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the_leadership_experience__ch01.pdf
P A R T 1
Introduction to Leadership Chapter 1 What Does It Mean to Be a Leader?
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Chapter 1 Chapter Outline 4 The Nature of Leadership
7 The New Reality for Today’s Organizations
14 Comparing Management and Leadership
20 Evolving Theories of Leadership
23 Leadership Is Not Automatic
24 Learning the Art and Science of Leadership
26 Organization of the Rest of the Book
In the Lead
14 Darwin E. Smith, Kimberly-Clark
18 Frances Hesselbein and the Girl Scout Way
Leader's Self-Insight
11 Your Learning Style: Using Multiple Intelligences
15 Your Leadership Potential
25 Are You on a Fast Track to Nowhere?
Leader’s Bookshelf
9 Leadership
Leadership at Work
28 Leadership Right–Wrong
Leadership Development: Cases for Analysis
29 Sales Engineering Division
30 Airstar, Inc.
Your Leadership Challenge After reading this chapter, you should be able to:
• Understand the full meaning of leadership and see the leadership potential in yourself and others.
• Recognize and facilitate the six fundamental transformations in today’s organizations and leaders.
• Identify the primary reasons for leadership derailment and the new paradigm skills that can help you avoid it.
• Recognize the traditional functions of management and the fundamental differences between leadership and management.
• Appreciate the crucial importance of providing direction, alignment, relationships, personal qualities, and outcomes.
• Explain how leadership has evolved and how historical approaches apply to the practice of leadership today.
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What Does It Mean to Be a Leader? At 694 feet long, 105 feet wide, 13 stories tall, and 25,000 tons, the USS San Antonio is breathtaking—and a bit intimidating. But not to Commander Brad Lee, the 40-year-old Navy offi cer who recently took command of the ship. As commander of one of the most technologically advanced amphibi- ous assault vessels ever built, Lee is responsible for up to 400 sailors, twice that many Marines, numerous aircraft, fi ghting vehicles, smaller vessels, and tactical support for a Marine AirGround Task Force. Lee admits that it’s not exactly comfortable being in charge of a ship the size of the USS San Antonio, simply due to the enormity of having so many people’s lives in your hands. Yet he is confi dent in himself—and, more signifi cantly, in his crew. “Every sailor is important,” Lee tells his crew members, stressing that success is never a one-man mission. “Each [person] brings a certain perspective to the table. So, it’s not about me. It’s about the ship and the success of our mission.”
Lee joined the Navy as a way to make a difference in the world after seeing an article in Ebony magazine that featured Admiral Anthony Watson, an African-American Naval offi cer who grew up in a rough Chicago housing development. Although Lee originally didn’t think of the Navy as a lifetime career, his fi rst four-year stint showed him that he had “a real opportunity, and more importantly, the ability, to make a difference in the lives of sailors.” It was the desire to help other sailors, rather than personal ambition, which spurred Lee to seek increasing levels of leader- ship responsibility.
By the time he took command of the USS San Antonio, Lee had served 18 years in the Navy and earned numerous awards and medals. More important to him, though, is earning the respect and commitment of his crew. As Anthony Ray Cade, Senior Chief of Information Technology serv- ing on the ship, said, “The best part of what I do every day is working for a guy like that.”1
What does it mean to be a leader? For Commander Brad Lee, it means striving to make a difference in the lives of others and the world. It means believing in yourself and those you work with, loving what you do and in- fusing others with energy and enthusiasm. You probably have never heard of Commander Brad Lee. His face isn’t splashed on the covers of magazines. His adventures and accomplishments aren’t featured on the national news. Yet leaders like Brad Lee are making a difference every day, not just in the military, but in businesses and nonprofi t organizations, educational systems and governmental agencies, sports teams and volunteer groups, huge cities and small rural communities.
When most people think of leaders, they recall great historical fi gures such as Abraham Lincoln, Napoleon, and Alexander the Great, or think of “big names” in the news, such as former General Electric CEO Jack Welch, who still commands a spotlight nearly fi ve years after his retire- ment. Yet there are leaders working in every organization, large and small. In fact, leadership is all around us every day, in all facets of our lives—our families, schools, communities, churches, social clubs, and volunteer orga- nizations, as well as in the world of business, sports, and the military. The qualities that make Commander Brad Lee a good leader can be effective whether one is leading a military unit, a basketball team, a business, or a family.
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4 PART 1: INTRODUCTION TO LEADERSHIP
The Nature of Leadership Before we can examine what makes an effective leader, we need to know what leadership means. Leadership has been a topic of interest to historians and philosophers since ancient times, but scientifi c studies began only in the twen- tieth century. Scholars and other writers have offered hundreds of defi nitions of the term leadership, and one authority on the subject has concluded that leadership “is one of the most observed and least understood phenomena on earth.”2 Defi ning leadership has been a complex and elusive problem largely because the nature of leadership itself is complex. Some have even suggested that leadership is nothing more than a romantic myth, perhaps based on the false hope that someone will come along and solve our problems by sheer force of will.3
There is some evidence that people do pin their hopes on leaders in ways that are not always realistic. Think about how some struggling companies recruit well-known, charismatic CEOs and invest tremendous hopes in them, only to fi nd that their problems actually get worse.4 For example, Carly Fiorina rocketed to the top of Hewlett-Packard’s (HP) CEO search list because of her bold ideas and charismatic personality. Her appointment quickly became front- page news, with the focus as much on Fiorina’s star power as on HP’s business issues. Unfortunately, implementing Fiorina’s plans turned out to cause even more problems for the struggling company, leading to unexpected losses, layoffs, the departure of key executives, and a declining stock performance. Whether Fiorina, who was ousted by HP’s board in early 2005, has gotten more or less blame than she deserves for the problems is debatable, but the example serves to illustrate the unrealistic expectations people often have of “larger-than-life” leaders. Particularly when times are tough, people may look to a grand, heroic type of leader to alleviate fear and uncertainty. In recent years, the romantic or heroic view of leadership has been challenged.5 Much progress has been made in understanding the essential nature of leadership as a real and powerful infl uence in organizations and societies.
Definition of Leadership Leadership studies are an emerging discipline and the concept of leadership will continue to evolve. For the purpose of this book, we will focus on a single defi nition that delineates the essential elements of the leadership process: Leadership is an infl u- ence relationship among leaders and followers who intend real changes and out- comes that refl ect their shared purposes.6
Exhibit 1.1 summarizes the key elements in this defi nition. Leadership involves infl uence, it occurs among people, those people intentionally desire signifi cant changes, and the changes refl ect purposes shared by leaders and followers. Infl uence means that the relationship among people is not passive; however, also inherent in this defi nition is the concept that infl uence is multidi- rectional and noncoercive. The basic cultural values in North America make it easiest to think of leadership as something a leader does to a follower.7 However, leadership is reciprocal. In most organizations, superiors infl uence subordinates, but subordinates also infl uence superiors. The people involved in the relationship want substantive changes—leadership involves creating change, not maintaining the status quo. In addition, the changes sought are not dictated by leaders, but refl ect purposes that leaders and followers share. Moreover, change is toward an
Leadership an infl uence relationship among leaders and followers who intend real changes and outcomes that refl ect their shared purposes
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CHAPTER 1: WHAT DOES IT MEAN TO BE A LEADER? 5
outcome that leader and followers both want, a desired future or shared purpose that motivates them toward this more preferable outcome. An important aspect of leadership is infl uencing others to come together around a common vision. Thus, leadership involves the infl uence of people to bring about change toward a desirable future.
Also, leadership is a people activity and is distinct from administrative paper- work or planning activities. Leadership occurs among people; it is not something g done to people. Since leadership involves people, there must be followers. An individual performer who achieves excellence as a scientist, musician, athlete, or woodcarver may be a leader in her fi eld of expertise but is not a leader as it is defi ned in this book unless followers are involved. Followers are an important part of the leadership process, and all leaders are sometimes followers as well. Good leaders know how to follow, and they set an example for others. The issue of intention or will means that people—leader and followers—are actively involved in the pursuit of change. Each person takes personal responsibility to achieve the desired future.
One stereotype is that leaders are somehow different, that they are above others; however, in reality, the qualities needed for effective leadership are the same as those needed to be an effective follower.8 Effective followers think for themselves and carry out assignments with energy and enthusiasm. They are committed to something outside their own self-interest, and they have the cour- age to stand up for what they believe. Good followers are not “yes people” who blindly follow a leader. Effective leaders and effective followers may sometimes be the same people, playing different roles at different times. At its best, leader- ship is shared among leaders and followers, with everyone fully engaged and accepting higher levels of responsibility.
Leadership and the Business of Living Think for a moment about someone you personally have known that you would consider a leader—a grandparent, a supervisor, a coach, or even a fellow student. Perhaps you consider yourself a leader, or know that you want to be one. If we
Exhibit 1.1 What Leadership Involves
Leader
Change Shared purpose
Followers Personal
responsibility and integrity
Influence Intention
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6 PART 1: INTRODUCTION TO LEADERSHIP
stop equating leadership with greatness and public visibility, it becomes easier to see our own opportunities for leadership and recognize the leadership of people we interact with every day. Leaders come in all shapes and sizes, and many true leaders are working behind the scenes. Leadership that has big outcomes often starts small.
• Greg Mortenson had a vision that the best way to fight terrorism was by building secular schools and promoting education, especially for girls, in northern Pakistan and neighboring Afghanistan. He wrote nearly 600 letters and submitted 16 grant applications, but received only one favorable reply—a $100 check from Tom Brokaw. Undeterred, Mortenson sold all his possessions and began appealing to everyday people. School- children donated hundreds of dollars in pennies, inspiring adults to donate as well. With the $12,000 he eventually raised, Mortenson built his first school in Korphe in 1996. Today, he runs the Central Asia Institute (CAI), which has built 55 schools with 520 teachers serving 22,000 students, as well as 24 potable water projects, 14 women’s vocational centers, and several rural health camps. CAI has continued its “Pennies for Peace” project (http://www.penniesforpeace.org) to educate American children about the larger world and show them they can have a positive impact.9
• While attending a diabetes fundraiser, 17-year-old Kimberly Ross overheard some parents talking about not being able to go out because they couldn’t find a baby-sitter who understood the special needs of a diabetic child. Having struggled with diabetes for half her life, Ross understood, and she knew that other teens with diabetes would as well. Ross talked with a school nurses’ association and then started Safe Sitting, a baby-sitting network of teens with diabetes who care for children with the disease. The service was such a hit that Ross set up a Web site and is now helping diabetic teens establish similar networks in other cities.10
• Several years ago, hundreds of unarmed residents of an Argentinean farming village stormed the local police station after officials had refused to search for a missing child who was later found by villagers, raped and strangled. The siege ended only when the provincial government agreed to replace the entire police department, with the villagers allowed to name the new chief.11 The villagers could not have pulled off the siege without leadership, and yet no one stepped forward to claim the title of “leader,” and no one was able to specifically state who had provided the leadership for this initiative.
