MBA Advanced Essential Business Concepts - Learning Reflection

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Financial Intelligence

Leadership Vision | Chapter 6: Lead Chapter 7: Own Chapter 8: Act Management Perspective

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C h a p

te r 6

Lead: Vision, Integrity, Change, and Teams

BizSkills invite... Try It! There's no better way to learn concepts than to put them into practice. Take your turn in the driver’s seat and be a part of actual business decision making by visiting the BizSkill for this chapter at www.mybizlab.com.

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TEACHING TIP The BizSkill for this chapter, Team Management, asks students to play the role of a quality manager who is asked to form a quality team at a bike company. See p. 57 of the Instructor's Manual for more information.

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Chapter 6 Goals After experiencing this chapter, you’ll be able to:

1. Distinguish managers from leaders, and recognize the

importance of effective followers.

2. Identify effective leadership, and develop leadership

qualities in yourself.

3. Explain how a vision provides direction for an organization,

and create a vision for your own career.

4. Describe the importance of change, and be able to lead it

effectively and avoid its potential pitfalls.

5. Form effective teams and resolve team issues.

If you’ve ever been in a lab group or worked on a

team project, you know that the interac- tions among team members can often be more in- teresting than whatever project you’re working on. One group member usually takes responsibility to manage the team, set deadlines, and delegate responsibilities, but another group member may emerge as its real leader. While the emergent leader is trying to empower team members and come up with innovative solutions, the manager is focused on completing the task at hand as quickly and efficiently as possible. It’s not hard to see that the project man- ager is getting frustrated with the emergent leader’s lack of focus and discipline, while the leader is upset by the project manager’s inability to see “the big picture.” In the meantime, the team is falling apart be- cause the power struggle is forcing team members to

Now that you’ve practiced making tough business decisions and seeing the results of your choices in this chapter’s BizSkill, it’s time to translate those skills into plain English. And if you skipped the BizSkill,

take sides, and nothing useful is getting done in the midst of all the tension.

In a situation like this, it may seem like the con- flict is coming from two people butting heads over the same role. But the conflict is actually a function of common misunderstandings regarding leadership and management. In the previous scenario, what would happen if the project manager and the emergent leader stopped struggling to fill the same role and started acting as complements to each other? The project manager’s best bet is to get on the same page with the emergent leader and harness his or her ability to innovate, inspire, and motivate. In this chap- ter, you’ll learn the difference between managers and leaders, what it takes to be a great leader, and how leaders provide a vision for organizations, lead change, and form effective teams.

Are you an orange fish

or a green fish?

Will the Real Leader Please Stand Up?

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Lesson Plan Activity 6.1: Build the Anticipation: Leaders vs. Managers This activity (which was recommended as a homework assignment) asks students to look at the differences between managers and leaders. See p. 55 of the Instructor's Manual for a full description of this activity

132 Leadership Vision

1. Managers and Leaders: A Complementary Distinction

Although many people assume leadership is just another word for management, the two aren’t in- terchangeable. Think about managers you’ve encountered who, well, managed. They made sure your reports were turned in on time, gave you assignments, and checked that you were adhering to a set schedule. Now think of people who have inspired you to do your job a little better. Maybe these people weren’t even authority figures, but peers. This isn’t to say managers can’t be good leaders, or vice versa; however, there is a clear difference, which you may already understand with- out even realizing it. Look at the two examples below and identify the manager and the leader.

• Jessie began working for a technology company last year, and she has recently begun supervising six members of the research and development team. She likes to plan out her day with a detailed to-do list. The bulk of her day is made up of re- viewing proposals and tests and scheduling pitch meetings. Periodically, she also has to handle staff members requesting time off. Overall, Jessie is a good supervisor who gets things done on time and accurately.

• Candace works for the same company as a supervisor in the sales department. She spends much of her time looking at what’s being developed and creating ways to pitch ideas to clients. She’s excited about the new products coming from the research and development team and is busy figuring out a plan to work with the products in the future. Periodically, she holds strategy sessions with her team to let them know her vision for the future and the opportunities that are coming their way. Employees from all departments come to Candace to discuss their ideas and get her advice. Because of her intuition and instinct, she has been a valu- able member of the company.

Based on this information, who’s the leader and who’s the manager? If you said Jessie was the manager, you’re right. Doesn’t it feel like Jessie is executing a list of tasks while Candace is developing ideas for the future? Often, this forward-thinking attitude is a good predictor of leadership.

A manager typically has formal authority and takes care of four main functions: planning, organizing, directing, and controlling. On the other hand, a leader can be found anywhere in the hierarchy of an organization and has the ability to motivate, inspire, and influence the behaviors of other people. In other words, employees listen to managers because they have to, but they listen to leaders because they want to.

Unlike management, no one is necessarily given the title of leader. Is the person in charge really the leader of the organization? Well, it depends. Just because that new in- tern is fresh out of college, that doesn’t mean she can’t exhibit qualities such as innova-

tion or intuition in her job. At the same time, a company can have an inspirational leader who can deliver a rousing pep talk at monthly meetings, but is unable to locate his socks in the morning.

The biggest thing that separates leading from managing is the focus on influencing people. Managing—and with it planning, organizing, directing, and controlling—is necessarily focused on

process and resources. A manager’s job is, after all, to manage things, be it people or other resources, and to focus on specific tasks, goals, and objectives.

Say your department is given a certain amount of hours for a task. As a man- ager, you’re given a team, a budget, and a deadline. Those are your priorities: get- ting your fellow workers on task to deliver by a certain date. By ensuring the task is completed on schedule and on budget, the manager makes sure the organiza-

tion receives payment from the customer, brings in a certain level of profit, and is able to continue paying the salaries of its employees. Management is a necessary part of an organization because it is responsible for coordinating activities and getting results.

Employees listen to managers because they have to, but they listen

to leaders because they want to.

Can you tell which one is the leader and which one is the manager?

9

owner/inve stor

ID

Manager

ID

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 133

Most managers’ dealings with people are based on how those employees can help achieve set goals. The focus is often on the task more so than on the employee. Leaders, however, really need to know how these employees tick because their ability to motivate and inspire them is one of their primary functions in an organization.

The Importance of Followers Have you ever watched a flock of geese flying overhead? There is clearly a leader, but each goose plays an important role by flapping its wings and creating an “uplift” for the birds behind it. In fact, because they fly in a V formation with one leader and followers creating uplift, the whole flock is able to fly 71 percent further than had each bird flown on its own.1

As is the case with a flock of geese, truly effective leadership is a shared relationship between leaders and followers.2 This means that success is not only based on the leader; it is also based on the people who are following that leader. The role of a follower is therefore just as important as the role of a

leader. Followers can be broken down into two categories: effective followers and ineffective fol- lowers.3 Effective followers;

• actively support the leader;

• take responsibility for their own success;

• are proactive in determining strategies rather than just reacting to issues;

• understand how to be part of the solution rather than the problem;

• demonstrate assertive behavior rather than passive behavior; and

• hold themselves, as well as others, accountable.

Sometimes, effective followers need to step up and lead, so it’s important that they have the same qualities as a leader. However, followers usually use these qualities to support the leader, rather than do the leading themselves. On the flip side of this, ineffective followers:

• sit back, waiting for others to step up;

• have a “me,” rather than a “we,” focus;

• support decisions based on personal opinion, rather than thoughtful consideration; and

• demonstrate passive behavior rather than active behavior.

As you can see, effective followers don’t necessarily need a strong leader to get the job done, but ineffective followers do.

