Creative leadershipTRK / November 16th , 2009

Management toward Leadership

• Planning/ Budgeting• Organizing and staffing• Problem solving• Produces order and predictability

• Setting direction or Vision• Aligning people to the vision – Getting Buy-in• Motivating People to implement the Vision• Produces Change

Critical Skills for Success (Top 10)

Interviews were conducted with 402 managers in education, healthcare, government and business organization.

1. Verbal communication and listening skills2. Managing time and stress3. Making individual decisions4. Recognizing, defining, and solving problems5. Motivating others

Critical Skills for Success (Top 10)

6. Delegating7. Setting goals8. Self awareness9. Team building10.Managing Conflict

- 1990 survey

The most Important skills and attributes of EFFECTVE LEADERSHIP 1. Honesty and Integrity2. Clearly communicate expectations3. Recognize and reward achievement4. Adapt to changing circumstances5. Inspire others6. Put the right people in the right role at the right time7. Passion to succeed8. Identifying and articulate long-term vision for future9. Persuade and encourage others10. Accept responsibility for success and failures

- 2001 survey

Derailed Leadership

A comparison was made between 21 “derailed” executives, the common characteristics are

– Insensitivity to others; abrasive and intimidating– Cold, aloof and arrogant– Betrayal of trust– Overly ambitious; playing politics and always trying to

move up– Inability to delegate to others or to build a team– Inability to get along with others who have different

leadership style– Overly dependent on others

Voice of the Leader

More than 8,000 leaders report that PEOPLE – MANAGEMENT SKILLS are the most important attributes of effective leadership, outranking strategic management, personal characteristics or day-to-day business management

- 2001 leadership

survey

Leadership Bench strength

Leadership capabilities high in importance but low in bench strength:

– Clearly communicate expectations– Recognize and reward achievement– Inspire others– Put the right people in the right role at the right time– Identify and articulate a long-term vision for the

future– Hold people accountable– Strong commitment to staff development

- 2001 leadership survey

The Essence of Leadership

• Attention through Vision– Creates focus– Sets clear expectations– Instills and empowering self-confidence in others

• Meaning through communication– Uses metaphor– Attentive to symbolism of small acts

• Trust through positioning– Accountable, Predictable, Reliable and Persistent– “Walks the talk”

The Essence of Leadership

• Creative deployment of Self

– Recognizes strengths, compensates for weaknesses– Has positive self – regard– Has commitment to continuous learning– Has a focus on achieving success rather than

avoiding failure– Emotional wisdom (accept people as they are; focus

on the present rather than the past; treat friends and strangers courteously; trust others in the face of risk; be able to do without constant approval of others)

Becoming Better and New

In the end, our effectiveness as leaders will be determined by our ability to create value for our organizations, communities and ourselves.

The meaning and making of Leadership

What do I see ?

What does it mean ?

What should I do ?

Leadership is a journey toward visionAnd purposeful action.

The key questions of leadership are ancientAnd timeless, but have never been moreImportant now !

Speed and Magnitude - CVF

CLANCollaborateInterdependentHIERARCHYControlDependent

ADHOCRACYCreate

MARKETCompete

Independent

New

Short-termperformance

Long-termdevelopment

Better

The Hierarchy competency (control) Inwardly focused and disciplined, concerned with

improving quality and cutting costs out of production Extensive processes, systems and technology are

hallmarks of this quadrant Large numbers of standardized procedures and an

emphasis on rule-reinforcement and consistent product

Found anywhere failure is not a viable option, e.g., Medicine, Transportation, or Military services

The Hierarchy competency (control)

The wisdom of Hierarchy is that it serves to eliminate errors and increase the regularity of outcomes

Hierarchy leaders gravitate toward incremental transformational efforts and prize process planning techniques such as reengineering and total quality management.

Positive & Negative Zones

• Information management, Documentation• Stability, Control, Continuity

INTERNAL FOCUS

• Procedural sterility, Trivial rigor• Habitual perpetuation, Ironbound tradition

THE FROZEN BUREAUCRACY

Communication and Behavior styles

• Approach than in a straight forward• Supports logical, methodical approach• Present specifics• Assure no surprises• Follow through document• Provide long-term guarantees

• Planner / Organizer• Details• Precise decisions• One right way• Conservative/ cautious• Low pressure• Logical• Problem solver• Persistent• Follows procedure

The Market competency (compete)

Found most where companies are publicly traded and must demonstrate short-term profitability for shareholders