• During his five years working as a car salesman, Robert Chambers was disgusted by how some dealers and finance institutions preyed on low- income customers. After he retired from a varied career, the 62-year-old electrical engineer decided to do something about it. He founded Bonnie CLAC (for Car Loans and Counseling), which steers low-income people toward buying new, base-model cars at low prices and on good loan terms. With branches in New Hampshire, Vermont, and Maine, Bonnie CLAC has negotiated price and extended warranty deals with a dozen or so auto dealers and worked with banks to provide low interest rates. Bonnie CLAC guarantees the loan, and then works with clients to help them manage their finances.12
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CHAPTER 1: WHAT DOES IT MEAN TO BE A LEADER? 7
There are opportunities for leadership all around us that involve infl uence and change toward a desired goal or outcome. Without leadership, our families and communities, as well as our organizations, would fall apart. The leaders of tomor- row’s organizations will come from anywhere and everywhere, just a they always have. You can start now, wherever you are, to prac- tice leadership in your own life. Leadership is an everyday way of acting and thinking that has little to do with a title or formal posi- tion in an organization. As we will discuss in the following section, business leaders need to understand this tenet more than ever in the world of the twenty-fi rst century.
The New Reality for Today’s Organizations Globalization. Shifting geopolitical forces. Outsourcing. Advancing technolo- gies. Virtual teams. E-business. People in organizations around the world are feeling the impact of these and other trends, and are forced to adapt to new ways of working. Add to this the recent economic uncertainty, widespread ethical scandals, and the insecurity associated with war and terrorism, and leaders are facing a really tough job to keep people grounded, focused, and motivated toward accomplishing positive goals. It takes particularly strong leaders to guide people through the uncertainty and confusion that accompanies periods of rapid change.
Some historians and other scholars believe our world is undergoing a trans- formation more profound and far-reaching than any experienced since the dawn of the modern age and the Industrial Revolution some 500 years ago. Rapid en- vironmental changes are causing fundamental shifts that have a dramatic impact on organizations and present new challenges for leaders.13 These shifts represent a transition from a traditional to a new paradigm, as outlined in Exhibit 1.2. A paradigm is a shared mindset that represents a fundamental way of thinking about, perceiving, and understanding the world.
Although many leaders are still operating from an old-paradigm mindset, as outlined in the fi rst column of Exhibit 1.2, they are increasingly ineffective. Suc- cessful leaders in the twenty-fi rst century will respond to the new reality outlined in the second column of the exhibit.
From Stability to Change and Crisis Management In the past, many leaders assumed that if they could just keep things running on a steady, even keel, the organization would be successful. Yet today’s world is
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Exhibit 1.2 The New Reality for Leadership
OLD Paradigm NEW Paradigm
Stability Change and crisis management Control Empowerment Competition Collaboration Uniformity Diversity Self-centered Higher ethical purpose Hero Humble
Paradigm a shared mindset that represents a fundamental way of thinking about, perceiving, and understanding the world
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8 PART 1: INTRODUCTION TO LEADERSHIP
in constant motion, and nothing seems certain anymore. If leaders still had an illusion of stability at the dawn of the twenty-fi rst century, it is surely shattered by now. Consider the following string of events that occurred in the fi rst fi ve years of the new century:
1. Terrorists commandeered United and American Airlines jets and crashed them into the Pentagon and the twin towers of the World Trade Center in New York City, killing thousands and temporarily halting economic activity around the world. Soon afterward, the United States became involved in a costly and controversial war in Iraq.
2. Hurricane Katrina slammed into the Gulf Coast, virtually wiping out New Orleans, killing more than 1,500 people, and destroying homes, businesses, schools, and towns in several states. The social and economic impact of the largest natural disaster in U.S. history was felt nationwide, and the region still has not recovered.
3. General Motors, one of the world’s largest companies and central to the U.S. economy, slid toward bankruptcy, faced with declining sales, slipping market share, and mounting health care costs for 1.1 million employees, retirees, and dependents.
4. China and India emerged from dismal poverty to become the “dragon and the tiger” of global commerce, experiencing growth rates unmatched by any other large country.14 The effects are reverberating around the world and reshaping the global economy.
Most leaders, whether in the military, business, politics, education, social services, the arts, or the world of sports, recognize that maintaining stability in a world of such rapid and far-reaching change is a losing battle. In addition, many organiza- tions face small crises on an almost daily basis—anything from a factory fi re, to a fl u epidemic, to charges of racial discrimination.
The new paradigm of leadership acknowledges that, as suggested by the sci- ence of chaos theory, we live in a world characterized by randomness and uncer- tainty, and small events often have massive and widespread consequences. For example, the ethical cloud that enveloped many giant companies, and the pas- sage of the 2002 Sarbanes-Oxley Act, which dramatically increased government regulation of U.S. businesses, began with some relatively simple, unsuspecting questions about Enron Corporation’s stock valuation and business model.
Today’s best leaders accept the inevitability of change and crisis and recog- nize them as potential sources of energy and self-renewal. Rather than being laid low, they develop effective crisis management skills that help their organizations weather the storm and move toward something better. This chapter’s Leader’s Bookshelf describes some qualities needed for effective leadership during times of crisis or uncertainty. Real leaders know that the benefi ts associated with stability are a myth; that when things do not change, they die.
From Control to Empowerment Leaders in powerful positions once thought workers should be told what to do and how to do it. They believed strict control was needed for the organization to function effi ciently and effectively. Rigid organizational hierarchies, structured jobs and work processes, and detailed, inviolate procedures let everyone know that those at the top had power and those at the bottom had none.
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Today, the old assumptions about the distribution of power are no longer valid. An emphasis on control and rigidity serves to squelch motivation, innova- tion, and morale rather than produce desired results. Today’s leaders share power rather than hoard it and fi nd ways to increase an organization’s brain power by getting everyone in the organization involved and committed.
One reason for this is that the fi nancial basis of today’s economy is rap- idly becoming information rather than the tangible assets of land, buildings, and machines. Fifty years ago, tangible assets represented 73 percent of the assets of non-fi nancial corporations in the United States. By 2002, the proportion was down to around 53 percent and still declining.15 This means that the primary factor of production is human knowledge, which increases the power of employ- ees. The educational and skill level of employees in the United States and other
Some people probably looked to Rudy Giuliani, former mayor of New York, for inspiration even before September 11, 2001, when terrorists crashed jetliners into the twin towers of the World Trade Center. But after that horrendous event, practically the whole country recognized New York City’s mayor as the epitome of what a leader should be: calm and steady in the face of crisis, strong but compassionate, honest but diplomatic. Giuliani’s book, titled simply Leadership, shows that he has given a lot of thought, both before and after September 11, to what makes a great leader.
The Hallmarks of Great Leadership In a clear, interesting style, Giuliani lays out his prescrip- tion for success as a leader in a complex and turbulent world. Some of his principles include:
• Develop and communicate strong beliefs. Great leaders lead by ideas, so they have to know what they stand for and be able to communicate it in a compelling way. A leader “cannot simply impose his will. . . .” Giuliani writes. “He must bring people aboard, excite them about his vision, and earn their support.”
• Accept responsibility. Leaders set an example for others by performing their jobs honestly and effectively and by accepting responsibility for what happens during their watches. Good leaders welcome being held accountable, and they hold others accountable for living up to high standards as well.
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by Rudolph Giuliani, with Ken Kurson
• Surround yourself with great people. The most effec- tive leaders are those who hire the best people they can possibly find, motivate them, provide them with challenges and opportunities to grow, and direct their energies toward positive outcomes. Giuliani recalls the September 11 aftermath: “Faced with the worst disaster New York had ever seen, it might have been understandable for some people in my administra- tion to go through the motions. . . . Instead, without exception, my staff distinguished themselves.”
• Study, Read, Learn Independently. Leaders should never leave important decisions to the experts. “No matter how talented your advisors and deputies, you have to attack challenges with as much of your own knowledge as possible.” Giuliani believes the best leaders are lifelong learners who “put time aside for deep study.” Leaders also prepare relentlessly so they can identify potential problems before they happen.
The Making of a Leader Giuliani makes the key point that leadership does not just happen. It can be learned and developed through practice as well as by studying the leadership ideas and behav- ior of great leaders. Leadership incorporates not onlyp Giuliani’s ideas but the thinking of numerous people— from his mother, to President Ronald Reagan, to Winston Churchill—who have shaped him as a leader. Through insights and anecdotes, Giuliani offers us a chance to learn from their wisdom as well.
Leadership, by Rudolph Giuliani with Ken Kurson, is published by Hyperion.
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10 PART 1: INTRODUCTION TO LEADERSHIP
developed countries has also steadily increased over the past several decades, and many people are no longer satisfi ed working in an organization that doesn’t give them opportunities to participate and learn.
When all the organization needed was workers to run machines eight hours a day, traditional command-and-control systems generally worked quite well, but the organization received no benefi t from employees’ minds. Today, success de- pends on the intellectual capacity of all employees, and leaders have to face a hard fact: Buildings and machines can be owned; people cannot. One of the leader’s most challenging jobs is to guide workers by using their power effectively to creat and develop a climate of respect and development for employees.16
From Competition to Collaboration The move to empowerment also ties directly into new ways of working that emphasize collaboration over competition and confl ict. Although some compa- nies still encourage internal competition and aggressiveness, most of today’s orga- nizations stress teamwork and cooperation. Self-directed teams and other forms of horizontal collaboration are breaking down boundaries between departments and helping to spread knowledge and information throughout the organization. Compromise and sharing are recognized as signs of strength, not weakness.
Some competition can be healthy for an organization, but many leaders are resisting the idea of competition as a struggle to win while someone else loses. Instead, they direct everyone’s competitive energy toward being the best that they can be. There is a growing trend toward increasing collaboration with other orga- nizations so that companies think of themselves as teams that create value jointly rather than as autonomous entities in competition with all others.17 A new form of global business is made up of networks of independent companies that share
s and leadership talents and provide access to one another’s tech- nologies and markets.18
The move to collaboration presents greater challenges to leaders than did the old concept of competition. It is often more diffi cult to create an environment of teamwork and community hat fosters collaboration and mutual support. The call for empow- rment, combined with an understanding of organizations as part a fl uid, dynamic, interactive system, makes the use of intimida-
on and manipulation obsolete as a means of driving the competitive rit.
From Uniformity to Diversity Many of today’s organizations were built on assumptions of uniformity, separa- tion, and specialization. People who think alike, act alike, and have similar job skills are grouped into a department, such as accounting or manufacturing, sepa- rate from other departments. Homogenous groups fi nd it easy to get along, com- municate, and understand one another. The uniform thinking that arises, however, can be a disaster in a world becoming more multinational and diverse.
Two business school graduates in their twenties discovered the importance of diversity when they started a specialized advertising fi rm. They worked hard, and as the fi rm grew, they hired more people just like themselves—bright, young, intense college graduates who were committed and hard working. The fi rm grew to about 20 employees over two and a half years, but the expected profi ts never materialized. The two entrepreneurs could never get a handle on what was wrong, and the fi rm slid into bankruptcy. Convinced the idea was still valid, they started over, but with a new philosophy. They sought employees with different
Action Memo Go to Leader’s Self-Insight 1.1 to learn
about your own “intelligence” for dealing
with collaboration and with the other new
realities facing organizations.
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ages, ethnic backgrounds, and work experience. People had different styles, yet the organization seemed to work better. People played different roles, and the diverse experiences of the group enabled the fi rm to respond to unique situations and handle a variety of organizational and personal needs. The advertising fi rm is growing again, and this time it is also making a profi t.