Manager, Leader, or Both? Now you recognize the distinction between a manager and a leader, and you understand how effective followers are a nec- essary part of leadership. But it’s important to note that being a leader is not better than being a manager (or a follower, for that matter). Both require very similar skill sets to run an or- ganization effectively. The roles are different, but they are not

necessarily mutually exclusive.

Good leaders aren’t necessarily good managers, and good managers aren’t necessarily good leaders. But a great leader is both a good manager and a good leader.4 Although the best managers also have leadership

qualities, in some cases it’s best to let the leaders lead and the managers manage. The most suc- cessful organizations employ both managers and leaders, with leaders throughout all levels of the organization’s hierarchy.

A great leader is both a good manager and a good leader.

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TEACHING TIP Ask students to think about the most successful group they have ever been in. What, exactly, did the team members do in that group? Try to get them to focus on specific behaviors, not traits or characteristics. Did the group have a leader and lots of followers, or did everyone take turns at being the leader?

134 Leadership Vision

As you’ve read about these distinctions, have you felt yourself identifying more with the qualities of a leader or a manager—or both? Think about your work, school, and social life and the leaders you may have encountered there. If you are currently working, is your manager a leader? How does he or she motivate you—or fail to? What about your group of friends—is there someone who everyone else always seems to follow? Try to identify the specific qualities that make this person a leader. As you read more about leadership qualities in this chapter, you’ll also see they aren’t a result of charisma or other inherent or unattainable qualities you may or may not have. Leadership can be learned, and in the next section, you’ll see how.

Do It... 6.1: Identify Ideal Leaders, Managers, and Followers On your

own, create three lists of qualities that describe the ideal leader, the ideal manager, and the ideal follower. Then share your lists with three other peo- ple, and have the team collect all of the qualities for each title that appeared on at least three of the four team members’ lists. Now look at the master list you have created for ideal manager, leader, and follower. How many words ap-

pear on all three lists? Be prepared to submit your lists electronically or share them with your class.

Now Debrief... • Leaders and managers are not synonymous. A

manager has formal authority and takes care of planning, organizing, directing, and controlling to get the job done. On the other hand, a leader can be found any- where in the hierarchy of an organization and has the ability to motivate, inspire, and influence the behaviors of other people.

• Followers are important to leadership because without a team to support them, leaders will not be effective. Followers can be broken down into two categories: effective and ineffective.

• Employees listen to managers because they have to, but they follow leaders because they want to. The roles are different but complementary, and both are necessary for an organi- zation’s success.

Concept A

Concept B

Concept C

Concept D

2. If You’re a Leader, Give Me an “I Five”

If the relationship between leaders and followers is so crucial to leadership, how do leaders get people to follow them? People follow leaders, not because the leaders strive to be followed, but because leaders tend to exhibit qualities that draw oth- ers to trust and follow them. While there’s no I in “team,” there are actually five Is that are attributed to great leaders. These qualities are inspiration, innovation, initiative, introspection, and integrity. In this section, we’ll look at these qualities, and we’ll also discuss ways in which you can develop leadership qualities in yourself.

Inspiration As an employee or student, what inspires you? After 2008’s financial market collapse, U.S. bil- lionaire businessman Warren Buffett’s investment company, Berkshire Hathaway, reported its worst financial year ever, turning a net profit that was less than half of the company’s bottom line in 2007. Despite the bleak financials, however, Buffett rallied his employees and shareholders, telling them that the United States’ and Berkshire Hathaway’s best days still lay ahead. He inspired

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Lesson Plan Activity 6.2 : Give Me an I Five: What It Means To Be a Leader In this activity, students identify the five I's in leaders. See p. 55 of the Instructor's Manual for a full description of this activity

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 135

his followers by reminding them that the United States had faced worse challenges before, in- cluding the Great Depression and World War II, and always came out strong.

Buffett’s confidence in the ability of Americans to over- come adversity provided an inspirational example, not just to employees and shareholders, but to everyone hit hard by the market crash. An inspirational leader is passionate about the company’s vision and mission, and, as we discuss later in the chapter, is able to share that passion so others have it,

too. Effective leaders understand that if employees believe their work has purpose and mean- ing beyond the tasks they perform each day, they will be more invested.

Innovation How important is innovation to leaders? According to a 2005 survey, 53 percent of business and technology leaders claim innovation is the biggest factor in a successful business.5 Without innovation,

companies stop growing and progressing. Consider Nike. Nike was born because of innovation. Company founder Bill Bowerman was a track and field coach who experimented with running shoes. He created the first shoe sole used by Nike with his wife’s waffle iron. The shoe

was appropriately called the “Waffle Trainer.”6

Company leaders, like Bowerman, are the people re- sponsible for coming up with new goals and vision, also known as

innovation. There is no such thing as a visionless leader, because he or she wouldn’t be considered a leader in the first place. This implies, then,

that to be a leader, you have to possess an entrepreneurial mindset. Great leaders innovate because this is how one effects change. They are never satisfied with the status quo and are always looking for

new and better ways to get things accomplished. (Excited about in- novation? We’ll talk more about how entrepreneurial leaders thrive on

innovation in Chapter 7.)

Initiative Pretend you have a group assignment: Are you willing to step up and be the group

leader? Every group needs some sort of leader. If not, all you do is sit around looking at each other. Initiative is what gets someone to step up to the challenge. Leaders have initia- tive; they are willing to step up, act independently, and take control of the situation.

Take Joe Quesada. As an artist at Marvel Comics, Quesada took the initiative to en- courage others to experiment with new styles of writing and art that took antiquated sto-

rytelling techniques and replaced them with the more contemporary “language” of television and film. He also used his personal connections to bring new writers and artists from outside comics to the company, such as filmmaker Kevin Smith. In 2000, he became the first artist ever to become editor-in-chief. Quesada has continued to lead and embrace changes in the comic genre. Having the kind of initiative that Quesada possesses can separate a true leader from a follower.

Introspection Are you an introspective person? Being introspective means a leader can adapt to how a certain situation or person needs to be led. Part of being an introspective leader is having emotional intelligence, which is a set of skills that help people better communicate with themselves and the people around them. By being emotionally intelligent, leaders are better able to get

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”

—John Quincy Adams, Sixth President of the United States

People follow leaders, not because the leaders strive to be followed,

but because leaders tend to exhibit qualities that draw others to trust and

follow them.

Inspiration

Innovation

Init iativ

e

Intr ospe

ctio n

Integrity

Which of the five Is do you think is most important?

136 Leadership Vision

people to work toward a common goal.7 Take some time to answer these five questions about yourself to gauge the various dimensions of your own emotional intelligence:8

1. Are you self-aware?

2. Can you manage your emotions?

3. Do you motivate yourself?

4. Are you able to understand and empathize with other people’s emotions?

5. Do you possess good social skills?

Don’t make the mistake that emotional intelligence is simply about being a nice person. Rather, for leaders, emotional intelligence is about understanding others, being persuasive, handling disagreements, and getting people to focus positively on their work.9

Part of being an introspective leader is also understanding all the various leadership styles and knowing how to select the most effective one for a given situation. Although there are many leadership styles, leaders often fall into three basic categories:

1. Autocratic leaders typically tell employees what to do and how to get it done, usually without soliciting feedback from others. They make all the decisions and watch over their employees very closely. Autocratic leaders can be necessary in situations that call for such leadership, such as in an emergency room where having one leader calling all the shots can be useful. If all the information required to solve a problem is on hand, time is limited, and employees are already well motivated, the autocratic leadership style can be appropriate.

2. Democratic leaders work with employees to find the best way to complete the job while maintaining final authority. Being a democratic leader means that you value the opin- ions of the others in your group. That’s why democratic leaders surround themselves with skillful employees. This is a useful leadership style when both the leader and employees know about the task and can work together to come up with the best decision. Democratic leaders get the best of both worlds: they empower others, and their decisions are better informed because of the input of their fellow employees.

