea to remind employees about company strengths, what is currently working, and what will not change. People have a hard time taking in new information when they feel that everything around them is shifting. Leaders give people a “place to stand” by telling them what is not changing.
Wendy R. Boswell, John B. Bingham, and Alexander J. S. Colvin, “Aligning Employees through ‘Line of Sight,’” Business Horizons 49 (2006), pp. 499–509.
These are based largely on Patty Azzarello, “New Strategy? How Can You Execute It,” Leadership Excellence (May 2012), p. 17.
By following these guidelines, leaders can ensure smoother strategy execution. In addition, a new strategy is implemented through organizational elements such as structural design, pay or reward systems, budget allocations, and organizational rules, policies, or procedures. Leaders make decisions about changes in structure, systems, policies, and so forth, to support the company's strategic direction. For example, when he was CEO at Home Depot, Frank Blake loosened rules, revised procedures, and shifted reward systems to emphasize quality customer service in support of a strategy to take Home Depot back to its roots as a source of not only products but also help and information. Blake sold off the wholesale housing supply unit to invest in an “army of orange aprons” and improve customer service at the retail stores. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#WPVW7RM7BTFJ6KPKJ008) John Legere, CEO of T- Mobile, implemented a cost-cutting strategy to improve ef�iciency and free up cash for investing in new services that can help the wireless carrier gain more customers and be more competitive. Legere eliminated free sodas in the corporate of�ice and installed vending machines, cut merit-based pay increases, and ended the program that gave long-term employees free phones. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#TTYBSSWWWWRD1KEVB959)
Jennifer Reingold, “Home Depot's Total Rehab,” Fortune (September 29, 2008), pp. 159–166.
Thomas Gryta, “T-Mobile's CEO Looks for Pennies to Pinch,” The Wall Street Journal (May 7, 2013), http://online.wsj.com/article/SB10001424127887324582004578461340841270144.html (http://online.wsj.com/article/SB10001424127887324582004578461340841270144.html) (accessed June 4, 2013).
The Leader as Strategic Decision Maker Leaders make decisions every day—some large and some small—that support company strategy. Exhibit 13.8 provides a simpli�ied model for how leaders make strategic decisions. The two dimensions considered are whether a particular choice will have a high or low strategic impact on the business and whether execution of the decision will be easy or dif�icult. A
change that both produces a high strategic impact and is easy to execute would be a leader's �irst choice for putting strategy into action. For example, when CEO Shigetaka Komori and other leaders at Fuji�ilm saw the digital age surging toward them, they knew the company had to transform to survive. An easy decision was to begin cutting resources going toward the �ilm business and shift them into digital photography. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#KDZPT3ND6PNK9UKA5143) This had a big strategic impact and was relatively easy to implement.
Kana Inagaki and Juro Osawa, “Fuji�ilm Thrived by Changing Focus; CEO Says Firm, Kodak Saw Digital Age Coming, ‘The Question Was, What to Do about It,’” The Wall Street Journal (January 20, 2012), http://online.wsj.com/article/SB10001424052970203750404577170481473958516.html (http://online.wsj.com/article/SB10001424052970203750404577170481473958516.html) (accessed June 4, 2013).
Exhibit 13.8. Making Strategic Decisions
Source: Adapted from Amir Hartman and John Sifonis, with John Kador, Net Ready: Strategies for the New E-conomy (New York: McGraw-Hill, 2000), p. 95.
Some strategic decisions, however, are much more dif�icult to execute. For example, maintaining revenue and pursuing growth meant Fuji�ilm needed to �ind new areas of business or grow through mergers and acquisitions. The latter approach can present dif�iculties of blending production processes, accounting procedures, corporate cultures, and other aspects of the organizations into an effectively functioning whole. Komori and other leaders pumped resources into R&D to begin developing existing technologies into new businesses, including �ilms used for LCD panels and television sets, chemicals for cosmetics, and even drugs and health care. This last endeavor eventually led them to begin acquiring health-care companies, such as drug maker Toyama Chemical Company and U.S. medical-equipment manufacturer SonoSite Inc. Although these decisions were high-risk, the potential impact was tremendous. Leaders often initiate major changes despite the risks and dif�iculties because the potential strategic payoff is very high. For example, at Fuji, the health-care operation is a growing part of the overall business. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#HGHA44WTYDVPP1EMB541)
Kana Inagaki and Juro Osawa, “Fuji�ilm Thrived by Changing Focus; CEO Says Firm, Kodak Saw Digital Age Coming, ‘The Question Was, What to Do about It,’” The Wall Street Journal (January 20, 2012), http://online.wsj.com/article/SB10001424052970203750404577170481473958516.html (http://online.wsj.com/article/SB10001424052970203750404577170481473958516.html) (accessed June 4, 2013).
Leaders also sometimes pursue activities that have a low strategic impact but are relatively easy to execute. Incremental improvements in products, work processes, or techniques are examples. Over time, incremental improvements can have an important effect on the organization. In addition, small changes can symbolize improvement and success to people within the organization. It may be important for leaders to produce quick, highly visible improvements to boost morale, keep people committed to larger changes, or keep followers focused on the vision. For example, the manager of a purchasing department wanted to reengineer the purchasing process to increase ef�iciency and improve relationships with suppliers. He wanted requisitions and invoices to be processed within days rather than the several weeks it had been taking. Employees were skeptical that the department could ever meet the new standards and pointed out that some invoices currently awaiting processing were almost two months old. The manager decided to make some simple revisions in the �low of paperwork and employee duties, which enabled the department to process all the old invoices so that no remaining invoice was more than a week old. This “small win” energized employees and helped keep them focused on the larger goal. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#XQDH8JULTLQGSSPAM468) The positive attitude made execution of the larger change much smoother.
Thanks to Russell Guinn for the story on which this example is based.
The �inal category shown in Exhibit 13.8 relates to changes that are both dif�icult to execute and have low strategic impact. An illustration of a decision in this category was the attempt by new management at a highly successful mail-order clothing company to implement teams. In this case, the decision was not made to support a new strategic direction but simply to try out a new management trend—and it was a miserable failure that cost the organization much time, money, and employee goodwill before the teams were �inally disbanded. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/nhazxh9daauu10mc4110#LHDKQNWXD1NNGV5TE173) Effective leaders try to avoid making decisions that fall within this category.
Based on Gregory A. Patterson, “Land's End Kicks Out Modern New Managers, Rejecting a Makeover,” The Wall Street Journal (April 3, 1995), pp. A1, A6.
Although good leadership calls for actively involving everyone, leaders are still ultimately responsible for establishing direction through vision and strategy. When leadership fails to provide direction, organizations �lounder. To keep organizations competitive, leaders consciously adopt a focused vision and strategy and make sure everyone's activities move the organization in the right direction.
Leadership Essentials Leaders establish organizational direction through vision and strategy. They are responsible for studying the organization's environment, considering how it may be different in the future, and setting a direction everyone can believe in. The shared vision is an attractive, ideal future for the organization that is credible yet not readily attainable. Leaders make a real difference for their organizations when they link vision to strategic action, so that vision is more than just a dream. Superior organizational performance is not a matter of luck. It is determined by the decisions leaders make.
A clear, powerful vision links the present and the future, energizes employees and focuses attention, and gives people an inspiring picture of the future to which they are eager to commit themselves. The vision can also give meaning to work and establish a standard of excellence by presenting a challenge that asks all workers to give their best.
The mission includes the company's core values and its core purpose or reason for existence. Visions for the future change, whereas the mission should persist, as a re�lection of the enduring character of the organization. Effective leaders frame a noble purpose that inspires followers and helps the organization maintain a competitive advantage. To frame an organizational purpose that helps people �ind their work meaningful, leaders can choose among four basic concepts as the basis of purpose: discovery, excellence, altruism, and heroism.
Strategic management is the serious work of �iguring out how to translate vision and mission into action. Strategy is a general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization reach its goals. Like vision, strategy changes, but successful companies develop strategies that focus on core competence, develop synergy, and create value for customers. Strategy is executed through the systems and structures that are the basic architecture for how things get done in the organization.
Discussion Questions 1. A management consultant said strategic leaders are concerned with vision and mission, while strategic managers are concerned
with strategy. Do you agree? Discuss.
2. A vision can apply to an individual, a family, a college course, a career, or decorating an apartment. Think of something you care about for which you want the future to be different from the present and write a vision statement for it.
3. If you worked for a company like Amazon or Google that has a strong vision for the future, how would that affect you compared to working for a company that did not have a vision?
4. Do you agree with the principle of self-reference? In other words, do you believe if people know where the organization is trying to go, they will make decisions that support the desired organizational outcome?
5. What does it mean to say that the vision can include a description of both the journey and the destination?
6. Many visions are written and hung on a wall. Do you think this type of vision has value? What would be required to imprint the vision within each person?
7. Do you think most employees know what the mission of their company is? Suggest some ways leaders can effectively communicate the mission to people both inside and outside the organization.
8. Do you think every organization needs a noble purpose in order to be successful over the long term? Discuss. Name one company that seems to re�lect each category of noble purpose as de�ined in the chapter.
9. Strategic vision and strategic action are both needed for a leader to be effective. Which do you think you are better at doing? Why?
10. If vision is so important, why do analysts and commentators sometimes criticize a new CEO's emphasis on formulating a vision for a company that is struggling to survive? Discuss.
Leadership at Work
Future Thinking
Think of some problem you have in your life right now. It could be any problem you are having at school, home, or work that you would like to solve. Write a few words that summarize the problem:
Now write brief answers to the following questions for that speci�ic problem. (Do not look ahead to the next set of four questions. This exercise is more effective if the questions are seen in sequence.)
1. Why do I have this problem?
2. Who/what caused this problem?
3. What stands in the way of a solution?
4. How likely is it that I'll solve this problem?
5. After you have answered these four questions, write down what are you feeling about the problem.
Now, for the same problem, write brief answers to the following four questions.
1. What do I really want instead of this problem? (Your answer equals your desired future outcome.)
2. How will I know I've achieved this future outcome? (What will I see, hear, and feel?)
3. What resources do I need to pursue this future outcome?
4. What is the �irst step I can take to achieve this outcome?
5. After you have answered these four questions, what are you feeling about the problem?
The human mind is effective at focusing on problems to diagnose what is wrong and who is to blame. The �irst four questions re�lect that approach, which is called problem-focused thinking .
The second set of four questions re�lects a different approach, called outcome-directed thinking . It focuses the mind on future outcomes and possibilities rather than on the causes of the problem. Most people feel more positive emotion, more creative ideas, and more optimism about solving the problem after answering the second four questions compared to the �irst four questions. Shifting the mind to the future harnesses the same power that a vision has to awaken creativity and inspire people to move forward. Future thinking is using the idea of future vision on a small, day-to-day scale.
In Class: This exercise is very effective when each student selects a problem, and then students interview each other about their problems. Students should work in pairs—one acting the role of leader and the other acting as a subordinate. The subordinate describes his or her problem (one minute), and then the leader simply asks the �irst four questions ( changing each “I” to “you” ) and listens to the answers (four minutes). Then the two students can switch leader/subordinate roles and repeat the process for the same four questions. The instructor can then gather students' observations about what they felt when answering the four questions.
Then, students can be instructed to �ind a new partner, and the pairs can again adopt the role of leader and subordinate. The subordinate will relate the same problem as before to the leader, but this time the leader will ask the second four questions (outcome-directed thinking, again changing each “I” to “you” ). After the subordinate answers the four questions, the pair switches leader/subordinate roles and repeats the process. Then the instructor can ask for student observations about how they felt answering these four questions compared to the �irst four questions. Generally the reaction is quite positive. The key questions for students to consider are: How did the questions about future outcomes affect your creative thoughts for solving the problem compared to the �irst four questions that were problem-oriented? As a leader, can you use future-oriented questions in your daily life to shape your thinking and the thinking of others toward more creative problem solving? Future-oriented thinking is a powerful leadership tool.
Sources: This approach to problem solving was developed by Robert P. Bostrom and Victoria K. Clawson of Bostrom and Associates, Columbia, Missouri, and this exercise is based on a write-up appearing in Inside USAA , the company newsletter of USAA (September 11, 1996), pp. 8–10; and Victoria K. Clawson and Robert P. Bostrom, “Research-Driven Facilitation Training for Computer-Supported Environments,” Group Decision and Negotiation 5 (1996), pp. 7–29.
Leadership Development: Cases for Analysis
The New Museum
The recently completed new building to house the exhibits and staff of the Central City Museum was located adjacent to the campus of a private university. The new building was �inanced by the generosity of local donors. The university provided the land and would cover annual operating expenses with the understanding that the museum would provide a resource for student education. The new governing board would be made up of key donors as well as selected university administrators and faculty members.
The planning committee of the governing board hired two business students to interview various stakeholders about the future direction of the museum in its new relationship with the university. These interviews were conducted in person, and the interviewees seemed
uniformly interested and eager to help. The major questions pertained to the future mission and goals for the museum. Some excerpts from the interviews are listed below.
A major donor: I think the museum should be a major community resource. My wife and I gave money for the new building with the expectation that the museum would promote visits from the public schools in the area, and particularly serve the inner-city children who don't have access to art exhibits. We don't want the museum to be snobbish or elitist. The focus should de�initely be local .
A university administrator: The important thing is to have lively contemporary exhibits that will attract both university students and community adults and provide new insight and dialogue about current events. We can bring attention to the museum by having an occasional controversial exhibit, such as on Islamic art, and exhibits that appeal to Hispanics and African Americans. This approach would entail bringing in traveling exhibitions from major museums, which would save the administrative costs and overhead of producing our own exhibits .
Head of the art history department: The key thing is that the museum will not have the artistic resources or the �inancial resources to serve the community at large. We have a wonderful opportunity to integrate the museum with the academic faculty and make it a teaching institution. It can be a major resource for both undergraduate and graduate students in art education and art history. We can also work with engineering students, architecture students, and liberal arts students. This is a unique opportunity that will distinguish our art history department's teaching mission from others in the country .
A faculty member in the art history department: The best use of the museum's relationship with the university is to concentrate on training Ph.D.-level students in art history and to support scholarly research. I strongly urge the museum to focus on graduate education, which would increase the stature of the university nationally. Graduate students would be involved in the design of exhibits that would �it their research. Trying to make the museum popular on campus or in the community will waste our limited resources. Our Ph.D. graduates will be sought after by art history departments throughout the country .
The reason you have been given this information from the interviews is that you have been invited to interview for the position of museum director. The previous director retired with the understanding that a new director would be hired upon the completion of fundraising and construction of the new building. You are thinking about what you would do if you took the job.
Questions 1. What mission for the Central City Museum do you personally prefer? As director, would you try to implement your preferred
mission? Explain.
2. How would you try to resolve the underlying con�licts among key stakeholders about the museum's purpose and direction?
3. What actions would you take to implement the mission you decide to adopt? Be speci�ic.
The Visionary Leader
When Frank Coleman �irst began his job as president of Hi-Tech Aerostructures, most managers and employees felt a surge of hope and excitement. Hi-Tech Aerostructures is a 50-year-old, family-owned manufacturing company that produces parts for the aircraft industry. The founder and owner had served as president until his health began to decline, and he felt the need to bring in someone from outside the company to get a fresh perspective. It was certainly needed. Over the past several years, Hi-Tech had just been stumbling along.
Coleman came to the company from a smaller business, but one with excellent credentials as a leader in advanced aircraft technology. He had a vision for transforming Hi-Tech into a world-class manufacturing facility. In addition to implementing cutting-edge technology, the vision included transforming the sleepy, paternalistic culture to a more dynamic, adaptive one and empowering employees to take a more active, responsible role in the organization. After years of just doing the same old thing day after day, vice president David Deacon was delighted with the new president and thrilled when Coleman asked him to head up the transformation project.
Deacon and his colleagues spent hours talking with Coleman, listening to him weave his ideas about the kind of company Hi-Tech could become. He assured the team that the transformation was his highest priority, and he inspired them with stories about the signi�icant impact they were going to have on the company as well as the entire aircraft industry. Together, the group crafted a vision statement that was distributed to all employees and posted all over the building. At lunchtime, the company cafeteria was abuzz with talk about the new vision. And when the young, nattily dressed president himself appeared in the cafeteria, as he did once every few weeks, it was almost as if a rock star had walked in.
At the team's �irst meeting with Coleman, Deacon presented several different ideas and concepts they had come up with, explaining the advantages of each for ripping Hi-Tech out of the past and slamming it jubilantly into the twenty-�irst century. Nothing, however, seemed to live up to Coleman's ambitions for the project—he thought all the suggestions were either too conventional or too confusing. After three hours the team left Coleman's of�ice and went back to the drawing board. Everyone was even more �ired up after Coleman's closing remarks about the potential to remake the industry and maybe even change the world.
Early the next day, Coleman called Deacon to his of�ice and laid out his own broad ideas for how the project should proceed. “Not bad,” thought Deacon, as he took the notes and drawings back to the team. “We can take this broad concept and really put some plans for action into place.” The team's work over the next few months was for the most part lively and encouraging. Whenever Coleman would attend the meetings, he would suggest changes in many of their speci�ic plans and goals, but miraculously, the transformation plan began to take shape. The team sent out a �inal draft to colleagues and outside consultants, and the feedback was almost entirely positive.
The plan was delivered to Coleman on a Wednesday morning. When Deacon had still not heard anything by Friday afternoon, he began to worry. He knew Coleman had been busy with a major customer, but the president had indicated his intention to review the plan immediately. Finally, at 6 �.�. , Coleman called Deacon to his of�ice. “I'm afraid we just can't run with this,” he said, tossing the team's months of hard work on the desk. “It's just … well, just not right for this company.”
Deacon was stunned. And so was the rest of the team when he reported Coleman's reaction. In addition, word was beginning to get out around the company that all was not smooth with the transformation project. The cafeteria conversations were now more likely to be gripes that nothing was being done to help the company improve. Coleman assured the team, however, that his commitment was still strong; they just needed to take a different approach. Deacon asked that Coleman attend as many meetings as he could to help keep the team on the right track. Nearly a year later, the team waited in anticipation for Coleman's response to the revised proposal.
Coleman called Deacon at home on Friday night. “Let's meet on this project �irst thing Monday morning,” he began. “I think we need to make a few adjustments. Looks like we're more or less headed in the right direction, though.” Deacon felt like crying as he hung up the phone. All that time and work. He knew what he could expect on Monday morning. Coleman would lay out his vision and ask the team to start over.
Questions 1. How effective would you rate Coleman as a visionary leader? Discuss.
2. Where would you place Coleman on the chart of types of leaders in Exhibit 13.1 ? Where would you place Deacon?
3. If you were Deacon, what would you do?
Sources: Based on “The Vision Failed,” Case 8.1 in Peter G. Northouse, Leadership—Theory and Practice , 2nd ed. (Thousand Oaks, CA: Sage Publications, 2001), pp. 150–151; Joe Kay, “My Year at a Big High Tech Company,” Forbes ASAP (May 29, 2000), pp. 195–198; “Digital Diary (My Year at a Big High Tech Company),” http://www.forbes.com/asap/2000 (http://www.forbes.com/asap/2000) (accessed November 19, 2000); and “Digital Diary, Part Two: The Miracle,” Forbes ASAP (August 21, 2000), pp. 187–190.
Chapter 14 . Shaping Culture and Values
Your Leadership Challenge After reading this chapter, you should be able to:
Understand why shaping culture is a vital function of leadership. Recognize the characteristics of a responsive, as opposed to a resistant, culture. Know how to establish a high-performance culture by paying attention to both values and results. Understand and apply how leaders shape culture and values through ceremonies, stories, symbols, language, selection and socialization, and daily actions. Identify the cultural values associated with adaptability, achievement, involvement, and consistency cultures and the environmental conditions associated with each. Act as a values-based leader and instill healthy values in the organizational culture. Apply the principles of spiritual leadership to help people �ind deeper life meaning and a sense of membership through work.
Rui Sousa of Providence, Rhode Island, recently attended a ceremony during which his jersey was retired to the rafters of his building, where it dangles as an inspiration to others. No, Sousa isn't a basketball or football star. He's a UPS driver who was recently inducted into an elite circle—the 7 percent of the company's 102,000 drivers who manage to drive their big brown trucks without having an “avoidable” traf�ic accident for 25 years. Sousa now wears a new shirt with a small patch with the number 25 on it. He also got his choice of a camel hair blazer or a leather bomber jacket (he chose the jacket) and gets to park his truck in a reserved space in front of the building. Each year, UPS honors drivers who reach the 25 year safe driving mark with a small ceremony to induct them into the Circle of Honor. Reaching the mark isn't easy. New drivers at UPS attend intensive week-long training courses on safety and ethics and have to memorize the company's more than 600 mandatory “methods,” which include guidelines such as checking the mirrors every �ive to eight seconds and leaving precisely one full car length in front when stopping.
UPS thrives on a culture of safety and ef�iciency, and the jersey ceremony is one way leaders illustrate and reinforce important cultural values. The most impressive safety record belongs to Ronnie McKnight, who has driven safely for 46 years in the tough streets of New York City. But McKnight isn't the record-holder. That honor belongs to 73-year-old Tom Camp, who has 51 years of safe driving in Michigan, where roads are snow- and ice-covered for several months of the year. Camp says he has no plans to retire. “Every day is a challenge out there,” he says. “It takes your full concentration, all the time.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/rtcqe6xf5spuuke1n619#JPQM87A9CZ82FZYCT017)
Laura Stevens, “UPS Drivers Who Avoid Accidents for 25 Years Get Arm Patch and Bomber Jacket; Those in the Coveted Circle of Honor Have Dodged Taxis, Traf�ic and Bears,” The Wall Street Journal (June 4, 2014), http://www.wsj.com/articles/ups-drivers-who-avoid-accidents-for-25-years-get-arm-patch-and-bomber-jacket-1401933961 (http://www.wsj.com/articles/ups-drivers-who-avoid-accidents-for-25-years-get-arm-patch-and-bomber-jacket-1401933961) (accessed November 27, 2015).
In the previous chapter, we talked about creating an inspiring vision and de�ining the strategies to help achieve it. Successful leaders recognize that culture is a core element in helping the organization meet strategic goals and attain the vision. Like UPS, most companies with strong cultures use various symbols, ceremonies, and other activities to shape the culture the company needs to be successful. Leaders align people with the vision by in�luencing organizational culture and shaping the environment that determines morale and performance.
This chapter explores the role of leaders in shaping organizational culture and values. Most leaders recognize that culture is an important mechanism for attracting, motivating, and retaining talented employees, a capability that may be the single best predictor of overall organizational excellence. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/rtcqe6xf5spuuke1n619#ZAAJPESXAYGSC8F24570) In a survey of Canada's top 500 companies, 82 percent of leaders said culture has a strong impact on their company's performance. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/rtcqe6xf5spuuke1n619#EFYHHYRS1H96AY44T176) One long-term study discovered that organizations with strong cultures outperform those with weak cultures two to one on several primary measures of �inancial performance. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/rtcqe6xf5spuuke1n619#UWKRYPCNT340DEWY9193) In another Canadian study, the three-year average revenue growth for the top 10 companies ranked as having positive cultures was 63 percent higher than that of the 60 largest public companies in Canada. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/rtcqe6xf5spuuke1n619#MTJEHMNVF73XR0VHW415) The �irst section of this chapter describes the nature of corporate culture and its importance to organizations. Then we turn to a consideration of how shared values can help the organization stay competitive and how leaders in�luence cultural values for high performance. The �inal section of the chapter brie�ly discusses ethical and spiritual values and how values-based leadership shapes an organization's cultural atmosphere.
Sanam Islam, “Execs See Link to Bottom Line; Gap Is Closing; More Firms Keen to Be Seen as Best Corporate Culture,” National Post (November 19, 2008), p. FP.16; Jeremy Kahn, “What Makes a Company Great?” Fortune (October 26, 1998), p. 218; James C. Collins and Jerry I. Porras, Built to Last: Successful Habits of Visionary Companies (New York: HarperBusiness, 1994); and James C. Collins, “Change Is Good—But First Know What Should Never Change,” Fortune (May 29, 1995), p. 141.
Islam, “Execs See Link to Bottom Line.”
T. E. Deal and A. A. Kennedy, The New Corporate Cultures: Revitalizing the Workforce after Downsizing, Mergers, and Reengineering (New York: Basic Books, 2000).
Islam, “Execs See Link to Bottom Line.”
14-1. Organizational Culture Corporate culture is powerful because it affects a company's performance for better or worse. Thriving companies such as Google, Southwest Airlines, and Apple have often attributed their success to the cultures their leaders helped create. This chapter's Leader's Bookshelf provides a glimpse into the culture at Google. On the other hand, dysfunctional cultures or the wrong cultural values have been blamed for many of the problems at companies like Bear Stearns, Research in Motion (maker of the once-ubiquitous Blackberry), and Kodak, the company whose little yellow packages of �ilm once dominated photography. A shifting environment often calls for new values and fresh approaches to doing business. Most leaders now understand that when a company's culture �its the needs of its external environment and company strategy, employees can create an organization that is tough to beat. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#WDULMXFVFCURYWLKG587)
Leader's Bookshelf How Google Works by Eric Schmidt and Jonathan Rosenberg
Google is arguably the world's most in�luential company and one of the most sought-after workplaces ever. How Google Works , written by Eric Schmidt, Google's executive chairman and former CEO, and Jonathan Rosenberg, a former senior Google leader, provides a glimpse into the leadership ideas that made it so. Schmidt and Rosenberg both arrived at Google as seasoned executives during the company's chaotic early years of growth and found that they had to shift their ways of thinking and acting.
No Conventional Company
“The only thing we could say for sure back then was that much of what the two of us had learned in the 20th century was wrong, and that it was time to start over,” the authors write. They assert that leaders in all types of organizations have to think about the culture they want the company to have and unite people around a direct and inspiring mission (Google's is Don't be evil ). Here are some additional insights into the Google culture:
Think Really Big and Fail Fast . They call it the “moonshot” in Silicon Valley. Leaders at Google frequently pull people away from seeking a 10 percent improvement toward a goal of one that is “10X,” or ten times better. People are encouraged to think and do things in entirely new ways. That means a lot of attempts will fail, but mistakes and failure are accepted. The Google approach is to fail fast and learn from the experience, perhaps turning some aspect of it into a new success.
Make Sure All Ideas Get Heard . The core of Google's culture is to empower employees. Leaders use a variety of systems to enable ideas from anywhere in the company to get heard and acted upon. In addition, people have the chance to spend 20 percent of their time on projects of their own choosing. This approach led to many of Google's biggest products and features, such as Gmail.
Remember That Hiring Is Your Most Vital Task . Leaders should be constantly on the lookout for talent, and they should “pay outrageously good people outrageously well, regardless of their title or tenure.” In addition, the authors say good interviewing is “the most important skill any business person can develop.” At Google, leaders make sure everyone has good interviewing skills because teams of employees, not managers, make all hiring and promotion decisions.
A Basic Rule for Leaders
Schmidt and Rosenberg had to learn a different approach to leadership to get the best out of what they call “smart creatives,” a term referring to highly intelligent, creative, self-motivated employees who can come up with the next big thing. To lead this new type of worker, they say, leaders have to start with self-evaluation: “Make sure you would work for yourself,” they advise.
Source: How Google Works , by Eric Schmidt and Jonathan Rosenberg with Alan Eagle, is published by Grand Central Publishing.