Multiple Intelligence theory suggests that there are several different ways of learning about things, hence there are multiple “intelligences,” of which five are interpersonal (learn via interactions with others), intrapersonal (own inner states), logical/mathematical (rationality and logic), verbal/ linguistic (words and language), and musical (sounds, tonal patterns, and rhythms). Most people prefer one or two of the intelligences as a way of learning, yet each person has the potential to develop skills in each of the intelligences.
The items below will help you identify the forms of intel- ligence that you tend to use or enjoy most, as well as the forms which you utilize less. Please check each item below as Mostly False or Mostly True for you.
Mostly False
Mostly True
1. I like to work with and solve complex problems. _______ _______
2. I recently wrote something that I am especially proud of. _______ _______
3. I have three or more close friends. _______ _______
4. I like to learn about myself through personality tests. _______ _______
5. I frequently listen to music on the radio or iPod-type player. _______ _______
6. Math and science were among my favorite subjects. _______ _______
7. Language and social stud- ies were among my favorite subjects. _______ _______
8. I am frequently involved in social activities. _______ _______
9. I have or would like to attend personal growth seminars. _______ _______
10. I notice if a melody is out of tune or off-key. _______ _______
11. I am good at problem solving that requires logical thinking. _______ _______
12. My conversations frequently include things I’ve read or heard about. _______ _______
13. When among strangers I easily find someone to talk to. _______ _______
14. I spend time alone meditat- ing, reflecting, or thinking. _______ _______
15. After hearing a tune once or twice I am able to sing it back with some accuracy. _______ _______
Scoring and Interpretation Count the number of items checked Mostly True that rep- resent each of the four intelligences as indicated below.
Questions 1, 6, 11, Logical-mathematical intelligence # Mostly True � ______.
Questions 2, 7, 12, Verbal-linguistic intelligence. # Mostly True � ______.
Questions 3, 8, 13, Interpersonal intelligence. # Mostly True � ______.
Questions 4, 9, 14, Intrapersonal intelligence. # Mostly True � ______.
Questions 5, 10, 15, Musical intelligence. # Mostly True � ______.
Educational institutions tend to stress the logical- mathematical and verbal-linguistic forms of learning. How do your intelligences align with the changes taking place in the world? Would you rather rely on using one intelligence in-depth or develop multiple intelligences? Any intelligence above for which you received a score of three is a major source of learning for you, and a score of zero means you may not use it at all. How do your intel- ligences fit your career plans and your aspirations for the type of leader you want to be?
Source: Based on Kirsi Tirri, Petri Nokelainen, and Martin Ubani, “Conceptual Definition and Empirical Validation of the Spiritual Sensitivity Scale,” Journal of Empirical Theology 19 (2006),y pp. 37–62; and David Lazear, Seven Ways of Knowing: Teaching for Multiple Intelligences (Palentine, IL: IRI/Skylight Publishing, 1991).
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12 PART 1: INTRODUCTION TO LEADERSHIP
The world is rapidly moving toward diversity at both national and inter- national levels, and bringing diversity into the organization is the way to attract the best human talent and develop an organizational mindset broad enough to thrive in a multinational world. Organizations suffer when leaders don’t respond to the reality of today’s diverse environment.
From Self-Centered to Higher Ethical Purpose The ethical turmoil of the early twenty-fi rst century has prompted a determined and conscious shift in leader mindset from a self-centered focus to emphasis on a higher ethical purpose. Public confi dence in business leaders in particular is at an all-time low, but politics, sports, and non-profi t organizations have also been affected.
Over years of business growth and success, many leaders slipped into a pat- tern of expecting—and getting—more. Pay for CEOs of large organizations in the United States quadrupled between the years of 1993 and 2005. By then, the average CEO pay was 369 times as much as the average employee’s.19 Unfor- tunately, the old-paradigm emphasis on individual ability, success, and prosper- ity has sometimes pushed people to cross the line, culminating in organizational corruption on a broad scale and ugly headlines exposing leaders from companies such as Enron, WorldCom, Tyco, and Adelphia Communications as unethical and self-serving rogues. At Enron, top executives rewarded highly competitive manag- ers who were willing to do whatever it took—whether it was hiding their mistakes, fudging their reports, or backstabbing colleagues—to make the numbers and keep the stock price high. The overriding emphasis on individual ambition created an environment of vanity and greed whereby executives profi ted at the expense of employees, shareholders, and the community.20 And Enron managers didn’t hold a monopoly on greed. Top executives at companies including Qwest Communica- tions, AOL Time Warner, Global Crossing, and Broadcom sold billions of dollars worth of stock at vastly infl ated prices, making themselves rich even as their com- panies deteriorated and average investors lost as much as 90 percent of their holdings.21
In the new paradigm, leaders emphasize accountability, integrity, and re- sponsibility to something larger than individual self-interest, including employees, customers, the organization, and all stakeholders.22 This chapter’s Consider This box presents ten commandments based on 1950s western fi lm star Gene Autry’s Cowboy Code that can be regarded as applicable to new paradigm leaders.
New-paradigm leaders reinforce the importance of doing the right thing, even if it hurts. One example is Aramark Worldwide Corp., the giant outsourcing com- pany that provides food services for many universities and corporations. After a huge investment of time and money, CEO Joseph Neubauer walked away from a once-promising overseas merger when he discovered that the company’s business practices didn’t live up to Aramark’s ethical standards. “It takes a lifetime to build a reputation, and only a short time to lose it all,” Neubauer says.23
From Hero to Humble A related shift is the move from the celebrity “leader-as-hero” to the hard- working behind-the-scenes leader who quietly builds a strong enduring company by supporting and developing others rather than touting his own abilities and successes.24
During the last two decades of the twentieth century, good leadership became equated with larger-than-life personalities, strong egos, and personal
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ambition. The media attention helped cultivate the image.25 In the early 1980s, Lee Iacocca was portrayed almost as a white knight riding in to save Chrysler. Over the next 20 years, corporate CEOs became superstars, featured on the covers of business and news magazines and celebrated for their charismatic or outrageous personalities as much as for their abilities. A remark made by Albert J. Dunlap, nicknamed “Chainsaw Al” for his slash-and-run tactics at companies such as Scott Paper and Sunbeam Corp. in the mid-1990s, captures the mindset of the leader-as-hero: “Most CEOs are ridiculously overpaid, but I deserved the $100 million,” Dunlap wrote in his self-congratulatory autobiog- raphy. “I’m a superstar in my fi eld, much like Michael Jordan in basketball.”26
As we now know, Dunlap’s “turnarounds” were smoke and m mostly on short-term accounting gimickry. His efforts netted him millions, but left the companies, their employees, and share- holders much worse off than they were before.
Although the majority of high-profi le leaders are not so self- serving, the recent ethical maelstrom in the business world has contributed to a shift in mindset away from the individual leader as hero. When a business magazine recently asked a number of suc- cessful leaders about the best advice they ever got, several, including Meg Whitman of eBay and Howard Schultz of Starbucks, included “letting others take the credit” in their answers. Brian Roberts, CEO of Comcast, got this advice from his father. “You’re in a lucky pos tion and you know it,” Ralph Roberts told his son. “You don’t nee all the glory. If you let others take the credit, it makes them feel like they’re part of something special.”27
The new-paradigm leader is characterized by an almost complete lack of ego, coupled with a fi erce resolve to do what is best for the organization. Jim Collins, author of Good to Great: Why Some Companies Make the Leap . . . and Others
1. A cowboy never takes unfair advantage—even of an enemy.
2. A cowboy never goes back on his word or betrays a trust.
3. A cowboy always tells the truth. 4. A cowboy is kind and gentle with children, the elderly, and animals. 5. A cowboy is free from racial or religious prejudice. 6. A cowboy is always helpful and lends a hand when anyone’s in trouble. 7. A cowboy is a good worker. 8. A cowboy stays clean in thought, speech, action, and personal habits. 9. A cowboy respects womanhood, parents, and the laws of his nation. 10. A cowboy is a patriot to his country.
Source: Gene Autry’s Cowboy Commandments are reported, with some variations in wording, in multiple sources.
Should Leaders Live by the Cowboy Code?
Consider This!
Action Memo
As a le ader, yo
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to the
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the nee d for
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, collab oration
, and d iversity
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and the import
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toward achiev
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goals r ather th
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14 PART 1: INTRODUCTION TO LEADERSHIP
Don’t, calls this new breed Level 5 leaders.28 In contrast to the view of great lead- ers as larger-than-life personalities with strong egos and big ambitions, Level 5 leaders often seem shy and unpretentious. A classic example is Darwin E. Smith, who led Kimberly-Clark from 1971 to 1991.
Darwin E. Smith, Kimberly-Clark
During his 20 years as CEO, Darwin Smith turned Kimberly-Clark into the world’s leading consumer paper products company, yet few people have ever heard of him. And that’s just the way he wanted it.
Smith was somewhat shy and awkward in social situations, and he would never make anybody’s best-dressed list. He wasn’t the feature of articles in Busi- ness Week, Fortune, or The Wall Street Journal. Yet, far from being meek, Smith demonstrated an aggressive determination to revive Kimberly-Clark, which at the time was a stodgy old paper company that had seen years of falling stock prices. Anyone who interpreted his appearance and demeanor as a sign of ineptness soon learned differently, as Smith made diffi cult decisions that set Kimberly-Clark on the path to greatness. When Smith took over, the company’s core business was in coated paper. Convinced that this approach doomed the company to mediocrity, Smith took the controversial step of selling the company’s paper mills and investing all its resources in consumer products like Kleenex and Huggies diapers.
It proved to be a stroke of genius. Over the 20 years Smith led Kimberly-Clark, the company generated cumulative stock returns that were 4.1 times greater than those of the general market. When asked after his retirement about his exceptional perfor- mance, Smith said simply, “I never stopped trying to become qualifi ed for the job.”29
As the example of Darwin Smith illustrates, despite their personal humility, Level 5 leaders are highly ambitious for their organizations, with a fi erce determi- nation to produce great and lasting results. They develop a solid corps of leaders throughout the organization and create a culture focused on high performance and integrity. Although Level 5 leaders accept full responsibility for mistakes, poor results, or failures, they typically give credit for successes to other people. Reuben Mark, current CEO of Colgate-Palmolive, shuns personal publicity and turns down requests for media profi les because he believes being personally pro- fi led takes credit for the efforts of his employees. At annual meetings, Mark pays tribute to employees around the world who make even seemingly minor contribu- tions to innovation, market increases, or business operations.30
Egocentric leaders often build an organization as a hero with a thousand helpers. New-paradigm leaders, though, build their organizations with many strong leaders who can step forward and continue the company’s success long into the future. Although most research regarding the new type of leader has been on corporate CEOs such as Reuben Mark and Darwin Smith, it’s important to remember that new-paradigm or Level 5 leaders are in all positions in all types of organizations.
Comparing Management and Leadership Management can be defi ned as the attainment of organizational goals in an effective and effi cient manner through planning, organizing, staffi ng, directing, and control- ling organizational resources. So, what is it that distinguishes the process of leader- ship from that of management? Hundreds of books and articles have been written in recent years about the difference between the two. Unfortunately, with the cur- rent emphasis on the need for leadership, managers have gotten a bad name.31 Yet
IN T
H E
L E
A D
Management the attainment of organizational goals in an effective and effi cient manner through planning, organizing, staffi ng, directing, and controlling organizational resources
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CHAPTER 1: WHAT DOES IT MEAN TO BE A LEADER? 15
managers and leaders are not inherently different types of people, and many man- agers already possess the abilities and qualities needed to be good leaders. Both management and leadership are essential in organizations and must be integrated effectively to lead to high performance.32 That is, leadership cannot replace management; it should be in addition to management.