3. Free-reign leaders (or laissez-faire leaders) are “hands-off” leaders who allow others to have complete freedom in their work environment. Such leaders provide their followers with the materials they need to accomplish their goals, but little to no direction. Because all authority is handed over to the employees, employees are responsible for the outcomes of the work. Although the free-reign leader can get a bum rap, there is a time and place for this style. For example, say you are thrust into a management position for a task you know nothing about. If employees understand what’s going on, who are you to tell them what to do? The hands-off approach can therefore be helpful when employees are knowl- edgeable, self-motivated, and trustworthy.

To be effective, leaders need to be flexible and know when to apply the right leadership style in a particular situation. Sir Richard Branson, chairman of the Virgin Group, is a good ex- ample of a leader who uses various leadership styles to good effect. Although he has a strong personality, he has learned the importance of the free-reign style, stepping back and allowing others to run the company. Considering the Virgin Group comprises over 40 different compa- nies, being able to delegate is a necessity for Branson.

While Branson makes liberal use of the free-reign style, he also incorporates the demo- cratic style into his leadership. Branson writes letters to many of his employees, keeping them up-to-date on his activities and encouraging them to speak up with their questions and com- ments. To facilitate communication, Branson gives out his home address and phone number to his employees so that they can always reach him. Branson’s unique combination of free-reign and democratic leadership styles helps employees feel empowered and motivated, a crucial in- gredient in the massive Virgin Group’s continued success.10

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BizChat: Does Being Tall Make You a Better Leader? In this exercise, students must decide whether or not the best leaders are taller than other people. See p. 60 of the Instructor's Manual for complete details of this exercise

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 137

Integrity We’ve talked about inspiration, innovation, initiative, and introspection, but there’s one very important “I” left in leadership: integrity. According to American Express CEO Kenneth Chenault, integrity is the foundation on which true leadership is

built. Integrity isn’t just about speaking truthfully—real integrity requires a leader’s words to be consistent with his or her actions, and vice versa. Leaders with in- tegrity also need to have the courage to maintain that consistency. When your

integrity is tested, do you have the courage to stay true to yourself?11

Organizations whose leaders don’t match actions with their words leave their companies open to backlash from customers, and that can have

a big impact on the bottom line. For example, in March of 2009, the public was in an uproar when news broke that several executives at financial insur- ance giant AIG received multi-million dollar bonuses after receiving govern- ment bailout money. Although these contracts were technically legal, AIG executives didn’t show a lot of consistency with their company’s core values

by accepting the bonuses.12 The actions of a few executives tarnished the whole company’s reputation.

Customers aren’t the only group looking for integrity in leadership—employees also look for integrity from their leaders. An organization’s leaders are the organiza- tion’s moral compass. If a scandal erupts in the CEO’s office, it’s more than likely that a lack of morale will find its way down the company ladder. This is why leaders must play a major role in establishing the moral climate of the organization and in deter- mining the role of ethics in the organization. We’ll discuss integrity and ethics in much more detail in Chapter 8.

Developing Leadership Qualities in Yourself Leadership is not just an inherent quality that some people have and some people don’t. It can be honed and developed. To become a better leader, you need to ask yourself some tough questions, allow those who know you best to answer those same questions about you, and open yourself up to coaching and mentoring from people who have more experience than you.

The following questions relate back to the five Is we just discussed. To develop your own leadership skills, take some time to answer them about yourself:

1. Do you get people excited about anything? If so, what? How? If not, why not?

2. What are you passionate about? When is the last time you were really emotional about a situation or event?

3. What do you tinker with in life? In other words, what parts of your life are you constantly trying to improve or enhance?

4. Do others come to you for advice when they’re trying to do something new?

5. What activities do you accomplish, almost daily, with little or no guidance or motivation from others?

6. How often do you adjust your style or approach in a situation to accommodate the cir- cumstances or signals you sense from others?

7. How often does your honesty cost you something important? When is the last time you had to sacrifice something to uphold the truth?

Put Yourself on the Witness Stand

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TEACHING TIP Students who answer these questions honestly can gain insight into the type of career they should choose, as well as what kind of leader they might be. See especially Q1, Q2, Q3, and Q5 for this purpose.

138 Leadership Vision

Maybe you are, as Clint Eastwood once said in the movie Dirty Harry, “a legend in your own mind.” You aced the questions on the

previous page, and you’re feeling pretty good about your five Is. Let’s see how your answers hold up to a second opinion.

Take the list of seven questions that you answered about yourself, and give them to some- one who not only knows you well, but who will also tell it like it is. Your toughest critic is ac- tually your best resource at this point. Invite him or her to answer these questions about you, and take time to listen—really listen and understand—to what he or she thinks. Good leaders are confident enough in themselves and their ability to change to allow this kind of critical eval- uation. In fact, some of the best leaders engage in what’s called a 360° evaluation in which everyone around them evaluates their performance on a regular basis.

Establishing a mentoring relationship with a leader is invaluable. Not only can they lead you toward self-improvement and self-satisfaction, they can also

help you develop your own leadership potential. One of the best ways to become a leader is to build a mentor-apprentice relationship with a leader who will challenge you to develop the five Is in yourself. This relationship will provide you with a formal environment for learning how to be a good leader.

If you aren’t able to find a mentor-apprentice relationship, watch people around you. Who inspires you and those around you to be better? Once you’ve identified someone, identify what it is that makes this person a good leader. What about him or her is inspiring? You may also want to read about leaders who inspire you.

You’ll put yourself in a great position to become a better leader in every aspect of your life if you take time to evaluate yourself, allow others to evaluate you, and pursue a mentoring rela- tionship with someone who has the experience and values to which you aspire. Leadership isn’t something you have to be born with—you can build it if you’re willing to let others help you.

Do It... 6.2: Develop Your Own Leadership Skills Answer the seven ques-

tions related to your own five Is on the previous page. If you can, have a per- son you trust answer those same questions about you. Do you feel like you have what it takes to be a leader? If so, what leadership style do you think you would be most comfortable with, and why? Be prepared to submit your re- sponses electronically if your instructor asks you to do so.

Now Debrief... • Effective leaders have similar qualities: they inspire, in-

novate, and initiate, and they are introspective and have integrity.

• But even if leaders share these traits, they don’t all follow the style of leadership or use the same style of leadership all the time. An autocratic leader is a micro- manager who typically tells employees what to do and how to get it done. A democratic leader works with employees to find the best way to get the job done while maintaining final authority. A free-reign leader is a “hands-off” type of leader who allows others to have complete freedom in their work environment.

• You’ll put yourself in a great position to become a better leader in every aspect of your life if you take time to evaluate yourself, allow others to evaluate you, and pursue a mentoring relationship with someone who has the experience and values to which you aspire.

Concept A

Concept B

Concept C

Concept D

Mentor with a Leader

Time for the Cross-Examination

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TEACHING TIP One way of helping students understand what it takes to be an effective leader is to have them search the Web for a classified advertisement seeking a manager. Ask them to come to class prepared to discuss what kinds of qualities the company is looking for, and what sort of leadership skills the position requires.

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 139

3. Thinking About the Future: Having a Vision

What led PepsiCo CEO Indra K. Nooyi to set her sights on transforming a company whose profits were founded on sugary sodas and fatty snacks into a socially and environmentally

conscious company selling healthier products and using green technology? Vision. To help make her vision a reality, PepsiCo sold KFC, Pizza Hut, and Taco Bell and soon acquired Tropicana and Quaker Oats. In addition to producing healthier products, Nooyi also

wants to produce these products in a more environmen- tally conscious way, opting for solar and wind power in- stead of fossil fuels.13

As you can see, leaders help establish a vision for an organi- zation. But what is a vision? How is it different from a mission? And how can you set a vision for your own career? In this sec- tion, we’ll find out.