Andrew Klein, “Corporate Culture: Its Value as a Resource for Competitive Advantage,” Journal of Business Strategy 32, no. 2 (2011), pp. 21–28; Yoash Wiener, “Forms of Value Systems: A Focus on Organizational Effectiveness and Culture Change and Maintenance,” Academy of Management Review 13 (1988), pp. 534–545; V. Lynne Meek, “Organizational Culture: Origins and Weaknesses,” Organization Studies 9 (1988), pp. 453–473; and John J. Sherwood, “Creating Work Cultures with Competitive Advantage,” Organizational Dynamics (Winter 1988), pp. 5–27.
14-1a. What Is Culture?
Some people think of culture as the character or personality of an organization. How an organization looks and “feels” when you enter it is a manifestation of the organizational culture. For example, if you visit headquarters at ExxonMobil, you will likely get a sense of formality the minute you walk in the door. Most employees are in conventional business attire, desks are neat and orderly, and the atmosphere is tinged with competitiveness and a rigorous, analytical approach to taking care of business. “They're not in the fun business,” said one oil industry analyst. “They're in the pro�it business.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#HZRKBRW0RNNL4CWXX319) At a company such as Zappos, though, where fun is a core value, employees may be wearing jeans and sneakers, sport pierced lips or noses, and have empty pizza boxes, coffee cups, and drink bottles on their desks. Both of these companies are highly successful, but the underlying cultures are very different.
Geoff Colvin, “The De�iant One,” Fortune (April 30, 2007), pp. 86–92.
Culture can be de�ined as the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#DBPGNY06S50BRSV0B525) Norms are shared standards that de�ine what behaviors are acceptable and desirable within a group of people. At its most basic, culture is a pattern of shared assumptions and beliefs about how things are done in an organization. As organizational members cope with internal and external problems, they develop shared assumptions and norms of behavior that are taught to new members as the correct way to think, feel, and act in relation to those problems. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#PSAA1CV7ZL2CYK6ZE670)
Culture the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Culture the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Culture the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Culture the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Culture the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Culture the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Culture
W. Jack Duncan, “Organizational Culture: Getting a ‘Fix’ on an Elusive Concept,” Academy of Management Executive 3 (1989), pp. 229–236; Linda Smircich, “Concepts of Culture and Organizational Analysis,” Administrative Science Quarterly 28 (1983), pp. 339–358; and Andrew D. Brown and Ken Starkey, “The Effect of Organizational Culture on Communication and Information,” Journal of Management Studies 31, no. 6 (November 1994), pp. 807–828.
Edgar H. Schein, “Organizational Culture,” American Psychologist 45, no. 2 (February 1990), pp. 109–119.
Culture can be thought of as consisting of three levels, as illustrated in Exhibit 14.1 , with each level becoming less obvious. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#AAQGE73RNGWL6VFX9870) At the surface level are visible artifacts, such as manner of dress, patterns of behavior, physical symbols, organizational ceremonies, and of�ice layout—all the things one can see, hear, and observe by watching members of the organization. Consider some observable aspects of culture at John Lewis, a successful retailer in Great Britain. People working in John Lewis stores are typically older than staff members at other retailers and are called partners, not employees. Everyone shares in company pro�its and has a say in how the business is run. The entrance to leaders' of�ices is small and functional rather than ostentatious, and stores exude an air of simplicity, calmness, and order. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#ZZYSRY9NV434AGB71401) At a deeper level of culture are the expressed values and beliefs, which are not observable but can be discerned from how people explain and justify what they do. These are values that members of the organization hold at a conscious level. For example, John Lewis partners consciously know that dependability, service, and quality are highly valued and rewarded in the company culture.
This discussion of the levels of culture is based on Edgar H. Schein, Organizational Culture and Leadership , 2nd ed. (San Francisco: Jossey-Bass, 1992), pp. 3–27.
Chris Blackhurst, “Sir Stuart Hampson,” Management Today (July 2005), pp. 48–53.
the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Culture the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Culture the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Culture the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Culture the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct
Exhibit 14.1. Levels of Corporate Culture
Some values become so deeply embedded in a culture that organizational members may not be consciously aware of them. These basic, underlying assumptions are the essence of the culture. At John Lewis, these assumptions might include (1) that the company cares about its employees as much as it expects them to care about customers, (2) that individual employees should think for themselves and do what they believe is right to provide exceptional customer service, and (3) that trust and honesty are an essential part of successful business relationships. Assumptions generally start out as expressed values, but over time they become more deeply embedded and less open to question—organization members take them for granted and often are not even aware of the assumptions that guide their behavior, language, and patterns of social interaction.
14-1b. Importance of Culture
New Leader Action Memo
As a leader, you can pay attention to organizational culture and develop an awareness of how cultural values, norms, and beliefs in�luence people's behavior in the organization.
When people are successful at what they undertake, the ideas and values that led to that success become institutionalized as part of the organization's culture. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#UKCAPW55L1A1DBZLL043) Culture gives employees a sense of organizational identity and generates a commitment to particular values and ways of doing things. Culture serves two important functions in organizations: (1) it integrates members so that they know how to relate to one another, and (2) it helps the organization adapt to the external environment.
John P. Kotter and James L. Heskett, Corporate Culture and Performance (New York: The Free Press, 1992), p. 6.
Internal Integration Culture helps employees develop a collective identity and know how to work together effectively. It is culture that guides day-to-day working relationships and determines how people communicate in the organization, what behavior is acceptable or not acceptable, and how power and status are allocated. Culture can imprint a set of unwritten rules inside employees' minds, which can be very powerful in determining behavior, thus affecting organizational performance. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#UCCUSUEZH12BWS3NZ091) At Tata Consultancy Services, CEO Natarajan Chandrasekaran has shaped a culture in which people are expected to help and care for one another.
Peter B. Scott-Morgan, “Barriers to a High-Performance Business,” Management Review (July 1993), pp. 37–41.
In the Lead Natarajan Chandrasekaran, Tata Consultancy Services
Natarajan Chandrasekaran grew up on a farm in a small village in Southern India. He returned to take over the farm after college but was so miserable after �ive months that he and his father agreed that he would return to school for a master's degree in computing. His �irst job was at Tata Consultancy Services (TCS), which at the time (1987) had about 500 employees. Today, Chandrasekaran is CEO of TCS, which now has around 315,000 employees and operates in 46 countries.
He leads the organization with many of the values his parents instilled in him, including honesty, determination, and accountability. Chandrasekaran says his father always wanted him and his �ive siblings “to be accountable for what we did.” Chandrasekaran has built accountability into the culture of TCS, but part of the culture is also being accountable for others. “Everybody has to take some accountability for other people, and look for ways to make small contributions to help others,” Chandrasekaran says. At TCS, each individual is expected to �ind ways to help someone else achieve just a little more. This can apply to work activities, but it might also apply to some other aspect of a colleague's life. Looking after others is an important part of the culture, so people are open to both giving and receiving help and advice.
When hiring, TCS leaders look for people who �it the culture of accountability and caring. The culture supports an environment in which people learn from and collaborate with others. In executive team meetings, leaders share stories of both successes and failures, and larger meetings often start with having people describe examples of their collaborations. “Learning cannot be achieved by mandate” Chandrasekaran points out. “It has to be achieved by culture.“ * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#TGSKRV77PLHGR673M251)
Adam Bryant, “Natarajan Chandrasekaran of Tata Consultancy Services: Making a Habit of Accountability,” The New York Times (February 10, 2015), http://www.nytimes.com/2015/02/15/business/natarajan-chandrasekaran-of-tata-consultancy-services-making-a-habit-of-accountability.html?_r=0 (http://www.nytimes.com/2015/02/15/business/natarajan-chandrasekaran-of-tata-consultancy-services-making-a-habit-of-accountability.html?_r=0) (accessed November 27, 2015).
Many organizations, like Tata Consultancy Services, want strong cultures that encourage teamwork, collaboration, and mutual trust. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#JVHPNXQCRMPVVVLVA094) In an environment of trust, people are more likely to share ideas, be creative, and be generous with their knowledge and talents.
Arthur Ciancutti and Thomas Steding, “Trust Fund,” Business 2.0 (June 13, 2000), pp. 105–117.
External Adaptation Culture also determines how the organization meets goals and deals with outsiders. The right cultural values can help the organization respond rapidly to customer needs or the moves of a competitor. Culture can encourage employee commitment to the core purpose of the organization, its speci�ic goals, and the basic means used to accomplish goals.
The “right” culture is determined partly by what the organization needs to meet external challenges. The culture should embody the values and assumptions needed by the organization to succeed in its environment. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#SVLZVNT1HHY23V6R8325) If the competitive environment requires speed and �lexibility, for example, the culture should embody values that support adaptability, collaboration across departments, and a fast response to customer needs or environmental changes. When Lou Gerstner took over as CEO of IBM in 1993, it was on the brink of collapse partly because of an “inbred and ingrown” culture that slowed decision making and prevented adaptation to the rapidly changing environment. One step Gerstner took early on was to change the way meetings were handled. To put more value on dialogue and shared decision making rather than presentations, he limited the number of slides that could accompany a report to �ive. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#LSHEL4JB51V0WWQ3A150) By the time Gerstner had left nearly 10 years later, IBM had a new culture in which everyone knew they were rewarded for collaborating and getting things done fast, not for hoarding information and making impressive presentations. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/pvxntn8ukz2ec7kj6592#GPKHNEEJ7E28MW8BG062)
Robert Bruce Shaw and Mark Ronald, “Changing Culture—Patience Is Not a Virtue,” Leader to Leader (Fall 2012), pp. 50–55.
Example described in Shaw and Ronald, “Changing Culture—Patience Is Not a Virtue.”
Lisa DiCarlo, “How Lou Gerstner Got IBM to Dance,” Forbes.com (November 11, 2002), http://www.forbes.com/2002/11/11/cx_ld_1112gerstner.html (http://www.forbes.com/2002/11/11/cx_ld_1112gerstner.html) (accessed June 5, 2013).
All effective cultures encourage adaptation to the environment in order to keep the organization healthy and pro�itable. This chapter's Consider This highlights the importance of individual learning and adaptability. Just like people, organizational cultures have to grow and change to meet new challenges.
Consider This! Here Is Your Assignment 1. You will receive a body. You may like it or not, but it will be yours for the entire period this time around.
2. You will learn lessons. You are enrolled in a full-time, informal school called life. Each day in this school you will have the opportunity to learn lessons. You may like the lessons or think them irrelevant and stupid.
3. There are no mistakes, only lessons. Growth is a process of trial and error, experimentation. The “failed” experiments are as much a part of the process as the experiment that ultimately “works.”
4.
A lesson is repeated until it is learned. A lesson will be presented to you in various forms until you have learned it; then you can go on to the next lesson.
5. Learning lessons does not end. There is no part of life that does not contain its lessons. If you are alive, there are lessons to be learned.
6. “There” is no better than “here.” When your “there” has become a “here,” you will simply obtain another “there” that will, again, look better than “here.”
7. Others are merely mirrors of you. You cannot love or hate something about another person unless it re�lects to you something you love or hate about yourself.
8. What you make of your life is up to you. You have all the tools and resources you need; what you do with them is up to you. The choice is yours.
9. All you need to do is look, listen, and trust.
10. Whether you think you can or can't, in either case you'll be right. Think about it.
14-2. Culture Strength, Responsiveness, and Performance
New Leader Action Memo
As a leader, you can build a responsive culture by showing concern for customers and other stakeholders and by supporting people and projects that bring about useful change. To improve your understanding of responsive versus resistant cultures, go to Leader's Leader's Self-Insight 14.1 .
Culture strength refers to the degree of agreement among employees about the importance of speci�ic values and ways of doing things. If widespread consensus exists, the culture is strong and cohesive; if little agreement exists, the culture is weak. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#PHBLMHB586ZDQMLEX070) The effect of a strong culture is not always a positive one. Sometimes a strong culture can encourage the wrong values and cause harm to the organization and its members. Think of the now-defunct Bear Stearns, which had a strong, highly competitive corporate culture that supported pushing everything to the limits in the pursuit of wealth. As long as an employee was making money for the �irm, leaders took a hands-off approach, which allowed increasingly risky and sometimes unethical behavior. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#NYXMYHKUQPQ6UZ7UN223)
Culture strength the degree of agreement among employees about the importance of speci�ic values and ways of doing things
Culture strength the degree of agreement among employees about the importance of speci�ic values and ways of doing things
Culture strength the degree of agreement among employees about the importance of speci�ic values and ways of doing things
Culture strength the degree of agreement among employees about the importance of speci�ic values and ways of doing things
Culture strength the degree of agreement among employees about the importance of speci�ic values and ways of doing things
Culture strength the degree of agreement among employees about the importance of speci�ic values and ways of doing things
Culture strength the degree of agreement among employees about the importance of speci�ic values and ways of doing things
Bernard Arogyaswamy and Charles M. Byles, “Organizational Culture: Internal and External Fits,” Journal of Management 13 (1987), pp. 647–659.
William D. Cohan, House of Cards: A Tale of Hubris and Wretched Excess on Wall Street (New York: Doubleday 2009); Chuck Leddy, “When Wall Street Bet the House,” Boston Globe (March 28, 2009), p. G8; and Robin Sidel and Kate Kelly, “Bear Stearns a Year Later: From Fabled to Forgotten—Bear’s Name, and Culture, Fade Away after J.P. Morgan’s Fire-Sale Deal,” The Wall Street Journal (March 14, 2009), p. B1.
A strong culture increases employee cohesion and commitment to the values, goals, and strategies of the organization, but companies can sometimes have unethical values or values that are unhealthy for the organization because they don't �it the needs of the environment. Research at Harvard into some 200 corporate cultures found that a strong culture does not ensure success unless it also encourages a healthy response and adaptation to the external environment. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#UTPMHQWY9WMLV9AU1704) A strong culture that does not encourage adaptation can be more damaging to an organization than a weak culture.
Kotter and Heskett, Corporate Culture and Performance .
Leader's Self-Insight 14.1. Working in a Responsive Culture
Instructions: Think of a speci�ic full-time job you have held. Indicate whether each of the following items is Mostly False or Mostly True according to your perception of the managers above you when you held that job.
Mostly False Mostly True 1. Good ideas got serious consideration from management above me 2. Management above me was interested in ideas and suggestions from people at my level in
the organization.
3. When suggestions were made to management above me, they received fair evaluation. 4. Management did not expect me to challenge or change the status quo. 5. Management speci�ically encouraged me to bring about improvements in my workplace. 6. Management above me took action on recommendations made from people at my level. 7. Management rewarded me for correcting problems. 8. Management clearly expected me to improve work unit procedures and practices. 9. I felt free to make recommendations to management above me to change existing
practices.
10. Good ideas did not get communicated upward because management above me was not very approachable.
Scoring and Interpretation
To compute your score: Give yourself one point for each Mostly True answer to questions 1, 2, 3, 5, 6, 7, 8, and 9 and for each Mostly False answer to questions 4 and 10. Total points: .
A responsive culture is shaped by the values and actions of top and middle executives. When managers actively encourage and welcome change initiatives from below, the organization will be infused with values for responsiveness and change. These 10 questions measure your management's openness to change. A typical average score for management openness to change is about 4. If your average score was 5 or higher, you worked in an organization that expressed cultural values of responsiveness. If your average score was 3 or below, the culture was probably a resistant one.
Culture strength the degree of agreement among employees about the importance of speci�ic values and ways of doing things
Culture strength the degree of agreement among employees about the importance of speci�ic values and ways of doing things
Culture strength the degree of agreement among employees about the importance of speci�ic values and ways of doing things
Thinking back to your job, was the level of management openness to change correct for that organization? Why? Compare your score to that of another student, and take turns describing what it was like working for the managers above you . Do you sense that there is a relationship between job satisfaction and management's openness to change? What speci�ic manager characteristics and corporate values accounted for the openness (or lack of) in the two jobs?
Source: Based on S. J. Ashford, N. P. Rothbard, S. K. Piderit, and J. E. Dutton, “Out on a Limb: The Role of Context and Impression Management in Issue Selling,” Administrative Science Quarterly 43 (1998), pp. 23–57; and E. W. Morrison and C. C. Phelps, “Taking Charge at Work: Extrarole Efforts to Initiate Workplace Change,” Academy of Management Journal 42 (1999), pp. 403–419.
14-2a. Responsive Cultures
Cultures can be thought of as either responsive or resistant. As illustrated in Exhibit 14.2 , responsive corporate cultures have different values and behavior from resistant cultures. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#GAJCE1W5DM9BH31GN636) In responsive cultures, leaders are concerned with customers and with people, processes, and procedures within the organization that bring about useful change. In resistant cultures, leaders are concerned with themselves or their own special projects, and their values tend to discourage risk taking and change. Thus, a strong culture is not enough because an unhealthy culture may encourage the organization to march resolutely in the wrong direction. Healthy cultures help companies respond to changes in the external environment.
This discussion and the exhibit are based on Kotter and Heskett, Corporate Culture and Performance , p. 51
Exhibit 14.2. Responsive versus Resistant Cultures
Visible behavior Leaders pay attention to all stakeholders and initiate change when needed to serve the legitimate interests of customers, employees, partners, or others, even if it entails taking some risks.
Managers tend to be inward-looking and politically motivated. As a result, they do not change their goals and strategies quickly to adjust to changes in the environment.
Expressed values Leaders genuinely care about customers, employees, partners, and shareholders. They value all the people, processes, and mechanisms up and down the hierarchy that can create useful change.
Managers care mainly about their own interests and the products or technologies of their immediate team or department. They value the orderly and risk-reducing management system more highly than change initiatives.
Underlying assumption
Serve whole organization, trust others. Meet own needs, distrust others.
Source: Based on John P. Kotter and James L. Heskett, Corporate Culture and Performance (New York: The Free Press, 1992), p. 51.
An organization's culture may not always be in alignment with the needs of the external environment. The values and ways of doing things may re�lect what worked in the past. The difference between desired and actual values and behaviors is called the culture gap . * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#UCNAKMFDFZ3K7A3WT609) Many organizations have some degree of culture gap, though leaders often fail to realize it. An important step toward shifting the culture toward more adaptive values is to recognize when people are adhering to the wrong values or when important values are not held strongly enough. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#WEVM2E74VULDBVLUR732)
culture gap the difference between desired and actual values and behaviors
culture gap the difference between desired and actual values and behaviors
culture gap the difference between desired and actual values and behaviors
Ralph H. Kilmann, Mary J. Saxton, Roy Serpa, and Associates, Gaining Control of the Corporate Culture (San Francisco: Jossey-Bass, 1985).
Larry Mallak, “Understanding and Changing Your Organization’s Culture,” Industrial Management (March–April 2001), pp. 18–24.
Culture gaps can be immense, particularly in the case of mergers. Leaders at Alpha Natural Resources Inc. struggled to merge two distinct cultures after acquiring Massey Energy Company. Massey was in control of the mine in West Virginia at which an explosion killed 29 workers in 2010. Alpha CEO Kevin Crutch�ield makes safety a core value, and he scheduled 400 training sessions to train every Massey employee in the management system called Running Right. “There is no ton of coal worth an injury, an accident, or, God forbid, a life,” he says. “It's just a ton of coal. So, if we can't get it out the right way, we're not going to bother. I think that is a little different from what the Massey folks were used to.“ * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#EYMD1GG9VG06Y8Z67711)
Kris Maher, “Post Massey Merger, Alpha CEO Makes Safety Priority No. 1” (Boss Talk), The Wall Street Journal (August 8, 2011), http://online.wsj.com/article/SB10001424053111903885604576490391464803316.html (http://online.wsj.com/article/SB10001424053111903885604576490391464803316.html) (accessed June 5, 2013).
Despite the popularity of mergers and acquisitions as a corporate strategy, many fail. Studies by consulting �irms such as McKinsey & Company, the Hay Group, and others suggest that performance declines in almost 20 percent of acquired companies after acquisition. Some experts claim that 90 percent of mergers never live up to expectations. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#ARZRVVYXZVXZEWYSP061) One reason for this is the dif�iculty of integrating cultures. Organizational leaders should remember that the human systems—in particular, the norms and values of corporate culture—are what make or break any change initiative. The problem of integrating cultures increases in scope and complexity with global companies and cross-cultural mergers or acquisitions.
Reported in Chip Jarnagan and John W. Slocum, Jr., “Creating Corporate Cultures Through Mythopoetic Leadership,” Organizational Dynamics 36, no. 3 (2007), pp. 288–302.
14-2b. The High-Performance Culture
culture gap the difference between desired and actual values and behaviors
culture gap the difference between desired and actual values and behaviors
culture gap the difference between desired and actual values and behaviors
culture gap the difference between desired and actual values and behaviors
culture gap the difference between desired and actual values and behaviors
culture gap the difference between desired and actual values and behaviors
culture gap the difference between desired and actual values and behaviors
Creating and sustaining a responsive, high-performance culture is one of the most important jobs for organizational leaders. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#EWUK5AY91JG05548D197) A number of studies have found a positive relationship between culture and performance. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#CDGR48HYMM94BB87T598) In Corporate Culture and Performance , Kotter and Heskett provided evidence that companies in which leaders intentionally managed cultural values outperformed similar companies whose leaders did not. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#PAQVQ2APP4D77T72F927) Even the U.S. government is recognizing the link between culture and effectiveness. The U.S. Of�ice of Personnel Management created its Organizational Assessment Survey as a way for federal agencies to measure aspects of culture and shift values toward high performance. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#FMNE3ZP06EMTFGT9P508)
Jennifer A. Chatman and Sandra Eunyoung Cha, “Leading by Leveraging Culture,” California Management Review 45, no. 4 (Summer 2003), pp. 20–34; and Jeff Rosenthal and Mary Ann Masarech, “High-Performance Cultures: How Values Can Drive Business Results,” Journal of Organizational Excellence 22, no. 2 (Spring 2003), pp. 3–18.
Abby Ghobadian and Nicholas O’Regan, “The Link between Culture, Strategy and Performance in Manufacturing SMEs,” Journal of General Management 28, no. 1 (Autumn, 2002), pp. 16– 34; G. G. Gordon and N. DiTomaso, “Predicting Corporate Performance from Organisational Culture,” Journal of Management Studies 29, no. 6 (1992), pp. 783–798; G. A. Marcoulides and R. H. Heck, “Organizational Culture and Performance: Proposing and Testing a Model,” Organization Science 4 (1993), pp. 209–225; Micah R. Kee, “Corporate Culture Makes a Fiscal Difference,” Industrial Management (November–December 2003), pp. 16–20; and Rosenthal and Masarech, “High-Performance Cultures: How Values Can Drive Business Results.”
Kotter and Heskett, Corporate Culture and Performance .
Tressie Wright Muldrow, Timothy Buckley, and Brigitte W. Schay, “Creating High-Performance Organizations in the Public Sector,” Human Resource Management 41, no. 3 (Fall 2002), pp. 341–354.
Companies that succeed have leaders who pay careful attention to both cultural values and business performance. Exhibit 14.3 illustrates four organizational outcomes based on the relative attention leaders pay to cultural values and business performance. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#YFXHX040L1XYJ5FQA376) For example, leaders in Quadrant C of Exhibit 14.3 pay little attention to either cultural values or business results, and the company is unlikely to survive for long. Leaders in Quadrant D are highly focused on creating a strong culture, but they don't tie the values directly to goals and desired results.
This section is based on Rosenthal and Masarech, “High-Performance Cultures: How Values Can Drive Business Results.”
Exhibit 14.3. Combining Culture and Performance
Source: Adapted from Jeff Rosenthal and Mary Ann Masarech, “High-Performance Cultures: How Values Can Drive Business Results,” Journal of Organizational Exellence (Spring 2003), pp. 3–18; and Dave Ulrich, Steve Kerr, and Ron Ashkenas, Figure 11–2, GE Leadership Decision Matrix, The GE Work-Out: How to Implement GE's Revolutionary Method for Busting Bureaucracy and Attacking Organizational Problems—Fast! (New York: McGraw-Hill, 2002), p. 230.
When leaders don't connect cultural values to business performance, the values aren't likely to bene�it the organization during hard times. For example, the corporate culture at The LEGO Group headquarters in Billund, Denmark, nearly doomed the toymaker when sales plummeted as children turned away from traditional toys to video games. At that time, LEGO leaders re�lected the characteristics found in Quadrant D of Exhibit 14.3 . Imagination and creativity, not business performance, were what guided Lego. The attitude was, “We're doing great stuff for kids—don't bother us with �inancial goals.” A new CEO, Jørgen Vig Knudstorp, transformed the culture with a new employee motto: “I am here to make money for the company.” Shifting leader attitudes to incorporate bottom-line results as well as values had a profound effect, and Lego has become one of the most successful companies in the toy industry. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#VPCDHDG96G17AR4PS792)
Nelson D. Schwartz, “One Brick at a Time,” Fortune (June 12, 2006), pp. 45–46; and Nelson D. Schwartz, “Lego’s Rebuilds Legacy,” International Herald Tribune (September 5, 2009).
Quadrant A in Exhibit 14.3 represents organizations in which leaders focus primarily on bottom-line results and pay little attention to values. This approach may be pro�itable in the short run, but the success is dif�icult to sustain over the long term because the “glue” that holds the organization together—that is, shared cultural values—is missing. Consider how a bottom-line focus at social games company Zynga damaged the organization. Zynga, led by founder and CEO Mark Pincus, recorded a phenomenal $828 million in revenue in the �irst nine months of 2011, more than double the period a year earlier. Zynga also met ambitious pro�itability goals, rare among Internet start- ups. With this type of �inancial performance, one might assume working for Zynga would be enjoyable and gratifying. However, teams for each game, like FarmVille and CityVille, worked under aggressive deadlines and were continuously challenged to meet lofty performance goals. Leaders emphasized performance reports, relentlessly aggregating data, and using the data to demote or �ire weak employees. Little attention was paid to cultural values that bind people into a uni�ied whole. The relentless focus on �inancial performance began to take a toll when people started voicing their frustration, complaining about long hours and aggressive deadlines that left little room for creativity. Former employees describe emotionally charged encounters, including loud outbursts from Pincus, threats from senior leaders, and moments when colleagues broke down into tears. The company's success could not be sustained without some attention to building a positive and responsive culture. Zynga's stock price dropped 80 percent between March 2012 and July 2013. At that time, Pincus turned the CEO job over to Don Mattrick but remained as chair of the board and retained majority voting power. In 2015, Mattrick was �ired and Pincus returned as CEO. It remains to be seen if he will bring a greater focus on building a positive culture that can help to renew the company. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#MUUMUUR7JXH5DA3N9769)
Evelyn M. Ruslie, “Zynga’s Tough Culture Risks a Talent Drain,” The New York Times Online (November 27, 2011), http://dealbook.nytimes.com/2011/11/27/zyngas-tough-culture- risks-a-talent-drain/ (http://dealbook.nytimes.com/2011/11/27/zyngas-tough-culture-risks-a-talent-drain/) (accessed June 18, 2012); Thomas Lee, “Mark Pincus Is Back as CEO, Because No One Could Stop Him,” SFGate (April 14, 2015), http://www.sfgate.com/business/article/Mark-Pincus-is-back-as-CEO-because-no-one-could-6197313.php (http://www.sfgate.com/business/article/Mark-Pincus-is-back-as-CEO-because-no-one-could-6197313.php) (accessed November 30, 2015); and Matthew Lynley, “Mark Pincus Is Back — And His Vintage Management Style Might Be, Too,” TechCrunch (May 16, 2015), http://techcrunch.com/2015/05/06/mark-pincus-is-back-and-his-vintage-management-style-might- be-too/ (http://techcrunch.com/2015/05/06/mark-pincus-is-back-and-his-vintage-management-style-might-be-too/) (accessed November 30, 2015).