At Aetna, CEO Ronald A. Williams has used an integrated management and leadership approach to rescue the nation’s largest health insurance provider from a steep decline. Williams clearly practices good management, such as controlling costs, implement- ing operational changes and new technologies, establishing goals and plans, and monitoring performance. However, he is also a con- summate leader who creates a culture that allows others to fl our- ish, builds an environment that fosters integrity and accountability, and provides vision and inspiration for employees. “People will walk through walls for him,” said one health care industry observer.33 There are managers at all hierarchical levels in today’s organizations who are also good leaders, and most people can develop the qualities needed for effective leadership.
Exhibit 1.3 compares management to leadership in fi ve areas crucial to orga- nizational performance—providing direction, aligning followers, building relation- ships, developing personal qualities, and creating leader outcomes.34
Providing Direction Both leaders and managers are concerned with providing direction for the organiza- tion, but there are differences. Management focuses on establishing detailed plans and
Action Memo
You can evalua
te your own le
adersh ip
potenti al by co
mpletin g the q
uiz in L eader’s
Self-Ins ight 1.2
on pag e 16.
Exhibit 1.3 Comparing Management and Leadership
Direction:
Alignment:
Relationships:
Personal Qualities:
Outcomes:
Management Leadership
Planning and budgeting Keeping eye on bottom line
Organizing and staffing Directing and controlling Creating boundaries
Focusing on objects—producing/ selling goods and services Based on position power Acting as boss
Emotional distance Expert mind Talking Conformity Insight into organization
Maintains stability; creates culture of efficiency
Creating vision and strategy Keeping eye on horizon
Creating shared culture and values Helping others grow Reducing boundaries
Focusing on people—inspiring and motivating followers Based on personal power Acting as coach, facilitator, ser vant
Emotional connections (Heart) Open mind (Mindfulness) Listening (Communication) Nonconformity (Courage) Insight into self (Character)
Creates change and a culture of integrity
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Leader’s Self-Insight 1.2Leaders Self Insight 1.2tty Im ag
e s
t
Questions 1–6 below are about you right now. Questions 7–22 are about how you would like to be if you were the head of a major department at a corporation. Answer Mostly False or Mostly True to indicate whether the item describes you accurately, or whether you would strive to perform each activity as a department head.
NOW
Mostly False
Mostly True
1. When I have a number of tasks or homework assign- ments to do, I set priorities and organize the work to meet the deadlines. _______ _______
2. When I am involved in a serious disagreement, I hang in there and talk it out until it is completely resolved. _______ _______
3. I would rather sit in front of my computer than spend a lot of time with people. _______ _______
4. I reach out to include other people in activities or when there are discussions. _______ _______
5. I know my long-term vision for career, family, and other activities. _______ _______
6. When solving problems, I prefer analyzing things myself to working through them with a group of people. _______ _______
HEAD OF MAJOR DEPARTMENT 7. I would help subordinates
clarify goals and how to reach them. _______ _______
8. I would give people a sense of long-term mission and higher purpose. _______ _______
9. I would make sure jobs get out on time. _______ _______
10. I would scout for new prod- uct or service opportuni ties. _______ _______
11. I would give credit to people who do their jobs well. _______ _______
12. I would promote unconven- tional beliefs and values. _______ _______
13. I would establish procedures to help the department oper- ate smoothly. _______ _______
14. I would verbalize the higher values that I and the organi- zation stand for. _______ _______
Scoring and Interpretation Count the number of Mostly True answers to even- numbered questions: _____. Count the number of Mostly True answers to odd-numbered questions: _____. Compare the two scores.
The even-numbered items represent behaviors and activities typical of leadership. Leaders are personally involved in shaping ideas, values, vision, and change. They often use an intuitive approach to develop fresh ideas and seek new directions for the department or orga- nization. The odd-numbered items are considered more traditional management activities. Managers respond to organizational problems in an impersonal way, make ratio- nal decisions, and work for stability and efficiency.
If you answered yes to more even-numbered than odd-numbered items, you may have potential lead- ership qualities. If you answered yes to more odd- numbered items, you may have management qualities. Management qualities are an important foundation for new leaders because the organization first has to oper- ate efficiently. Then leadership qualities can enhance performance. Both sets of qualities can be developed or improved with awareness and experience.
Sources: John P. Kotter, Leading Change (Boston, MA: Harvarde Business School Press, 1996), p. 26; Joseph C. Rost, Leadership for the Twenty-first Century (Westport, CT; Praeger, 1993), p. 149;y and Brian Dumaine, “The New Non-Manager Managers,” Fortune (February 22, 1993), pp. 80–84.
16
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CHAPTER 1: WHAT DOES IT MEAN TO BE A LEADER? 17
schedules for achieving specifi c results, then allocating resources to accomplish the plan. Leadership calls for creating a compelling vision of the future and developing farsighted strategies for producing the changes needed to achieve that vision. Whereas management calls for keeping an eye on the bottom line and short-term results, leader- ship means keeping an eye on the horizon and the long-term future.
A vision is a picture of an ambitious, desirable future for the organization or team.35 It can be as lofty as Motorola’s aim to “become the premier company in the world” or as down-to-earth as the Swedish company IKEA’s simple vision “to provide affordable furniture for people with limited budgets.”
To be compelling for followers, the vision has to be one they can relate to and share. Consider that in Fortune magazine’s study of the “100 Best Compa- nies to Work for in America,” two of the recurring traits of great companies are a powerful, visionary leader and a sense of purpose beyond increasing share- holder value.36 At Google, people are energized by the psychic rewards they get from working on intellectually stimulating and challenging technical problems, as well as by the potentially benefi cial global impact of their work. Leaders stress a vision of unifying data and information around the world, one day totally obliterating language barriers via the Internet.37 Similarly, employees at mutual fund company Vanguard are motivated by a vision of helping people pay for a happy retirement.38
Aligning Followers Management entails organizing a structure to accomplish the plan; staffi ng the structure with employees; and developing policies, procedures, and systems to direct employees and monitor implementation of the plan. Managers are thinkers and workers are doers. Leadership is concerned instead with communicating the vision and developing a shared culture and set of core values that can lead to the desired future state. This involves others as thinkers, doers, and leaders themselves, fostering a sense of ownership in everyone.39 Whereas the vision describes the destination, the culture and values help defi ne the journey toward it. Leadership focuses on getting everyone lined up in the same direction. Gertrude Boyle, a housewife and mother who took charge of Columbia Sportswear after her husband’s early death, created a comfortable, down-to-earth corporate culture that propelled the outdoor clothing manufacturer from sales of $800,000 to just under $300 million. She came into the company with no business experience, but says, “Running a company is like raising kids. You all have to be in the same line of thinking.”40
Management often means organizing by separating people into specialties and functions, with boundaries separating them by department and hierarchical level. Leaders break down boundaries so people know what others are doing, can coor- dinate easily, and feel a sense of teamwork and equalness for achieving outcomes.
Rather than simply directing and controlling employees to achieve specifi c results, leaders “align [people] with broader ideas of what the company should be and why.”41 Leaders encourage people to expand their minds and abilities and to assume responsibility for their own actions. Think about classes you have taken at your college or university. In some college classes, the professor tells students exactly what to do and how to do it, and many students expect this kind of direction and control. Have you ever had a class where the instruc- tor instead inspired and encouraged you and your classmates to fi nd innovative ways to meet goals? The difference refl ects a rational management versus a leadership approach. Whereas the management communication process gener- ally involves providing answers and solving problems, leadership entails asking questions, listening, and involving others.42
Vision a picture of an ambitious, desirable future for the organization or team
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18 PART 1: INTRODUCTION TO LEADERSHIP
Building Relationships In terms of relationships, management focuses on objects such as machines and reports, on taking the steps needed to produce the organization’s goods and ser- vices. Leadership, on the other hand, focuses on motivating and inspiring people.
Whereas the management relationship is based on position and formal au- thority, leadership is a relationship based on personal infl uence. Formal position power means that there is a written, spoken, or implied contract wherein people accept either a superior or subordinate role and see the use of coercive as well as noncoercive behavior as an acceptable way to achieve desired results.43 For ex- ample, in an authority relationship, both people accept that a manager can tell a subordinate to be at work at 7:30 a.m. or her pay will be docked. Leadership, on the other hand, relies on infl uence, which is less likely to use coercion. Followers are empowered to make many decisions on their own. Leadership strives to make work stimulating and challenging and involves pulling rather than pushing people toward goals. The role of leadership is to attract and energize people, motivating them through identifi cation rather than rewards or punishments.44 The formal position of authority in the organization is the source of management power, but leadership power comes from the personal character of the leader. Leadership does not require that one hold a formal position of authority, and many people holding positions of authority do not provide leadership. The differing source of power is one of the key distinctions between management and leadership. Take away a manager’s formal position and will people choose to follow her? That is the mark of a leader. Leadership truly depends on who you are rather than on your position or title.
Developing Personal Leadership Qualities Leadership is more than a set of skills; it relies on a number of subtle personal qualities that are hard to see, but are very powerful. These include things like enthusiasm, integrity, courage, and humility. First of all, good leadership springs from a genuine passion for the work and a genuine concern for other people. Great leaders are people who love what they do and want to share that love with others. The process of management generally encourages emotional distance, but
eans being emotionally connected to others. Where there is leader- ship, people become part of a community and feel that they are contributing to something worthwhile.45
Whereas management means providing answers and solving prob- ems, leadership requires the courage to admit mistakes and doubts, to ake risks, to listen, and to trust and learn from others. Emotional con- ections can be uncomfortable for some managers, but they are neces- ry for true leadership to happen. George Sparks, a graduate of the Air rce Academy and general manager of Hewlett-Packard’s measuring-
uipment business, says he learned this from a Girl Scout leader.
Frances Hesselbein and the Girl Scout Way
“The best two days of my career” is how George Sparks describes the time he spent following Frances Hesselbein around. Hesselbein is currently chairman of the board of governors of the Leader to Leader Institute and an acclaimed author and editor of more than 20 books, the most recent of which is titled Hesselbein on Leadership. But she began her career more than 40 years ago as a volunteer Scout leader. She eventually rose to CEO of the Girl Scouts, inheriting a troubled organization of 680,000 people, only 1 percent of whom were paid employees.
Action Memo As a leader, you can awaken your leadership
qualities of enthusiasm, integrity, courage,
and moral commitment. You can make emotional connections with followers to
increase your leadership effectiveness.
IN T
H E
L E
A D
Position power a written, spoken, or implied contract wherein people accept either a superior or subordinate role and see the use of coercive as well as noncoercive behavior as an acceptable way of achieving desirable results
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CHAPTER 1: WHAT DOES IT MEAN TO BE A LEADER? 19
By the time she retired in 1990, Hesselbein had turned around declining mem- bership, dramatically increased participation by minorities, and replaced a brittle hierarchy with one of the most vibrant organizations in the non-profi t or business world.