Creating a Vision When you imagine yourself doing various things in the future, you’re envisioning yourself doing these things. Organizations do this, too, and they convey this image to employees and the world through a vision statement—a document explaining where the company wants to go.

Leaders help establish the vision for the organization and are responsible for articulating that vision to everyone else. A vision statement should help motivate, inspire, and excite everyone in an organization. It should also help provide direction and focus to the future. All of this can be done in a few sentences or a few pages, but no matter the length, the vision needs to draw a visual picture of the future that is clear to all stakeholders.

Although vision and mission are often used interchangeably, they’re very different. A mission statement is a statement that describes why the company exists as well as its present purpose. Ideally, it is brief, succinct, and easily remembered and referenced on a daily basis by employees to determine, among other things, whether what they are doing today is what they should be doing. To help see the difference, add “-ary” to the end of each. What’s the difference between a visionary and a missionary? A visionary is someone who looks to the future to see what’s pos- sible, whereas a missionary is someone who is carrying out a task (usually the vision).14

Vision statements are sometimes purposely outrageous. In an atmosphere of competition, an organization is most likely to succeed if it is being driven by a vision that is always just slightly out of reach. For example, Amazon.com’s vision statement is “to be earth’s most customer cen- tric company; to build a place where people can come to find and discover anything they might want to buy online.”15 To be “earth’s most” anything is not only unlikely but also immeasura- ble. And while Amazon.com does offer a wide range of products—from bison burgers to solar panels—offering customers literally “anything” is also exaggeratedly ambitious. However, don’t

What does it take to make a vision?

In Conversation: Mission and vision are often used interchangeably in the context of goals, priorities, or plans. For an organization, these are two distinct statements.

In Business Terms: An organization’s mission describes why the company exists. Its vision is an idealized version of how it sees itself in the future in relation to its purpose.

Example: Hunger relief agency Stop Hunger Now’s mission and vision statements are as follows:

Mission: To provide food and life-saving aid to the world’s most destitute and hungry in the most efficient, effective and sustainable manner.

Vision: To end hunger in our lifetime.

Translation Guide

Idealistic

Inspiring

Future

Vis ion

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TEACHING TIP Have students check the Web for a company that produces a product they like. What is the mission statement for the company? Does it adequately reflect the company as the student sees it?

140 Leadership Vision

think that vision statements are not meant to be fulfilled. The vision statement is the dream, and generally most of us want our dreams to come true.

So, are organizations with lofty vision statements being ridiculously grandiose? Do vision statements just pay lip service to inflated executives’ egos? No, they actually serve a purpose. Consider how a vision statement can affect each of the four hats:

• Owners/Investors: Owners can work with an organization’s leaders to ensure that every- one is on board with the vision. It’s important that the organization’s vision aligns with the owners’ goals and beliefs.

Consider Local Harvest Café and Catering, a food service company based in St. Louis. The com- pany’s vision of using only local, organic ingredients aligns with the owners’ goal of providing high- quality food with minimal impact on the environment. If the owners wanted to become a national brand that everyone has heard of, the company’s vision would be very different.

• Managers: Managers can use the organization’s vision as a tool for motivating people to strive toward an idealized set of priorities.

In the case of Local Harvest Café and Catering, a manager emphasizes the use of locally grown ingredients over the variety of food offered to customers. The manager may need to limit which dishes the chefs prepare throughout the year depending on which ingredients are available.

• Employees: A vivid and inspirational vision can be a potent motivator for employees of an organization.16 It serves as a consistent guiding force that everyone can turn to when making decisions. If the employees are constantly asking themselves if their decisions are in line with the organization’s vision, then the organization can really function as a cohe- sive unit.

Employees at Local Harvest Café and Catering must consider the company’s vision of sustain- ability when carrying out tasks like finding suppliers, packaging goods, and disposing of waste.

• Customers: Customers can use an organization’s vision statement to assess whether the organization is one they want to do business with. They may ask themselves whether the organization’s vision aligns with their own priorities and ideals.

If a customer feels strongly about supporting local businesses or living sustainably, he or she may choose to buy products from Local Harvest Café and Catering rather than a large supermarket.

Your Personal Vision Think about what might happen if you made a vision statement for your own personal organi- zation: you. In 1984, Madonna famously told Dick Clark that she wanted “to rule the world.”17

In a sense, this was her vision statement. It guided her extraordinarily successful career that has spanned many decades and industries. Although she has never actually been crowned ruler of the world, she has come pretty close to achieving her lofty vision. What are your own career goals, and how might you articulate a vision statement to guide you toward achieving them?

Say your goals are to work for a non-profit organization that helps women who are home- less, domestic violence survivors, or recovering addicts. Your vision might sound something like this:

To improve the quality of life of women and create a supportive community in which they can thrive as self-sufficient individuals.

This vision provides a framework for your career planning, so all of your goals and objec- tives should align with it. It should help answer the questions:

• What choices should I make?

• How do I want to lead my career life?

It’s OK if you never achieve your exact vision. Instead, the vision should help push you in the right direction and show you what is possible.

A vision statement should help motivate, inspire, and excite everyone in an organization.

Inspiring

Future

Idealistic

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 141

4. A Case for Change: Transformational Leaders

Sometimes, employees and an organization’s vision statement don’t align. In this case, what’s a leader to do? This is just one instance when leaders need to know how to lead change and in- fluence reaction to change within the organization as well as outside it.

A leader who inspires and stimulates positive change in his or her followers is sometimes referred to as a transformational leader. Change can often be unsettling for people because it means they have to learn about the unknown. People tend to prefer the status quo because predictability and tradition are safe concepts to wrap your head around. There’s no fear there. However, transformational leaders understand that change is essential for growth, so they mo- tivate those around them to transform.

Instilling Confidence Have you ever known someone who really made an impact on you or made you want to change something about yourself? Maybe it was a teacher, a boss, or even an older sibling,- —someone who really took an interest in you as an individual, who stimulated you intellec- tually, inspired and motivated you, and served as a role model? If so, you know that transformational leaders can be so inspiring that they help instill a sense of self-confidence in others, a confidence that allows others to embrace change because they believe they can handle it. A transformational leader leads others to seeing change as an opportunity in which they can thrive.

Consider Carlos Gutierrez, the former CEO of Kellogg Company. As Gutierrez assumed the role of CEO, the Kellogg Company was struggling to compete in the cereal market. The company needed to adapt to changing customer demands. By tuning into customer needs, ral- lying employees behind new products, and improving relationships with retailers, Gutierrez

Do It... 6.3: Create a Vision Statement Create a vision state- ment for yourself that is no longer than one page. Share it with a close friend and invite his or her input. Be prepared

to submit your vision statement electronically if your instruc- tor requests it.

Now Debrief... • A vision statement is a statement that explains where

the company wants to go. It helps provide direction and focus to the future. A mission statement is a statement that describes why the company exists as well as its present purpose.

• Vision and mission are often used interchangeably, but a vision is an idealized version of how an organization sees itself in the future, whereas its mission describes what it does to fulfill that purpose in the present.

• Setting a vision statement for your own career can keep your goals focused and communi- cates them to prospective employers.