Companies that maintain success over the long term have leaders who �it into Quadrant B. They put high emphasis on both culture and solid business performance as drivers of organizational success. Quadrant B organizations represent the high-performance culture , a culture that (1) is based on a solid organizational mission or purpose, (2) embodies shared responsive values that guide decisions and business practices, and (3) encourages individual employee ownership of both bottom-line results and the organization's cultural backbone. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#PEBU6UHY1D69R171X456)
high-performance culture a culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values
high-performance culture a culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values
high-performance culture a culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values
high-performance culture a culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values
high-performance culture a culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values
Rosenthal and Masarech, “High-Performance Cultures.”
In Quadrant B companies, leaders align values with the company's day-to-day operations—hiring practices, performance management, budgeting, criteria for promotions and rewards, and so forth. For example, when he was CEO of General Electric, Jack Welch helped GE become one of the world's most successful and admired companies. He achieved this by evaluating and rewarding leaders throughout the company based on whether they honored important cultural values in addition to “making their numbers.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#HBJM3Q53B56T90G8X829) Another example of an organization where leaders tie values to business performance is Menlo Innovations, which was described in the Chapter 8 Leader's Bookshelf .
Dave Ulrich, Steve Kerr, and Ron Ashkenas, The GE Work-Out (New York: McGraw-Hill, 2002), pp. 238–230.
In the Lead Menlo Innovations
Richard Sheridan, James Goebel, Robert Simms, and Thomas Meloche founded Menlo Innovations to create custom software for organizations, but one of their primary goals was to create a unique culture that embraces the values of equality, teamwork, learning, and fun. The founders say they were inspired by the collaborative and creative work environment demonstrated at Thomas Edison's Menlo Park, New Jersey, “Invention Factory” more than 120 years ago.
At many software companies developers work alone and are driven to meet rigorous performance goals, but at Menlo, collaboration is valued above anything else. Everyone works in a large, open room with no barriers of any kind to limit communication and information sharing. Employees work in pairs, sharing a single computer and passing the mouse back and forth as they brainstorm ideas and troubleshoot problems. The pairs stay together for a week and then all switch around to new partners. The variety of partners and tasks helps keep energy high as well as bringing fresh perspectives to ever-evolving projects.
Curiosity, willingness to learn, and the ability to “play well with others” are the qualities Menlo wants in its employees. The goal for each person is not to get the right answer, make the right connection, be the smartest, or know the most, but rather to bring out the best in one's partner. Consider Menlo leaders' approach to hiring. People who apply for jobs are divided into pairs and assigned an exercise, then evaluated on how effective they are at making the other applicant look good. It's tough for some people to handle—
high-performance culture a culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values
high-performance culture a culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values
high-performance culture a culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values
high-performance culture a culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values
high-performance culture a culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values
trying to make sure a competitor looks good enough to get the job you want. However, at Menlo, if you can't do that, you won't �it the culture—and �itting the culture is essential. Anyone who says, “I'm right, so let's do it this way” won't last long. “Constant collaboration means we are constantly transferring knowledge to one another,” says Sheridan. “I grow my team an inch every day.” Menlo's culture has been a competitive advantage for the company, enabling it to adapt quickly to an ever-shifting environment and meet the changing technology needs of varied clients, including Domino's, Thomson Reuters, P�izer, Nationwide Financial, and the University of Michigan. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#CSWG3CQQQ87C4NTQE436)
“Core Value: Teamwork,” segment in Leigh Buchanan, “2011 Top Small Company Workplaces: Core Values,” Inc . (June 2011), pp. 60–74; and “Our Story,” Menlo Innovations Web site, http://www.menloinnovations.com/our-story/history (http://www.menloinnovations.com/our-story/history) and http://www.menloinnovations.com/our- story/culture (http://www.menloinnovations.com/our-story/culture) (accessed September 12, 2011).
At companies with high-performance cultures, such as GE and Menlo Innovations, leaders care about both values and performance. A study of corporate values by Booz Allen Hamilton and the Aspen Institute found that leaders in companies that report superior �inancial results typically put a high emphasis on values and link them directly to the way they run the organization. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/jskw50a4k6qvreqdg695#GJSQ9RE99XN8646QF020)
Reggie Van Lee, Lisa Fabish, and Nancy McGaw, “The Value of Corporate Values: A Booz Allen Hamilton/Aspen Institute Survey,” strategy+ business 39 (Summer 2005), pp. 52–65.
14-3. Cultural Leadership An organization exists only because of the people who are a part of it, and those people both shape and interpret the character and culture of the organization. That is, an organization is not a slice of objective reality; different people may perceive the organization in different ways and relate to it in different ways. Leaders in particular formulate a viewpoint about the organization and the values that can help people achieve the organization's mission, vision, and strategic goals. Therefore, leaders enact a viewpoint and a set of values that they think are best for helping the organization succeed. A primary way in which leaders in�luence norms and values to build a high- performance culture is through cultural leadership .
A cultural leader de�ines and uses signals and symbols to in�luence corporate culture. Cultural leaders in�luence culture in two key areas:
1.
cultural leader a leader who actively uses signals and symbols to in�luence corporate culture
cultural leader a leader who actively uses signals and symbols to in�luence corporate culture
cultural leader a leader who actively uses signals and symbols to in�luence corporate culture
cultural leader a leader who actively uses signals and symbols to in�luence corporate culture
cultural leader a leader who actively uses signals and symbols to in�luence corporate culture
cultural leader a leader who actively uses signals and symbols to in�luence corporate culture
cultural leader a leader who actively uses signals and symbols to in�luence corporate culture
cultural leader a leader who actively uses signals and symbols to in�luence corporate culture
cultural leader a leader who actively uses signals and symbols to in�luence corporate culture
The cultural leader articulates a vision for the organizational culture that employees can believe in . This means the leader de�ines and communicates central values that employees believe in and will rally around. Values are tied to a clear and compelling mission, or core purpose.
2. The cultural leader heeds the day-to-day activities that reinforce the cultural vision . The leader makes sure that work procedures and reward systems match and reinforce the values. Actions speak louder than words, so cultural leaders “walk their talk.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#NJXUHR9C5H9H12435216)
Rosenthal and Masarech, “High-Performance Cultures”; Patrick M. Lencioni, “Make Your Values Mean Something,” Harvard Business Review (July 2002), pp. 113–117; and Thomas J. Peters and Robert H. Waterman, Jr., In Search of Excellence (New York: Warner, 1988).
For values to guide the organization, leaders model them every day. WestJet Airlines, which is consistently ranked as having one of Canada's most admired corporate cultures, provides an illustration. Employees (called simply “people” at WestJet) regularly see top leaders putting the values of equality, teamwork, participation, and customer service into action. At the end of a �light, for example, everyone on hand pitches in to pick up garbage—sometimes even the CEO. Customer-facing employees have “guidelines” rather than rules in terms of what they can do for customers, and no one is ever punished for well-intended errors of judgment. A new gate agent who gave free tickets to an entire �light for a minor inconvenience, for instance, was hailed as a hero for her effort, even though leaders coached her through understanding the impact of her action on the company so she might make a less costly decision the next time. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#VDAJPRYG1D4VXRJ3U756)
“About Canada’s 10: Canada’s 10 Most Admired Corporate Cultures, 2005–2012,” Waterstone Human Capital Web site, http://www.waterstonehc.com/cmac/about-canadas-10/10- most-admired-corporate-cultures-2005–2011 (http://www.waterstonehc.com/cmac/about-canadas-10/10-most-admired-corporate-cultures-2005–2011) (accessed June 6, 2013); Andrew Wahl, “Culture Shock,” Canadian Business (October 10–23, 2005), pp. 115–116; Calvin Leung, Michelle Magnan, and Andrew Wahl, “People Power,” Canadian Business (October 10–23, 2005), pp. 125–126; and John Izzo, “Step-Up Initiative: Create a Culture of Initiators,” Leadership Excellence (June 2012), p. 13.
Creating and maintaining a high-performance culture is not easy in today's turbulent environment and changing workplace, but through their words—and particularly their actions—cultural leaders let everyone in the organization know what really counts. Some of the mechanisms leaders use to enact cultural values are organizational rites and ceremonies, stories, symbols, and specialized language. In addition, they emphasize careful selection and socialization of new employees to keep cultures strong. Perhaps most importantly, leaders signal the cultural values they want to instill in the organization through their day-to-day behavior.
14-3a. Ceremonies
A ceremony is a planned activity that makes up a special event and is generally conducted for the bene�it of an audience. Leaders can schedule ceremonies to provide dramatic examples of what the company values. Ceremonies reinforce speci�ic values, create a bond among employees by allowing them to share an important event, and anoint and celebrate employees who symbolize important achievements. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#VKET7VASZPUPUX84A597)
ceremony a planned activity that makes up a special event and is generally conducted for the bene�it of an audience
ceremony a planned activity that makes up a special event and is generally conducted for the bene�it of an audience
ceremony a planned activity that makes up a special event and is generally conducted for the bene�it of an audience
ceremony a planned activity that makes up a special event and is generally conducted for the bene�it of an audience
ceremony a planned activity that makes up a special event and is generally conducted for the bene�it of an audience
Harrison M. Trice and Janice M. Beyer, “Studying Organizational Culture through Rites and Ceremonials,” Academy of Management Review 9 (1984), pp. 653–669.
A ceremony often includes the presentation of an award. At Mary Kay Cosmetics, one of the most effective companies in the world at using ceremonies, leaders hold elaborate award ceremonies at an annual event called “Seminar,” presenting jewelry, furs, and luxury cars to high- achieving sales consultants. The most successful consultants are introduced by �ilm clips like the ones used to present award nominees in the entertainment industry. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#DSYLVFX2V91LAJQAY654) These ceremonies recognize and celebrate high-performing employees and help bind sales consultants together. Even when they know they will not personally be receiving awards, consultants look forward to Seminar all year because of the emotional bond it creates with others.
Alan Farnham, “Mary Kay’s Lessons in Leadership,” Fortune (September 20, 1993), pp. 68–77.
14-3b. Stories
A story is a narrative based on true events that is repeated frequently and shared among employees. Leaders can use stories to illustrate the company's primary values. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#NFFUWEVH18HP6FLR5363) Employees at IBM often hear a story about the female security guard who challenged IBM's chairman. Although she knew who he was, the guard insisted that the chairman could not enter a particular area because he wasn't carrying the appropriate security clearance. Rather than getting reprimanded or �ired, the guard was praised for her diligence and commitment to maintaining the security of IBM's buildings. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#UVRT0KU4MJD435X7U471) By telling this story, employees emphasize both the importance of following the rules and the critical contributions of every employee from the bottom to the top of the organization. Russell Goldsmith, chairman and CEO of City National Bank in Los Angeles, believes in the force of storytelling so much that he brought in consultants to teach people how to share their stories about teamwork or customer service, which reinforces the company culture. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#VYJS3U17XJHQ84MK4336)
ceremony a planned activity that makes up a special event and is generally conducted for the bene�it of an audience
ceremony a planned activity that makes up a special event and is generally conducted for the bene�it of an audience
ceremony a planned activity that makes up a special event and is generally conducted for the bene�it of an audience
ceremony a planned activity that makes up a special event and is generally conducted for the bene�it of an audience
story a narrative based on true events that is repeated frequently and shared among employees
story a narrative based on true events that is repeated frequently and shared among employees
story a narrative based on true events that is repeated frequently and shared among employees
John Marshall and Matthew Adamic, “The Story Is the Message: Shaping Corporate Culture,” Journal of Business Strategy 31, no. 2 (2010), pp. 18–23.
Joanne Martin, Organizational Culture: Mapping the Terrain (Thousand Oaks, CA: Sage Publications, 2002), pp. 71–72.
Adam Bryant, “What’s Your Story? Tell It, and You May Win a Prize” (Corner Of�ice column, an interview with Russell Goldsmith), The New York Times (April 21, 2012), http://www.nytimes.com/2012/04/22/business/russell-goldsmith-of-city-national-on-storytellings-power.html?_r=0 (http://www.nytimes.com/2012/04/22/business/russell- goldsmith-of-city-national-on-storytellings-power.html?_r=0) (accessed April 29, 2013).
In some cases, stories may not be supported by facts, but they are consistent with the values and beliefs of the organization. A widely told story at Nordstrom, for example, is about the associate who, in order to satisfy a customer who was unhappy with the performance of his automobile tires, gave the customer his money back. The only thing is, Nordstrom does not sell tires. The story reinforces the company's no-questions-asked return policy. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#FXCSW6S64NG74ZHKF832)
Sam Silverstein, “Sustainable Culture: Create One of Your Own,” Leadership Excellence (December 2012), pp. 17–18; and Joan O’C. Hamilton, “Why Rivals Are Quaking as Nordstrom Heads East,” BusinessWeek (June 15, 1987), pp. 99–100.
14-3c. Symbols
Another tool for conveying cultural values is the symbol . A symbol is an object, act, or event that conveys meaning to others. For example, top leaders at Germany's TeamBank, described in the previous chapter, made the informal Du the mandatory form of address rather than the formal Sie commonly used in German workplaces. The change is a symbol of top management's respect for every employee. At tomato processor Morning Star, described in Chapter 10 , administrative of�ices are located near the factory �loor to symbolize that everyone is on the same team with the same purpose. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#EYUUDEHZ7SXBRAED5834)
story a narrative based on true events that is repeated frequently and shared among employees
story a narrative based on true events that is repeated frequently and shared among employees
story a narrative based on true events that is repeated frequently and shared among employees
story a narrative based on true events that is repeated frequently and shared among employees
story a narrative based on true events that is repeated frequently and shared among employees
story a narrative based on true events that is repeated frequently and shared among employees
symbol an object, act, or event that conveys meaning to others
Christoph H. Loch, Fabian J. Sting, Arnd Huchzermeier, and Christiane Decker, “Finding the Pro�it in Fairness,” Harvard Business Review (September 2012), pp. 111–115; and Doug Kirkpatrick, “Self-Management’s Success at Morning Star,” T+ D (October 2012), pp. 25–27.
Leaders can also use physical artifacts to symbolize important values. After the national hotel chain Extended Stay America emerged from bankruptcy, employees remained fearful of losing their jobs if they made any decision that might cost the company money. To implement a new culture where people aren't afraid to take risks to serve customers, CEO Jim Donald began handing out lime-green “Get Out of Jail, Free” cards. All people had to do, he told them, was call in the card when they took a big risk on behalf of the company—no questions asked. Donald successfully led the company for several years, resigning in 2015. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#RNQKLADHE9S6FHJ2R893)
Leslie Kwoh, “Memo to Staff: Take More Risks; CEOs Urge Employees to Embrace Failure and Keep Trying” (Theory & Practice column), The Wall Street Journal (March 20, 2013), p. B8.
14-3d. Specialized Language
Language can shape and in�luence organizational values and beliefs. Leaders sometimes use slogans or sayings to express key corporate values. Slogans can easily be picked up and repeated by employees. For example, at Averitt Express, the slogan “Our driving force is people” applies to customers and employees alike. The culture emphasizes that drivers and customers, not top executives, are the power that fuels the company's success.
symbol an object, act, or event that conveys meaning to others
symbol an object, act, or event that conveys meaning to others
symbol an object, act, or event that conveys meaning to others
symbol an object, act, or event that conveys meaning to others
symbol an object, act, or event that conveys meaning to others
symbol an object, act, or event that conveys meaning to others
symbol an object, act, or event that conveys meaning to others
symbol an object, act, or event that conveys meaning to others
Leaders also express and reinforce cultural values through written public statements, such as corporate mission statements or other formal statements that express the core values of the organization. When Sidney Taurel, former chairman and CEO of Eli Lilly and Company, wanted to create a more adaptive culture able to respond to the demands of the global marketplace, he worked with other leaders to develop a formal statement of how to put Lilly's core values (respect for all people, honesty and integrity, and striving for excellence) into action. The statement includes descriptions and mottos such as “Model the values: Show us what you're made of,” “Implement with integrity, energy, and speed: Provide the powder and supply the spark,” and “Get results through people: Set people up to succeed.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#ZYEUWTVQ3EG141UU9474)
Ian D. Colville and Anthony J. Murphy, “Leadership as the Enabler of Strategizing and Organizing,” Long Range Planning 39 (2006), pp. 663–677.
14-3e. Selection and Socialization
New Leader Action Memo
As a leader, you can shape cultural values through rites and ceremonies, stories, symbols, and language. You can keep the culture strong by carefully selecting and socializing people and by making sure your actions match the espoused values.
To maintain cultural values over time, leaders emphasize careful selection and socialization of new employees. Companies with strong, healthy cultures, such as Nordstrom, Southwest Airlines, Google, and Zappos, often have rigorous hiring practices.
Once the right people are hired, the next step is socializing them into the culture. Socialization is the process by which a person learns the values, norms, perspectives, and expected behaviors that enable him or her to successfully participate in the group or organization. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#THCHLXZVLZ9UDFHJ4999) When people are effectively socialized, they “�it in” because they understand and adopt the norms and values of the group. Socialization is a key leadership tool for transmitting the culture and enabling it to survive over time. Leaders act as role models for the values they want new employees to adopt, and they implement formal training programs, which may include pairing the newcomer with a key employee who embodies the desired values.
Socialization the process by which a person learns the cultural values, norms, and behaviors that enable him or her to “�it in” with a group or organization
Socialization the process by which a person learns the cultural values, norms, and behaviors that enable him or her to “�it in” with a group or organization
Socialization the process by which a person learns the cultural values, norms, and behaviors that enable him or her to “�it in” with a group or organization
Socialization the process by which a person learns the cultural values, norms, and behaviors that enable him or her to “�it in” with a group or organization
Socialization the process by which a person learns the cultural values, norms, and behaviors that enable him or her to “�it in” with a group or organization
D. C. Feldman, “The Multiple Socialization of Organization Members,” Academy of Management Review 6 (1981), pp. 309–318; J. Van Maanen, “Breaking In: Socialization to Work,” in R. Dubin, ed., Handbook of Work, Organization, and Society (Chicago: Rand-McNally, 1976), p. 67; and Blake E. Ashforth and Alan M. Saks, “Socialization Tactics: Longitudinal Effects on Newcomer Adjustment,” Academy of Management Journal 39, no. 1 (February 1996), pp. 149–178.
Rituals can also be used for socialization. At Gentle Giant, a Somerville, Massachusetts, moving company that has won nine Best of Boston awards from Boston magazine, new hires participate in the “stadium run.” CEO Larry O'Toole decided to have new hires run the tiers of Harvard University stadium as a way to emphasize that people at the company work hard, challenge themselves, and go the distance rather than letting up if things get tough. After the run, O'Toole provides a hearty breakfast and gives an orientation speech. “You're not a Gentle Giant until you've done the run,” said employee Kyle Green. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#FTXTZ9VSARY73FC92987)
Leigh Buchanan, “Managing: Welcome Aboard. Now, Run!” Inc . (March 2010), pp. 95–96.
Good leaders don't leave employee socialization to chance. Formal socialization programs can be highly effective. One study of recruits into the British Army surveyed newcomers on their �irst day and then again eight weeks later. Researchers compared the �indings to a sample of experienced “insider” soldiers and found that after eight weeks of training, the new recruits' norms and values had generally shifted toward those of the insiders. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#KLERSX60GUNSF9HH1226) Another �ield study of around 300 people from a variety of organizations found that formal socialization was associated with less stress for newcomers, less ambiguity about expected roles and behaviors, and greater job satisfaction, commitment, and identi�ication with the organization. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#TJRG72UECH9BYQTXL196)
Helena D. C. Thomas and Neil Anderson, “Changes in Newcomers’ Psychological Contracts during Organizational Socialization: A Study of Recruits Entering the British Army,” Journal of Organizational Behavior 19, no. 1 (1998), pp. 745–767.
Ashforth and Saks, “Socialization Tactics.”
14-3f. Daily Actions
One of the most important ways leaders build and maintain the cultures they want is by signaling and supporting important cultural values through their daily actions. Employees learn what is valued most in a company by watching what attitudes and behaviors leaders pay attention to and reward, how leaders react to organizational crises, and whether the leader's own behavior matches the espoused values. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#CLNXUKYFVETARTVTR327) Former AmerisourceBergen CEO Dave Yost supported values of frugality and egalitarianism by answering his own phone, �lying coach, and doing without fancy perks and stylish of�ice furniture. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#HFKSXNXWG7S14Q5FY366) Leaders can also change negative or unproductive cultures by their actions. At Dynergy, a Houston-based power producer, new CEO Bob Flexon's of�ice is a 64- square-foot cubicle identical to those of the 235 or so headquarters employees surrounding him. People often stop by just to chat. Flexon is
Socialization the process by which a person learns the cultural values, norms, and behaviors that enable him or her to “�it in” with a group or organization
Socialization the process by which a person learns the cultural values, norms, and behaviors that enable him or her to “�it in” with a group or organization
Socialization the process by which a person learns the cultural values, norms, and behaviors that enable him or her to “�it in” with a group or organization
Socialization the process by which a person learns the cultural values, norms, and behaviors that enable him or her to “�it in” with a group or organization
instilling values of openness, egalitarianism, and collaboration to try to get Dynergy back in growth mode after the company went through bankruptcy. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#XZPWBUKR3NH0NZF50559)
Deanne N. Den Hartog, Jaap J. Van Muijen, and Paul L. Koopman, “Linking Transformational Leadership and Organizational Culture,” The Journal of Leadership Studies 3, no. 4 (1996), pp. 68–83; and Schein, “Organizational Culture.”
Aili McConnon, “Lessons from a Skin�lint CEO,” BusinessWeek (October 6, 2008), pp. 54–55.
Joann S. Lublin, “Can a New Culture Fix Troubled Companies?” The Wall Street Journal (March 13, 2013), p. B1.
Good leaders understand how carefully they are watched by employees. As former GE CEO Jack Welch says, “Look, it's Management 101 to say that the best competitive weapon a company can possess is a strong culture. But the devil is in the details of execution.” Welch says one sure route to destroying the culture is to let strong performers get away with not honoring the cultural values. People notice, and they conclude that the cultural values aren't important. Leaders make sure people are evaluated for both making their numbers and demonstrating the values, as described earlier in Exhibit 14.3 , and they don't hesitate to �ire people who refuse to uphold important values. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vepdufd6xzvd4yds2273#MBESPUNV0ECRDPG92248)
Jack and Suzy Welch, “Opinion: Goldman, Wall Street, and the Culture-Killing Lesson Being Ignored,” Fortune (April 30, 2012), p. 56.
14-4. The Competing Values Approach to Shaping Culture Organizational values are the enduring beliefs that have worth, merit, and importance for the organization. The economic crisis, the breakdown of corporate ethics and responsibility that contributed to it, and the crash of once-thriving companies have brought values to the forefront. Unhealthy cultural values played a crucial role in many of the mistakes these companies made. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/cvgalkqyg0evt1pd1862#HPTS5PU858SUCY5JA010) Ethical values will be discussed later in the chapter. Changes in the nature of work, globalization, increasing diversity in the workforce, and other shifts in the larger society have also made the topic of values one of considerable concern to leaders. They are faced with such questions as, “How can I determine what cultural values are important? Are some values ‘better’ than others? How can the organization's culture help us be more competitive?”
Ram Charan and Jerry Useem, “Why Companies Fail,” Fortune (May 27, 2002), pp. 50–62.
In considering what values are important for the organization, leaders consider the external environment and the company's vision and strategy. Cultures can vary widely across organizations; however, organizations within the same industry often share similar values because they are operating in similar environments. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/cvgalkqyg0evt1pd1862#DJUW52XAHLD5102LV888) Key values should embody what the organization needs to be effective. Rather than looking at values as either “good” or “bad,” leaders look for the right combination.
Organizational values the enduring beliefs that have worth, merit, and importance for the organization
Organizational values the enduring beliefs that have worth, merit, and importance for the organization
Organizational values the enduring beliefs that have worth, merit, and importance for the organization
Organizational values the enduring beliefs that have worth, merit, and importance for the organization
Organizational values the enduring beliefs that have worth, merit, and importance for the organization
Organizational values the enduring beliefs that have worth, merit, and importance for the organization
Organizational values the enduring beliefs that have worth, merit, and importance for the organization
Organizational values the enduring beliefs that have worth, merit, and importance for the organization
The correct relationship among cultural values, organizational strategy, and the external environment can enhance organizational performance.
Jennifer A. Chatman and Karen A. Jehn, “Assessing the Relationship between Industry Characteristics and Organizational Culture: How Different Can You Be?” Academy of Management Journal 37, no. 3 (1994), pp. 522–553.
New Leader Action Memo
Determine your own cultural preferences by completing the exercise in Leader's Leader's Self-Insight 14.2 .
Organizational cultures can be assessed along many dimensions, such as the extent of collaboration versus isolation among people and departments, the importance of control and where control is concentrated, or whether the organization's time orientation is short-range or long-range. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/cvgalkqyg0evt1pd1862#XRXNJ0A7F53DZLUJE342) Here, we will focus on two speci�ic dimensions: (1) the extent to which the competitive environment requires �lexibility or stability, and (2) the extent to which the organization's strategic focus and strength is internal or external. Four categories of culture associated with these differences, as illustrated in Exhibit 14.4 , are adaptability, achievement, involvement, and consistency. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/cvgalkqyg0evt1pd1862#EMTHQP9Z4B9PG07XK095) These four categories relate to the �it among cultural values, strategy, structure, and the environment, with each emphasizing speci�ic values, as shown in the exhibit.
James R. Detert, Roger G. Schroeder, and John J. Mauriel, “A Framework for Linking Culture and Improvement Initiatives in Organizations,” Academy of Management Review 25, no. 4 (2000), pp. 850–863.
Paul McDonald and Jeffrey Gandz, “Getting Value from Shared Values,” Organizational Dynamics 21, no. 3 (Winter 1992), pp. 64–76; and Daniel R. Denison and Aneil K. Mishra, “Toward a Theory of Organizational Culture and Effectiveness,” Organization Science 6, no. 2 (March–April 1995), pp. 204–223.
Exhibit 14.4. Four Corporate Cultures
Source: Based on Paul McDonald and Jeffrey Gandz, “Getting Value from Shared Values, ” Organizational Dynamics 21, no. 3 (Winter 1992), pp. 64–76; Deanne N. Den Hartog, Jaap J. VanMuijen, and Paul L. Koopman, “Linking Transformational Leadership and Organizational Culture,” The Journal of Leadership Studies 3, no. 4 (1996), pp. 68ȓ83; Daniel R. Denison and Aneil K. Mishra, “Toward a Theory of Organizational Culture and Effectiveness,” Organizational Studies 6, no. 2 (March–April 1995), pp. 204–223; Robert Hooijberg and Frank Petrock, “On Cultural Change: Using the Competing Values Framework to Help Leaders Execute a Transformational Strategy,” Human Resource Management 32, no. 1 (1993), pp. 29–50; and R. E. Quinn, Beyond Rational Management: Mastering the Paradoxes and Competing Demands of High Performance (San Francisco: Jossey-Bass, 1998).
Leader's Self-Insight 14.2. Culture Preference Inventory
The following inventory consists of 14 sets of four responses that relate to typical values or situations facing leaders in organizations. Although each response to a question may appear equally desirable or undesirable, your assignment is to rank the four responses in each row according to your preference. Think of yourself as being in charge of a major department or division in an organization. Rank the responses in each row according to how much you would like each one to be a part of your department. There are no correct or incorrect answers; the scores simply re�lect your preferences for different responses.
Rank each of the four in each row using the following scale. You must use all four numbers for each set of four responses.