Hesselbein describes how she works with others as a circle in which everyone is included. As Sparks observed her in action, the most compelling quality he noted was her ability to sense people’s needs on an emotional level. He explains, “Time and again, I have seen people face two possible solutions. One is 20 percent bet- ter, but the other meets their personal needs—and that is the one they inevitably choose.” He noticed that Hesselbein would listen carefully and then link people in such a way that their personal needs were met at the same time they were serving the needs of the organization. Hesselbein recognizes that the only way to achieve high performance is through the work of others, and she consistently treats people with care and respect. In her talks and writings for leaders, one of her primary les- sons is that taking people for granted is contrary to the defi nition of what makes a leader.
Her defi nition of leadership, she says, was “very hard to arrive at, very painful. . . . [It] is not a basket of tricks or skills. It is the quality and character and courage of the person who is the leader. It’s a matter of ethics and moral compass, the willingness to remain highly vulnerable.”46
As Frances Hesselbein noted, developing leadership qualities can sometimes be painful. Abraham Zaleznik has referred to leaders as “twice-born personali- ties,” who struggle to develop their sense of self through psychological and so- cial change.47 For leadership to happen, leaders have to undergo a journey of self-discovery and personal understanding.48 Leadership experts agree that a top characteristic of effective leaders is that they know who they are and what they stand for. In addition, leaders have the courage to act on their beliefs.49 By know- ing what they believe in, leaders remain constant, so that followers know what to expect. One study revealed that people would much rather follow individuals they can count on, even when they disagree with their viewpoint, than people they agree with but who frequently shift their viewpoints or positions.50 One employee described the kind of person she would follow as this: “. . . it’s like they have a stick down through the center of them that’s rooted in the ground. I can tell when someone has that. When they’re not defensive, not egotistical. They’re open- minded, able to joke and laugh at themselves. They can take a volatile situation and stay focused. They bring out the best in me by making me want to handle myself in the same way. I want to be part of their world.”51
True leaders draw on a number of subtle but powerful forces within them- selves. For example, leaders tend to have open minds that welcome new ideas rather than closed minds that criticize new ideas. Leaders tend to care about others and build personal connections rather than maintain emotional distance. Leaders listen and discern what people want and need more than they talk to give advice and orders. Leaders are willing to be nonconformists, to disagree and say no when it serves the larger good, and to accept nonconformity from others rather than try to squeeze everyone into the same mindset. They and others step outside the traditional boundary and comfort zone, take risks, and make mistakes to learn and grow. Moreover, leaders are honest with themselves and others to the point of inspiring trust. They set high moral standards by doing the right thing, rather than just going along with standards set by others. Leadership causes wear and tear on the individual, because leaders are vulnerable, take risks, and initiate change, which typically encounters resistance.
IN T
H E
L E
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20 PART 1: INTRODUCTION TO LEADERSHIP
Creating Outcomes The differences between management and leadership create two differing outcomes, as illustrated at the bottom of Exhibit 1.3. Management maintains a degree of sta- bility, predictability, and order through a culture of effi ciency. Good management helps the organization consistently achieve short-term results and meet the expecta- tions of various stakeholders. Leadership, on the other hand, creates change, often radical change, within a culture of integrity that helps the organization thrive over the long haul by promoting openness and honesty, positive relationships, and a long-term focus. Leadership facilitates the courage needed to make diffi cult and un- conventional decisions that may sometimes hurt short-term results.
Leadership means questioning and challenging the status quo so that out- dated, unproductive, or socially irresponsible norms can be replaced to meet new challenges. Good leadership can lead to extremely valuable change, such as new products or services that gain new customers or expand markets. Thus, although good management is needed to help organizations meet current com- mitments, good leadership is needed to move the organization into the future. Remember that the two must be combined for the organization to succeed.
Evolving Theories of Leadership To understand leadership as it is viewed and practiced today, it is important to recognize that the concept of leadership has changed over time. Leadership typi- cally refl ects the larger society, and theories have evolved as norms, attitudes, and understandings in the larger world have changed.
Historical Overview of Major Approaches The various leadership theories can be categorized into six basic approaches, each of which is briefl y described below. Many of these ideas are still applicable to leadership studies today and are discussed in various chapters of this text.
Great Man Theories This is the granddaddy of leadership concepts. The earliest studies of leadership adopted the belief that leaders (who were always thought of as male) were born with certain heroic leadership traits and natural abilities of power and infl uence. In organizations, social movements, religions, govern- ments, and the military, leadership was conceptualized as a single “Great Man” who put everything together and infl uenced others to follow along based on the strength of inherited traits, qualities, and abilities.
Trait Theories Studies of these larger-than-life leaders spurred research into the various traits that defi ned a leader. Beginning in the 1920s, researchers looked to see if leaders had particular traits or characteristics, such as intelligence or energy, that distinguished them from non-leaders and contributed to success. It was thought that if traits could be identifi ed, leaders could be predicted, or per- haps even trained. Although research failed to produce a list of traits that would always guarantee leadership success, the interest in leadership characteristics has continued to the present day.
Behavior Theories The failure to identify a universal set of leadership traits led researchers in the early 1950s to begin looking at what a leader does, rather than who he or she is.52 One line of research focused on what leaders actually do on the job, such as various management activities, roles, and responsibilities. These studies were soon expanded to try to determine how effective leaders differ in
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CHAPTER 1: WHAT DOES IT MEAN TO BE A LEADER? 21
their behavior from ineffective ones. Researchers looked at how a leader behaved toward followers and how this correlated with leadership effectiveness or inef- fectiveness. Chapter 2 discusses trait and behavior theories.
Contingency Theories Researchers next began to consider the contextual and situational variables that infl uence what leadership behaviors will be effective. The idea behind contingency theories is that leaders can analyze their situation and tailor their behavior to improve leadership effectiveness. Major situational vari- ables are the characteristics of followers, characteristics of the work environment and follower tasks, and the external environment. Contingency theories, some- times called situational theories, emphasize that leadership cannot be understood in a vacuum separate from various elements of the group or organizational situa- tion. Chapter 3 covers contingency theories.
Influence Theories These theories examine infl uence processes between lead- ers and followers. One primary topic of study is charismatic leadership (Chapter 12), which refers to leadership infl uence based not on position or formal authority but, rather, on the qualities and charismatic personality of the leader. Related areas of study are leadership vision (Chapter 13) and organizational culture (Chapter 14). Leaders infl uence people to change by providing an inspiring vision of the future and shaping the culture and values needed to attain it. Several chap- ters of this text relate to the topic of infl uence because it is essential to understand- ing leadership.
Relational Theories Since the late 1970s, many ideas of leadership have focused on the relational aspect, that is, how leaders and followers interact and infl uence one another. Rather than being seen as something a leader does to a follower, leadership is viewed as a relational process that meaningfully engages all partici- pants and enables each person to contribute to achieving the vision. Interpersonal relationships are seen as the most important facet of leadership effectiveness.53
Two signifi cant relational theories are transformational leadership (Chapter 12) and servant leadership (Chapter 6).
Other important relational topics covered in various chapters of the text include the personal qualities that leaders need to build effective relationships, such as emo- tional intelligence, a leader’s mind, integrity and high moral standards, and personal courage. In addition, leaders build relationships through motivation and empower- ment, leadership communication, team leadership, and embracing diversity.
A Model of Leadership Evolution Exhibit 1.4 provides a framework for examining the evolution of leadership from the early Great Man theories to today’s relational theories. Each cell in the model summarizes an era of leadership thinking that was dominant in its time but may be less appropriate for today’s world.
Leadership Era 1 This era may be conceptualized as pre-industrial and pre- bureaucratic. Most organizations were small and were run by a single individual who many times hired workers because they were friends or relatives, not neces- sarily because of their skills or qualifi cations. The size and simplicity of organiza- tions and the stable nature of the environment made it easy for a single person to understand the big picture, coordinate and control all activities, and keep things on track. This is the era of Great Man leadership and the emphasis on personal traits of leaders. A leader was conceptualized as a single hero who saw the big picture and how everything fi t into a whole.
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22 PART 1: INTRODUCTION TO LEADERSHIP
Exhibit 1.4 Leadership Evolution
Scope
Individual
Organization
Stable
Environment
Turbulent
Era 2 Rational Management
• Behavior theories • Contingency theories
Context: • Vertical hierarchy, bureaucracy • Functional management
Era 4 Learning Leadership
• Relational theories • Level 5 leadership
Context: • High-per formance culture • Learning organization
• Shared vision, alignment • Facilitate change and
adaptation
Era 3 Team or Lateral LeadershipTT
• Influence theories
Context: • Horizontal organization • Cross-functional teams
Era 1 Great Person Leadership
• Great Man theories • Trait theories
Context: • Pre-bureaucratic organization • Administrative principles
Leadership Era 2 In Era 2, we see the emergence of hierarchy and bureaucracy. Although the world remains stable, organizations have begun to grow so large that they require rules and standard procedures to ensure that activities are performed effi ciently and effectively. Hierarchy of authority provides a sensible mechanism for supervision and control of workers, and decisions once based on rules of thumb or tradition are replaced with precise procedures. This era sees the rise of the “rational manager” who directs and controls others using an impersonal approach. Employees aren’t expected to think for themselves; they are expected to do as they’re told, follow rules and procedures, and accomplish specifi c tasks. The focus is on details rather than the big picture.
The rational manager was well-suited to a stable environment. The behavior and contingency theories worked here because leaders could analyze their situa- tion, develop careful plans, and control what happened. But rational management is no longer suffi cient for leadership in today’s world.
Leadership Era 3 This era represented a tremendous shock to managers in North America and Europe. Suddenly, the world was no longer stable, and the prized techniques of rational management were no longer successful. Beginning with the OPEC oil embargo of 1972 to 1973 and continuing with the severe global competition of the 1980s and early 1990s, many managers saw that environmental conditions had become chaotic. The Japanese began to dominate world commerce with their ideas of team leadership and superb quality. This became an era of great confusion for leaders. They tried team-based approaches, downsizing, re- engineering, quality programs, and empowerment as ways to improve perfor- mance and get more motivation and commitment from employees.
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CHAPTER 1: WHAT DOES IT MEAN TO BE A LEADER? 23
This is the era of the team leader and the change leader. Infl uence was important because of the need to change organizational structures and cultures. This era sees the emergence of knowledge work, an emphasis on horizontal collaboration, and a shift to infl uence theories. Rather than conceiving of leadership as one person al- ways being fi rmly “in charge,” leadership is often shared among team leaders and members, shifting to the person with the most knowledge or expertise in the matter at hand.54 Many leaders have become com- fortable with ideas of team leadership, empowerment, diversity, and open communication. However, some are still trapped in old ways of thinking, trying to use rational management for a stable world when their organizations and the environment have already moved on.
Leadership Era 4 Enter the digital information age. It seems tha everything is changing, and changing fast. Era 4 represents the learning leader who has made the leap to giving up control in the traditional sense. Leaders emphasize relationships and networks, and they infl uence others through vision and values rather than power and control. They are constantly experimenting, learning, and changing, both in their personal and professional lives, and they encourage the development and growth of others. Era 4 requires the full scope of leadership that goes far beyond rational management or even team leadership.