Concept A

Concept B

Concept C

Concept D

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Up for Discussion Say you have a friend who is considering buying two new delivery trucks for his small business. What type of financing would you recommend? How would your answer change if your friend was considering buying two new lots/buildings to open new branches of his business?
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Lesson Plan Activity 6.3 : Do It: Create a Vision Statement In this activity students create their own vision statements. See p. 56 of the Instructor's Manual for a full description of this activity.

142 Leadership Vision

helped Kellogg bounce back from its economic struggles to become a successful company once again.

Sometimes, transformational leaders need to not only respond to change, but they also need to actively create it. By looking to the future and leading innovation, they can ensure that the changes that occur are most beneficial for their organizations. Willingness to change is a crucial function of a successful company because it prevents complacency and stagnation, which can be a deadly combination to a business. Good leaders, who thrive in and seek out an atmosphere of change, are the lifeblood of any lasting organization.

Helping Others Accept Change So, you know the power of change, but how does change happen? And what can good lead-

ers do to make others feel comfortable with change? Often, people won’t accept change until they understand how they can benefit from it. According to commu- nications scholar Everett Rogers, people go through a five-step process when as- sessing their reaction to something new:

Step 1: Know: You’re aware of the change and basically understand it.

Step 2: Persuade: Once you learn more about the change, you form an atti- tude about whether or not you like it.

Step 3: Decide: You actively decide to accept or reject the change.

Step 4: Implement: You experience the change.

Step 5: Confirm: After you experience the change, you evaluate your decision to adopt it.18

The leader’s role in this process is to motivate and guide people throughout. Leaders need to get people to see and understand their vi- sion for the future—what they see as “better.” They also have to walk people through the change and guide them, making it safe for them to let

go of old habits and the present.

Although people tend to follow these five steps when faced with change, their reactions also vary. Whether they’re settling into a new job—or even just buying a new television or computer—people tend to either be innovators, early adopters, middle adopters, late adopters, or laggards. This is important for leaders to understand, because they need to know who their fol- lowers are to successfully lead change. Before you read the following, try to guess which one you are—an innovator? Early, middle, or late adopter? A laggard?

• Innovators: We all have friends who are always the first to buy the newest gadget. Then, there are those who take it a step farther and actually play a part in developing

the next big thing. Maybe they beta-test software no one else has heard of or use Apple’s iPhone software developers’ kit to create a new app. These are the innovators. Generally the first 5 to 10 percent of adopters,19 innovators are quick to embrace change and seek new ways to take advantage of existing technology. Leaders do not have to con- vince innovators that change is necessary. In fact, innovators actively seek to be the change themselves.

• Early Adopters: Early adopters make up 10 to 15 percent of the pub- lic20 and look to the innovators to help figure out whether they want to

adopt the innovation or change. For example, if early adopters see that the innovators are pleased with the change or a new purchase, they are more likely to adopt that change or go out and buy the new item themselves. In terms of leadership, this is the group in which

Willingness to change is a crucial function of a successful company

because it prevents complacency and stagnation, which can be a deadly

combination to a business.

Reacti ng to C

hange

Step 1 : Know

Step 2 : Pers

uade

Step 3 : Decid

e

Step 4 : Impl

ement

Step 5 : Conf

irm

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 143

many leaders reside.21 This group is highly regarded for being more cautious than innova- tors, while also being open to quickly embrace change.22

• Middle Adopters: Approximately 30 percent of people fall into the category of middle adopter.23 Middle adopters may not be as distrustful of change compared to late adopters or laggards, but they still avoid risk. They are less likely to accept change, simply because they are not looking for change as eagerly as innovators and early adopters are. However, if an innovation or change has positively benefited the first two groups, the middle adopters will likely adopt it.24 Once something new reaches the middle adopter, it’s likely no longer considered new and will have become the status quo. In terms of leading change, if leaders can get middle adopters to accept and embrace change, they are well on their way to success.

• Late Adopters: Late adopters represent another large portion of society, approximately 30 percent,25 who follow the middle adopters. Late adopters are reluctant to change, but they generally decide to change so they don’t miss out on the next big thing.26 Because they are risk-averse, late adopters will only take the plunge once they know the water is safe. They hang on to the existing way of doing things out of loyalty for what they have or the fear of trying something different.27 Leaders trying to create change will therefore have to work harder to get late adopters to accept and embrace change.

• Laggards: Laggards, about 20 percent of society,28 are most resistant to change. These are the people who may prefer their VCRs because they don’t understand how a DVD player works. Laggards may be isolated from society. When this happens, they have fewer social connections, which can prevent them from seeing the benefit of an innovation or

change.29 In business, leaders must be aware of the risks laggards pose. For example, fear of upsetting the status quo may prevent lag- gards from investing in newer, better technology, thus, making the company less competitive.

So, after reading this list, were you right in guessing which cat- egory you were? If you identified yourself as a leader earlier in this chapter, then you are also likely to be in one of the groups more comfortable with change. If you are slower to come around to change, what do you think a good leader could do to bring you around? The next section explores some of the ways good

leaders go about avoiding the pitfalls of change, and ensur- ing its success.

Avoiding the Pitfalls of Change So, you understand that change is important to an or-

ganization and that effective leaders know how to cre- ate and lead that change. What makes a change program fail?

Is it because no one wants to change? Is it a result of poor leadership? How can leaders avoid the pitfalls of change?

John Kotter, a recognized authority on leadership and change, put together a list of reasons why failure happens when trying to lead change. See if you agree.

1. Allowing too much complacency: Complacency is being satisfied where you are and not taking the initiative to grow. When people get complacent, they aren’t motivated to change.

2. Failing to build a substantial coalition: A coalition is an alliance of two or more groups. For change to be beneficial, this alliance needs to be influential enough to get others involved. Many successful change programs involve powerful members of an organization with sen- ior management at their core.

Why Failure Happens

Why Fa ilure H

appens

1. Allow ing too

much compla

cency

2. Faili ng to b

uild a s ubstan

tial co alition

3. Faili ng to u

nderst and the

need f or

a cle ar visi

on

4. Faili ng to c

learly c ommun

icate t he

visio n

5. Per mittin

g roadb locks

against the

visio n

6. Not plannin

g and g etting

short- term

wins

7. Decl aring v

ictory too so

on.

8. Not anchor

ing cha nges in

corpo rate

cult ure

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Lesson Plan Activity 6.4 : Accepting Change: Are You an Innovator or a Laggard? In this activity students discuss their typical reactions to change. See p. 56 of the Instructor's Manual for a full description of this activity.

144 Leadership Vision

3. Failing to understand the need for a clear vision: A clear vision helps rally and inspire em- ployees. Without a clear vision, a change program may break down into various plans without a sense of direction.

4. Failing to clearly communicate the vision: Communicating the vision is essential for change because if employees don’t understand what’s going on, they probably won’t be willing to participate in the change.

5. Permitting roadblocks against the vision: If people accept a change program, there may still be roadblocks stopping them from fulfilling the vision. Roadblocks include individuals unwilling to change or an organization’s structure.

6. Not planning and getting short-term wins: To keep and gain momentum for change, it’s necessary for leaders to plan for short-term wins. Without this positive reinforcement, many people will give up.

7. Declaring victory too soon: It can take years for changes to be truly incorporated into an organization’s policies. Declaring victory too soon can cause people to regress back to their old ways.

8. Not anchoring changes: Without ingraining a change program into the organization’s poli- cies, behavior and values may change as soon as the call for change stops.30

Many of the items on the list go back to a company’s vision. As we discussed earlier, the vision is important because it gives all employees in the organization a sense of direction and something to work toward. This is where great leaders come in. They not only help create a vision, but they communicate that vision throughout.