1. Would not prefer at all
2. Would prefer on occasion
4. Would prefer often
8. Would prefer most of all
I II III IV 1. Aggressiveness Cost ef�iciency Experimentation Fairness 2. Perfection Obedience Risk taking Agreement 3. Pursue goals Solve problems Be �lexible Develop people's
careers 4. Apply careful analysis Rely on proven
approaches Look for creative
approaches Build consensus
5. Initiative Rationality Responsiveness Collaboration 6. Highly capable Productive and accurate Receptive to
brainstorming Committed to the team
7. Be the best in our �ield Have secure jobs Recognition for innovations
Equal status
8. Decide and act quickly Follow plans and priorities
Refuse to be pressured Provide guidance and support
9. Realistic Systematic Broad and �lexible Sensitive to the needs of others
10. Energetic and ambitious
Polite and formal Open-minded Agreeable and self- con�ident
11. Use key facts Use accurate and complete data
Use broad coverage of many options
Use limited data and personal opinion
12. Competitive Disciplined Imaginative Supportive 13. Challenging
assignments In�luence over others Achieving creativity Acceptance by the
group 14. Best solution Good working
environment New approaches or
ideas Personal ful�illment
Scoring and Interpretation
Add the points in each of the four columns—I, II, III, IV. The sum of the point columns should be 210 points. If your sum does not equal 210 points, check your answers and your addition.
The scores represent your preference for I, achievement culture; II, consistency culture; III, adaptability culture; and IV, involvement culture. Your personal values are consistent with the culture for which you achieved the highest score, although all four sets of values exist within you just as they exist within an organization. The speci�ic values you exert as a leader may depend on the group situation, particularly the needs of the external environment. Compare your scores with those of other students and discuss their meaning. Are you pleased with your preferences? Do you think your scores accurately describe your values?
Source: Adapted from Alan J. Rowe and Richard O. Mason, Managing with Style: A Guide to Understanding, Assessing, and Improving Decision Making (San Francisco: Jossey-Bass, 1987).
An organization may have cultural values that fall into more than one category, or even into all categories. However, successful organizations with strong cultures will lean more toward one particular culture category.
14-4a. Adaptability Culture
The adaptability culture is characterized by strategic leaders encouraging values that support the organization's ability to interpret and translate signals from the environment into new behavioral responses. Employees have autonomy to make decisions and act freely to meet new needs, and responsiveness to customers is highly valued. Leaders also actively create change by encouraging and rewarding creativity, experimentation, and risk taking. Leaders at TubeMogul have emphasized selection and socialization of employees to build an adaptability culture at the successful digital advertising software company.
adaptability culture culture characterized by values that support the organization's ability to interpret and translate signals from the environment into new behavior responses
adaptability culture culture characterized by values that support the organization's ability to interpret and translate signals from the environment into new behavior responses
adaptability culture culture characterized by values that support the organization's ability to interpret and translate signals from the environment into new behavior responses
adaptability culture culture characterized by values that support the organization's ability to interpret and translate signals from the environment into new behavior responses
adaptability culture culture characterized by values that support the organization's ability to interpret and translate signals from the environment into new behavior responses
adaptability culture culture characterized by values that support the organization's ability to interpret and translate signals from the environment into new behavior responses
adaptability culture culture characterized by values that support the organization's ability to interpret and translate signals from the environment into new behavior responses
In the Lead Brett Wilson, TubeMogul
Brett Wilson and John Hughes founded TubeMogul while they were MBA students at the UC Berkeley Haas School of Business. The partners won the Haas Business Plan Competition in 2007, which gave them the seed money they needed to get the company started. From the beginning, leaders wanted values of being fast and �lexible to guide the company.
“Culture and people are everything,” says Wilson, who serves as CEO of TubeMogul. “We were determined to build a company that had a certain culture, and that was just as important to us … as the software we were building.” The �irst cultural value at TubeMogul is that people shouldn't be afraid to make mistakes. If people aren't making mistakes, leaders know they're not moving fast enough to keep pace with a fast-changing industry. They encourage people to take risks, be creative, make mistakes, and �igure things out. The company also values people who have a high “do-to-say ratio,” meaning they have a bias for action and follow through on what they commit to doing. Everyone from the CEO on down is expected to acknowledge mistakes and make quick course corrections as needed.
As the company grew (it now has around 500 employees), leaders wanted to make sure the culture stayed strong. Every person who interviews applicants at TubeMogul goes through an interviewing class where they learn how to screen for culture �it. All new employees attend a class led by Wilson called “Culture and Values,” where they learn about the principles that guide the organization. The values, says Wilson, are “the reasons we hire, �ire and promote people.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/cvgalkqyg0evt1pd1862#AEXTGKNCQ5J7TBGM8527)
Adam Bryant, “For Brett Wilson of TubeMogul, It’s All in the Follow-Through,” The New York Times (May 24, 2014), http://www.nytimes.com/2014/05/25/business/corner-of�ice-for-brett-wilson-of-tubemogul-its-all-in-the-follow-through.html?ref=business (http://www.nytimes.com/2014/05/25/business/corner-of�ice-for-brett-wilson-of-tubemogul-its-all-in-the-follow-through.html?ref=business) (accessed November 30, 2015); and “Guiding Principles,” TubeMogul.com , https://www.tubemogul.com/guiding-principles/ (https://www.tubemogul.com/guiding-principles/) (accessed November 30, 2015).
To remain competitive, leaders at TubeMogul know that everyone throughout the organization needs to be innovating and responding quickly to shifting needs in a rapidly growing industry. Many technology and Internet-based companies, like TubeMogul, use the adaptability type of culture, as do many companies in the marketing, electronics, and cosmetics industries, because they must move quickly to satisfy customers.
14-4b. Achievement Culture
New Leader Action Memo
As a leader, you can align the organization's culture to its strategy and the needs of the external environment. You can choose to implement the appropriate culture (adaptability, achievement, involvement, or consistency) depending on environmental requirements and the organization's strategic focus.
The achievement culture is characterized by a clear vision of the organization's goals, and leaders focus on the achievement of speci�ic targets such as sales growth, pro�itability, or market share. An organization concerned with serving speci�ic customers in the external environment but without the need for �lexibility and rapid change is suited to the achievement culture. This is a results-oriented culture that values competitiveness, aggressiveness, personal initiative, and the willingness to work long and hard to achieve results. An emphasis on winning is the glue that holds the organization together. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/cvgalkqyg0evt1pd1862#NNJUN1CFXTUQ9SPVJ915)
adaptability culture culture characterized by values that support the organization's ability to interpret and translate signals from the environment into new behavior responses
achievement culture
Robert Hooijberg and Frank Petrock, “On Cultural Change: Using the Competing Values Framework to Help Leaders Execute a Transformational Strategy,” Human Resource Management 32, no. 1 (1993), pp. 29–50.
Anheuser-Busch InBev re�lects an achievement culture. Professionalism, ambition, competitiveness, and aggressiveness are key values. Managers keep employees focused on achieving high sales and pro�it levels, and those who meet the demanding goals are handsomely rewarded. Bonuses and promotions are based on performance, not seniority, and top executives are unapologetic about giving special treatment to high achievers. Distribution center managers frequently start the day with a sort of pep rally reviewing the day's sales targets and motivating people to get out and sell more beer. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/cvgalkqyg0evt1pd1862#RMFVSRAT581CZP0N4808)
Matt Moffett, “At InBev, a Gung-Ho Culture Rules; American Icon Anheuser, A Potential Target, Faces Prospect of Big Changes,” The Wall Street Journal (May 28, 2008), p. B1; and Matt Moffett, “InBev’s Chief Built Competitive Culture,” The Wall Street Journal (June 13, 2008), p. B6.
14-4c. Involvement Culture
The involvement culture has an internal focus on the involvement and participation of employees to meet changing expectations from the external environment. More than any other, this culture places value on meeting the needs of organization members. Companies with involvement cultures are generally friendly places to work, and employees may seem almost like a family. Leaders emphasize cooperation, consideration of both employees and customers, and avoiding status differences. Leaders put a premium on fairness and reaching agreement with others.
culture characterized by a clear vision of the organization's goals and leaders' focus on the achievement of speci�ic targets
achievement culture culture characterized by a clear vision of the organization's goals and leaders' focus on the achievement of speci�ic targets
achievement culture culture characterized by a clear vision of the organization's goals and leaders' focus on the achievement of speci�ic targets
achievement culture culture characterized by a clear vision of the organization's goals and leaders' focus on the achievement of speci�ic targets
achievement culture culture characterized by a clear vision of the organization's goals and leaders' focus on the achievement of speci�ic targets
achievement culture culture characterized by a clear vision of the organization's goals and leaders' focus on the achievement of speci�ic targets
achievement culture culture characterized by a clear vision of the organization's goals and leaders' focus on the achievement of speci�ic targets
achievement culture culture characterized by a clear vision of the organization's goals and leaders' focus on the achievement of speci�ic targets
involvement culture
Consider the approach to culture taken by William Rogers, CEO of UKRD, which owns a number of commercial radio stations in the United Kingdom: “If your people are the key to great performance, then facilitating their enjoyment, engagement, and commitment are fundamental to ultimate success…. Our values are intended to change people's lives for the better.” When UKRD leaders visit one of the 17 stations around the country for a meeting, they build in plenty of time to talk to people and say good-byes around the station. Every year, all of the company's teams take a day out to talk together about the values, behaviors, and working environment they want. UKRD has a “cast-iron commitment” to a people �irst culture, and any manager who doesn't live up to that is asked to leave. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/cvgalkqyg0evt1pd1862#SCJV7G3KYR6RY0NF3390)
William Rogers, “Sound Advice,” People Management (August 2012), pp. 40–43.
14-4d. Consistency Culture
The consistency culture has an internal focus and a dependability orientation for a stable environment. The culture supports a methodical, rational, orderly way of doing business. Following the rules and being thrifty are valued. The organization succeeds by being
culture with an internal focus on the involvement and participation of employees to meet changing expectations from the external environment
involvement culture culture with an internal focus on the involvement and participation of employees to meet changing expectations from the external environment
involvement culture culture with an internal focus on the involvement and participation of employees to meet changing expectations from the external environment
involvement culture culture with an internal focus on the involvement and participation of employees to meet changing expectations from the external environment
involvement culture culture with an internal focus on the involvement and participation of employees to meet changing expectations from the external environment
involvement culture culture with an internal focus on the involvement and participation of employees to meet changing expectations from the external environment
involvement culture culture with an internal focus on the involvement and participation of employees to meet changing expectations from the external environment
involvement culture culture with an internal focus on the involvement and participation of employees to meet changing expectations from the external environment
highly integrated and ef�icient.
Safeco Insurance has functioned well with a consistency culture. Employees take their coffee breaks at an assigned time, and a dress code speci�ies white shirts and suits for men and no beards. However, employees like this culture—reliability is highly valued and extra work isn't required. The consistency culture works for the insurance company, and Safeco succeeds because it can be trusted to deliver on insurance policies as agreed. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/cvgalkqyg0evt1pd1862#TNWHB0T4PMSCXFXVX247) In today's fast-changing world, very few organizations operate in a stable environment, and most leaders are shifting away from this type of culture because of a need for greater �lexibility. However, even some software companies, such as SAS Institute and Paci�ic Edge Software (now part of Serena Software), have used some elements of the consistency culture to keep projects on time and on budget and to ensure saner lives for employees. Emphasis on order and discipline means the formal workweek at SAS can be 35 hours, for instance. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/cvgalkqyg0evt1pd1862#WLLNBBZYPW5NT95ZJ388)
Carey Quan Jelernter, “Safeco: Success Depends Partly on Fitting the Mold,” Seattle Times (June 5, 1986), p. D8.
Gerald D. Klein, “Creating Cultures That Lead to Success: Lincoln Electric, Southwest Airlines, and SAS Institute,” Organizational Dynamics 41 (2012), pp. 32–43; and Rekha Balu, “Paci�ic Edge Projects Itself,” Fast Company (October 2000), pp. 371–381.
Each of the four cultures can be successful. The relative emphasis on various cultural values depends on the organization's strategic focus and the needs of the external environment. Leaders might have preferences for the values associated with one type of culture, but they learn to adjust the values they emulate and encourage, depending on the needs of the organization. It is the responsibility of leaders to
consistency culture culture with an internal focus and consistency orientation for a stable environment
consistency culture culture with an internal focus and consistency orientation for a stable environment
consistency culture culture with an internal focus and consistency orientation for a stable environment
consistency culture culture with an internal focus and consistency orientation for a stable environment
consistency culture culture with an internal focus and consistency orientation for a stable environment
consistency culture culture with an internal focus and consistency orientation for a stable environment
consistency culture culture with an internal focus and consistency orientation for a stable environment
consistency culture culture with an internal focus and consistency orientation for a stable environment
ensure that organizations don't get stuck relying on cultural values that worked in the past but are no longer effective. As environmental conditions and strategy change, leaders work to instill new cultural values to help the organization meet new needs.
14-5. Ethical Values in Organizations Organizations incorporate many types of values into their cultures. Taunton Press, for example, lists its cultural values as “integrity, teamwork, excellence, independent thinking, and creativity.” Zappos, the online retailer, has a slightly of�beat list of core values that includes: “create fun and a little weirdness,” “deliver WOW through service,” and “be adventurous, creative, and open-minded.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ydkwpvecbhmjhzjtl295#LUMFU5E3B3XD59GBM644) Some values that seem to be important to many companies today, whatever the industry or type of culture, include open communication, teamwork, and quality.
“Our Culture,” Taunton Press Web site, http://www.taunton.com/thetauntonpress/our_culture.asp (http://www.taunton.com/thetauntonpress/our_culture.asp) (accessed April 28, 2013); and Tony Hsieh, Delivering Happiness: A Path to Pro�its, Passion, and Purpose (New York: Business Plus, 2012).
In addition, of the values that make up an organization's culture, ethical values have gained renewed emphasis in today's era of �inancial scandals and moral lapses. Ethics is the code of principles and values that governs the behavior of a person or group with respect to what is right or wrong. Ethics sets standards as to what is good or bad in conduct and decision making. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ydkwpvecbhmjhzjtl295#WJRP160VYP5ZHY6JW017) Chapter 6 discussed ethics and moral leadership in detail.
Ethics the code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong
Ethics the code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong
Ethics the code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong
Ethics the code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong
Ethics the code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong
Ethics the code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong
Ethics the code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong
Gordon F. Shea, Practical Ethics (New York: American Management Association, 1988); and Linda Klebe Treviño, “Ethical Decision Making in Organizations: A Person–Situation Interactionist Model,” Academy of Management Review 11 (1986), pp. 601–617.
Most organizations that remain successful over the long term have leaders who include ethical values as part of the formal policies and informal cultures of their companies. Commentators on the crisis a few years ago in the mortgage system, for instance, point out that a big part of the problem was a lack of ethical values that guided employee behavior. “Technical economics is crucial to understanding the crisis, but only goes so far,” one wrote. “There was a hint that more than technical factors were involved when subprime loans were referred to as ‘liar's loans.'” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ydkwpvecbhmjhzjtl295#SKQWZWXBMQYQT45WK941) In response to the recent crisis, some business schools and students are taking a fresh look at how future business leaders are trained.
Brian Grif�iths, “Markets Can’t Be Improved by Rules, Only by Personal Example,” The Times (April 9, 2009), p. 30.
In the Lead Harvard Business School, Columbia Business School, Yale School of Management, Wharton School of the University of Pennsylvania
Some members of a recent graduating class of Harvard Business School did something unusual. They signed a voluntary student-led pledge saying that the goal of a business leader is to “serve the greater good” and promising that they would act responsibly and ethically and refrain from advancing their “own narrow ambitions” at the expense of others.
At Harvard and other business schools, there has been an explosion of interest in ethics classes and activities that focus on personal and corporate responsibility. Many students, as well as educators, are recognizing a need to give future leaders a deeper understanding of how to practice ethical leadership rather than just how to make money. At Columbia Business School, which requires an ethics course, students formed a popular “Leadership and Ethics Board” that sponsors lectures and other activities. Yale School of Management has developed sessions in its core curriculum related to the recent crisis and worked with the Aspen Institute to create a curriculum aimed at teaching business students how to act on their values at work. About 55 business schools are using all or part of the curriculum in pilot programs.
Professor Diana C. Robertson at the Wharton School of the University of Pennsylvania says she sees a generational shift, with today's students expressing a greater concern for how organizations affect the community, the lives of employees, and the natural environment. “There is a feeling that we want our lives to mean something more and to run organizations for the greater good,” said Max Anderson, one of the organizers of Harvard's pledge. “No one wants to have their future criticized as a place �illed with unethical behaviors.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ydkwpvecbhmjhzjtl295#TVRLJVX2G42CR7SG4144)
Leslie Wayne, “A Promise to Be Ethical in an Era of Temptation,” The New York Times (May 30, 2009), p. B1; and Kelley Holland, “Is It Time to Retrain B-Schools?” The New York Times (March 15, 2009), p. BU1.
Changing how future leaders are trained could be one key to solving the ethics de�icit pervading organizations. In a survey about unethical conduct in the workplace, more than half of the respondents cited poor leadership as a factor. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/ydkwpvecbhmjhzjtl295#XSGKX6EU230DLT1AD341) Leaders can create and sustain a climate that emphasizes ethical behavior for all employees.
Alison Boyd, “Employee Traps—Corruption in the Workplace,” Management Review 86, no. 8 (September 1997), p. 9.
14-6. Values-Based Leadership Values in organizations are developed and strengthened primarily through values-based leadership , an in�luence relationship between leaders and followers that is based on shared, strongly internalized values that emphasize the common good and are consistently advocated and acted upon by the leader. Values-based leaders give meaning to activities and goals by connecting them to deeply held values. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#RCXK5UBA1V10G90EA274)
Based on “What Is Values-Based Leadership?” Values-Based Leadership Institute, Royal Roads University, http://values-based-leadership.institute.royalroads.ca/content/what- values-based-leadership (http://values-based-leadership.institute.royalroads.ca/content/what-values-based-leadership) (accessed July 12, 2013); K. Dean, “Values-Based Leadership: How Our Personal Values Impact the Workplace,” The Journal of Values-Based Leadership 1, no. 1 (2008), pp. 60–67; and Robert J. House, “Path-Goal Theory of Leadership: Lessons, Legacy, and a Reformulated Theory,” Leadership Quarterly 7, no. 3 (1996), pp. 323–352.
Leaders in�luence organizational culture by demonstrating their personal values and by practicing spiritual leadership.
14-6a. Personal Values
Employees learn about values from watching leaders. Values-based leaders generate a high level of trust and respect from employees based not just on stated values but on the courage, determination, and self-sacri�ice they demonstrate in upholding those values. Leaders have to discover their own personal values and the values they want to guide the team or organization, and actively communicate the values to others through both words and actions. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#LMPUG5P115EGU0J11328) When faced with dif�icult decisions, values-based leaders know what they stand for, and they have the courage to act on their principles.
values-based leadership an in�luence relationship between leaders and followers that is based on shared, strongly internalized values that emphasize the common good and are consistently advocated and acted upon by the leader
values-based leadership an in�luence relationship between leaders and followers that is based on shared, strongly internalized values that emphasize the common good and are consistently advocated and acted upon by the leader
values-based leadership an in�luence relationship between leaders and followers that is based on shared, strongly internalized values that emphasize the common good and are consistently advocated and acted upon by the leader
values-based leadership an in�luence relationship between leaders and followers that is based on shared, strongly internalized values that emphasize the common good and are consistently advocated and acted upon by the leader
values-based leadership an in�luence relationship between leaders and followers that is based on shared, strongly internalized values that emphasize the common good and are consistently advocated and acted upon by the leader
values-based leadership an in�luence relationship between leaders and followers that is based on shared, strongly internalized values that emphasize the common good and are consistently advocated and acted upon by the leader
Alan Lewis, “Values Compass: Align around True North Values,” Leadership Excellence (February 2012), p. 13; Krista Jaakson, “Management by Values: Are Some Values Better than Others?” Journal of Management Development 29, no. 9 (2010), pp. 795–806; and Kathy Whitmire, “Leading through Shared Values,” Leader to Leader (Summer 2005), pp. 48–54.
Consider the example of Costco, where cofounder and former CEO Jim Sinegal and new CEO Craig Jelinek believe treating people right matters.
In the Lead Jim Sinegal and Craig Jelinek, Costco
In 2009, as the recession deepened and many employers were slashing jobs and cutting salaries, Costco CEO Jim Sinegal was handing out raises. Costco is the second-largest retailer in the United States, behind Walmart, and while Walmart leaders are seeing growing troubles, Costco leaders seem to be seeing nothing but growing sales and pro�its. Costco was one of the top performers during the recession and sales and memberships continue to increase, proving that paying employees above-average wages and treating them well in other ways can pay off.
Minimum wage in the United States is still a paltry $7.25 per hour, but Costco's starting hourly wage is around $12.00. Because people stay around so long, the average hourly wage paid to Costco workers is $20.89, and the company offers good health-care bene�its even to part-time employees. Current CEO Craig Jelinek wrote a public letter urging Congress to increase the minimum wage. The letter sparked an interest in Costco's culture and business philosophy. Wall Street has repeatedly been critical of Costco leaders, asking them to reduce wages and health bene�its. Instead, leaders have increased them every three years since the company began. In 2009, according to CFO Richard Galanti, “the �irst thing out of Jim [Sinegal's] mouth was, ‘This economy is bad. We should be �iguring out how to give them more, not less.' ” Galanti admits Costco could make more money if the average wage was two or three dollars lower. “But we're not going to do it.”
Jelinek, who took over as CEO in 2012, has vowed to continue Sinegal's values-based legacy. For instance, Jelinek is paid well, but the CEO earns only about 28 times more than the average employee, whereas CEOs in many companies earn a whopping 380 times more than the average employee. Costco doesn't hire business school graduates as managers. It cultivates employees who work the �loor and sponsors them through graduate school. Seventy percent of Costco's warehouse managers started by ringing cash registers and pushing carts. Turnover is around 5 percent, extremely low for the retail industry. “If you treat consumers with respect and treat employees with respect, good things are going to happen to you,” Jelinek says. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#RSEXHM1XD1CGTJ1V5158)
Brad Stone, “Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World,” Bloomberg Businessweek (June 6, 2013), http://www.businessweek.com/articles/2013–06-06/costco-ceo-craig-jelinek-leads-the-cheapest-happiest-company-in-the-world (http://www.businessweek.com/articles/2013–06-06/costco-ceo-craig-jelinek-leads-the-cheapest-happiest-company-in-the-world) (accessed June 7, 2013); “Costco’s Pro�it Soars to $537 Million Just Days after CEO Endorses Minimum Wage Increase,” The Huf�ington Post (March 13, 2013), http://www.huf�ingtonpost.com/2013/03/12/costco- pro�it_n_2859250.html (http://www.huf�ingtonpost.com/2013/03/12/costco-pro�it_n_2859250.html) (accessed June 7, 2013); Bud Meyers, “Hail to the Chief (Executive Of�icer) Craig Jelinek of Costco!,” The Daily Kos (March 8, 2013), http://www.dailykos.com/story/2013/03/08/1192632/-Hail-to-the-Chief-Executive-Of�icer-Craig-Jelinek-of- Costco (http://www.dailykos.com/story/2013/03/08/1192632/-Hail-to-the-Chief-Executive-Of�icer-Craig-Jelinek-of-Costco) (accessed June 8, 2013); and Satinder Dhiman and Joan Marques, “The Role and Need of Offering Workshops and Courses on Workplace Spirituality,” Journal of Management Development 30, no. 9 (2011), pp. 816–835.
New Leader Action Memo
As a leader, you can be ethical and act on high moral principles in your daily behavior. You can help people �ind deeper ful�illment in their jobs. Complete Leader's Leader's Self-Insight 14.3 to see if you might be a leader who incorporates spiritual values as part of the corporate culture.
Leaders at Costco believe values of taking a long-term view and treating people humanely are just good business. Other conscientious companies known for treating people well, such as Nordstrom, Whole Foods Market, and the Container Store, are supporting that idea. All have prospered and outpaced their rivals in recent years. “A lot of people working [in retail] go home and live below the poverty line. You expect that person to come in and develop a rapport with customers who may be spending more than the person is making in a week?” says Doug Stephens, founder of the consulting �irm Retail Prophet. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#PRMLZLQ88D6DLZX0N745)
Stone, “Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World.”
The values at Costco are based largely on the personal values of founders Jim Sinegal and Jeffrey Brotman. Several factors contribute to an individual leader's values. Every individual brings a set of personal beliefs, personality characteristics, and behavior traits to the job. The
family backgrounds and spiritual beliefs of leaders often provide principles and values by which they conduct business, and these are sometimes incorporated into the organizational culture. In terms of ethical values, personality characteristics such as ego strength, self- con�idence, and a strong sense of independence may enable leaders to make the right decisions even if those decisions might be unpopular.
Leader's Self-Insight 14.3. How Spiritual Are You?
Instructions : Think about your current life. Indicate whether each of the following items is Mostly False or Mostly True for you.
Mostly False Mostly True 1. I often re�lect on the meaning of life. 2. I want to �ind a community where I can grow spiritually. 3. I have made real personal sacri�ices in order to make the world a better place. 4. Sometimes when I look at an ordinary thing I feel that I am seeing it fresh for the �irst
time.
5. I sometimes have unexpected �lashes of insight or understanding while relaxing. 6. It is important to me to �ind meaning and mission in the world. 7. I often feel a strong sense of unity or connection with all the people around me. 8. I have had experiences that made my role in life clear to me. 9. After re�lecting on something for a long time, I have learned to trust my feelings rather
than logical reasons.
10. I am often trans�ixed by loveliness in nature.
Scoring and Interpretation
Spiritual leadership engages people in higher values and missions and tries to create a corporate culture based on love and community rather than fear and separation. Spiritual leadership is not for everyone, but when spiritual ideals guide a leader's behavior, an excellent culture can be created.
Add the number of Mostly True answers for your score: . A score of 7 or above indicates that you are highly spiritual and will likely become a values-based or spiritual leader. A score of 4–6 would suggest that you are spiritually average. A score of 0–3 means that you may be skeptical about developing spiritual awareness.
Source: Based on Kirsi Tirri, Petri Nokelainen, and Martin Ubani, “Conceptual De�inition and Empirical Validation of the Spiritual Sensitivity Scale,” Journal of Empirical Theology 19, no. 1 (2006), pp. 37–62; and Jeffrey Kluger, “Is God in Our Genes?” Time (October 25, 2004), pp. 62–72.
14-6b. Spiritual Values
Costco is an example of a company where leaders incorporate values that might be considered spiritual into their workplace practices and policies. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#EGWAG6J8NXKC881V5654) Managers who incorporate spiritual values in addition to the traditional mental and behavioral aspects of leadership tend to be successful as leaders. Values and practices considered as spiritual ideals include integrity, humility, respect, appreciation for the contributions of others, fair treatment, and personal re�lection. This approach to leadership can be effective because many people are struggling with how to combine their spiritual journey and their work life. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#DGVG1511RTBULRM87464)
Dhiman and Marques, “The Role and Need of Offering Workshops and Courses on Workplace Spirituality.”
Laura Reave, “Spiritual Values and Practices Related to Leadership Effectiveness,” The Leadership Quarterly 16 (2005), pp. 655–687; and Louis W. Fry, Sean T. Hannah, Michael Noel, and Fred O. Walumbwa, “Impact of Spiritual Leadership on Unit Performance,” The Leadership Quarterly 22 (2011), pp. 259–270.