Implications The fl ow from Great Man leadership to rational management to team and change leadership to learning leadership illustrates trends in the larger world. The implication is that leadership refl ects the era or context of the organization and society. Most of today’s organizations and leaders are still struggling with the transi- tion from a stable to a chaotic environment and the new skills and qualities needed in this circumstance. Thus, issues of diversity, team leadership, empowerment, and horizontal relationships are increasingly relevant. In addition, many leaders are rap- idly shifting into Era 3 and 4 leadership by focusing on change management and facilitating a vision and values to transform their companies into learning organiza- tions. Era 3 and Era 4 leadership is what much of this book is about.
Leadership Is Not Automatic Many leaders are caught in the transition between the practices and principles that defi ned the industrial era and the new reality of the twenty-fi rst century. Attempts to achieve collaboration, empowerment, and diversity in organization fail because the beliefs and thought processes of leaders as well as employees are stuck in an old paradigm that values control, stabil- ity, and homogeneity. The diffi cult transition between the old and the new partly explains the current crisis in organizational leader- ship. It is diffi cult for many leaders to let go of methods and practices that have made them and their organizations successful in the past.
One of the most important aspects of the new paradigm of leader- ship is the ability to use human skills to build a culture of performance, trust, and collaboration. A few clues about the importance of acquiring new leadership skills were brought to light by the Center for Creativ Leadership in Greensboro, North Carolina.55 The study compared 21 de- railed executives with 20 executives who successfully arrived at the top of a com- pany. The derailed managers were successful people who were expected to go far, but they reached a plateau, were fi red, or were forced to retire early. They were all bright, worked hard, and excelled in a technical area such as accounting or engineering.
Learning leader a leader who is open to learning and change and encourages the growth and development of others
Action Memo
As a le ader, yo
u can c ultivate
your p eople
skills to avoid e
xecutiv e derai
lment. You
can tre at othe
rs with kindne
ss, inte rest,
and res pect, a
nd avoi d over-
manag ing by
selectin g good
follow ers and
delega ting
effectiv ely.
Action Memo
As a le ader, yo
u can u se the
leaders hip
skills th at fi t th
e corre ct era f
or your
organiz ation. Y
ou can use infl
uence a nd
relation al aspe
cts as a ppropri
ate for your
organiz ation.
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24 PART 1: INTRODUCTION TO LEADERSHIP
The striking difference between the two groups was the ability to use human skills. Only 25 percent of the derailed group were described as being good with people, whereas 75 percent of those who arrived at the top had people skills. Exhibit 1.5 lists the top seven reasons for failure. Unsuccessful managers were insensitive to others, abrasive, cold, arrogant, untrustworthy, overly ambitious and selfi sh, unable to delegate or build teams, and unable to acquire appropriate staff to work for them.
terestingly, even people who do make it to the top of organizations sometimes fail in the role of CEO because of poor human skills. For example, Philip Purcell was forced out as CEO of Morgan Stanley largely because he was a remote, tyrannical leader who treated many mployees with contempt and failed to build positive relationships with ther managers or clients. His lack of human skills left Purcell with little oodwill to back him up when things started going against him.56
The inability to surround oneself with good people and help them learn and contribute can doom a top leader. The best leaders, at all lev-
els, are those who are genuinely interested in other people and fi nd ways to bring out the best in them.57 In addition, today’s successful leaders value change over stability, empowerment over control, collaboration over competition, diversity over uniformity, and integrity over self-interest, as discussed earlier. The new in- dustry of executive coaching has emerged partly to help people through the tran-g sition to a new paradigm of leadership. Whereas management consultants typi- cally help executives look outward, at company operations and strategic issues, executive coaches help them look inward. Executive coaches encourage leaders to confront their own fl aws and hang-ups that inhibit effective leadership, then help them develop stronger emotional and interpersonal skills.
This brings up an interesting question: How do people become good leaders? As Kembrel Jones, associate dean of full-time MBA programs at Emory University’s Goizueta Business School said, “If the elements of leadership were easy . . . we wouldn’t be seeing the problems we see today.”58 But can leadership be taught? Many people don’t think so, because so much of leadership depends on self- discovery. But it can be learned.
Learning the Art and Science of Leadership As we have discussed in this chapter, the concept of leadership has evolved through many perspectives and continues to change. Today’s reality is that the old ways no longer work, but the new ways are just emerging. Everywhere, we hear the cry for leadership as the world around us is rocked by massive and often painful events.
How can a book or a course on leadership help you to be a better leader? It is important to remember that leadership is both an art and a science. It is an art
Action Memo Leader’s Self-Insight 1.3 gives you a chance
to test your people skills and see if there
are areas you need to work on.
Exhibit 1.5 Top Seven Reasons for Executive Derailment
1. Acting with an insensitive, abrasive, intimidating, bullying style 2. Being cold, aloof, arrogant 3. Betraying personal trust 4. Being overly ambitious, self-centered, thinking of next job, playing politics 5. Having specific performance problems with the business 6. Overmanaging, being unable to delegate or build a team 7. Being unable to select good subordinates
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because many leadership skills and qualities cannot be learned from a textbook. Leadership takes practice and hands-on experience, as well as intense personal exploration and development. However, leadership is also a science because a growing body of knowledge and objective facts describes the leadership process and how to use leadership skills to attain organizational goals.
Knowing about leadership research helps people analyze situations from a variety of perspectives and learn how to be more effective as leaders. By explor- ing leadership in both business and society, students gain an understanding of the
Many fast-trackers find themselves suddenly derailed and don’t know why. Many times, a lack of people skills is to blame. To help you determine whether you need to work on your people skills, take the following quiz answering each item as Mostly False or Mostly True. Think about a job or volunteer position you have now or have held in the past as you answer the following items.
PEOPLE SKILLS
Mostly False
Mostly True
1. Other people describe me as a real “people person.” _______ _______
2. I spend a part of each day mak- ing small talk with coworkers (or teammates or classmates). _______ _______
3. I see some of my coworkers (or teammates or classmates) out- side of work, and I know many of them socially. _______ _______
4. Because I have good work relationships, I often succeed where others fail. _______ _______
WORKING WITH AUTHORITY 5. When I have a good reason for
doing so, I will express a view that differs from that of leaders in the organization. _______ _______
6. If I see a leader making a deci- sion that seems harmful to the organization, I speak up. _______ _______
7. People see me as someone who can independently assess an executive decision and, when appropriate, offer an alternative perspective. _______ _______
Leader’s Self-Insight 1.3 8. When senior people ask for
my opinion, they know that I’ll respond with candor. _______ _______
NETWORKING 9. I spend at least part of each
week networking with col- leagues. _______ _______
10. I belong to organizations where I can make professional contacts. _______ _______
11. A few times each month, I am invited to join key members of my team or organization for lunch. _______ _______
12. I regularly interact with peers at other organizations. _______ _______
Scoring and Interpretation Tally the number of “Mostly Trues” checked for each set of questions.
People Skills:_____; Working with Authority: _____; Networking: _____
If you scored 4 in an area, you’re right on track. Continue to act in the same way.
If your score is 2–3, you can fine tune your skills in that area. Review the questions where you said Mostly False and work to add those abilities to your leadership skill set.
A score of 0–1 indicates that you’re dangerously close to derailment. You should take the time to do an in-depth self-assessment and find ways to expand your interper- sonal skills.
Source: Adapted from “Are You Knocking Out Your Own Career?” Fast Company (May 1999), p. 230, based on Lois P. Frankel’sy Jump- Start Your Career (New York: Three Rivers Press).r
Are You on a Fast Track to Nowhere?
25
tt y
Im ag
e s
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26 PART 1: INTRODUCTION TO LEADERSHIP
importance of leadership to an organization’s success, as well as the diffi culties and challenges involved in being a leader. Studying leadership can also lead to the discovery of abilities you never knew you had. When students in a leadership sem- inar at Wharton were asked to pick one leader to represent the class, one woman was surprised when she outpolled all other students. Her leadership was drawn out not in the practice of leadership in student government, volunteer activities, or athletics, but in a classroom setting.59
Studying leadership gives you skills you can apply in the practice of leadership in your everyday life. Many people have never tried to be a leader because they have no understanding of what leaders actually do. The chapters in this book are designed to help you gain a fi rm knowledge of what leadership means and some of the skills and qualities that make a good leader. You can build competence in both the art and the science of leadership by completing the Self-Insight exercises throughout the book, by working on the activities and cases at the end of each chapter, and by applying the concepts you learn in class, in your relationships with others, in student groups, at work, and in voluntary organizations. Although this book and your instructors can guide you in your development, only you can apply the concepts and principles of leadership in your daily life. Learning to be a leader starts now, with you. Are you up to the challenge?
Organization of the Rest of the Book The plan for this book refl ects the shift to a new paradigm summarized in Exhibit 1.2 and the discussion of management versus leadership summarized in Exhibit 1.3. The framework in Exhibit 1.6 illustrates the organization of the book. Part 1 intro- duces leadership, its importance, and the transition to a new leadership paradigm.
Exhibit 1.6 Framework for the Book
Part 3: The Personal Side of Leadership
Part 1: Introduction to Leadership Chapter 1 What Does It Mean to Be a Leader?
Part 2: Research Perspectives on Leadership
Chapter 2 Traits, Behaviors, and RelationshipsTT Chapter 3 Contingency Approaches
Part 5: The Leader as Social Architect
Chapter 13 Creating Vision and Strategic Direction Chapter 14 Shaping Culture and ValuesVV Chapter 15 Leading Change
Chapter 4 The Leader as an Individual Chapter 5 Leadership Mind and Heart Chapter 6 Courage and Moral Leadership Chapter 7 Followership
Part 4: The Leader as Relationship Builder Chapter 8 Motivation and Empowerment Chapter 9 Leadership Communication Chapter 10 LeadingTeamsTT Chapter 11 Developing Leadership Diversity Chapter 12 Leadership Power and Influence
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CHAPTER 1: WHAT DOES IT MEAN TO BE A LEADER? 27
Part 2 explores basic research perspectives that evolved during a more stable time when rational management approaches were effective. These basic perspectives, including the Great Man and trait theories, behavior theories, and contingency theories, are relevant to dealing with specifi c tasks and individuals and are based on a premise that leaders can predict and control various aspects of the environ- ment to keep the organization running smoothly.
Parts 3, 4, and 5 switch to leadership perspectives that refl ect the paradigm shift to the chaotic, unpredictable nature of the environment and the need for fresh leader approaches. Part 3 focuses on the personal side of leadership and looks at some of the qualities and forces that are required to be effective in the new reality. These chapters emphasize the importance of self-awareness and self- understanding, the development of one’s own leadership mind and heart, moral leadership and courage, and appreciating the role of followership. Part 4 is about building effective relationships, including motivating and empowering others, communicating as a leader, leading teams, embracing the diversity of today’s world, and using power and infl uence.
Part 5 brings together all of these ideas to examine the leader as builder of a social architecture that can help an organization create a brighter future. These chapters deal with creating vision and strategic direction, aligning culture and values to achieve the vision, and leading change.
Taken together, the sections and chapters paint a complete portrait of the lead- ership experience as it has evolved to the present day and emphasize the new para- digm skills and qualities that are relevant from today and into the future. This book blends systematic research evidence with real-world experiences and impact.
Summary and Interpretation This chapter introduced the concept of leadership and explained how individuals can grow as leaders. Leadership is defi ned as an infl uence relationship among lead- ers and followers who intend real changes and outcomes that refl ect their shared purposes. Thus leadership involves people in a relationship, infl uence, change, a shared purpose, and taking personal responsibility to make things happen. Most of us are aware of famous leaders, but most leadership that changes the world starts small and may begin with personal frustrations about events that prompt people to initiate change and inspire others to follow them. Your leadership may be expressed in the classroom, your neighborhood, community, or volunteer organizations.