In order to avoid these mistakes, Kotter31 also created a change model to help ensure success. To consider this model in context, imagine that you’re a business

leader at a company that produces a monthly magazine targeted at financial professionals. You see that many other magazines have begun to offer online components, and you be- lieve it’s time for your company to follow suit. How can you initiate and implement this change?

1. Establish a sense of urgency: To get people to change, you need to give them a good reason to change. Leaders help break the cycle of complacency and help all employees realize that in business, you have to grow to survive. Leaders know that peo- ple can change in the face of a crisis or a great opportunity, so they need to convey this urgency when they see change on the horizon.

As the leader of a print magazine company, you need to show employees that media channels are changing. To remain com-

petitive as a source of financial information, you need to publish content online as well as in print.

2. Create a coalition: A strong coalition is vital for a successful change program. At the very least, the coalition should include upper management. Without support, you won’t be able to get the program off the ground. Ideally, you’d want the

Ensuring Success

Change Model

1. Esta blish a

sense of

urge ncy

2. Cre ate a c

oalition

3. Deve lop a c

lear vis ion

4. Shar e the v

ision

5. Emp ower p

eople t o clear

obst acles

6. Sec ure sh

ort-te rm win

s

7. Con solidat

e and k eep

mov ing

8. Anc hor th

e chang e

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CHAPTER VIDEO 6.2 Organizational Culture at TerraCycle Running Time: 6 min. This video shows how TerraCycle uses objectives in team management. See p. 59 of the Instructor's Manual for a full description of the video, questions, and suggested answers.

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 145

support of the entire organization, but if you wait for that before going through with a change program, nothing will get done.

Remember the different types of people who embrace change from earlier in the chapter? As the leader of a print magazine company, invite them on your team right away in order for your coalition to grow.

3. Develop a clear vision: As discussed earlier, you need a vision to rally and inspire em- ployees to accept change. Without it, an organization may suffer from a lack of focus.

At your magazine, this means creating a vision that emphasizes the company’s desire to reach an increasing number of consumers through online content.

4. Share the vision: To get everyone onboard for change, leaders need to communicate their plans, in both words and actions.

At your magazine, this means having management circulate the vision and incorporate it into staff meetings whenever possible.

5. Empower people to act: Employees should feel like they have the ability to embrace a change program. However, to do this it’s important to clear their path and make the trans- formation smooth.

In the case of the magazine, if employees are hesitant or suspicious of moving content online, have them try the new online magazine for themselves and give feedback. Once exposed to the new format, employees may feel more involved in and accepting of the change, and they may provide useful suggestions.

6. Secure short-term wins: Short-term wins are essential for keeping people motivated. If someone told you to change the way you work for the good of the company, but you never saw the results, wouldn’t your motivation be negatively affected?

At your magazine, create a plan to see results within 12 to 24 months; otherwise, some of your supporters may switch teams.32

7. Consolidate and keep moving: After celebrating a small goal, you may be tempted to take it easy. This can lead to one of the reasons change programs fail that’s listed above: “Declaring victory too soon.”

As the magazine’s leader, celebrate small victories to reaffirm your team’s motivation to ac- complishing the overall vision.

8. Anchor the change: After going through all of these phases, it’s important to cement these changes in the organization’s policies. By showing people how the change is work- ing and ensuring management is reinforcing the change, the change is being ingrained throughout the company. It’s also important to get employees to connect the imple- mented changes with the success of the organization.33

At your magazine, this may mean keeping track of the number of visitors to your online maga- zine to show employees how the company is expanding its reach even as it changes.

It’s one thing to be given a list of phases for establishing change, but it’s another to see them in motion. In Martin Luther King, Jr.’s famous “I Have a Dream” speech, he declared the “fierce urgency of now” and demanded that America had to change its ways when it came to granting rights to all of its citizens.34 The time to wait had passed. Those who call for change need to in- still a sense of urgency in their followers if they are to enact any change. This speech provided inspiration for generations of people to change and instill that change throughout society.

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Up for Discussion Can professors use the change management management model described by Kotter to develop skills in the classroom? How would that work, exactly?

146 Leadership Vision

5. There’s No I in T-E-A-M

What happens when your professor announces a group project? Often, the room fills up with the sound of muffled groans. Group projects can mean working with people who aren’t your friends, and the projects usually require everyone to contribute, so no one can sit back and do nothing. Working with others can be an efficient way to tackle a project, and teams are be- coming more and more common in organizations.

As you already know, without solid leadership, a team can be a nightmare of inefficiency. The true mark of a successful leader is the ability to lead a group of people to achieve a com- mon goal. Since a leader is responsible for aligning people to realize his or her vision, it’s vital to understand group dynamics and how teams develop. But what is a team? And how does it differ from a group? Any time a collection of people come together and form a relationship to achieve certain goals, then they can be considered a team. On the other hand, a group is an assembly of people who have a relationship. The difference is that a team has a defined pur- pose or goal, and a group doesn’t.

Teams require a stable structure. They also must recognize themselves as one and oper- ate as a functional unit. Just look at a basketball team. On the court, it’s assembled precisely to achieve a goal—winning the game. It is also arranged in a formal structure because each player is assigned a specific position on the team. Teams hold each other accountable for their actions and are selected because of their complementary skills and abilities. Because of this, a team is greater than the sum of its parts.

Do It... 6.4: Create a Change Program Describe a current situation in your job, at school, or with your family, roommates, or friends where some change would be helpful. Describe how you could execute each of the eight phases in

the change model for this specific situation. Limit your response to two pages, and be prepared to submit it electronically or discuss it in class.

Now Debrief... • A transformational leader is a leader who inspires and

stimulates positive change in his or her followers. Change is necessary for organizations because becoming com- placent and stagnant can be deadly.

• Leaders help motivate and guide people toward change. Once a change or innovation is created, people go through a process of knowledge, persuasion, decision making, implementation, and confirmation.

• However, this process doesn’t happen for everyone all at once; different people have dif- ferent ways to get there. Types of people include innovators, early adopters, middle adopters, late adopters, and laggards.

• Many change programs fail. Reasons for failure include allowing too much complacency, fail- ing to build a substantial coalition, failing to understand the need for a clear vision, failing to communicate the vision, permitting roadblocks against the vision, not planning and getting short-term wins, declaring victory too soon, and not anchoring change.

• John Kotter created a model to successfully implement change. The steps in this model are to establish a sense of urgency, create a coalition, develop a clear vision, share the vision, em- power people, secure short-term wins, consolidate and keep moving, and anchor change.

Concept A

Concept B

Concept C

Concept D

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CHAPTER VIDEO 6.1 Groups and Teams at Kluster Running Time: 6 min. This video shows how the Illuminator Project team at Kluster interacts with each other. See p. 58 of the Instructor's Manual for a full description of the video, questions, and suggested answers.

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 147

Creating and leading a successful team doesn’t happen overnight. It takes a lot of work. Because so many modern workplaces are focused on teamwork, understanding how to develop a team is very important.

Stages of Team Development Teams don’t form in a vacuum. Like anything that grows and develops, the for- mation of a team occurs in stages, and these various stages occur throughout the life of the team. The following is a five-stage model that identifies each stage of a team’s development.

Stage 1: Forming. This is the stage in which members first come together and get to know each other. The ground rules of the group are established at this point.

For example, several employees appointed to a pro- fessional development committee may come to- gether for an initial team meeting. Once the ice is broken and members understand their standing in the group, the forming stage is complete, and the

group moves on to the next stage.

Stage 2: Storming. In this stage, there is a large amount of conflict within the group. Group mem- bers may not get along, or they may resist the leader’s control.