Polls indicate that American managers as well as workers would like deeper ful�illment on the job, and evidence suggests that workplace spirituality programs provide people with better mental and physical health, an enhanced sense of self-worth, and greater personal growth, while organizations bene�it from increased productivity along with reduced absenteeism and turnover. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#KWCHP4SQRNPYEDHLZ259) Some companies have put chaplains on the payroll to help people as they struggle with problems that might or might not relate to the business. “You're at work 8 to 10 hours a day,” says Tim Embry, owner of American LubeFast, a chain of oil change companies. “Work is where people are at and where they need to be cared for.” * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#LRAGKDXDJEW1JH9S6448)
Fry et al., “Impact of Spiritual Leadership on Unit Performance; R. A. Giacalone and C. L. Jurkiewicz, “Toward a Science of Workplace Spirituality,” in R. A. Giacalone and C. L. Jurkiewicz, eds., Handbook of Workplace Spirituality and Organizational Performance (New York: M. E. Sharp, 2003), pp. 3–28; K. Krahnke, R. A. Giacalone, and C. L. Jurkiewicz, “Point-Counterpoint: Measuring Workplace Spirituality,” Journal of Organizational Change Management 16, no. 4 (2003), pp. 396–405; Louis W. Fry, “Toward a Theory of Ethical and Spiritual Well-Being, and Corporate Social Responsibility through Spiritual Leadership,” in R. A. Giacalone, ed., Positive Psychology in Business Ethics and Corporate Responsibility (Greenwich, CT: Information Age Publishing, 2005), pp. 47–83; and I. I. Mitroff and E. A. Denton, A Spiritual Audit of Corporate America (San Francisco: Jossey-Bass, 1999).
Neela Banerjee, “At Bosses’ Invitation, Chaplains Come into Workplace and onto Payroll,” The New York Times (December 4, 2006), p. A16.
However, even leaders who don't provide formal spirituality programs can lead with spiritual values. Consider India-born Sanjiv Das, currently serving as chief of staff for First Data Corporation. Das was CEO of CitiMortgage from 2008 to 2013, taking over the job in the midst of the U.S. mortgage crisis. Das approached the job with goals of keeping people in their homes and keeping employees focused on the help they could offer to alleviate the �inancial pressure of those caught in economic turmoil. By doing so, he helped demoralized employees �ind purpose, meaning, and self-respect again. CitiMortgage went further than many banks to help people keep their homes. Das pioneered a �irst-of-its-kind program to temporarily lower payments and waive interest and penalties for borrowers who had lost their jobs. Das says his leadership approach is based in the spiritual values he learned growing up in Delhi—such as maintaining purpose and integrity during dif�icult times and helping others rather than trying to acquire more materials goods for oneself. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#VYBN9U5EFKQ0F7FGY702)
Stephanie Armour, “CEO Helps People Keep Their Homes; That’s CitiMortgage Chief’s Personal Goal,” USA Today (April 27, 2009), p. B4; Ruth Simon, “Citi to Allow Jobless to Pay Less on Mortgages for a Time,” The Wall Street Journal Europe (March 4, 2009), p. 17; and Sanjiv Das, “Viewpoint: Early Intervention Can Stem Foreclosures,” American Banker (December 10, 2008), p. 11.
Spiritual leadership is the display of values, attitudes, and behaviors necessary to intrinsically motivate oneself and others toward a sense of spiritual expression through calling and membership. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#EAZDHVDXEF7U8PD76894) As illustrated in Exhibit 14.5 , spiritual leaders start by creating a vision through which organization participants experience a sense of calling that gives meaning to their work. An appropriate vision would have broad appeal, re�lect high ideals, and establish a standard of excellence. Second, spiritual leaders establish a corporate culture based on altruistic love. Altruistic love includes forgiveness, genuine caring, compassion, kindness, honesty, patience, courage, and appreciation, which enables people to experience a sense of membership and feel understood. Spiritual leaders also engage hope and faith to help the organization achieve desired outcomes. Faith is demonstrated through action. Faith means believing in the ability to excel, exercising self-control, and striving for excellence to achieve a personal best. A leader's hope/faith includes perseverance, endurance, stretch goals, and a clear expectation of victory through effort. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#XLCB3DVDSYZ7C97T8225) As illustrated in Exhibit 14.5 , spiritual leadership behaviors enable employees to have a sense of calling that provides deeper life meaning through work. Spiritual leadership also provides a sense of membership through a work community in which one feels understood and appreciated. The outcome for the organization is improved commitment and productivity.
Spiritual leadership the display of values, attitudes, and behaviors necessary to intrinsically motivate oneself and others toward a sense of spiritual expression through calling and membership
Spiritual leadership the display of values, attitudes, and behaviors necessary to intrinsically motivate oneself and others toward a sense of spiritual expression through calling and membership
Spiritual leadership the display of values, attitudes, and behaviors necessary to intrinsically motivate oneself and others toward a sense of spiritual expression through calling and membership
Spiritual leadership the display of values, attitudes, and behaviors necessary to intrinsically motivate oneself and others toward a sense of spiritual expression through calling and membership
Spiritual leadership
Louis W. Fry, “Toward a Theory of Spiritual Leadership,” The Leadership Quarterly 14 (2003), pp. 693–727; and Fry et al., “Impact of Spiritual Leadership on Unit Performance.”
Louis W. Fry, “Toward a Theory of Spiritual Leadership,” The Leadership Quarterly 14 (2003), pp. 693–727; and Fry et al., “Impact of Spiritual Leadership on Unit Performance.”
Exhibit 14.5. Model of Spiritual Leadership
Source: Based on Louis W. Fry, Sean T. Hannah, Michael Noel, and Fred O. Walumbwa, “Impact of Spiritual Leadership on Unit Performance,” The Leadership Quarterly 22 (2011), pp. 259– 270; and Louis W. Fry, “Toward a Theory of Spiritual Leadership,” The Leadership Quarterly 14 (2003), pp. 693–727. Used with permission.
Spiritual leadership can decrease or eliminate negative emotions and con�licts in the workplace and provide a stronger foundation for personal well-being. * (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/chqree625m51ujak8005#XHWNFBS7Y26G981P5511) The four main types of destructive emotions are (1) fear, including anxiety and worry; (2) anger, including hostility, resentment, and jealousy; (3) sense of failure, including discouragement and depressed mood; and (4) pride, including prejudice, sel�ishness, and conceit. These destructive emotions typically arise from fear of losing something important or not getting something one desires.
Fry, “Toward a Theory of Spiritual Leadership.”
Spiritual leadership is related to ideas discussed in Chapter 8 on motivation and Chapter 6 on moral leadership. The spiritual leader addresses followers' higher-order needs for membership and self-actualization. This is intrinsic motivation at its best because work provides interest and enjoyment for its own sake. People are actively engaged in tasks they �ind meaningful, interesting, or fun. Intrinsic motivation is typically associated with better learning, higher performance, and enhanced well-being. Spiritual leadership often provides substantial autonomy and self-management, for example, through participation in empowered teams that direct activities and do work that is signi�icant and meaningful. An employee's task involvement is under the control of the individual or team, thereby providing feedback and satisfaction through achievement, performance, and problem solving. The spiritual leader, like the servant leader described in Chapter 6 , engages people in work that provides both service and meaning and creates a positive impact on employees and the community.
the display of values, attitudes, and behaviors necessary to intrinsically motivate oneself and others toward a sense of spiritual expression through calling and membership
Spiritual leadership the display of values, attitudes, and behaviors necessary to intrinsically motivate oneself and others toward a sense of spiritual expression through calling and membership
Leadership Essentials Creating the right culture is one of the most important jobs of the leader. Culture is the set of key values, norms, and assumptions that is shared by members of an organization and taught to new members as correct. Culture serves two critically important functions—to integrate organizational members so they know how to relate to one another and to help the organization adapt to the environment.
Strong, responsive cultures have a positive impact on organizational outcomes. Creating and in�luencing a responsive culture is important because the right culture can drive high performance. Leaders build high-performance cultures by emphasizing both values and solid business operations as the drivers of organizational success.
A culture gap exists when an organization's culture is not in alignment with the needs of the external environment or company strategy. Leaders use ceremonies, stories, symbols, specialized language, selection, and socialization to instill and strengthen the needed cultural values. In addition, leaders in�luence cultural values most strongly through their daily actions.
Leaders consider the external environment and the company's vision and strategy in determining which values are important for the organization. Four types of culture may exist in organizations: adaptability, achievement, involvement, and consistency. Each type emphasizes different values, although organizations may have values that fall into more than one category.
Many types of values make up an organization's culture; ethical values are considered among the most important. Ethics is the code of moral principles and values that governs the behavior of a person or group with respect to what is right or wrong. Leaders shape cultural values through values-based leadership. They know their personal values and beliefs and the values they want the organization to honor. Many good leaders practice spiritual leadership, which means displaying values, attitudes, and behaviors that motivate people toward a sense of spiritual expression through calling and membership. The principles of spiritual leadership can improve both organizational performance and employee well-being.
Discussion Questions 1. How dif�icult would it be for you as a leader to �ire someone who is bringing in big sales and pro�its for the company but not living
up to the cultural values? Explain.
2. How might leaders use symbolic acts to strengthen a cultural value of teamwork and collaboration? How about a value of customer care and responsiveness?
3. Describe the culture for an organization you are familiar with. Identify some physical artifacts—such as logo, mascot, building, advertising images—associated with the company and discuss what underlying values these suggest. What did you learn?
4. Name one or two companies in the news that seem to have strong corporate cultures, and describe whether the results have been positive or negative. Discuss how a strong culture could have either positive or negative consequences for an organization.
5. As a leader, how might you recognize a culture gap? What techniques might you use to in�luence and change cultural values when necessary?
6. Compare and contrast the achievement culture with the involvement culture. What are some possible disadvantages of having a strong involvement culture? A strong achievement culture?
7. If you were the leader of a small technology �irm, how might you imprint in people's minds the values shown in Exhibit 14.2 for responsive cultures in order to create a high-performance culture? Be speci�ic with your ideas.
8. Discuss the meaning of calling and membership , as related to spiritual leadership. Identify an organization or leader that uses these concepts. To what extent were these concepts present where you have worked?
9. If a leader directs her health-care company to reward hospital managers strictly on hospital pro�its, what kind of values is she encouraging within the company culture? Discuss.
10. Some mortgage company leaders have said that providing subprime mortgages (earn a commission by making loans to people at high interest rates who may have dif�iculty making the payments) was based on the noble purpose of giving poor people a chance to participate in the American dream of home ownership. Discuss your opinion of this explanation.
11. Some people believe that all good leadership is spiritual in nature. Others think spiritual values have no place at work. Discuss these two opposing viewpoints.
Leadership at Work
Walk the Talk
Often in an organization the culture is characterized both by what people say (talk) and by what people actually do (walk). When this happens, there is a gap between organizational leaders' espoused values and the values in action within the company. One example would be an espoused value of “a balanced life for employees,” whereas managers and employees are actually expected to work nights and weekends to meet demanding performance goals. This is the difference between the “walk” and the “talk” in an organization.
Your assignment for this exercise is to think of one example in your own student or work experience where the walk and talk in a corporate culture did not align. Why do you think the gap occurred? Then interview four other people for examples of when an organization's espoused values did not align with the values in action. Also ask them why they think the walk and talk differed. Summarize the �indings from your interviews:
My example (and why):
Second person's examples (and why):
Third person's examples (and why):
Fourth person's examples (and why):
Fifth person's examples (and why):
What patterns and themes do you see in the responses? Is there a common type of walk/talk gap? What is the most common reason why these gaps occur? Which is the real culture—the leader's espoused values or the values in action?
In Class: Students can be organized into small groups in class and do this exercise all at once. Each person in the circle can give examples from student or work experiences of an organization's walk not �itting its talk and explain why he or she thinks the gaps occurred. Then students can identify the common themes from their discussion. The instructor can help students probe into this issue by writing good examples from students on the board and asking students to help identify key themes. Students can be engaged to discuss the walk versus talk phenomenon via key questions, such as: What does it mean to you when you discover a walk/talk gap in your organization? Are espoused values or values in action more indicative of a company's culture (or are both the culture)? Are walk/talk gaps likely to be associated with a responsive culture? A strong culture? Do symbols, stories, ceremonies, and other signals of corporate culture mean what they imply?
Leadership Development: Cases for Analysis
Culture Clash
CEO Jane Lionel has some hard decisions to make with regard to some of the company's older hands, and even on the eve of that decision, I believe she is wavering about what she should do. I will be in that meeting, assisting with that decision, and I'm not certain which way to go, either. And so here I am, sorting through and writing down my thoughts.
When Jim Lionel started manufacturing heavy-duty construction equipment here in Alaska 40 years ago, his personal management style re�lected the ruggedness of Alaska and the construction business. He understood that he was producing tough equipment for tough men working in an unforgiving environment. At 6′ 5″ and over 300 pounds, Lionel personi�ied the bigger-than-life image of Alaskan workers. He had a no-nonsense management style. He coddled no one. Jim Lionel expected and got results. He chewed—not smoked—a cigar. I swear that in the 30 years I worked for him, I never saw that thing lit up as he barked—yes, barked —orders.
I'd have to say that Jim Lionel gained respect because he always delivered and his word was his bond. But he never achieved admiration. There was no �inesse. A new HR director once mentioned to me that Jim should create bonds with his workers through techniques such as management by walking around. I said, “Believe me, you do not want him walking around—that simply means he's stressed and he's mad.” You could actually feel him and hear him before you saw him, and as one employee said, “When he barked your name, your heart stopped, because until that moment you were certain that he did not know your name.” We all �igured that his temper would explode one day and he would die on the shop �loor from a heart attack. Then suddenly, he did.
Following his death, we were certain that the company would have to be sold in order to continue operations. However, Jim's one true friend and con�idante was his wife Jane, and with unanimous board approval, she moved in to take his place as the head of the company. The initial concerns and fears of employees were soon calmed. Jane knew the company to a degree that surprised employees. But her management style, developed over 20 years as head of marketing for a regional health-care organization, was in stark contrast to that of her husband.
While Jane shared her husband's goals and high standards for quality and on-time delivery, she also believed in the importance of demonstrating to employees their value to the company. She not only communicated her vision, but she took the time to listen to the employees, to give them opportunities to voice opinions, express concerns, and submit ideas. She met regularly with individual departments and assisted line workers in the movement toward self-managed teams. The reaction from workers was positive. And a year later we can see a huge change. Production is up slightly, but the real change can be seen in people's attitudes and pride in their jobs. Communication and the overall level of civility among employees have improved dramatically. But while these cultural changes have been embraced by the majority of workers and supervisors, there are two glaring exceptions.
Supervisors Curtis Willett and Morgan Elder were among the �irst people hired by Jim Lionel. Their long service to the organization and their consistency in meeting all production goals and deadlines is impressive. They take pride in their ability to push themselves and their crews relentlessly. However, their management styles are a throw-back to the old culture. They succeed by intimidation. The civility and cooperation that characterizes other parts of the plant is shoved aside or drowned out in a barrage of yelling. “Shock and Awe,” the joint nickname brie�ly given to the two men by employees following the 2003 U.S. aerial assault on Iraq, has been revived. If these men are aware of the label, they are probably proud.
So here's our dilemma: They are too old to change. Curtis and Morgan not only do not �it the new culture, but through tactics of control and intimidation they also encourage workers to ignore the new cultural initiatives. Everyone is on board except the employees in these two adjoining areas of the plant. So we cannot reach the full potential of the new culture while the old culture pulls us back. Fire them? Demote them? I don't think so. They've done nothing wrong. Their crews are meeting their production and quality targets. Furthermore, these two guys have been with the company for 40 years. A move on our part that appears unjusti�ied opens us to an age discrimination suit. But I also don't see how we can change the culture unless they leave.
So, we meet tomorrow to determine what we can do. Writing about a problem usually helps me to sort things out. When I �inish, I generally have an answer or at least an idea about how to proceed. I've �inished writing. And I haven't got a clue.
Questions 1. What options do you think Jane and her management team should consider with regard to these two long-time supervisors?
Discuss the positives and negatives of each option.
2. Do you think it is appropriate for Jane to remove two long-time, high-performing managers in order to create a new culture for everyone else? Why? Consider the material in Exhibit 14.3 in your answer.
3. What do you recommend that Jane do? Explain why.
5 Star and Amtech
5 Star Electronics and Amtech Electronics both manufacture integrated circuits and other electronic parts as subcontractors for large manufacturers. Both 5 Star and Amtech are located in Ohio and often bid on contracts as competitors. As subcontractors, both �irms bene�ited from the electronics boom of the 1990s, and both looked forward to growth and expansion. 5 Star has annual sales of about $100 million and employs 950 people. Amtech has annual sales of $80 million and employs about 800 people. 5 Star typically reports greater net pro�its than Amtech.
The president of 5 Star, John Tyler, believed that 5 Star was the far superior company. Tyler credited his �irm's greater effectiveness to his managers' ability to run a “tight ship.” 5 Star had detailed organization charts and job descriptions. Tyler believed that everyone should have clear responsibilities and narrowly de�ined jobs, which generates ef�icient performance and high company pro�its. Employees were generally satis�ied with their jobs at 5 Star, although some managers wished for more empowerment opportunities.
Amtech's president, Jim Rawls, did not believe in organization charts. He believed organization charts just put arti�icial barriers between specialists who should be working together. He encouraged people to communicate face to face rather than with written memos. The head of mechanical engineering said, “Jim spends too much time making sure everyone understands what we're doing and listening to suggestions.” Rawls was concerned with employee satisfaction and wanted everyone to feel part of the organization. Employees were often rotated among departments so they would be familiar with activities throughout the company. Although Amtech wasn't as pro�itable as 5 Star, they were able to bring new products on line more quickly, work bugs out of new designs more accurately, and achieve higher quality because of superb employee commitment and collaboration.
It is the end of May, and John Tyler, president of 5 Star, has just announced the acquisition of Amtech Electronics. Both management teams are proud of their cultures and have un�lattering opinions of the other's. Each company's customers are rather loyal, and their technologies are compatible, so Tyler believes a combined company will be even more effective, particularly in a time of rapid change in both technology and products.
The Amtech managers resisted the idea of an acquisition, but the 5 Star president is determined to unify the two companies quickly, increase the new �irm's marketing position, and revitalize product lines—all by year end.
Questions 1. Using the competing values model in Exhibit 14.4 , what type of culture (adaptability, achievement, involvement, consistency)
would you say is dominant at 5 Star? At Amtech? What is your evidence?
2. Is there a culture gap? Which type of culture do you think is most appropriate for the newly merged company? Why?
3. If you were John Tyler, what techniques would you use to integrate and shape the culture to overcome the culture gap?
Source: Adapted from John F. Veiga, “The Paradoxical Twins: Acme and Omega Electronics,” in John F. Veiga and John N. Yanouza, The Dynamics of Organization Theory (St. Paul: West Publishing, 1984), pp. 132–138; and “Alpha and Amtech,” Harvard Business School Case 9–488-003, published by the President and Fellows of Harvard College, 1988.
Chapter 15. Leading Change
Your Leadership Challenge After reading this chapter, you should be able to:
Recognize the environmental forces creating a need for change in today's organizations. Describe the qualities of a change leader and how leaders can serve as role models for change. Implement the eight-stage model of planned change. Use appreciative inquiry to engage people in creating change by focusing on the positive and learning from success. Apply techniques of enabling immersion, facilitating brainstorming, promoting lateral thinking, allowing pauses, and nurturing creative intuition to expand your own and others' creativity and facilitate organizational innovation. Provide a positive emotional attractor, supportive relationships, repetition of new behaviors, participation and involvement, and after-action reviews to overcome resistance and help people change.
Marvin Ellison, the current CEO of J.C. Penney, recently told a group of executives attending the Women's Wear Daily Apparel and Retail CEO Summit that Penney has moved past the stage of “patching holes” and is in solid rebuilding mode. Leaders have been working for several years to undo the damage that resulted from a turnaround strategy that almost killed the company. It's a cautionary tale of just how dif�icult change can be. When Ron Johnson, a former Apple executive known for his creativity, was hired as CEO of Penney in the fall of 2011, hopes were high that he could breathe new life into the struggling retailer. Penney needed radical change, but Johnson's approach to implementing changes doomed them almost from the start. Early in his tenure, Johnson threw a party to celebrate his plans for the company, a move that irked both employees and customers. He also began poking fun at the company's traditional way of doing business almost from the moment he took the job. Employees felt that the new managers Johnson brought in ridiculed them and made them feel dumb and uninteresting. Johnson refused to listen to long-established leaders, customers, or employees and even shunned suggestions made by board members. He got rid of many of Penney's long-standing processes and systems, radically redesigned many stores, and eliminated hundreds of brands, even running an Oscars ad telling customers they “deserved to look better.” Customers decided they deserved to shop at a store where they were respected instead. Some analysts say rolling out changes too soon and with little input from others drove old customers away without giving new ones any reason to try the retailer, in essence, offering pain but no gain. Johnson was �ired after only 17 months, and the damage repair began. Penney has brought back many of its popular brands, updated stores, and improved e-commerce operations. Customers are back, but the company still has a long climb to get back to the $20 billion in sales it enjoyed a decade ago.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/tyllkmdwgl5cdbp90650#QUXCKHV0TSM5YSC7F113)
Phil Wahba, “J.C. Penney Tapping Tech to Claw Back Billions in Lost Sales,” Fortune (October 28, 2015), http://fortune.com/2015/10/28/jcpenney-tech/ (accessed December 1, 2015); Emily Glazer, Joann Lublin, and Dana Mattioli, “Penney Back�ires on Ackman,” The Wall Street Journal (April 10, 2013), http://online.wsj.com/article/SB10001424127887324504704578412440293890624.html (accessed June 11, 2013); Jena McGregor, “J.C. Penney’s Ron Johnson Shows the Perils of a Star CEO,” Washington Post (April 9, 2013), http://articles.washingtonpost.com/2013–04-09/national/38392404_1_ron-johnson-ceo-bob-nardelli (accessed June 11, 2013); Stephanie Clifford, “Chief’s Silicon Valley Stardom Quickly Clashed at J. C. Penney,” The New York Times (April 9, 2013), http://www.nytimes.com/2013/04/10/business/how-an-apple-star-lost- his-luster-at-penneys.html?pagewanted=all&_r=0 (accessed June 11, 2013); and James Surowiecki, “The Turnaround Trap,” The New Yorker (March 25, 2013), p. 44.
As the example of J.C. Penney illustrates, change—especially radical change—is tough to accomplish. Johnson made mistakes, but major turnarounds are exceedingly dif�icult for any leader, especially in retail. One study indicates that leader efforts at just getting a money- losing retailer back to pro�itability succeed only 30 percent of the time.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/tyllkmdwgl5cdbp90650#MWLQNLXUFFS8E1YZN134) This chapter explores how leaders in companies such as J.C. Penney can facilitate change, creativity, and innovation. We �irst look brie�ly at the role of leader as change agent and examine a step-by-step framework for leading change. We explore the appreciative inquiry (AI) technique and how it can be used to lead both major changes and ongoing, everyday change. Next, the chapter examines how leaders instill the conditions that nurture creativity within people and organizations. The �inal sections of the chapter consider why people resist change and how leaders can overcome resistance and help people successfully make needed changes.
Reported in Surowiecki, “The Turnaround Trap.”
15-1. Leadership Means Leading Change It is the job of the leader to make sure organizations change as needed to respond to threats, opportunities, or shifts in the environment. Recall from our de�inition used throughout this book that leadership is about change rather than stability. Leaders have to help people see the need for change and buy into a new way of doing things.
Change is necessary if organizations are to survive and thrive, and the sharp downturn in the economy a few years ago, combined with other environmental shifts, forced leaders in all industries to take a fresh look at how they do business. The turmoil not only pressured leaders to rethink the economics of their business but also brought changes in social attitudes that require new leadership responses.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/uvyb8mv7ttd20w15e819#HHQAH7KUR6UMKL5L3457) Exhibit 15.1 shows some of the environmental forces, such as rapidly changing technologies, shifting social attitudes, globalization, increasing government regulation, changing markets, the growth of e-business, and the swift spread of information via the Internet, that are creating a greater need for change leadership within organizations.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/uvyb8mv7ttd20w15e819#TRQK9Y77BP68SR7RG023)
Steve Lohr, “How Crisis Shapes the Corporate Model,” The New York Times (March 29, 2009), p. BU4.
Based on John P. Kotter, The New Rules: How to Succeed in Today’s Post-Corporate World (New York: The Free Press, 1995); and David K. Carr, Kelvin J. Hard, and William J. Trahant, Managing the Change Process: A Field Book for Change Agents, Consultants, Team Leaders, and Reengineering Managers (New York: McGraw-Hill, 1996).
Exhibit 15.1. Forces Driving the Need for Change Leadership
15-1a. Resistance Is Real
Leaders initiate many changes, but most of these don't meet expectations. Consider that among leaders in 166 U.S. and European companies making major changes, only about one-third reported success in most types of their changes. Some studies have estimated that 90 percent of strategies fail to achieve intended objectives and that 70 percent of all change initiatives in organizations fail.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/uvyb8mv7ttd20w15e819#SSLQF4Z5L64D0VVQE307)
The Conference Board, Change Management: An Overview of Current Initiatives (New York: The Conference Board, 1994); and studies reported in Rodrigue Fontaine, Gapur Oziev, and Hussein Hassan-Hussein, “Evaluating Chris Argyris’s Ideas: An Islamic Perspective,” Journal of Management Development 31, no. 10 (2012), pp. 1046–1057.
There are many reasons why change programs don't produce the intended results. One signi�icant problem is that most people have a natural tendency to resist change—even when the changes are ones that could make their lives better. At Rio Tinto Aluminium (formerly called Comalco), based in New South Wales, Australia, for example, leaders wanted to make changes to create a more egalitarian workplace with less separation between management and workers. They did away with all the separate uniforms for electricians, �itters, operators, foremen, and so forth; eliminated the time clock for hourly workers; and got rid of the separate parking lot for managers. Each change was resisted. Employees said they liked the uniforms because they were less costly and identi�ied who they were compared to wearing different clothes every day. Workers were strongly opposed to elimination of the time clock because, they said, “We won't be able to prove we've been to work, so they'll be able to cheat us on our pay.” They were suspicious that doing away with the managers' car parking was so employees couldn't see that managers could afford a new car every year.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/uvyb8mv7ttd20w15e819#XUVD740GV46A4UZBS869) If people resist changes designed to add value to their lives, imagine what it is like trying to implement changes that signi�icantly shift their job responsibilities, task procedures, or work interactions!
This is based on an interview with Justin O’Connell of Comalco, Exhibit 4.1, “Uniforms and Parking Space at Comalco,” in David K. Carr, Kelvin J. Hard, and William J. Trahant, Managing the Change Process (New York: McGraw-Hill, 1996), pp. 70–71.
New Leader Action Memo
Complete the questions in Leader's Leader's Self-Insight 15.1 to see if you have a natural tendency to resist change.
Leaders should be prepared for resistance and should �ind ways to enable people to see the value in changes that are needed for the organization to succeed. Later in this chapter, we will talk about how leaders can overcome resistance and help people successfully change.
Leader's Self-Insight 15.1. Resistance to Change
Instructions: Please respond to each of the following items based on how you handle day-to-day issues in your life. Think carefully in order to be as accurate as possible.
Mostly False Mostly True 1. I generally consider changes in my life to be a negative thing. 2. When I am told of a change of plans, I may tense up a bit. 3. Once I have made plans, I am not likely to change them. 4. I often change my mind. 5. Whenever my life �its a stable routine, I look for ways to change it. 6. I feel less stress when things go according to plan. 7. I sometimes avoid making personal changes even when the change would be good for me. 8. My views are very consistent over time. 9. I prefer a routine day to a day full of unexpected surprises. 10. If I were informed of a signi�icant change in my work, I would tighten up. 11. When someone pressures me to change something, I tend to resist it. 12. Once I have come to a conclusion, I stick to it.