Concepts of leadership have evolved over time. Major research approaches include Great Man theories, trait theories, behavior theories, contingency theo- ries, infl uence theories, and relational theories. Elements of all these approaches are still applicable to the study of leadership.
The biggest challenge facing leaders today is the changing world that wants a new paradigm of leadership. The new reality involves the shift from stability to change and crisis management, from control to empowerment, from competition to collaboration, from uniformity to diversity, and from a self-centered focus to a higher ethical purpose. In addition, the concept of leader as hero is giving way to that of the humble leader who develops others and shares credit for accomplish- ments. These dramatic changes suggest that a philosophy based on control and personal ambition will probably fail in the new era. The challenge for leaders is to evolve to a new mindset that relies on human skills, integrity, and teamwork.
The “soft” skills of leadership complement the “hard” skills of management, and both are needed to effectively guide organizations. Although leadership is often
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PART 1: INTRODUCTION TO LEADERSHIP
equated with good management, leadership and management are different pro- cesses. Management strives to maintain stability and improve effi ciency. Leadership, on the other hand, is about creating a vision for the future, designing social architec- ture that shapes culture and values, inspiring and motivating followers, developing personal qualities, and creating change within a culture of integrity. Leadership can be integrated with management to achieve the greatest possible outcomes. Organi- zations need to be both managed and led, particularly in today’s turbulent environ- ment. Many managers already have the qualities needed to be effective leaders, but they may not have gone through the process needed to bring these qualities to life. It is important to remember that most people are not born with natural leadership skills and qualities, but leadership can be learned and developed.
Discussion Questions 1. What do you consider your own strengths and weaknesses for leadership? Discuss
your answer with another student.
2. How do you feel about changing yourself first in order to become a leader who can change an organization?
3. Of the elements in the leadership definition as illustrated in Exhibit 1.1, which is the easiest for you? Which is hardest? Explain.
4. What does the paradigm shift from control to empowerment mean for you? Discuss.
5. Describe the best leader you have known. How did this leader acquire his or her capability?
6. Why do you think there are so few people who succeed at both management and leadership? Is it reasonable to believe someone can be good at both? Discuss.
7. Discuss some recent events and societal changes that might have contributed to a shift “from hero to humble.” Do you agree or disagree that humility is important for good leadership?
8. “Leadership is more concerned with people than is management.” Do you agree? Discuss.
9. What personal capacities should a person develop to be a good leader versus those developed to be a good manager?
10. Why is leadership considered both an art and a science?
Leadership at Work
Leadership Right–Wrong Leader Wrong. Think of a specific situation in which you were working with someone who was in a leadership position over you, and that person was doing something that was wrong for you. This person might have been a coach, teacher, team leader, employer, imme- diate boss, family member, or anyone who had a leadership position over you. “Wrong for you” means that person’s behavior reduced your effectiveness, made you and/or your coworkers less productive, and was de-motivating to you and/or your colleagues. Write a few words below that describe what the leader was doing that was wrong for you.
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CHAPTER 1: WHAT DOES IT MEAN TO BE A LEADER?
Think of a second situation in which someone in a leadership position did something wrong for you. Write a few words below that describe what the leader was doing that was wrong for you.
Leader Right. Think of a specific situation in which you were working with someone who was in a leadership position over you, and that person was doing something that was right for you. This person might have been a coach, teacher, team leader, employer, t immediate boss, family member, or anyone who had a leadership position over you. “Right for you” means that person’s behavior made you and/or your coworkers more produc- tive, highly motivated you and/or others, and removed barriers to make you more suc- cessful. Write a few words below that describe what the leader was doing that was right for you.
Think of a second situation in which someone in a leadership position did something right for you. Write a few words below that describe what the leader was doing that was right for you.
The previous answers are data points that can help you understand the impact of leader behaviors. Analyze your four incidents—what are the underlying qualities of leadership that enable you to be an effective performer? Discuss your answers with another stu- dent. What leadership themes are present in the eight combined incidents? What do these responses tell you about the qualities you both want and don’t want in your leaders?
In Class: An interesting way to use this exercise in class is to have students write (five words maximum) their leader “rights” on one board and their leader “wrongs” on another board. The instructor can ask small groups to identify underlying themes in the collective set of leader data points on the boards to specify what makes an effective leader. After students establish four or five key themes, they can be challenged to identify the one key theme that distinguishes leaders who are effective with subordinates from those who are not.
Source: Based on Melvin R. McKnight, “Organizational Behavior as a Phenomenological, Free-Will Centered Science,” Working Paper, College of Business Administration, Northern Arizona University, 1997.
Leadership Development: Cases for Analysis
Sales Engineering Division When DGL International, a manufacturer of refinery equipment, brought in John Terrill to manage its Sales Engineering division, company executives informed him of the urgent situation. Sales Engineering, with 20 engineers, was the highest-paid, best-educated, and
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PART 1: INTRODUCTION TO LEADERSHIP
least-productive division in the company. The instructions to Terrill: Turn it around. Terrill called a meeting of the engineers. He showed great concern for their personal wel- fare and asked point blank: “What’s the problem? Why can’t we produce? Why does this division have such turnover?”
Without hesitation, employees launched a hail of complaints. “I was hired as an engineer, not a pencil pusher.” “We spend over half of our time writing asinine reports in triplicate for top management, and no one reads the reports.” “We have to account for every penny, which doesn’t give us time to work with customers or new developments.”
After a two-hour discussion, Terrill began to envision a future in which engineers were free to work with customers and join self-directed teams for product improvement. Terrill concluded he had to get top management off the engineers’ backs. He promised the engineers, “My job is to stay out of your way so you can do your work, and I’ll try to keep top management off your backs too.” He called for the day’s reports and issued an order effective immediately that the originals be turned in daily to his office rather than mailed to headquarters. For three weeks, technical reports piled up on his desk. By month’s end, the stack was nearly three feet high. During that time no one called for the reports. When other managers entered his office and saw the stack, they usually asked, “What’s all this?” Terrill answered, “Technical reports.” No one asked to read them.
Finally, at month’s end, a secretary from finance called and asked for the monthly travel and expense report. Terrill responded, “Meet me in the president’s office tomorrow morning.”
The next morning the engineers cheered as Terrill walked through the department push- ing a cart loaded with the enormous stack of reports. They knew the showdown had come.
Terrill entered the president’s office and placed the stack of reports on his desk. The president and the other senior executives looked bewildered.
“This,” Terrill announced, “is the reason for the lack of productivity in the Sales Engineering division. These are the reports your people require every month. The fact that they sat on my desk all month shows that no one reads this material. I suggest that the engineers’ time could be used in a more productive manner, and that one brief monthly report from my office will satisfy the needs of the other departments.”
QUESTIONS
1. Does John Terrill’s leadership style fit the definition of leadership in Exhibit 1.1? Explain.
2. With respect to Exhibit 1.4, in what leadership era is Terrill? In what era is headquarters?
3. What approach would you have taken in this situation?
Airstar, Inc. Airstar, Inc. manufactures, repairs, and overhauls pistons and jet engines for smaller, often privately owned aircraft. The company had a solid niche, and most managers had been with the founder for more than 20 years. With the founder’s death five years ago, Roy Morgan took over as president at Airstar. Mr. Morgan has called you in as a consultant.
Your research indicates that this industry is changing rapidly. Airstar is feeling encroach- ment of huge conglomerates like General Electric and Pratt & Whitney, and its backlog of orders is the lowest in several years. The company has always been known for its superior quality, safety, and customer service. However, it has never been under threat before, and senior managers are not sure which direction to take. They have considered potential acqui- sitions, imports and exports, more research, and additional repair lines. The organization is becoming more chaotic, which is frustrating Morgan and his vice presidents.
Before a meeting with his team, he confides to you, “Organizing is supposed to be easy. For maximum efficiency, work should be divided into simple, logical, routine tasks. These business tasks can be grouped by similar kinds of work characteristics and arranged within an organization under a particularly suited executive. So why are we having so many problems with our executives?”
Morgan met with several of his trusted corporate officers in the executive dining room to discuss what was happening to corporate leadership at Airstar. Morgan went
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CHAPTER 1: WHAT DOES IT MEAN TO BE A LEADER? 31
on to explain that he was really becoming concerned with the situation. There have been outright conflicts between the vice president of marketing and the controller over merger and acquisition opportunities. There have been many instances of duplication of work, with corporate officers trying to outmaneuver each other.
“Communications are atrocious,” Morgan said to the others. “Why, I didn’t even get a copy of the export finance report until my secretary made an effort to find one for me. My basis for evaluation and appraisal of corporate executive performance is fast becoming obsolete. Everyone has been working up their own job descriptions, and they all include overlapping responsibilities. Changes and decisions are being made on the basis of expediency and are perpetuating too many mistakes. We must take a good look at these organizational realities and correct the situation immediately.”
Jim Robinson, vice president of manufacturing, pointed out to Morgan that Airstar is not really following the “principles of good organization.” “For instance,” explained Robinson, “let’s review what we should be practicing as administrators.” Robinson believed they should be following six principles:
1. Determine the objectives, policies, programs, and plans that will best achieve the desired results for our company.
2. Determine the various business tasks to be done.
3. Divide the business tasks into a logical and understandable organizational structure.
4. Determine the suitable personnel to occupy positions within the organizational structure.
5. Define the responsibility and authority of each supervisor clearly in writing.
6. Keep the number of kinds and levels of authority at a minimum.
Robinson proposed that the group study the corporate organizational chart, as well as the various corporate business tasks. After reviewing the corporate organizational chart, Robinson, Morgan, and the others agreed that the number and kinds of formal cor- porate authority were logical and not much different from other corporations. The group then listed the various corporate business tasks that went on within Airstar.
Robinson continued, “How did we ever decide who should handle mergers or acquisi- tions?” Morgan answered, “I guess it just occurred over time that the vice president of mar- keting should have the responsibility.” “But,” Robinson queried, “where is it written down? How would the controller know it?” “Aha!” Morgan exclaimed. “It looks like I’m part of the problem. There isn’t anything in writing. Tasks were assigned superficially, as they became problems. This has all been rather informal. I’ll establish a group to decide who should have responsibility for what so things can return to our previous level of efficiency.”
Source: Adapted from Bernard A. Deitzer and Karl A. Shilliff, Contemporary Management Incidents (Columbus, OH: Grid, Inc., 1977), pp, 43–46. Copyright ©1997 by John Wiley & Sons, Inc. This material is used by permis- sion of John Wiley & Sons, Inc.
QUESTIONS
1. What is your reaction to this conversation? What would you say to Morgan to help him lead the organization?
2. To what extent do you rate both Morgan and Robinson as a good manager versus a good leader according to the dimensions in Exhibit 1.3?
3. If you were to take over as president of Airstar, what would you do first? Second? Third?
References 1 Nikitta A. Foston, “Commander Brad Lee Takes Charge,” Ebony
(September 2006), p. 52ff. 2 Warren Bennis and Burt Nanus, Leaders: The Strategies for Taking
Charge (New York: Harper & Row, 1985), 4; James MacGregor Burns, Leadership (New York: Harper & Row, 1978), p. 2.