In the case of the professional development commit- tee, members may disagree on the company’s train- ing needs or how to best conduct training. If this behavior continues, the group could break up. However, these conflicts may also make for a stronger team. If the conflicts can be overcome, the

group will move on to the next stage of development.

Stage 3: Norming. This is when the group be- comes more cohesive and the individual mem- bers begin to feel part of the team. This is the best time to establish the team’s vision or mis- sion because the team is building toward a

common purpose.

In the professional development commit- tee, close relationships develop among individual members, leading to a feeling of solidarity for the team.

Stage 4: Performing. Once a team has settled on a set of expectations and a process for getting things done, they’re ready to move on to the per- forming stage. All the growing pains of starting the team have been worked out, and the team is now ready to get to work. Team members can now devote themselves to achieving their goals. The performing stage is likely to last the longest since it constitutes the whole purpose of forming the team in the first place.

For example, the professional development committee may begin to conduct specific company training.

Teams hold each other accountable for their actions and are selected

because of their complementary skills and abilities. Because of this, a team is

greater than the sum of its parts.

Stage 1: Forming

Stage 2: Storming

Stage 3: Norming

Employee

ID

owner/investor

ID

Mana ger

ID

Stage 4: Performing

Employee

ID

owner/investor

ID

Mana ger

ID

Employee

ID

owner/investor

ID

Mana ger

ID

Stage 5: Adjourning

Hi, nice to meet you.

Achieving our goals

Employee

ID

owner/investor

ID

Mana ger

ID

How can you tell if your team has moved to the next stage?

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TEACHING TIP Remind students that team leaders must assume very different roles in each stage if a group is to function effectively. In the forming stage, a leader has to facilitate group interactions. In the storming stage, a leader has to make sure that everyone's opinion is heard, and moderate discussion. In the norming stage, the leader is responsible for clarifying team norms and roles. In the performing stage, the team leader facilitates task performance (often through the procurement of resources). Finally, in the adjourning stage, the leader helps bring closure to the group by signalling the completion of a task or team effort.

148 Leadership Vision

The first thing a capable leader needs to do is delegate specific tasks to the right peo- ple according to their individual skill set while also effectively explaining and clarifying

the task and the goal. Once team members are given tasks, leaders should empower them to become self-motivated. As we discussed earlier, the role of the leader is not to dictate everything team mem- bers are supposed to do. Instead, leaders help keep team members focused and motivated. (Want to know more about delegating to team members? Check out Chapter 11.)

Delegating Tasks

One of the most detri- mental situations that

can plague any type of group is groupthink. Groupthink is the tendency for a team to want to conform in an ef- fort to minimize conflict. You’ve witnessed this if you’ve ever been in a group where everyone wanted to get

along or everyone agrees with what the first person said. In situations like these, there is a general lack of analysis and

critical thinking. Members of a team in a groupthink situ- ation value conformity over evaluating the facts of a situ- ation.35 Team members may go along with a decision

even if it doesn’t make sense.

To help prevent this type of situation, leaders must promote in- dependent thinking. During a meeting, the leader may need to draw out individual opinions by asking each team member directly what he or she thinks. The leader may also decide to meet with team members individually before discussing the matter in a group setting.

Avoiding Groupthink

Stage 5: Adjourning. The fifth and final stage occurs only if the team has completed the mission it set out to do. If there are no other tasks to accomplish, the team may de- cide to disband.

For example, if the professional development committee has accomplished its goals, it may agree to disband.

At each stage, leaders need to remain aware of what kind of upkeep and damage control may be required to maintain the team’s efficiency and cohesion.

Different styles of leadership are also needed at different stages of team development, and team leaders need to understand which style—autocratic, democratic, free-reign, or other—is most effective at each stage. For example, an autocratic style may be needed dur- ing the forming stage because it’s necessary for the leader to take charge and get things mov- ing in the right direction. However, the take-charge persona of an autocratic leader may not be effective if it is used during the norming or performing stage, which is when feedback and cooperation are needed. An effective team leader is therefore able to adjust his or her style as appropriate.

Avoiding and Resolving Team Issues After leaders have developed and built a team, they need to put those leadership skills to work again and direct the team. This requires the leader to rally everyone together toward a com- mon goal and keep the ball rolling while avoiding common problems that pop up in teams.

T

E

A M

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Lesson Plan Activity 6.5: Team Development: Stages in a College Class In this activity students examine the behaviors of a college team at each stage of team development. See p. 57 of the Instructor's Manual for a full description of this activity

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 149

The most valuable input often comes from team members who can analyze and learn from their work experiences. Leaders can facilitate

this type of analysis by encouraging the continuous learning approach, which is the process of learning how to learn.36 Basically, continuous learning refers to learning through life experiences and reflection. Someone who embraces continuous learning would see work as a valuable learning experience. Leaders can adapt this idea by allowing the free flow of information by discussing goals and clarifying the vision. The goal of continuous learning is that knowledgeable team members will be less likely to conform or go with the flow in team situations.

Encouraging Continuous Learning

After the team is organized and thinking independently, it’s vital for a leader to pro- vide feedback. Feedback can mean identifying acceptable behavior and encouraging

that it continues, or it can mean identifying opportunities for improvement and continuous learning. In order to be effective, leaders have to be specific. For example if you were told, “Overall you do a really good job, but sometimes you don’t pay attention to little things,” what would you think? Although this gives you an idea of an area you need to work on, it doesn’t tell you much else. Now, how would you react if you were told, “Your work on the Peterson proj- ect was spot on. The next step is to focus on improving your spelling and grammar”? Isn’t this more helpful in correcting a problem area?

When giving feedback, it’s also important to keep things professional and focus on the be- havior, not the person, giving suggestions for what to do differently. Take the example above. Would your reaction be different if your manager told you, “Your work on the Peterson proj- ect was spot on. I also think you should know you’re a terrible speller with poor grammar”? That’s harsh and unnecessary, right? Also, effective leaders don’t wait too long after they notice a problem to provide feedback. Immediate feedback is best.

Providing Feedback

Do It... 6.5: Distinguish Between Group and Team Select two team projects on which you have worked: one in which you felt good about the project and

the people, and one in which you didn’t feel good about the project or the peo- ple. Quickly list bullet points of what worked or didn’t work in each case. Which project fits the term “group”? Which project fits the term “team”? Now, with a partner, compare and contrast your two lists. Be prepared to submit your lists electronically or present them to your class.

Now Debrief... • A team is a collection of people that come together

and form a relationship to achieve certain goals. A group is an assembly of people who have a relation- ship. The difference is that a team has a defined pur- pose, but a group doesn’t.

• Teams form in the following stages: forming, storming, norming, performing, and adjourning.

• During the teambuilding process, the leader has the responsibility of delegating tasks, avoid- ing groupthink, promoting continuous learning, and providing feedback.

Concept A

Concept B

Concept C

Concept D

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TEACHING TIP One way of clarifying the distinction between specific behavioral feedback and vague traits is to ask the class to describe you (or your teaching). Without labeling the columns, traits go into one, and behaviors into another. Then ask the class to tell you how the words in the columns differ, and which would make better feedback for a new teacher.
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Suggested Homework For suggested homework assignments, see p. 57 of the Instructor's Manual.

Chapter 6 Visual Summary 150 Leadership Vision

1. Distinguish managers from leaders, and recognize the importance of effective followers. (pp. 132–134)

• A manager has formal authority and takes care of planning, organizing, directing, and controlling the organization. A leader can be found anywhere in an organization and has the ability to motivate, inspire, and influence the behavior of other people.

• Employees listen to managers because they have to, but they listen to leaders because they want to. People follow the leader, but report to the manager.