Scoring and Interpretation
Give yourself one point for each Mostly True answer to items 1 to 3 and 6 to 12 and for each Mostly False to items 4 and 5. Everyone feels some resistance to change, but people do differ in their tolerance for frequent change. A higher score of 8 or above on this scale means you probably prefer a predictable and routine life. Frequent or dramatic changes at work may be dif�icult for you, probably creating feelings of resistance, stress, and tension. If you received a score of 5 or lower, your resistance to change may be low, so you probably �ind surprises and changes to be somewhat stimulating.
Source: Source: Based on Shaul Oreg, “Resistance to Change: Developing an Individual Differences Measure,” Journal of Applied Psychology 88, no. 4 (2003), pp. 680–693. Used with permission.
15-1b. The Leader as Change Agent
Change does not happen easily, but good leaders can facilitate needed changes to help the organization adapt to external threats and new opportunities. For people throughout the organization to view change as positive and natural, they need leaders who serve as role models for change and provide the motivation and communication to keep change efforts moving forward. Research has identi�ied some key characteristics of leaders who can accomplish successful change projects:* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/uvyb8mv7ttd20w15e819#HETBU4U6DTJCA3NWL345)
They de�ine themselves as change leaders rather than as people who want to maintain the status quo.
They demonstrate courage.
They believe in employees' capacity to assume responsibility.
They can assimilate and articulate values that promote adaptability.
They recognize and learn from their own mistakes.
They are capable of managing complexity, uncertainty, and ambiguity.
They have vision and can describe their vision for the future in vivid terms.
Alain Vas, “Top Management Skills in a Context of Endemic Organizational Change: The Case of Belgacom,” Journal of General Management 27, no. 1 (Autumn 2001), pp. 71–89.
Michelle Rhee, former chancellor of the Washington, D.C., public school system, provides a good example of the characteristics of a change leader.
In the Lead Michelle Rhee, Washington, D.C., Public School System
Michelle Rhee, former chancellor of Washington, D.C., public schools and founder of StudentsFirst, is one of the most controversial �igures in U.S. education, but love her or hate her you can't say she's afraid of change. A daughter of Korean immigrants, Rhee wanted to quit halfway through her �irst year in Teach for America, the organization we described in Chapter 1 that sends new college graduates into some of America's toughest schools, but her father made her go back and �inish the job. That's where she �irst embarked on a personal mission to change the system for America's poorest students. Rhee noticed that students responded to teachers who pushed them hard and kept them interested.
A couple of decades later, Rhee had the chance to put some of her change ideas into action on a large scale as she tried to revamp one of the most expensive, worst performing school systems in the country. As chancellor of the D.C. public schools, Rhee attacked the dysfunctional culture that rewarded teachers for seniority rather than performance, revised systems and structures to slash bureaucracy, held school principals accountable for improving student performance, and focused people on a mission of putting the best interests of students �irst.
Her vision of making D.C. schools “the highest-performing urban school district in the nation” brought new energy and movement to a long-stagnant system. “We have a system that does wrong by poor kids of color,” Rhee said. “If we're going to live up to our promise as a country … that has got to stop.” Rhee becomes angry when people say “teachers cannot make up for what parents and students will not do,” emphasizing that each teacher can make a difference. She didn't hesitate to cut administrative positions that weren't contributing value, �ire teachers and principals who didn't meet performance standards, and close underperforming schools. She instituted new procedures to handsomely reward high-performing teachers and give principals more control over hiring, promoting, and �iring. New evaluation procedures put people on alert that low performance and complacency would not be tolerated.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/uvyb8mv7ttd20w15e819#PDWTK78JFQYN7NV6Q802)
Naomi Schaefer Riley, “Seeing through the School Daze; Michelle Rhee Fired 241 Teachers, 36 Principals, and 22 Assistant Principals after Taking Over the District’s Schools,” The Wall Street Journal (February 19, 2013), p. A13; Michelle Rhee and Adrian Fenty, “Review—The Education Manifesto—Michelle Rhee and Adrian Fenty on What They Learned While Pushing to Reform D.C.’s Failing Public Schools,” The Wall Street Journal (October 30, 2010), p. C1; Jeff Chu, “The Iron Chancellor,” Fast Company (September 2008), pp. 112–143; Amanda Ripley, “Can She Save Our Schools?” Time (December 8, 2008), pp. 36–44; and William McGurn, “Giving Lousy Teachers the Boot; Michelle Rhee Does the Once Unthinkable in Washington,” The Wall Street Journal (July 27, 2010).
Rhee stepped down as CEO of StudentsFirst in 2014 but continues to drive change in the educational system.“Some people think she is a transformative leader, and some people think she is a controversial �igure, but everyone agrees she gets people talking,” said one organizer of a recent conference in Michigan.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/uvyb8mv7ttd20w15e819#PYNN5T261M0AGXF1F865)
Jonathan Oosting, “StudentsFirst’s Michelle Rhee Returns to Michigan as Education Reform Group Makes Mark,” MLive (May 26, 2013), http://www.mlive.com/politics/index.ssf/2013/05/students�irst_spotlight_michel.html (accessed June 11, 2013).
15-2. A Framework for Change When leading a major change project, it is important for leaders to recognize that the change process goes through stages, each stage is important, and each may require a signi�icant amount of time. Exhibit 15.2 shows a model developed by John Kotter that can help leaders navigate the change process.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kewajbr32pqb5z2h5619#ZEBZ57EFY86GX06MZ917)
The following discussion is based on John P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996), pp. 20–25; John P. Kotter, “Leading Change: Why Transformation Efforts Fail,” Harvard Business Review (March–April 1995), pp. 59–67; John P. Kotter, “Accelerate!,” Harvard Business Review (November 2012), pp. 44–58; and Steven H. Appelbaum, Sally Habashy, Jean-Luc Malo, and Hisham Sha�iq, “Back to the Future: Revisiting Kotter’s 1996 Change Model,” Journal of Management Development 31, no. 8 (2012), pp. 764–782.
1. Light a �ire for change. People have to believe that change is really needed. Leaders communicate the urgency for change in a way that touches people's emotions—in other words, they help people feel the need for change rather than just giving them facts and �igures. Consider Peter Löscher, the �irst outsider ever hired as CEO of Siemens, who says “never miss the opportunities that come from a good crisis.” Löscher, who has now left Siemens, stepped in at a very dif�icult time, with the company facing bribery charges, and he needed to make massive changes in structure and culture. He spent his �irst 100 days traveling around the world talking with employees about how the bribery scandal had tarnished Siemens's proud heritage.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kewajbr32pqb5z2h5619#VVSP6KU7FC9THQHLB647)
Peter Löscher, “How I Did It … The CEO of Siemens on Using a Scandal to Drive Change,” Harvard Business Review (November 2012), pp. 39–42.
2. Get the right people on board. Considering the complexities of change, no single person can implement a change, especially a major one, alone. For successful change, leaders build a strong coalition of people with a shared commitment to the need for and possibility of change. They include people with enough power to make sure the change happens, as well as people who can make the change more acceptable to end users.
3. Paint a compelling picture. People need a clear vision and strategy to inspire them to believe that a better future is possible and they can achieve it through their actions. The energy for true change comes from seeing how the change can be positive for individuals and the organization. Leaders create a picture that helps people understand why the organization is undertaking the effort and how the change will help it to achieve long-term goals. It's also important to develop a strategy for achieving the vision and let people know how they �it into the big picture.
4. Communicate, communicate, communicate. Leaders tell the message not just once but over and over again. Change throws everyone into doubt and uncertainty, and people don't listen well when they feel anxious. Another point to remember is that actions speak louder than words. Change leaders model the new behaviors needed from employees. At Siemens, Peter Löscher mapped the amount of time the company's top executives spent with customers and presented it at the annual leadership conference. Löscher was number 1, having spent 50 percent of his time with customers. He told people that had to change and that the rankings would be presented each year to see if people running the businesses were honoring the new focus on customer contact.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kewajbr32pqb5z2h5619#ZQXGSGBAWJ0EKZBX6223)
Peter Löscher, “How I Did It … The CEO of Siemens on Using a Scandal to Drive Change,” Harvard Business Review (November 2012), pp. 39–42.
5. Get rid of obstacles and empower people to act. Leaders give people the time, knowledge, resources, and discretion to take steps and make the change happen. This might mean revising structures, systems, or procedures that hinder or undermine the change effort. After setting a vision and broad outline for change, Bill Glavin, former CEO of OppenheimerFunds, Inc., gave his team members leeway to move forward with their own ideas for implementing desired changes. Glavin said his approach was to meet with direct reports regularly and to “try to keep a light hand on the tiller.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kewajbr32pqb5z2h5619#ZEFHH63MWFZ9MFPSR337)
John Beeson, “On Leading Change: A Conversation with Bill Glavin of OppenheimerFunds, Inc.,” Business Horizons (2013), pp. 23–25.
6. Achieve and celebrate quick wins. Unless people see positive results of their efforts, energy and motivation can wane during a major change project. To keep the momentum going, leaders identify some short-term accomplishments that people can recognize and celebrate. A highly visible and successful short-term accomplishment boosts the credibility of the change process and renews everyone's enthusiasm and commitment.
7. Keep it moving. Don't get stuck on short-term wins. One study suggests that nearly 50 percent of all change initiatives crumble simply from lack of attention.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kewajbr32pqb5z2h5619#WAKR887YB9R6VUX0Y998) It's important for leaders to build on the credibility of early accomplishments and keep the change process moving forward. At this stage, they confront and change any remaining issues, structures, or systems that are getting in the way of achieving the vision.
Larry Hirschhorn, “Campaigning for Change,” Harvard Business Review (July 2002), pp. 98–104.
8. Find ways to make the changes stick. At this stage, leaders look for ways to institutionalize the new approach, striving to integrate the new values and patterns into everyone's work habits. At Del-Air, a Florida heating, ventilation, and air conditioning contractor,
managers linked a new GPS-enabled time-tracking system with the company's bonus system. Employees who are more ef�icient with their time get rewarded for it. By integrating the change with the incentive system, managers made the new time-tracking system an accepted, integral part of everyone's daily work.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/kewajbr32pqb5z2h5619#YCWDQNHRHBYMB5E3Q869)
Christopher Lindquist, “Watch Carefully,” CIO (June 8, 2005), http://www.cio.com.au/article/181417/watch_carefully/ (accessed May 19, 2011).
Exhibit 15.2. The Eight-Stage Model of Planned Organizational Change
Sources: Source: Based on John P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996)
New Leader Action Memo
As a leader, you can develop the personal characteristics to be a change leader. To improve the success of a major change, you can follow the eight-stage model for leading change, remembering to devote the necessary time, energy, and resources to each stage.
Stages in the change process generally overlap, but each of these stages is important for successful change to occur. When dealing with a major change effort, leaders can use the eight-stage change process to provide a strong foundation for success.
15-3. Using Appreciative Inquiry
New Leader Action Memo
Answer the questions in Leader's Leader's Self-Insight 15.2 to see if you have what it takes to initiate changes and follow the eight- stage model of change.
One of the most exciting approaches to leading change is a process known as appreciative inquiry. Appreciative inquiry (AI) engages individuals, teams, or the entire organization in creating change by reinforcing positive messages and focusing on learning from success.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mycjwvk3pkm76bfyg688#KMVXQ9LPEY67LDKET800) Rather than looking at a situation from the viewpoint of what is wrong and who is to blame for it, AI takes a positive, af�irming approach by asking, “What is possible? What do we want to achieve?” For example, rather than looking at a problem such as decreasing sales, AI would investigate what makes sales increase. Appropriately framing a topic—to investigate what is right rather than what is wrong—is critical to the success of AI because it gets people away from blame, defensiveness, and denial and sets a positive framework for change. As David Cooperrider, cocreator of the AI methodology, puts it, “the more you study the true, the good, the better, the possible within living human systems, the more the capacity for positive transformation.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mycjwvk3pkm76bfyg688#VDCGY20N8JHDFCA5U736) AI can be applied on either a large or a small scale.
David L. Cooperrider and Shuresh Srivastva, “Appreciative Inquiry in Organizational Life,” in R. Woodman and W. Pasmore, eds., Research in Organizational Change and Development, vol. 1 (Greenwich, CT: JAI Press, 1987); and D. Cooperrider and D. Whitney, Appreciative Inquiry: A Positive Revolution in Change (San Francisco, CA: Berrett-Koehler, 2005).
Quoted in Dave Kovaleski, “Appreciating Appreciative Inquiry,” Corporate Meetings & Incentives (August 2008), pp. 10–11.
Leader's Self-Insight 15.2. Are You a Change Leader?
Instructions: Think speci�ically of your current or a recent full-time job. Please answer the following 10 questions according to your perspective and behaviors in that job. Indicate whether each item is Mostly False or Mostly True for you.
Mostly False Mostly True 1. I often tried to adopt improved procedures for doing my job. 2. I often tried to change how my job was executed in order to be more effective. 3. I often tried to bring about improved procedures for the work unit or department. 4. I often tried to institute new work methods that were more effective for the company.
Appreciative inquiry (AI) a technique for leading change that engages individuals, teams, or the entire organization by reinforcing positive messages and focusing on learning from success
Appreciative inquiry (AI) a technique for leading change that engages individuals, teams, or the entire organization by reinforcing positive messages and focusing on learning from success
Appreciative inquiry (AI) a technique for leading change that engages individuals, teams, or the entire organization by reinforcing positive messages and focusing on learning from success
Mostly False Mostly True 5. I often tried to change organizational rules or policies that were nonproductive or
counterproductive.
6. I often made constructive suggestions for improving how things operate within the organization.
7. I often tried to correct a faulty procedure or practice. 8. I often tried to eliminate redundant or unnecessary procedures. 9. I often tried to implement solutions to pressing organizational problems. 10. I often tried to introduce new structures, technologies, or approaches to improve
ef�iciency.
Scoring and Interpretation
Please add the number of items for which you marked Mostly True, which is your score: . This instrument measures the extent to which people take charge of change in the workplace. Change leaders are seen as change initiators. A score of 7 or above indicates a strong take-charge attitude toward change. A score of 3 or below indicates an attitude of letting someone else worry about change.
Before change leaders can champion large planned change projects via the model in Exhibit 15.2, they often begin by taking charge of change in their workplace area of responsibility. To what extent do you take charge of change in your work or personal life? Compare your score with other students' scores. How do you compare? Do you see yourself being a change leader?
Source: Academy of Management Journal by E. W. Morrison and C. C. Phelps. Copyright 1999 by Academy of Management. Reproduced with permission of Academy of Management in the format Textbook via Copyright Clearance Center.
15-3a. Applying Appreciative Inquiry on a Large Scale
AI can accelerate large-scale organizational change by positively engaging a large group of people in the change process, including leaders and employees, as well as people from outside the organization, such as customers or clients, partners, and other stakeholders.
Once a topic has been identi�ied for exploration, the group follows a four-stage AI process, as illustrated in Exhibit 15.3.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mycjwvk3pkm76bfyg688#ABKFJ6MHDM45KT0EW927)
This discussion draws from Sarah Lewis, Jonathan Passmore, and Stefan Cantore, “Using Appreciative Inquiry in Sales Team Development,” Industrial and Commercial Training 40, no. 4 (2008), pp. 175–180; Steven J. Skinner and Scott W. Kelley, “Transforming Sales Organizations through Appreciative Inquiry,” Psychology & Marketing 23, no 2 (February 2006), pp. 77– 93; and Gabriella Giglio, Silvia Michalcova, and Chris Yates, “Instilling a Culture of Winning at American Express,” Organization Development Journal 25, no. 4 (Winter 2007), pp. 33–37.
1. Discovery. In the discovery stage, people identify “the best of what exists”—the organization's key strengths and best practices. This stage is about discovering the unique qualities of the group that have contributed to success. Leaders interview people, asking them to tell stories that identify the best of their experiences with the organization. During an AI session focused on building a winning culture at American Express, for example, leaders asked people to describe an instance when they felt the most proud working for the company. Based on these stories, people together identify common themes.
2. Dream. Next, people re�lect on what they learned during the discovery stage and imagine what it would be like if these extraordinary experiences were the norm—what if people at American Express, for instance, experienced the kind of environment every day that made them feel proud of working for American Express? The dream stage is about imagining “what could be” and creating a shared vision of the best possible future, grounded in the reality of what already exists. By allowing people to express their dreams for the future, AI inspires hope and energy for change.
3. Design. The design stage formulates action plans for transforming dreams into reality. This involves people making decisions about what the organization needs to do in order to be what it wants to be. At American Express, people identi�ied the values that would support the kind of culture they wanted, the leadership behaviors that would instill and support the values, and the structures, systems, and processes that would keep the new cultural values alive.
4. Destiny. The �inal stage of AI is creating a destiny by translating the ideas identi�ied in the previous stages into concrete action steps. This involves both celebrating the best of what exists and pushing forward to realize the dream by creating speci�ic programs, activities, and other tangible forces that will implement the design and ensure the continuation of change begun during the AI process. For example, speci�ic changes in training programs, performance evaluation, and reward systems were part of the destiny stage at American Express.
Exhibit 15.3. Four Stages of Appreciative Inquiry
Source: Gabriella Giglio, Silvia Michalcova, and Chris Yates, “Instilling a Culture of Winning at American Express,” Organization Development Journal 25, no. 4 (Winter 2007), pp. 33–37.
Using the AI methodology for a large-scale change may involve hundreds of people over a period of several days and may be conducted off- site to enable people to immerse themselves in the process of creating the future. A wide variety of organizations, including businesses, school systems, churches and religious organizations, communities, government agencies, and social service organizations, have used AI for large-scale change.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mycjwvk3pkm76bfyg688#SGZSCAU7Y35NPRF7U963) A team at a large oil re�inery in the Middle East used AI to help achieve a vision of making the re�inery “the best place in the company to work.”
See http://appreciativeinquiry.case.edu/practice/bibAiStories.cfm (accessed July 16, 2009) for examples of the uses of appreciative inquiry.
In the Lead The Red Team
When the general manager (GM) of the oil re�inery where they worked asked them to “re-imagine the organization,” the group of young engineers known as the Red Team naturally wondered what he meant.
The GM said he wanted the re�inery to be the best place to work in the huge Middle East oil and gas organization. Success, he added, would be measured by the level of happiness among the 1,600 workers at the re�inery. Happiness among the workers, the GM believed, would improve safety, performance, and productivity. The Red Team immediately began talking among themselves and identifying issues and potential recommendations for making the re�inery a happier place to work. Then they decided it was a good idea to get input from the other employees.
They came up with a simple theme, based on the word “Smile,” around which to connect people and get their ideas for how to improve morale, motivation, and happiness. Using the AI model, the team asked people to share their best experiences of working at the re�inery (Discover), which created an energized and fun atmosphere. Next, people contributed ideas for what they thought the re�inery could be if these experiences were the norm (Dream). In the third (Design) stage, ideas included seeing managers more often in the plant, strengthening worker–supervisor relationships, improving the cafeteria menu, providing shade canopies over employee parking areas, and holding regular employee-family appreciation events. Volunteer teams were asked to champion each initiative for follow-up action to turn them into reality (Destiny).
The process has already improved morale by giving people a chance to participate in shaping their own future. People have a stronger sense of belonging and commitment, and the vision of being “the best place in the company to work” is well on its way to becoming a reality.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mycjwvk3pkm76bfyg688#ZXYDLGTW9UTQ01ZDG773)
Example described in Mark Bechtold, “Improving Worker Morale through the Use of Appreciative Inquiry,” Industrial and Commercial Training 43, no. 1 (2011), pp. 25–30.
15-3b. Applying Appreciative Inquiry Every Day
AI can also be applied by individual leaders on a smaller scale. The nature of leadership means in�luencing people in many small ways on an ongoing basis. This chapter's Leader's Bookshelf describes a three-stage change model that incorporates elements of AI and can be used for everyday change efforts. Good leaders work daily to gradually shift attitudes, assumptions, and behavior toward a desired future. When individual leaders in an organization are involved in daily change efforts, they have a powerful cumulative effect.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mycjwvk3pkm76bfyg688#SDJNC5AMHNHMZL9BB266)
Debra Meyerson, Tempered Radicals: How People Use Difference to Inspire Change at Work (Boston: Harvard Business School Press, 2001).
Leaders can use the tools of AI for a variety of everyday change initiatives, such as developing followers, strengthening teamwork, solving a particular work issue, or resolving con�licts.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mycjwvk3pkm76bfyg688#UPBV9W1D11XD3LRMY902) Again, the key is to frame the issue in a positive way and keep people focused on improvement rather than looking at what went wrong. Jim (Gus) Gustafson, chief transformation of�icer and chief ministry of�icer for the Lutheran Church of Hope in West Des Moines, Iowa, provides an example of the everyday use of AI. Gustafson loves using AI to develop followers. One example comes from the time he took over as director of sales and marketing for a major electrical manufacturer. While sitting in on several employees' performance reviews with the outgoing executive, Gustafson noticed that two employees in particular were treated by the outgoing manager with disrespect and disinterest as they were given poor evaluations of their performance. Gustafson used AI by asking the two employees questions such as, “What have you done in the last six months that you are most proud of?” “What is your greatest source of job satisfaction?” and “What motivates you to excel?” He worked with the two to identify how they could be satis�ied and productive, carrying forward the best from their past but moving toward a better future. Thanks to Gustafson's coaching and the use of AI, both employees were eventually promoted to management positions in the organization.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mycjwvk3pkm76bfyg688#CYRT4ZZ3SBSL3MGK7675)
William B. Locander and David L. Luechauer, “Leader as Inquirer: Change Your Approach to Inquiry,” Marketing Management (September–October 2007), pp. 46–49; Skinner and Kelley, “Transforming Sales Organizations through Appreciative Inquiry.”
Thomas J. Grif�in, “In the Eye of the Beholder: Interview with Jim ‘Gus’ Gustafson,” Appreciative Leadership Interviews (The Taos Institute), http://www.taosinstitute.com/resources/gustafson.html (accessed July 16, 2009); and “Getting to Know … Gus Gustafson, CCL Donor and Alumnus,” Making a Difference: A Report on Activities and Impact from the Center for Creative Leadership (Greensboro, NC: Center for Creative Leadership, January 2009), http://www.ccl.org/leadership/pdf/news/newsletters/mad0109.pdf (accessed July 16, 2009).
Leader's Bookshelf Switch: How to Change Things When Change Is Hard by Chip Heath and Dan Heath
“Big changes can start with very small steps. Small changes tend to snowball,” write authors Chip Heath, a professor at the Graduate School of Business at Stanford University, and Dan Heath, a senior fellow at Duke University's Center for Advancement of Social Entrepreneurship. “But this is not the same as saying that change is easy.” Indeed, the stories told in Switch: How to Change Things When Change Is Hard illustrate just how dif�icult change can be, whether it is a personal change such as losing 40 pounds or an organizational change such as improving how employees treat customers.
A Three-Part Framework for Change
Switch offers some solid advice that can be applied to both individuals and organizations that need to change. Here is a quick summary of their three-step plan for change:
Provide Direction: Look for the Bright Spots. The �irst step involves setting a clear direction and scripting the moves that can help people get there. A key point here is to focus on the positive. Many people facing a need for change are demoralized and depressed. To bring about change, leaders shift people to thinking about things they have done in the past that were positive and how to do those kinds of things more often. To help solve the chronic malnutrition problem in Vietnam, for example, the Save the Children organization stopped looking at what was wrong and instead looked for the children who were well-nourished, learned what their parents were doing, and taught the parents of undernourished children to follow the same steps.
Get Emotional: Motivate People to Change. Why do charitable organizations use photos of needy children to attract donations? Because they appeal to people's emotions. The lesson is that people don't “think” their way into a new behavior. Change depends on changing emotions. Microsoft leaders kept telling a group of programmers that customers couldn't �igure out how to use a new feature, but the stubborn programmers thought their software was brilliant. Only when the programmers actually watched customers struggling with using the feature and becoming frustrated and unhappy did they start looking for ways to make it more user friendly.
Shape the Path: Make Change More Comfortable. Old habits die hard, but the opportunity for change to take hold is enhanced when the new habits are more comfortable. One of the best illustrations of this step comes from Bart Millar, a teacher in Portland, Oregon, who transformed his classroom by getting the most disruptive students to come to class early and sit in the front row. How did he do it? He put a comfortable sofa at the front of his history classroom. It didn't take long for the students who used to be back-seat wisecrackers to start showing up early enough to get the cool seats.
Test Your Change Leadership
One of the most interesting features of Switch is the use of “Clinics,” which are sidebars describing real-life situations needing change. Readers are invited to apply what they've learned from a particular section of the book to craft a change strategy. Then, the authors describe what actually happened and what they would advise based on their change research. The numerous rich examples, combined with research pulled from the �ields of psychology, sociology, and other �ields, make Switch a fun, inspiring read.
Source: Switch: How to Change Things When Change Is Hard, by Chip Heath and Dan Heath, is published by Broadway Books.
15-4. Leading Creativity for Change The American Management Association asked 500 CEOs the question: “What must one do to survive in the twenty-�irst century?” The top answer? “Practice creativity and innovation.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#GSATX5UD9NZUHQEZG396) Effective leaders �ind ways to promote creativity and innovation, particularly in the departments where it is most needed. For example, some organizations, such as hospitals, government agencies, and nonpro�it organizations, may need frequent changes in policies and procedures, and leaders can promote creativity among administrative workers. For companies that rely on new products, leaders promote the generation and sharing of ideas across departments and, increasingly, with outsiders.
Stanley S. Gryskiewicz, “Cashing In on Creativity at Work,” Psychology Today (September–October 2000), pp. 63–66.
Creativity is the generation of ideas that are both novel and useful for improving the ef�iciency or effectiveness of an organization.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#AFLPQXA7CJ58T40PL425) Creative people come up with ideas that may meet perceived needs, solve problems, or respond to opportunities and are therefore adopted by the organization. However, creativity itself is a process rather than an outcome, a journey rather than a destination. One of the most important tasks of leaders today is to harness the creative energy of all employees.
Dorothy A. Leonard and Walter C. Swap, When Sparks Fly: Igniting Creativity in Groups (Boston: Harvard Business School Press, 1999), pp. 6–8.
15-4a. Instilling Creative Values
Leaders can build an environment that encourages creativity and helps the organization be more innovative. Fostering a creative culture and promoting collaboration will spread values for creativity throughout the organization.
Foster a Creative Culture For creative acts that bene�it the organization to occur consistently, the interests and actions of everyone should be aligned with the organization's purpose, vision, and goals, and leaders should make a commitment of time, energy, and resources to support creativity.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#WGGV9SV6L5049M5EG553) One popular approach is to provide an idea incubator . An idea incubator provides a safe harbor where ideas from people throughout the organization can be developed without interference from company bureaucracy or politics.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#CUAX9FTX0BS3A5RQX310) Companies as diverse as Yahoo, Boeing, Adobe Systems, and UPS have used idea incubators to make sure good ideas don't get lost in the day-to-day organizational system.
Alan G. Robinson and Sam Stern, Corporate Creativity: How Innovation and Improvement Actually Happen (San Francisco: Berrett-Koehler, 1997).
Sherry Eng, “Hatching Schemes,” The Industry Standard (November 27–December 4, 2000), pp. 174–175.