3 J. Meindl, S. Ehrlich, and J. Dukerich, “The Romance of Leadership,” Administrative Science Quarterly 30 (1985), pp. 78–102.
4 Rakesh Khurana, “The Curse of the Superstar CEO,” Harvard Business Review (September 2002), pp. 60–66.
5 Khurana, “The Curse of the Superstar CEO”; Joseph A. Raelin, “The
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32 PART 1: INTRODUCTION TO LEADERSHIP
Myth of Charismatic Leaders,” Training and Development (March 2003), p. 46; and Betsy Morris, “The New Rules,” Fortune (July 24, 2006), pp. 70–87.
6 Joseph C. Rost, Leadership for the Twenty-First Century (Westport, CT: Praeger, 1993), p. 102; and Joseph C. Rost and Richard A. Barker, “Leadership Education in Colleges: Toward a 21st Century Paradigm,” The Journal of Leadership Studies 7, no. 1 (2000), pp. 3–12.
7 Peter B. Smith and Mark F. Peterson, Leadership, Organizations, and Culture: An Event Management Model (London: Sage Publications, 1988), p. 14.
8 Robert E. Kelley, “In Praise of Followers,” Harvard Business Review, (November–December 1988), pp. 142–148.
9 Kevin Fedarki. “He Fights Terror with Books,” Parade Magazine (April 6, 2003), pp. 4–6; Richard Halicks, “Schools for Pakistan and Afghanistan: Moving Mountains,” The Atlanta Journal-Constitution (April 16, 2006), p. F1; and http://www.ikat.org/projects.html; Mortenson’s amazing story is told in Greg Mortenson and David Oliver Relin, Three Cups of Tea; One Man’s Mission to Fight Terrorism and Build Nations . . . One School at a Time (New York: Penguin, 2006).
10 Tara Parker Pope, “Chronic Conditions Inspire Two Teens to Help Others with Similar Problems,” The Wall Street Journal (August 22, 2006), p. D1.
11 Robin Wright and Doyle McManus, Flashpoints: Promise and Peril in a New World (New York: Alfred A. Knopf, 1991), pp. 107–110.
12 Scott R. Schmedel, “Making a Difference,” The Wall Street Journal (August 21, 2006), pp. R5, R12.
13 The discussion of these transformations is based in part on Daniel C. Kielson, “Leadership: Creating a New Reality,” The Journal of Leadership Studies 3, No. 4 (1996), pp. 104–116; and Mark A. Abramson, “Leadership for the Future: New Behaviors, New Roles, and New Attitudes,” The Public Manager (Spring 1997). See also Frances Hesselbein, Marshall Goldsmith, and Richard Beckhard, eds. The Leader of the Future: New Visions, Strategies, and Practices for the Next Era (San Francisco: Jossey-Bass, 1996).
14 Marvin J. Cetron and Owen Davies, “The Dragon vs. the Tiger,” The Futurist (July–August 2006), p. 38ff.
15 Greg Ip, “Mind Over Matter—Disappearing Acts: The Rapid Rise and Fall of the Intangible Asset,” The Wall Street Journal (April 4, 2002), pp. A1, A6.
16 Charles Handy, The Age of Paradox (Boston: Harvard Business School Press, 1994), pp. 146–147.
17 Richard L. Daft, Organization Theory and Design, 6th ed. (Cincinnati, OH: South-Western College Publishing, 1998), p. 523.
18 Cyrus F. Friedheim Jr., The Trillion-Dollar Enterprise: How the Alliance Revolution Will Transform Global Business (Reading, MA: Perseus Books, 1999).
19 Jerry Useem, “Tyrants, Statesmen, and Destroyers (A Brief History of the CEO),” Fortune, (November 18, 2002), pp. 82–90; Joann S. Lublin and Scott Thurm, “Money Rules; Behind Soaring Executive Pay, Decades of Failed Restraints,” The Wall Street Journal (October 12, 2006), p. A1.
20 Bethany McLean, “Why Enron Went Bust,” Fortune (December 24, 2001), pp. 58–68; and John A. Byrne with Mike France and Wendy Zellner, “The Environment Was Ripe for Abuse,” BusinessWeek (February 25, 2002), pp. 118–120.
21 Mark Gimein, “You Bought, They Sold,” Fortune (September 2, 2002), pp. 64–74.
22 Patricia Sellers, “The New Breed,” Fortune (November 18, 2002), pp. 66–76.
23 Nanette Byrnes with John A. Byrne, Cliff Edwards, Louise Lee, Stanley Holmes, and Joann Muller, “The Good CEO,” BusinessWeek (September 23, 2002), pp. 80–88.
24 See James Collins, Good to Great: Why Some Companies Make the Leap . . . And Other Don’t (New York: HarperCollins, 2001); Charles A. O’Reilly III and Jeffrey Pfeffer, Hidden Value: How Great Companies Achieve Extraordinary Results with Ordinary People (Boston, MA: Harvard Business School Press, 2000); Rakesh Khurana, Searching for a Corporate Savior: The Irrational Quest
for Charismatic CEOs (Princeton University Press, 2002); Joseph Badaracco, Leading Quietly (Boston, MA: Harvard Business School Press, 2002); Jason Jennings, Think Big, Act Small: How America’s Best Performing Companies Keep the Startup Spirit Alive (New York: Portfolio/Penguin, 2005); Ryan Underwood, “The CEO Next Door,” Fast Company (September 2005), pp. 64–66; and Linda Tischler, “The CEO’s New Clothes,” Fast Company (September 2005), pp. 27–28,
25 Useem, “Tyrants, Statesmen, and Destroyers” and Rakesh Khurana, “The Curse of the Superstar CEO,” Harvard Business Review (September 2002), pp. 60–66.
26 Ibid. 27 “The Best Advice I Ever Got,” Fortune (March 21, 2005), p. 90ff. 28 Jim Collins, “Level 5 Leadership: The Triumph of Humility and
Fierce Resolve,” Harvard Business Review (January 2001), pp. 67–76; Collins, “Good to Great,” Fast Company (October 2001), pp. 90–104; Edward Prewitt, “The Utility of Humility,” CIO (December 1, 2002), pp. 104–110; A. J. Vogl, “Onward and Upward” (an interview with Jim Collins), Across the Board (September–October 2001), pp. 29–34; and Jerry Useem, “Conquering Vertical Limits,” Fortune (February 19, 2001), pp. 84–96.
29 Collins, “Level 5 Leadership.” 30 James Lardner, “In Praise of the Anonymous CEO,” Business 2.0
(September 2002), pp. 104–108; and Byrnes, et al., “The Good CEO.” 31 Martha H. Peak, “Anti-Manager Named Manager of the Year,”
Management Review (October 1991), p. 7. 32 Gary Yukl and Richard Lepsinger, “Why Integrating the Leading
and Managing Roles Is Essential for Organizational Effectiveness,” Organizational Dynamics 34, no. 4 (2005), pp. 361–375.
33 Sonia Alleyne, “The Turnaround King,” Black Enterprise (September 2006), p. 96ff.
34 This section is based largely on John P. Kotter, A Force for Change: How Leadership Differs from Management (New York: The Free Press, 1990), pp. 3–18.
35 Leadership, A Forum Issues Special Report (Boston, MA: The Forum Corporation, 1990), p. 13.
36 See Geoff Colvin, “The 100 Best Companies to Work For, 2006,” Fortune (January 23, 2006), pp. 71–74; “2004 Special Report: The 100 Best Companies to Work For,” Fortune (January 12, 2004), pp. 56–80; and Kevin E. Joyce, “Lessons for Employers from Fortune’s 100 Best,” Business Horizons (March–April 2003), pp. 77–84.
37 Alan Deutschman, “Can Google Stay Google?” Fast Company (August 2005), pp. 62–68.
38 Colvin, “The 100 Best Companies to Work For, 2006.” 39 Leadership: A Forum Issues Special Report (Boston, MA: The Forum
Corporation, 1990), p. 15. 40 James Kaplan, “Amateur’s Hour,” Working Woman (October 1997),
pp. 28–33. 41 John P. Kotter, quoted in Thomas A. Stewart, “Why Leadership
Matters,” Fortune (March 2, 1998), pp. 71–82. 42 John P. Kotter, Leading Change (Boston, MA: Harvard Business
School Press, 1996), p. 26. 43 Joseph C. Rost, Leadership for the Twenty-First Century (Westport,
CT: Praeger, 1993), pp. 145–146. 44 Warren Bennis, Why Leaders Can’t Lead (San Francisco: Jossey-Bass,
1989). 45 Bennis, Why Leaders Can’t Lead; and Stewart, “Why Leadership
Matters.” 46 Stratford Sherman, “How Tomorrow’s Best Leaders Are Learning
Their Stuff,” Fortune (November 27, 1995), pp. 90–102; Frances Hesselbein, “The Search for Common Ground,” Leader to Leader no. 25 (2002), accessed at http://www.pfdf.org; and Frances Hesselbein, Hesselbein on Leadership (San Francisco: Jossey–Bass, 2002).
47 Abraham Zaleznik, “Managers and Leaders: Are They Different?” Harvard Business Review (March–April 1992): pp. 126–135.
48 David Rooke and William R. Torbert, “7 Transformations of Leadership,” Harvard Business Review (April 2005), pp. 67–76;
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and Rooke and Torbert, Action Inquiry: The Secret of Timely and Transforming Leadership (San Francisco: Berrett-Koehler, 2004).
49 Tricia Bisoux, “What Makes Leaders Great,” BizEd (September– October 2005), pp. 40–45.
50 Bennis, Why Leaders Can’t Lead. 51 Sherman, “How Tomorrow’s Best Leaders Are Learning Their Stuff.” 52 Susan R. Komives, Nance Lucas, Timothy R. McMahon, Exploring
Leadership: For College Students Who Want to Make a Difference (San Francisco: Jossey-Bass Publishers, 1998), p. 38.
53 Based on Komives, et al., Exploring Leadership; and Shann R. Ferch and Matthew M. Mitchell, “Intentional Forgiveness in Relational Leadership: A Technique for Enhancing Effective Leadership,” The Journal of Leadership Studies 7, no. 4 (2001), pp. 70–83.
54 Craig L. Pearce, “The Future of Leadership: Combining Vertical and Shared Leadership to Transform Knowledge Work,” Academy of Management Executive 18, no. 1 (2004), pp. 47–57.
55 Morgan W. McCall, Jr., and Michael M. Lombardo, “Off the Track: Why and How Successful Executives Get Derailed” (Technical Report No. 21, Greensboro, NC: Center for Creative Leadership, January 1983); Carol Hymowitz, “Five Main Reasons Why Managers Fail,” The Wall Street Journal (May 2, 1988).
56 Tischler, “The CEO’s New Clothes”; Joseph Nocera, “In Business, Tough Guys Finish Last,” The New York Times (June 18, 2005), p. C1; Carol Hymowitz, “Rewarding Competitors Over Collaborators No Longer Makes Sense” (In the Lead column), The Wall Street Journal (February 13, 2006), p. B1.
57 Ram Charan and Geoffrey Colvin, “Why CEOs Fail,” Fortune (June 21, 1999), pp. 68–78.
58 Bisoux, “What Makes Leaders Great.” 59 Russell Palmer, “Can Leadership Be Learned?” Business Today (Fall,
1989), pp. 100–102.
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