• Followers are just as important as leaders because leaders may have trouble being effective without a team to support them. There are two types of followers: effective and ineffective.

Summary: The roles of managers and leaders are different but complementary, and both are necessary for an organiza- tion’s success.

2. Identify effective leadership, and develop leadership qualities in yourself. (pp. 134–138)

• Effective leaders have similar qualities: they inspire, innovate, and initiate, and they are introspective and have integrity.

• Leadership styles include auto- cratic leaders, democratic lead- ers, and free-reign leaders. An autocratic leader is a micromanager who typically tells employees what to do and how to get it done. A democratic leader works with employees to find the best way to get the job done while maintaining final authority. A free-reign leader is a “hands-off” type of leader who allows others to have complete freedom in their work environment.

• Leadership qualities can be developed in many ways, such as by evaluating yourself, allowing others to evaluate you, and pursuing a mentoring relationship with someone who has the experience and values to which you aspire.

Summary: People follow leaders because leaders exhibit qualities that draw others to trust and follow them. You can develop leadership qualities in yourself in many ways.

Leadership Vision | Chapter 6: Lead Chapter 7: Own Chapter 8: Act

3. Explain how a vision provides direction for an organization, and create a vision for your own career. (pp. 139–141)

• A vision statement is a statement that explains where the company wants to go. A vision statement should help motivate, inspire, and excite everyone in an organization. It should also help provide direction and focus to the future.

• A mission statement is a statement that describes why the company exists as well as its present purpose.

• A personal vision statement can help push you in the right direction and keep you focused.

Summary: Vision statement and mission state- ment are often used interchangeably, but they should not be. A vision statement is associated with the future, and a mission statement is as- sociated with the present.

Manager

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Inspiration

Innovation

Init iativ

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Intr ospe

ctio n

Integrity

Idealistic

Inspiring

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Vis ion

vansyckbarbara
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TEACHING TIP In the debriefing, stress again that organizations need both managers and leaders, and that the best leaders are also good managers.

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 151

4. Describe the importance of change, and be able to lead it effectively and avoid its potential pitfalls. (pp. 141–146)

• A transformational leader is a leader who inspires and stimulates positive change in his or her followers.

• Generally, there is a five-step process that people go through when they come across something new: knowledge, persuasion, decision, implementation, and confirmation. The leader’s role throughout this process is to channel his or her inspirational influence by motivating and guiding people.

• However, people don’t follow this process at the same time; some people take their time, while others are ready to jump onto new trends right away. Generally, people are innovators, early adopters, middle adopters, late adopters, or laggards.

• Before implementing any type of change, it’s good to know the common pitfalls of change programs. The most common reasons for failure include allowing too much complacency, failing to build a substantial coali- tion, failing to understand the need for a clear vision, failing to communicate the vision, permitting roadblocks against the vision, not planning and getting short-term wins, declaring victory too soon, and not anchoring change.

• To help facilitate change, John Kotter created a model to help ensure success: establish a sense of urgency, create a coalition, de- velop a clear vision, share the vi- sion, empower people to act, secure short-term wins, consolidate and keep moving, and anchor change.

Summary: Change is essential for growth, so leaders must motivate everyone around them to transform. However, it’s im- portant to understand why change programs fail, as well as ways to ensure success.

Reacti ng to C

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Step 1 : Know

Step 2 : Pers

uade

Step 3 : Decid

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Step 4 : Impl

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Step 5 : Conf

irm

5. Form effective teams and resolve team issues. (pp. 146–149)

• A team is a collection of people who come together and form a relationship to achieve certain goals. A group is an assembly of people who have a relation- ship. The difference is that a team has a defined purpose, while a group does not.

• Teams generally develop in five stages: forming, storming, norming, performing, and adjourning.

• The mark of a good leader is the ability to lead a group of people to a common goal. Because a leader is responsible for aligning people to realize his or her vision, it’s vital to understand group dynamics and how teams develop.

• The leader has the responsibility of direct- ing the team. This includes delegating tasks, promoting continuous learning, deterring groupthink, and providing feedback.

Summary: Because modern workplaces focus on teamwork, it’s important for leaders to understand how to develop, build, and direct a team.

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152 Leadership Vision

• Apply your skills in an interactive environment with more BizSkill experiences...and see if you have what it takes

• Think critically and talk with your peers on hot business topics in BizChat

• Flex your business communication skills and build your own portfolio with the Communication Plan exercises

• Watch the chapter material come together with Just Plain Business videos

• Study on-the-go with Audio Chapter Summaries in MP3 format

• Brush up on the lecture and content with Audio PowerPoints

• Discover how well you are doing and see what areas you need to improve on with the Pre-Tests and Post-Tests

Get the most out of what you just read by practicing your skills and actually DOING something with the material! The best place to do this is at www.mybizlab.com. Here’s just some of what is available to you there:

Key Words

1. Distinguish managers from leaders, and recognize the importance of effective followers. (pp. 132–134) Manager (p. 132)

Leader (p. 132)

2. Identify effective leadership, and develop leadership qualities in yourself. (pp. 134–138) Emotional intelligence (p. 135)

Autocratic leader (p. 136)

Democratic leader (p. 136)

Free-reign (or laissez-faire) leader (p. 136)

3. Explain how a vision provides direction for an organization, and create a vision for your own career. (pp. 139–141) Vision statement (p. 139)

Mission statement (p. 139)

4. Describe the importance of change, and be able to lead it effectively and avoid its potential pitfalls. (pp. 141–146) Transformational leader (p. 141)

5. Form effective teams and resolve team issues. (pp. 146–149) Team (p. 146)

Group (p. 146)

Groupthink (p. 148)

Continuous learning (p. 148)

These key words and more are also available as flash cards to practice with at www.mybizlab.com.

Chapter 6 | Lead: Vision, Integrity, Change, and Teams 153

Prove It Prove It...

Now let’s put on one of the BizHats. With the Employee BizHat squarely on your head, look at the following exercise:

Imagine you’re an intern in the marketing department for a big corporation that you hope to work for on a full-time basis one day. On your first day, you meet your new boss and

can’t tell right away whether she’s a good leader. After working with her for a few weeks, you begin to see a pattern in her working style. Every day, she takes a few minutes in the

morning to talk with the interns, either individually or in a group, about tasks that need to be completed that day. She explains the skills required for each task and tries to figure out the best person for the job. Once she assigns tasks, she periodically checks on your progress and sug- gests how things should be done. You’ve also noticed that she enjoys chatting with the interns at the coffee machine and the water cooler. Sometimes, she even joins everyone for lunch in

the cafeteria. Do you think your boss is a manager or a leader, or both? Why?

Employee

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Employee

Flip It... After you’ve decided whether your boss is a manager, a leader, or both, flip over to the Manager BizHat.

Imagine you work for a big corporation and are in charge of supervising interns for the marketing department. Part of your job is to show them how the department works and give them tasks to test their abilities. Of the 10 interns you are supervising, you are able to offer three full-time positions with the firm. Even though they are interns, your firm values leaders and is hoping to find the leaders of to- morrow. How will you go about testing the interns to see which are the top three candidates? Will you be looking for anything specific in the tasks you assign them?

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Mana ger

Now Debrief It... Compare the perspectives of the two BizHats described above. Did taking the perspective of an employee de- scribing a manager affect your list of leadership character- istics in the Flip It?

Concept A

Concept B

Concept C

Concept D

shannon
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PROVE IT Suggested Answer The boss is probably a leader because she takes a personal interest in each employee, while at the same time making sure that tasks are getting done in the right way.
shannon
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FLIP IT Suggested Answer They should look for interns who plan their work and have the skills to get it done. They should also look for interns that have good relationships with other interns.