Creativity the generation of ideas that are both novel and useful for improving the ef�iciency and effectiveness of the organization
Creativity the generation of ideas that are both novel and useful for improving the ef�iciency and effectiveness of the organization
idea incubator a safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics
idea incubator a safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics
To build a culture that encourages corporate entrepreneurship , leaders encourage the creative spirit of all employees by promoting cultural values of curiosity, openness, exploration, and informed risk-taking. At W. L. Gore, best known for Gore-Tex fabrics, leaders basically did away with the rules so that people feel free to explore and experiment. There are no bosses at Gore; people explore ideas on their own and recruit others who believe in and want to work on the idea. That's how Gore got into businesses as diverse as Glide dental �loss, Ride-On bike cables, and Elixir guitar strings.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#KSVX4FX565XHZ74N8045) One important outcome of entrepreneurship is to facilitate idea champions. Idea champions are people who passionately believe in an idea and �ight to overcome natural resistance and convince others of its value. Change does not happen by itself. Personal energy and effort are needed to successfully promote a new idea.
Alan Deutschman, “The Fabric of Creativity,” Fast Company (December 2004), p. 54.
A creative culture is an open culture that encourages people to look everywhere for new ideas. Leaders promote openness by rotating people into different jobs, allowing them time off to participate in volunteer activities, and giving them opportunities to mix with people different from themselves. One aerospace company uses the phrase Get out of Kansas! to stress the importance of looking for novel ideas in the world outside company walls.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#GZJAFYLUL2A2KSMPP963) Leaders can also give people opportunities to work with customers, suppliers, and people outside the industry, which contributes to a �low of fresh ideas. Executives at Productos Cementos Mexicanos (known as Cemex) ride in cement trucks to get ideas about customer needs, for instance.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#TFXB02E53F1BT3J1Z494)
Robert D. Austin, Lee Devin, and Erin Sullivan, “Oops! Accidents Lead to Innovations. So, How Do You Create More Accidents?” The Wall Street Journal (July 7, 2008), p. R6.
Example cited in Phred Dvorak, “Businesses Take a Page from Design Firms; Sloan-Kettering Taps Industry for Innovative Ideas on Management,” The Wall Street Journal (November 10, 2008), p. B4.
New Leader Action Memo
Promote Collaboration As a leader, you can help the organization be more innovative. You can encourage values of curiosity, openness, and exploration, and give employees time to work with people outside their normal areas. You can build in mechanisms for cross-functional collaboration and information sharing.
Although many individuals have creative ideas, creativity soars when people work together. Rather than leaving people stuck in their departmental silos, smart leaders �ind ways to get them communicating and collaborating across boundaries. Creative collaboration is one of the most important activities leaders can support for a creative culture.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#PLVLG6VXERALEW64N629) That’s one reason companies use cross-functional teams and self-managed teams, as described in Chapter 10. Some remodel their physical spaces so that people from different areas work side by side on a daily basis. Many companies use internal Web sites that encourage cross-organizational
corporate entrepreneurship internal entrepreneurial spirit that includes values of exploration, experimentation, and risk taking
Idea champions people who passionately believe in a new idea and actively work to overcome obstacles and resistance
corporate entrepreneurship internal entrepreneurial spirit that includes values of exploration, experimentation, and risk taking
Idea champions people who passionately believe in a new idea and actively work to overcome obstacles and resistance
collaboration. For example, Arup Group, a British engineering services company, developed an online “knowledge map” that shows the company’s different areas of expertise and how departments and employees are connected to one another in terms of important information �lows.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#WHKGLH9K928BZMWL6663)
Caneel K. Joyce, Kyle E. Jennings, Jonathan Hey, Jeffrey C. Grossman, and Thomas Kalil, “Getting Down to Business: Using Speedstorming to Initiate Creative Cross-Disciplinary Collaboration,” Creativity and Innovation Management 19, no. 1 (2010), pp. 57–67.
John Bessant, Kathrin Möslein, and Bettina Von Stamm, “Business Insight (A Special Report): In Search of Innovation,” The Wall Street Journal (June 22, 2009), p. R4.
A recent approach to promoting one-on-one collaboration is speedstorming. Speedstorming , as the name suggests, was inspired by the phenomenon of speed-dating. It uses a round-robin format to get people from different areas talking together, generating creative ideas, and identifying areas for potential collaboration. People are divided into pairs, with each person from a different department, and given a speci�ic topic with a goal of generating ideas to pursue collaboratively by the end of each three- to �ive-minute round. By the end of the session, the goal is for each participant to have formed ideas for creative collaboration with several others. Speedstorming can be a fun experience that enriches existing approaches to collaboration.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#YTKP7KXT5S7J4HBC7343)
Joyce et al., “Getting Down to Business: Using Speedstorming to Initiate Creative Cross-Disciplinary Collaboration.”
15-4b. Leading Creative People
New Leader Action Memo
Complete the exercise in Leader’s Leader's Self-Insight 15.3 to see if you have a creative personality.
Many organizations that want to encourage change and innovation strive to hire people who display creative characteristics. However, recent research on creativity suggests that anyone can learn to be creative and can get better at it with practice.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#TYPH9KJX72VAPQ1NN776) That is, everyone has roughly equal creative potential. The problem is that many people don’t use that potential. Leaders can help individuals be more creative by facilitating brainstorming, promoting lateral thinking, enabling immersion, allowing pauses, and nurturing creative intuition, as illustrated in Exhibit 15.4.
Jonah Lehrer, “How to Be Creative,” The Wall Street Journal (March 10, 2010), p. C1.
Speedstorming using a round-robin format to get people from different areas talking together, generating creative ideas, and identifying areas for potential collaboration
Speedstorming using a round-robin format to get people from different areas talking together, generating creative ideas, and identifying areas for potential collaboration
Exhibit 15.4. Tools for Helping People Be More Creative
Leader's Self-Insight 15.3. Do You Have a Creative Personality?
Instructions: In the following list, check each adjective that you believe accurately describes your personality. Be very honest and check all the words that �it your personality.
1. affected
2. capable
3. cautious
4. clever
5. commonplace
6. con�ident
7. conservative
8. conventional
9. egotistical
10. dissatis�ied
11. honest
12. humorous
13. individualistic
14. informal
15. insightful
16. intelligent
17. narrow interests
18. wide interests
19. inventive
20. mannerly
21. original
22. re�lective
23. resourceful
24.
self-con�ident
25. sexy
26. snobbish
27. sincere
28. submissive
29. suspicious
30. unconventional
Scoring and Interpretation
Add one point for checking each of the following words: 2, 4, 6, 9, 12, 13, 14, 15, 16, 18, 19, 21, 22, 23, 24, 25, 26, and 30. Subtract one point for checking each of the following words: 1, 3, 5, 7, 8, 10, 11, 17, 20, 27, 28, and 29. The highest possible score is +18 and the lowest possible score is –12.
The average score for a set of 256 assessed males on this creativity scale was 3.57, and for 126 females was 4.4. A group of 45 male research scientists and a group of 530 male psychology graduate students both had average scores of 6.0, and 124 male architects received an average score of 5.3. A group of 335 female psychology students had an average score of 3.34. If you received a score above 6.0, your personality would be considered above average in creativity.
This adjective checklist was validated by comparing the respondents’ scores to scores on other creativity tests and to creativity assessments of respondents provided by expert judges of creativity. This scale does not provide perfect prediction of creativity, but it is reliable and has moderate validity. Your score probably indicates something about your creative personality compared to other people.
To what extent do you think your score re�lects your true creativity? Compare your score to those of others in your class. What is the range of scores among other students? Which adjectives were most important for your score compared to other students? Can you think of types of creativity this test might not measure? How about situations where the creativity re�lected on this test might not be very important?
Source: Harrison G. Gough, “A Creative Personality Scale for the Adjective Check List,” Journal of Personality and Social Psychology 37, no. 8 (1979), pp. 1398–1405.
Facilitate Brainstorming One common way to encourage creativity is to set up brainstorming sessions focused on a speci�ic problem or topic. Assume your organization faces a problem such as how to reduce losses from shoplifting, speed up checkout, reduce food waste, or lessen noise from a machine room. Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of creative ideas to solve the problem. The keys to effective brainstorming are:* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#QLEXEP30ZUX7GZD2U970)
Brainstorming a technique that uses a face-to-face group to spontaneously suggest a broad range of ideas to solve a problem
1. No criticism. Group members should not criticize or evaluate ideas in any way during the spontaneous generation of ideas. All ideas are considered valuable.
2. Freewheeling is welcome. People should express any idea that comes to mind, no matter how weird or fanciful. Brainstormers should not be timid about expressing creative thinking. As a full-time developer of ideas at Intuit said, “It’s more important to get the stupidest idea out there and build on it than not to have it in the �irst place.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#PLYL7PT4JYG61DSA6846)
David Kirkpatrick, “Throw It at the Wall and See if It Sticks,” Fortune (December 12, 2005), pp. 142–150.
3. Quantity desired. The goal is to generate as many ideas as possible. The more ideas the better. A large quantity of ideas increases the likelihood of �inding excellent solutions. Combining ideas is also encouraged. All ideas belong to the group, and members should modify and extend ideas whenever possible.
These tips are based on Leigh Thompson, “Improving the Creativity of Organizational Work Groups,” Academy of Management Executive 17 (2003), pp. 96–109; Bruce Nussbaum, “The Power of Design,” BusinessWeek (May 17, 2004), pp. 86–94; and the ideas of Alex Osborn as described in Anya Kamenetz, “Building a Better Brainstorm,” Fast Company (February 2013), pp. 32–35.
Brainstorming has both ardent supporters and intense critics, but it remains the most common way leaders use groups to generate new ideas.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#XTJXZ3VPNXG7JV5CR505) Leaders are continually searching for ways to improve the brainstorming process. Some companies are practicing an extreme type of brainstorming, based on the popularity of television reality shows, that puts people together for an extended time period to come up with ideas. Under a program called Real Whirled, for example, Whirlpool sends teams of eight people to live together for seven weeks—and to use Whirlpool appliances for cooking and cleaning, of course. Best Buy has used a similar program, with teams of people who previously didn’t know one another living together for 10 weeks in a Los Angeles apartment complex. A new service, Best Buy Studio, which provides Web-design consulting for small businesses, came directly out of ideas hatched at one of the sessions.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#PRCKMJUGMB21PE705778)
Anya Kamenetz, “Building a Better Brainstorm,” Fast Company (February 2013), pp. 32–35; Kevin P. Coyne and Shawn T. Coyne, “Seven Steps to Better Brainstorming,” McKinsey Quarterly (March 2011).
Reena Jana, “Real Life Imitates Real World,” BusinessWeek (March 23–30, 2009), p. 42.
Another recent approach, called electronic brainstorming , or brainwriting, brings people together in an interactive group over a computer network.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#WRJE91EMWKMHV5UVQ110) People can submit ideas and can also read and extend others’ ideas. Austin, Texas–based ad agency GSD&M uses electronic brainstorming sessions that include outsiders as well as employees to quickly come up with ideas for ad campaigns. Leaders say the sessions generate thousands of ideas, and keeping things anonymous “keeps the boss and the new hire on the same level.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#CTDFPJMFWCY66QJMV158) Studies show that electronic brainstorming generates about 40 percent more ideas than individuals brainstorming alone, and 25 percent to 200 percent more ideas than regular brainstorming groups, depending on group size.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#TELJL6BDH1PUCNL6U556) Why? Primarily because people participate anonymously, the sky’s the limit in terms of what they feel free to say. Creativity also increases because people can write down their ideas immediately, avoiding the possibility that a good idea might slip away while the person is waiting for a chance to speak in a face-to-face group.
R. B. Gallupe, W. H. Cooper, M. L. Grise, and L. M. Bastianutti, “Blocking Electronic Brainstorms,” Journal of Applied Psychology 79 (1994), pp. 77–86; R. B. Gallupe and W. H. Cooper, “Brainstorming Electronically,” Sloan Management Review (Fall 1993), pp. 27–36; and Alison Stein Wellner, “A Perfect Brainstorm,” Inc. (October 2003), pp. 31–35.
Example described in Burt Helm, “Wal-Mart, Please Don’t Leave Me,” BusinessWeek (October 9, 2006), pp. 84–89.
Brainstorming a technique that uses a face-to-face group to spontaneously suggest a broad range of ideas to solve a problem
electronic brainstorming bringing people together in an interactive group over a computer network; sometimes called brainwriting
electronic brainstorming bringing people together in an interactive group over a computer network; sometimes called brainwriting
Wellner, “A Perfect Brainstorm”; Gallupe and Cooper, “Brainstorming Electronically.”
Promote Lateral Thinking Most of a person’s thinking follows a regular groove and somewhat linear pattern from one thought to the next. But linear thinking does not often provide a creative breakthrough. Linear thinking is when people take a problem or idea and then build sequentially from that point. A more creative approach is to use lateral thinking. Lateral thinking can be de�ined as a set of systematic techniques used for changing mental concepts and perceptions and generating new ones.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#YZJETQ9ZW17K0U1AS879) With lateral thinking, people move “sideways” to try different perceptions, different concepts, and different points of entry to gain a novel solution. Lateral thinking appears to solve a problem by an unorthodox or apparently illogical method. Lateral thinking makes an unusual mental connection that is concerned with possibilities and “what might be.”
Edward DeBono, Serious Creativity: Using the Power of Lateral Thinking to Create New Ideas (New York: HarperBusiness, 1992).
New Leader Action Memo
As a leader, you can expand the creative potential of people in the organization by facilitating brainstorming, promoting lateral thinking, enabling immersion, allowing for pauses, and fostering creative intuition.
New Leader Action Memo
Right now, see if you can think of three additional opposites in each of the categories of physical, biological, management, and business. Look at opposites to stretch your thinking for a problem you face.
Companies such as Boeing, Nokia, IBM, and Nestlé have trained people to use lateral thinking as a way to help the organization meet the demands of a rapidly changing global environment.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#NCKZR9722KB80JB1G748) To stimulate lateral thinking, leaders provide people with opportunities to use different parts of their brains and thus to make novel, creative connections. If the answer isn’t in the part of the brain being used, it might be in another that can be stimulated by a new experience. Consider the NASA scientist who was taking a shower in a German hotel while pondering how to �ix the distorted lenses in the Hubble telescope in 1990. Nobody could �igure out how to �it a corrective mirror into the hard-to-reach space inside the orbiting telescope. The engineer noticed the European-style showerhead mounted on adjustable rods. This perception connected with the Hubble problem as he realized that corrective mirrors could be extended into the telescope on similar folding arms. Lateral thinking came to the rescue.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#MQESKGZKZSBZD9K30593) Another example comes from Atlanta pediatrician Amy Baxter, who had been trying for years to �ind a way to use cold to relieve the pain children felt when getting vaccinations. Driving home tired after an all-night shift at the emergency room, Baxter noticed that the steering wheel was vibrating because she hadn’t had time to get her tires aligned. As she pulled into the driveway, she realized the vibration had made her hands numb. Baxter had a �lash of insight—combining vibration and cold might be enough to ease the pain of a shot. Buzzy, a toylike vibrating bee with a tiny ice pack, is now used in around 500 hospitals to ease injection pain for children.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#PMJFS9XKYT8L1065Z440)
Dave Waller, “The Gospel According to Edward DeBono,” Management Today (August 2007), http://www.managementtoday.co.uk (accessed July 27, 2009).
Francine Russo, “The Hidden Secrets of the Creative Mind,” Time (January 16, 2006), pp. 89–90.
Reported in Sue Shellenbarger, “Tactics to Spark Creativity,” The Wall Street Journal (April 2, 2013), http://online.wsj.com/article/SB10001424127887323611604578398342398991844.html (accessed June 13, 2013).
Lateral thinking a set of systematic techniques for breaking away from customary mental concepts and generating new ones
Lateral thinking a set of systematic techniques for breaking away from customary mental concepts and generating new ones
Alex Osborn, the originator of brainstorming, developed many creative techniques. One effective technique that is widely used to stimulate lateral thinking is the checklist in Exhibit 15.5. The checklist seems to work best when there is a current product or service that needs to be improved. If the problem is to modify a cell phone design to increase its sales, for example, the checklist verbs in Exhibit 15.5 can stimulate an array of different perceptions about the item being analyzed.
Exhibit 15.5. Lateral Thinking Checklist
Verb Description Put to other uses? New ways to use as is? Other uses if modi�ied? Adapt? What else is like this? What other ideas does this suggest? Modify? Change meaning, color, motion, sound, odor, form, shape? Other changes? Magnify? What to add: Greater frequency? Stronger? Larger? Plus ingredient? Exaggerate? Minify? What to subtract: Eliminate? Smaller? Slower? Lower? Shorter? Lighter? Split up? Less frequent? Substitute? Who else instead? What else instead? Other place? Other time? Rearrange? Other layout? Other sequence? Change pace? Reverse? Transpose positive and negative? How about opposites? Turn it backward? Turn it upside down?
Reverse role? Combine? How about a blend, an alloy, an assortment, an ensemble? Combine units? Combine purposes?
Combine appeals? Combine ideas?
Source: Based on Alex Osborn, Applied Imagination (New York: Charles Scribner's Sons, 1963).
An exercise of considering opposites will also stretch the mind in a lateral direction. Physical opposites include back/front, big/small, hard/soft, and slow/fast. Biological opposites include young/old, sick/healthy, male/female, and tortoise/hare. Management opposites would be bureaucratic/entrepreneurial, or top-down/bottom-up. Business opposites are buy/sell, pro�it/loss, and hire/�ire.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#ZXDQXZ3JMU0VSA94C614)
Derm Barrett, The Paradox Process: Creative Business Solutions … Where You Least Expect to Find Them (New York: American Management Association, 1997).
Enable Immersion Lateral thinking might be considered thinking outside the box. Immersion means to go deeply into a single area or topic to spark personal creativity, which has been called thinking “inside the box.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#XAKYGVH5SAVTMGGSJ895) One approach to immersion is to focus on the internal aspects of a situation or problem. People can take a product, situation, or process and break it down into component parts. Manipulating the components in unusual ways can create a valuable new idea. For example, contact lenses arose by removing one component—the eyeglass frame. Phillips Electronics revolutionized the DVD player by shifting functions from the player to a hand-held device. This manipulation created a slimmer and cheaper DVD player.
This discussion is based on Drew Boyd and Jacob Goldenberg, “Think Inside the Box,” The Wall Street Journal (June 15–16, 2013), pp. C1, C2.
Another way to get people to break out of habitual thinking patterns and ingrained perceptions is to immerse them in new experiences that give them a different perspective on a familiar topic. Top leaders at a bank wanting to get managers thinking in new ways sent them not only to visit competing banks but also to an Apple retail store. One executive says it made him see familiar banking in a whole new light. “Many of us in the industry are trying to put lipstick on a pig—making old banking look new and innovative with decorations but not really changing what’s underneath it all, the things that matter most to consumers.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#SLAJLQDQ6ZJEQHZM5721) Some leaders reorganize often to immerse people in different jobs and responsibilities. Frequent change can be unsettling, but it keeps people’s minds fresh and innovative.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#SEEUG1WTM4HWS0NDY771)
Quoted in Marla Capozzi, Renée Dye, and Amy Howe, “Sparking Creativity in Teams: An Executive’s Guide,” McKinsey Quarterly (April 2011).
Ronald T. Kadish, “Mix People Up,” Harvard Business Review (August 2002), pp. 39–49.
Immersion to go deeply into a single area or topic to spark personal creativity
Immersion to go deeply into a single area or topic to spark personal creativity
Allow Pauses Some of the best ideas often occur when people take time off from working on a problem and change what they are doing. Allowing pauses activates different parts of the brain. Recent research in creativity suggests that having an “aha moment” often requires that a person stop trying to solve a problem and allow the mind to wander.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#UBPL3X2LPVREDH1SA600) “When you are trying too hard to focus your attention, you are going to miss new ideas,” says Jennifer Wiley, a psychology professor at the University of Illinois at Chicago.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#LCUWVUGCAEFWQMZN5498)
Shellenbarger, “Tactics to Spark Creativity”; David Rock, “Neuroscience Provides Fresh Insight into the ‘Aha’ Moment,” T +D (February 2011), pp. 45–49; and Evangelina G. Chrysikou, “Your Creative Brain at Work,” Scienti�ic American Mind (July–August 2012), pp. 24–31.
Quoted in Shellenbarger, “Tactics to Spark Creativity.”
Where or when do you get your best ideas? The most popular response is “in the shower.” One man got good ideas so consistently in the shower that he regularly experienced a 20-minute mental core dump of ideas. He purchased a piece of clear plastic and a grease pencil to write down the creative ideas while in his “think tank.” Creativity often occurs during a mental pause, a period of mixed tension and relaxation. In the shower, or while exercising, driving, walking, or meditating, the mind reverts to a neutral, somewhat unfocused state in which it is receptive to issues or themes that have not been resolved. If the analytical part of the mind is too focused and active, it shuts down the spontaneous part. The semi-relaxed mental “pause” is like putting the analytical left brain on hold and giving room for the intuitive right brain to �ind the solution in the subconscious mind.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#GYNRC8EG924LPZJDL870) C. S. Lewis, author of The Chronicles of Narnia, was fond of long, contemplative walks to facilitate his creative juices. Similarly, Jerry Kathman, president and CEO of brand design agency LPK, says he gets many of his ideas during his morning jog.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#FPXL1TCM8PPQKS0PT607) Exercise is often considered a good way to give the mind a chance to work freely.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#QZKBA1R5Y3Y52KJNN388)
R. Donald Gamache and Robert Lawrence Kuhn, The Creativity Infusion: How Managers Can Start and Sustain Creativity and Innovation (New York: Harper & Row, 1989); Alison Stein Wellner, “Cleaning Up,” Inc. (October 2003), p. 35; and Roger von Oech, A Kick in the Seat of the Pants (New York: Harper & Row, 1986).
Alison Stein Wellner, “Creative Control: Even Bosses Need Time to Dream,” Inc. (July 2007), pp. 40–42.
Richard A. Lovett, “Jog Your Brain,” Psychology Today (May/June 2006), pp. 55–56; and Mary Carmichael, “Stronger, Faster, Smarter,” Newsweek (March 26, 2007), pp. 38–46.
“After you plant a seed in the ground, you don’t dig it up every week to see how it is doing.”
William Coyne, former head of R&D at 3M
Leaders can apply this idea by allowing people to have quiet spaces when they need them. Simply breaking up a group session and telling people to go take a walk or work on something simple and repetitive for a while can kick-start the creative process. David Rock, cofounder of the NeuroLeadership Institute, has worked with leaders in many organizations and says leaders have generated a 100 percent to 500 percent improvement in the ability to solve complex problems by using techniques and models that allow pauses so that people have mental space to re�lect.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#XBCNHEDK3Q8W073EJ598)
Rock, “Neuroscience Provides Fresh Insight into the ‘Aha’ Moment.”
Nurture Creative Intuition The creative �lash of insight leaders want to awaken is actually the second stage of creativity. The �irst stage is data gathering. The mind is gathering data constantly, especially when you are studying background material on a problem to be solved. Then the creative insight bubbles up as an intuition from the deeper subconscious. It may be hard to trust that intuitive process because it seems “soft” to many business executives. The subconscious mind remembers all experiences that the conscious mind has forgotten. Creative intuition has a broader reach than any analytical process focused solely on the problem at hand.
To understand your own creative intuition, consider the following question:* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#QALZWSXG36MA1RAUS637)
This question comes from Lehrer, “How to Be Creative.”
A man has married 20 women in a small town. All the women are still alive, and none of them is divorced. The man has broken no laws. Who is the man?
If you solved this problem the answer came in a sudden �lash: the man is a preacher, priest, or justice of the peace. That �lash of insight arose from your creative intuition.
Here are some additional problems that might be a little tougher. Each of the following sets of three words has something in common.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#DQXGRTKWB05445KH1854) Do not overanalyze. Instead just relax and see if the common element pops up from your intuition.
This word challenge and the answers given for it later in the chapter are from Will Shortz, “RD Challenge,” Readers Digest (March 2004), p. 204; Lehrer, “How to Be Creative”; and Sarnoff A. Mednick, “The Associative Basis of the Creative Process,” Psychological Review 69, no. 3 (1962), pp. 220–232.
1. rat blue cottage
2. pine crab sauce 3. curtain �isherman nuclear reactor 4. envy golf beans 5. bowling alley tailor wrestling match
Don’t rush to �ind the answers. Give your intuitive subconscious time to work. After it’s �inished working on these problems, consider the following question you might be asked if you interview for a job at Microsoft: How would you weigh a large jet aircraft without a scale? This question combines logical thinking and intuition. Before reading on, how might you compute the airplane’s weight doing something that is technologically feasible even if not realistic?* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#UXWGN9C7U87YH7J2H362)
This question and the answer given later are from Tahl Raz, “How Would You Design Bill Gates’ Bathroom?” Inc. (May 2003), p. 35.
The next challenge may appear to have no solution until your intuition shows you the obvious answer. In the following illustration, remove three matches to leave four.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/mtuafd5lgwepmkhd7201#YJYUPY45UF30SFVJH731)
These match puzzles are from Michael Michalko, Thinkertoys, 2nd ed. (Berkeley, CA: Ten Speed Press, 2006).
Here is another problem that may force your mind to respond from a different place to get the answer. The matches are an equation of Roman numerals made from 10 matches. The equation is incorrect. Can you correct the equation without touching the matches, adding new matches, or taking away any matches?
Have you given adequate time to your creative intuition? The answers to these creative challenges follow:
For the word sets, the correct answers are (1) cheese, (2) apple, (3) rods, (4) green, and (5) pins.
One answer to weighing the jet aircraft would be to taxi the jet onto a ship big enough to hold it. You could put a mark on the hull at the water line and then remove the jet and reload the ship with items of known weight until it sinks to the same mark on the hull. The weight of the items will equal the weight of the jet.
The answer to the �irst match puzzle depends on how you interpret the word “four.” Rather than counting four matches, remove the matches at the top, bottom, and right and the answer is obvious—the Roman numeral IV. For the second match puzzle, you can solve this problem by looking at it from a different perspective—turn the page upside down. Did your creative intuition come up with good answers?
15-5. Implementing Change Leaders often see innovation, change, and creativity as a way to strengthen the organization, but many people view change only as painful and disruptive. A critical aspect of leading people through change is understanding that resistance to change is natural—and that there are often legitimate reasons for it. This chapter’s Consider This box takes a lighthearted look at why employees may resist changes in some overly bureaucratic organizations.
Consider This! Dealing with a Dead Horse
Ancient wisdom says that when you discover you are astride a dead horse, the best strategy is to dismount. In government and other overly bureaucratic organizations, many different approaches are tried. Here are some of our favorite strategies for dealing with the “dead horse” scenario:
1. Change the rider.
2. Buy a stronger whip.
3. Beat the horse harder.
4. Shout at and threaten the horse.
5. Appoint a committee to study the horse.
6. Arrange a visit to other sites to see how they ride dead horses.
7. Increase the standards for riding dead horses.
8. Appoint a committee to revive the dead horse.
9. Create a training session to improve riding skills.
10. Explore the state of dead horses in today’s environment.
11. Change the requirements so that the horse no longer meets the standards of death.
12. Hire an external consultant to show how a dead horse can be ridden.
13. Harness several dead horses together to increase speed.
14. Increase funding to improve the horse’s performance.
15. Declare that no horse is too dead to ride.
16. Fund a study to determine if outsourcing will reduce the cost of riding a dead horse.
17. Buy a computer program to enhance the dead horse’s performance.
18. Declare a dead horse less costly to maintain than a live one.
19. Form a work group to �ind uses for dead horses. And … if all else fails …
20. Promote the dead horse to a supervisory position. Or, in a large corporation, make it a vice president.
Source: Author unknown. Another version of this story may be found at http://www.abcsmallbiz.com/funny/deadhorse.html (http://www.abcsmallbiz.com/funny/deadhorse.html) .
The underlying reason why employees resist change is that it violates the personal compact between workers and the organization.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#YUWMZUNL4KRHX7RC5380) Personal compacts are the reciprocal obligations and commitments that de�ine the relationship between employees and organizations. They include such things as job tasks, performance requirements, evaluation procedures, and compensation packages. These aspects of the compact are generally
clearly de�ined and may be in written form. Other aspects are less clear-cut. The personal compact incorporates elements such as mutual trust and dependence as well as shared values. When employees perceive that change violates the personal compact, they are likely to resist. For example, a new GM at the Dallas–Fort Worth Marriott wanted to change the incentive system to offer bonuses tied to the hotel’s �inancial performance, but employees balked. “They were thinking, ‘Here comes the Wicked Witch of the West taking my stuff away,’ ” the manager said. There are tools available to help leaders implement change.
Based on Paul Stebel, “Why Do Employees Resist Change?” Harvard Business Review (May–June 1996), pp. 86–92.
15-5a. Helping People Change
Many leaders don’t understand why change is so dif�icult for many people. But for something new to begin, something old has to end, and most of us have a hard time letting go of something we value, even if we want something new. For example, we want to lose weight, but giving up the chocolate cake seems too much to ask. Rather than focusing on a new beginning and what we might gain from a change, our emotions are stuck on the ending of our current situation and what we might lose.
Changing behavior always depends on changing people’s emotions about the situation. People have to psychologically and emotionally let go of the old before they can embrace the new.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#LCTTZBG6QGB2Z9MLY448) Exhibit 15.6 illustrates the transition people have to go through to make a successful change. To help someone change means �irst dealing with the emotions associated with endings and losses rather than denying those emotions or trying to talk people out of feeling them. Then, people move into a neutral zone, where they’ve let go of the old but the new hasn’t yet gelled into an accepted pattern. Finally, they transition into a new beginning. No one gets to a new beginning without �irst dealing with an ending.
William Bridges, Transitions: Making Sense of Life’s Changes (Reading, MA: Addison-Wesley, 1980); and William Bridges, “Three Questions,” Leadership Excellence (February 2010), p. 11.
Exhibit 15.6. Endings Precede Beginnings for Successful Change
Source: Based on ideas in William Bridges, Managing Transitions: Making the Most of Change (Cambridge, MA: Da Capo Lifelong Books, 2009).
Leaders who want to implement change always have to ask, “who’s going to lose what?”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#LXFNZ1BEN4KWZ3H93690) In organizations, changes in job design, technology, or structure may mean that some people will no longer have the same type of power or prestige they once had, for example. Recall from Chapter 14 how a new CEO at Dynergy did away with private of�ices. Many managers initially resisted the change because they viewed their of�ices as symbols of their power and prestige in the organization.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#ZHALJC27FP424HZ5Q769) In addition, when changes are imposed from outside the individual, many people feel a loss of control over their own lives and circumstances, which provokes a strong emotional reaction. Sometimes a change con�licts with the goals of some individuals or departments. At pharmaceuticals company P�izer, top executives wanted to implement a computerized system for collecting and processing research trial data, which could cut 40 percent off the cost of new drug development. Research and development managers fought the change, citing their concern that the automation and standardization of case report forms would hamper their �lexibility and creativity.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#FARAT1JEXAE21KYL4159)
Bridges, “Three Questions.”
Joann S. Lublin, “Can a New Culture Fix Troubled Companies?” The Wall Street Journal (March 13, 2013), p. B1.
Todd Datz, “No Small Change,” CIO (February 15, 2004), pp. 66–72.
personal compact the reciprocal obligations and commitments that de�ine the relationship between employees and the organization
Change also means that people have to give up their stable routines. Hospitals that have spent millions of dollars adopting electronic medical records are having a hard time getting doctors to use them. One reason is that electronic records require doctors to change how they go about their daily work, and many are having trouble giving up their standard routines.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#NQCK3VV0XEH1NA4MV771) Most people have at least some fear of the unknown and are more comfortable dealing with the tried-and-true. Particularly when people don’t understand how a change will affect them, they �ind it more reassuring to stick with what they know, even if it is unpleasant, than to jump into the unknown.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#CUXAVE9UMQ6BQSHWV777) Utility companies installing wireless smart meters in states from Maine to California have faced a strong backlash from customers who say the meters invade privacy, increase costs, and threaten health.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#YDHA4AHYRCXTAFRAZ256) Getting people to switch to new CFL bulbs has been as tough as pulling hens’ teeth, and when the U.S. Energy Independence and Security Act was passed to phase out the manufacture and sale of certain wattages of incandescent bulbs, consumers began stockpiling them rather than switching to the CFL versions.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#TSEDASQ7LTTSGQ524400)
Katherine Hobson, “Getting Docs to Use PCs,” The New York Times (March 15, 2011).
Brian J. Hurn, “Management of Change in a Multinational Company,” Industrial and Commercial Training 44, no. 2 (2012), pp. 41–46.
Mark Chediak, “Utilities Try to Tame the Backlash against Smart Meters,” Bloomberg BusinessWeek (May 10, 2012), http://www.businessweek.com/articles/2012–05-10/utilities-try-to- tame-the-backlash-against-smart-meters (accessed June 13, 2013).
Michelle Manetti, “Incandescent Lightbulb Phase-Out Has People Hoarding High Watts,” The Huf�ington Post (October 18, 2012), http://www.huf�ingtonpost.com/2012/10/18/incandescent-lightbulb-phase-out-hoarders_n_1981215.html (accessed June 13, 2013).
At work, employees might worry that a needed change in work procedures will mean an end to the camaraderie among their work group or fear that a new technology might cause them to lose autonomy or status. At SuperShuttle, a national transportation provider, for example, drivers were opposed to using GPS-enabled phones. The drivers felt that the new technology meant an end to their freedom, since managers could track their movements. SuperShuttle learned that, “if you don’t tell employees what to expect, they’ll invent something, and inevitably, it will be bad.”* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#QDMGU5EMU8SD3B9G0129)
Lindquist, “Watch Carefully.”
15-5b. The Keys That Help People Change
Most of us think if we were given a clear choice—change or die—we’d change in a hurry. But in fact, scienti�ic studies demonstrate that most people have a hard time changing even when told that not changing will lead them to an early grave.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#CBRB9GPGUX1B08Z68991) For example, Dr. Dean Ornish, a professor of medicine at the University of California at San Francisco and founder of the Preventive Medicine Research Institute, found that an astonishing nine of ten critically ill patients couldn’t change their poor diet and exercise habits even though it meant they would die.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#PNMRR2Z6Y74XENWEJ232) But change is possible. When Jon Fairest took over as CEO of pharmaceutical company Sano�i Canada, he led a successful change effort by using a model based on the stages of major change described earlier in this chapter and by incorporating some elements that have been shown to increase the chances of successful personal change.
See studies reported in Alan Deutschman, “Change or Die,” Fast Company (May 1, 2005), http://www.fastcompany.com/magazine/94/open_change-or-die.html (accessed July 23, 2008); and Alan Deutschman, “The Three Keys to Change,” Fast Company (January 2, 2007), http://www.fastcompany.com/articles/2007/01/change-or-die.html (accessed July 23, 2008).
Dr. Ornish’s story is told in Deutschman, “Change or Die.”
In the Lead Jon Fairest, Sano�i Canada
Jon Fairest became CEO of Sano�i Canada just as the organization was about to move employees to a new corporate headquarters, a move that would also shift hundreds of employees to an open-plan workplace. Many employees had spent decades working in a closed environment, and anxiety was high.
Leaders made employees active participants in the change process from the beginning. Three groups of 10 employees each were selected to serve as “Change Ambassadors.” People were selected from across the organization based on their credibility, networks, in�luence, and ability to communicate. Leaders were also careful to include people who might be most resistant to the proposed culture changes. The Change Ambassadors shared information with employees and also shared employee concerns and ideas with leaders so that everyone had a chance to be heard. The groups visited the new headquarters ahead of the move, which helped turn apprehension into excitement. Sample workstations were set up for everyone to view, and employees were polled on their preferences for things such as workstation modules, chairs, carpets, and lighting.
Because the change would signi�icantly alter work habits, leaders also implemented a variety of initiatives to transition people to the new behaviors needed in an open, collaborative environment. For example, an “Open Door” challenge encouraged employees with closed of�ices to commit to keeping their doors open for a full month. People began preparing weekly job reports to allow
issues to be discussed openly. Two months prior to the move, quick “Getting to Know You” sessions were held during morning and lunch breaks to let employees who would be seated together in the new of�ice interact and get acquainted. A set of guidelines for the open-plan workplace was developed, addressing issues such as noise, distracting behavior, clutter, eating, and so forth, along with the proper use of community areas.
The transition to the new headquarters went smoothly, and collaboration and transparency became second nature at Sano�i Canada. In a follow-up survey, 88 percent of employees reported being “satis�ied” with the new environment, and 61 percent reported seeing “a positive impact on engagement.” Furthermore, the company succeeded in retaining 100 percent of employees during the relocation.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#STMC252KBERJNRWZY390)
Jon Fairest, “Leading Employees Through Major Organizational Change,” Ivey Business Journal (July-August 2014), http://iveybusinessjournal.com/publication/leading- employees-through-major-organizational-change/ (accessed December 2, 2015).
New Leader Action Memo
As a leader, you can understand the reasons for resistance to change and use tools such as a positive emotional attractor, supportive relationships, repetition, involvement, and after-action reviews to help people change.
Fairest says the change at Sano�i Canada “turned out to be the challenge of my career, perhaps even a bigger challenge than I’d bargained for when signing on.” Yet by implementing smart change leadership strategies, leaders helped people shift to a new way of working that put Sano�i in a stronger competitive position.
Changing people’s thinking and behavior is possible, and the keys to doing so incorporate �ive elements: a positive emotional attractor, supportive relationships, repetition of new behaviors, participation and involvement, and after-action reviews.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#FQTHGD1C05TSLD7MM012)
The following is based in part on Richard E. Boyatzis, “How People Change: Create Positive Attractors,” Leadership Excellence (October 2010), p. 17; and Deutschman, “The Three Keys to Change.”
Provide a positive emotional attractor. A positive emotional attractor (PEA) is something that awakens a person’s hopes and dreams about the future, about possibilities of what could be, rather than focusing on trying to “�ix” weaknesses or shortcomings. For example, studies by Dr. Dean Ornish, introduced earlier, show that when people feel convinced that they can enjoy life more, they are much more likely to make signi�icant changes in their lifestyle and stick with the changes over the long term. Instead of motivating with the “fear of dying,” Dr. Ornish began inspiring people with a clear vision of the “joy of living.” People learn and change because they want to, not because they ought to, which means they need an inspiring vision of what the future can be.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#KFJYX7U1W646VNH4C957)
Deutschman, “Change or Die”; and Boyatzis, “How People Change.”
Make sure people have a support system. Leaders help people establish new, emotional relationships that provide hope, make people believe they have the power to change, and inspire people with the expectation that change will happen. Effective leaders of social movements, for example, are highly skilled at giving people hope and faith that change is possible. This emotional relationship with a leader, a mentor, or a community helps people learn and practice the new skills and habits needed to change. This is what Alcoholics Anonymous or Weight Watchers meetings are all about, for example.
Use repetition. People need the opportunity to experiment and practice the new skills and habits over and over until the new pattern of behavior becomes automatic. At Cedars-Sinai Medical Center, an epidemiologist used an experiment that showed doctors that their hands were covered with gobs of harmful bacteria. By showing one of the �ilthiest images as a screen saver on the hospital’s computer network, everyone on the staff was continually reminded of the importance of frequent hand washing. With repeated practice, hand-hygiene compliance eventually spiked to nearly 100 percent and stayed there.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#PLTVK39RJB0PGC7PQ238)
Dan Heath and Chip Heath, “Passion Provokes Action,” Fast Company (February 2011), pp. 28, 30.
Involve people early. When people are involved in helping to design the change, they will be more committed to it. Although this approach is time-consuming, it pays off by giving people a sense of control over the change activity. They come to understand the change better and become committed to its successful implementation. Leaders at contracting and research �irm Noblis wanted to do away with traditional job titles and replace the system with “career bands” that would enable people to move
sideways, not just up the hierarchy. The new system was part of a broader rede�inition of jobs and responsibilities as Noblis shifted its strategy to a greater emphasis on competitive bid work. Leaders knew it could be a tough sell, so they had a group of employees spend six months studying the new plans and seeking feedback from people all around the company. “It was a �ine- tooth comb with all our stakeholders, because we wanted to have a model that was built by Noblis for Noblis,” said Amy Rivera, a member of the HR team.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#JLHGSQGRG430ZZPQM944)
Sarah Halzack, “Noblis Does Away with Traditional Job Titles to Improve Career Development,” The Washington Post (March 10, 2013), http://articles.washingtonpost.com/2013–03-10/business/37605632_1_band-project-manager-staffer (accessed March 11, 2013).
Apply after-action reviews. An excellent mechanism for evaluation and feedback on a change is the after-action review. After- action reviews are quick sessions during which leaders review the outcome of change activities to see what worked, what didn’t, and what can be learned from it. The concept of after-action reviews comes from the United States Army. After every identi�iable activity—whether in �ield operations or training simulations—people take 15 minutes to ask four simple questions: What was supposed to happen? What actually happened? What accounts for the difference? What can we learn? Many businesses, including consulting �irm Jump Associates, oil giant BP, and Steelcase, Inc., which makes of�ice furniture, use after-action reviews for feedback and learning.* (http://content.thuzelearning.com/books/Daft.0283.17.2/sections/vksuvfat2�hcn6bj7252#ZPSPLH1X89R7CMYT6744)
Thomas E. Ricks, “Army Devises System to Decide What Does, Does Not, Work,” The Wall Street Journal (May 23, 1997); John O’Shea, “Army: The Leader as Learner-in- Chief,” The Of�icer (June 2003), p. 31; and Dan Heath and Chip Heath, “Made to Stick: Watch the Game Film,” Fast Company (June 1, 2010), http://www.fastcompany.com/1646990/made-stick-watch-game-�ilm (accessed June 13, 2013).
Effectively and humanely leading change is one of the greatest challenges for leaders. The nature and pace of change in today’s environment can be exhilarating, but it can also be inconvenient, painful, and downright scary. Savvy leaders can help people navigate the change process and make it successful.
Leadership Essentials The important point of this chapter is that tools and approaches are available to help leaders facilitate creativity and change. The increased pace of change in today’s global environment has led to even greater problems for leaders struggling to help their organizations adapt. Many people have a natural resistance to change, but leaders can serve as role models to facilitate change. Leaders who can successfully accomplish change typically de�ine themselves as change leaders, describe a vision for the future in vivid terms, and articulate values that promote change and adaptability. Change leaders are courageous, are capable of managing complexity and uncertainty, believe in followers’ capacity to assume responsibility for change, and learn from their own mistakes.
Major changes can be particularly dif�icult to implement, but leaders can help to ensure a successful change effort by following the eight-stage model of planned change—light a �ire for change; get the right people on board; develop a compelling vision and strategy; go overboard on communication; empower employees to act; generate short-term wins; keep up the energy and commitment to tackle bigger problems; and institutionalize the change in the organizational culture.
An exciting approach to change management known as appreciative inquiry engages individuals, teams, or the entire organization in creating change by reinforcing positive messages and focusing on learning from success. Rather than looking at a situation from the viewpoint of what is wrong and who is to blame, AI takes a positive, af�irming approach and follows the stages of discovery, dream, design, and destiny. AI is powerful for leading both major changes and smaller, everyday changes.
Leading creativity for change and innovation is a signi�icant challenge for today’s leaders. Leaders instill creative values in particular departments or the entire organization by fostering a creative culture and promoting collaboration. Although some people demonstrate more creativity than others, research suggests that everyone has roughly equal creative potential. Leaders can increase individual creativity by facilitating brainstorming, promoting lateral thinking, enabling immersion, allowing pauses, and fostering creative intuition.
Implementation is a critical aspect of any change initiative. Leaders should strive to understand why people resist a change. For something new to begin, something old has to end, and most people have a hard time letting go of something they value. Leaders can help people change by changing emotions so that people can let go of the old and embrace the new. They can provide a positive emotional attractor, supportive relationships, repetition of new behaviors, participation and involvement, and after-action reviews.
Discussion Questions 1. As a leader, how might you overcome your own felt resistance to a change from above and act as a role model for implementing
the change?
2. How are Kotter’s eight-stage framework for change and the AI method similar? How are they different? Explain.
3. Think of a problem situation you would like to change at work, school, or home and describe how you would provide a positive emotional attractor for this change.
4. How could you increase the number of novel and useful solutions you can come up with to solve a problem?
5. Of the �ive elements that help people change (positive emotional attractor, supportive relationships, repetition of new behaviors, participation and involvement, and after-action reviews), which do you think leaders are most likely to overlook? Why?
6. How would you suggest a leader overcome resistance to a change that is going to cause some people to lose their jobs?
7. Why are idea champions important for a creative culture? Do you think these people would be more important in a large organization or a small one?Discuss.
8. Planned change is often considered ideal. Do you think unplanned change could be effective? Discuss. Can you think of an example?
9. Is the world really changing faster today, or do people just assume so?
10. Do you believe the Wall Street meltdown of 2008 will lead to any lasting changes in U.S. �inancial services institutions? What kinds of lasting changes do you envision? What about companies in other industries?
Leadership at Work
Organizational Change Role Play
You are the new director of the Harpeth Gardens not-for-pro�it nursing home. Harpeth Gardens is one of 20 elder-care centers managed by Franklin Resident Care Centers. Harpeth Gardens has 56 patients and is completely responsible for their proper hygiene, nutrition, and daily recreation. Many of the patients can move about by themselves, but several require physical assistance for eating, dressing, and moving about the nursing home. During daytime hours, the head of nursing is in charge of the four certi�ied nursing assistants (CNAs) who work on the �loors. During the night shift, a registered nurse is on duty, along with three CNAs. The same number of CNAs are on duty over the weekend, and either the head of nursing or the registered nurse is on call.
Several other staff also report to you, including the heads of maintenance, bookkeeping/MIS, and the cafeteria. The on-call physician stops by Harpeth Gardens once a week to check on the residents. You have 26 full- and part-time employees who cover the different tasks and shifts.
During your interviews for the director’s job, you became aware that the previous director ran a very tight ship, insisting that the best way to care for nursing home patients was by following strict rules and procedures. He personally approved almost every decision, including decisions for patient care, despite not having a medical degree. Turnover has been rather high, and several beds are empty because of the time required to hire and train new staff. Other elder-care facilities in the area have a waiting list of people wanting to be admitted.
At Harpeth Gardens, the nonnursing of�ices have little interaction with nurses or each other. Back-of�ice staff people seem to do their work and go home. Overall, Harpeth Gardens seems to you like a dreary place to work. People seem to have forgotten the compassion for patients and for each other that is essential to working in a health-care environment. You believe that a new strategy and culture are needed to give more responsibility to employees, improve morale, reduce turnover, and �ill the empty beds. You have read about concepts for leading organizational change and would like to implement some new ideas to make the culture at Harpeth Gardens more creative, decentralized, and participative. You decide to start with the idea of engaging employees in decision making and encouraging more direct collaboration between departments. If those two ideas work, then you will implement other changes.
During your �irst week as the director, you have met all the employees, and you have con�irmed your understanding of the previous director’s rigid approach. You call a meeting of all employees for next Friday afternoon.
Your assignment for this exercise is to decide how you will implement the desired changes and what you will tell employees at the employee meeting. Start by deciding how you will accomplish each of the �irst three steps in the model in Exhibit 15.2. Write your answers to these three questions:
How will you get employees to feel a sense of urgency?
How will you form a guiding coalition, and who will be in it?
What is your compelling vision?
Your next task is to prepare a vision speech to employees for the changes you are about to implement. In this speech, explain your dream for Harpeth Gardens and the urgency of this change. Explain exactly what you believe the changes will involve and why the employees should agree to the changes and help implement them. Sketch out the points you will include in your speech:
In Class: The instructor can divide the class into small groups to discuss the answers to the preceding three questions and to brainstorm the key points to cover in the vision speech to employees. After student groups have decided what the director will say, the instructor can ask for volunteers from a few groups to actually give the speech to employees that will start the Harpeth Gardens transition toward a more adaptive organization. The key questions are: Did the speech touch on the key points that inspire employees to help implement changes? Did the speech convey a high purpose and a sense of urgency? Did the speech connect with employees in a personal way, and did it lay out the reality facing Harpeth Gardens?
Leadership Development: Cases for Analysis
“From This Point On…”
Bernini Foods is one of several companies offering healthy, frozen-packaged meals in the once-laughable and nutritionally challenged frozen dinner industry. Meeting the changing needs of modern, on-the-go, budget-conscious consumers, the new meals offered by Bernini face unprecedented competition from long-time industry leaders including Bertolli, Marie Callendar, Healthy Choice, Lean Cuisine, and others.
Cutthroat competition within the industry means every corporation must hustle for quality ingredients, improved packaging, ef�iciency in delivery systems, and decreased cooking times. Like its competitors, Bernini looks to increased market share through a combination of price cuts and the introduction of new products.
To meet these challenges, CEO Roberto Bernini created a new management position to monitor pricing and purchasing. VP for Finance Ted McCann hired Lucian Wilkes, a retired army colonel, for the new position, giving him wide latitude for setting up new rules and procedures. With an announcement from CEO Bernini, Wilkes was introduced to the company. Following an intense period of in-house research and information gathering, Wilkes zeroed in on what he saw as the major problems—the fragmentation of pricing and purchasing decisions, with managers in various regions devising their own standards and making their own contracts.
The process sent up red �lags for Wilkes. He made an across-the-board e-mail announcement for new sustainability procedures, basically informing each regional of�ice that “from this point on . . .” regional managers must inform his of�ice of any price change above 3 percent. In addition, all local purchase contracts above $10,000 must also be approved by Wilkes’s of�ice prior to implementation.
Directives for these new standardization procedures were issued to regional managers for their policy manuals. These managers, according to their immediate feedback, were all in agreement with the changes. But as one month followed another, Wilkes’s concern and level of frustration grew, and a culture of business as usual appeared to continue. Managers did not resist. Frequent correspondence across the various regions including e-mails, faxes, and conference calls brought repeated assurances that change was coming.
“We just need time to make the changes,” one manager said.
But weeks dragged on and the situation remained unaltered. Complicating the situation, Wilkes appeared to have no vocal support from company executives, who were busy with their own concerns. While both Bernini and McCann offered lukewarm comments about the need for new initiatives to spur ef�iciency, neither demonstrated wholehearted support for the changes. The new plan was going nowhere, and Wilkes was aware that the failure of the company to increase pro�its could result in the loss of his own position.
“If nothing changes,” Wilkes complained to his wife, “the regional managers will remain on the job. My job will be cut.”
Wilkes wondered what his next move should be. In how many ways could he inform the managers to implement the new procedures? What pressures could he apply? How could he impress upon Bernini and McCann the importance of their support for the changes? He felt at a loss for what he should do. Did Bernini Foods want these new standards implemented or not?
Questions 1. Why do you think the regions are not responding to Wilkes’s initiative for change? What did Wilkes do wrong with respect to
implementing the change?
2. Should Wilkes solicit more active support from Bernini and McCann for the change he is trying to implement? How might he do that?
3. Develop a plan that Wilkes can use to successfully restart the implementation of this change.
Riverside Pediatric Associates
Five years ago, doctors Alvero Sanchez and Josh Hudson opened a small pediatrics of�ice in Riverside, California. These longtime friends, who had graduated from medical school together, had �inally achieved the dream of starting a pediatrics practice with the vision of providing excellent care to children in their community. The �ive doctors, six nurses, and accountant who staffed the of�ice quickly developed a reputation for being caring and conscientious. The staff also partnered with local organizations to serve the underprivileged in the community, providing free �lu shots and health clinics at the local YMCA. Sanchez and Hudson were energized and ecstatic that they were living out their dream, managing their small practice in the midst of a community that respected them.
Their dream started to unravel, however, as the practice began growing at an unwieldy pace. The population of nearby Hispanic communities was burgeoning, and so was the number of patients coming to Riverside. Although Sanchez and Hudson had always dreamed of a large, pro�itable practice, they realized they were not prepared for such unprecedented growth. The number of new patients was skyrocketing, and the staff at Riverside was unprepared to handle the in�lux. Waiting rooms were packed, the staff was becoming short- tempered, and communication among staff was breaking down. Internal systems—like the electronic medical records systems—were overloaded, and patient health records were getting lost. Patient scheduling was chaotic, causing long waits for many people. The systems and procedures that once provided a �irm underpinning for the small practice could no longer sustain the rapid patient growth.
Frustration mounted as the founding doctors spent more of their time managing the growing business and less time on patient care. They realized their original vision of providing excellent pediatric care in a comforting environment was fading fast. Most importantly, they were growing dissatis�ied with their work. Instead of diagnosing illnesses and building relationships with patients, they were spending more time overseeing the expansion and growth of their practice: interviewing and hiring additional doctors and nurses, supervising construction of the of�ice expansion, and training new staff on of�ice procedures. Their primary reason for opening a practice seemed like a long-forgotten memory.
Under the growing pressure, staff morale began to buckle. Heated arguments and short tempers among the staff were becoming commonplace. One stellar nurse had resigned, feeling powerless and disenfranchised by the conditions in the of�ice. Another had been �ired
after arguing with a frazzled parent. Even Sanchez and Hudson were growing frustrated and unhappy in their work. Secluded for a quick lunch in the break room, Hudson con�ided in Sanchez. “There was a time,” he said, “when we found meaning in our work. I felt most alive and ful�illed when we were just starting out. Now, we’re just scrambling to keep pace with the change, but we’re falling behind and drifting away from what’s important—excellent care for our patients.”
Their lunch was interrupted by a knock at the door and some unexpected news from their accountant. The quarterly �inancial reports painted a grim picture, she told them. The recent pattern of decreasing revenue and escalating costs was continuing in this quarter. A �inancial crisis was beginning to brew, affecting both cash �low and pro�itability. The accountant explained that quick action would need to be taken to improve the practice’s �inancial health. “We have three problems,” she explained, “and those are declining reimbursement from insurance companies, delinquent payments from patients, and rising costs of medical supplies and lab work.” She paused and then added, “It doesn’t help that our billing software is archaic. It simply can’t manage the size of this practice.”
Sanchez tore a page from his prescription pad, �lipped it over, and scratched out the following: To survive, Riverside Pediatric Associates must (1) improve service to patients and family; (2) improve respect and collaborative communication among the staff; (3) save money; (4) collect fees from patients in a timely manner; and (5) encourage innovation and creativity from our staff to solve routine problems. He slid this list across the table to Hudson, asking, “How do we make this happen?”
Questions 1. Assume you are Sanchez or Hudson and plan to implement immediate organizational change within the practice. Where would
you start? What steps would you take?
2. The accountant recommended that Sanchez and Hudson consider using AI to facilitate positive change within the practice. How would you implement the four steps of AI? Be speci�ic. What kinds of things would you expect to arise during the Discover and Dream steps of AI?
3. Sanchez and Hudson are caught between being physicians and being leaders of their practice. How do you suggest they resolve this dilemma? What leadership qualities will Sanchez and Hudson need to display in order to lead positive change in their practice?
Source: Based on Caroline Carter et al., “An Appreciative Inquiry Approach to Practice Improvement and Transformative Change in Health Care Settings,” Q Manage Health Care 16, no. 3 (© 2007 Wolters Kluwer Health; Lippincott Williams and Wilkins), pp. 194–204.