Firms that sell pharmaceuticals, consumer electronics and financial services are typically located here

Perceiving the external world as hostile and customers as self-interested and choosy

Leaders judge their success on competency share, revenue, brand equity and profitability

Positive & Negative Zones

• Productivity, Accomplishment impact• Direction, Goal clarity, Planning

STABILITY

• Perpetual exertion, Human exhaustion• Undiscerning regulation, Blind Dogma

THE OPPERESIVE SWEAT SHOP

Communication and Behavior styles

• Be clear, specific, brief and efficient• Stick to business• Present the numbers• Preferably WHAT questions• Provide service choices• Take issues with facts• Supports, use discretion

• Goal oriented• Action oriented• High achiever• Decisive• Love challenges• Tough• Control oriented• Competitive

The Clan Competency (collaborate)

Constant attention to new information and to managing resistance to new ideas

Communication systems and partnerships are sensitive to the needs, abilities and ambitions of everyone in the organization

To leaders in this quadrant, the purpose of an enterprise is to build relationships, nurture community and empower individuals, as much as making tangible goods

Positive & Negative Zones

• Commitment, Morale, Human development

• Participation, Openness, DiscussionADAPTABILITY

• Extreme permissiveness, Uncontrolled individualism

• Inappropriate participation, Unproductive DiscussionTHE IRRESPONSIBLE COUNTRY CLUB

Communication and Behavior styles

• Start with a personal commitment• Sincere interest in others as a person• Listen well, responsive and supportive• Work to achieve goals• Ask HOW questions• Be informal, orderly and friendly

• Sees potential in people• Good listener• Encourage participation• Builds teams• Respects differences• Empowers people• Creates trust• Helps people grow• Builds commitment

The Adhocracy Competency (Create)

Focused on the external world Designed for flexibility and adaptability Popularized by a tidal wave or high-tech and biotech

companies that now populate the world Highly responsive to turbulent and accelerating

conditions Leaders in this competency judge their success on the

innovativeness and future-readiness of their products, services and ideas

Positive & Negative Zones

• Innovation, Adaptation change

• External support, Resource acquisition, GrowthEXTERNAL FOCUS

• Premature responsiveness, Disastrous experimentation

• Political expediency, Unprincipled opportunismTHE TUMULTUOUS ANARCHY

Communication and Behavior styles

• Be stimulating, Boundary less• Talk about people, their goals• Support intuitions• Provide ideas for implementation• Perceive people as important• Recognize their accomplishments

• Dreamer• Loves ideas• Creative• Learns from failure• Generalizes• Persuasive• Visionary• Fast• Excitable• Enthusiastic

LEARNING - A Past Guiding Belief: Good is the opposite of bad

• Medicine studies disease to learn about health• Psychology studies abnormalities to learn about

normalities• Therapists examine disfunctionality to learn about

healthy functionality

LEARNING – Excellence as a deviance

• High performance is significantly different from normal performance

• Excellence is as critical to understand as is poor performance

• Focus on the positive instead of trying to fix the negative

Organization culture

The collective expectation system, which reflects the explicit and implicit rules that determine how people behave

It’s how we do things around here!

Where does culture come from?

Interaction in the face of uncertainty: those behaviors we exhibit under stress

Expectations emerge over time: everyone acclimates to the culture and adjusts accordingly

Why does culture matter?

Culture dampens adaptation and change (50% of all change efforts fail)

Healthy cultures make money

Results from the University of Michigan pressing problems survey10. Improving Internal processes 9. Maintaining work and life balance 8. Aligning Vision, Strategy and behavior 7. Improving customer satisfaction 6. Staying ahead of the competition 5. Producing high quality goods and services 4. Managing time and stress 3. Thinking and planning strategically 2. Maintaining high performance climate 1. Attracting, keeping, and developing good people

Senior management gap analysis

Top 5 – More of a problem• Designing and implementing effective compensation

system• Dealing with issues of e-commerce• Growing the Organization• Growing the customer base• Developing the future leaders of the company

Middle management Gap analysis

Top 5 – More of a problem• Planning and Managing a career• Managing projects• Personally coping with constant change• Managing time and stress• Managing the boss

Jack Welch’s management approach

Clan • Spends time on people• The best thing you can do for the bottom 10% is let them

know they’re on their way out• My mother taught me to kick and kiss• I’d like to have a personal relationship with every person

in the company• Personal, hand written notesHierarchy• Systems are in place• Rigorous measurement• He knows the details of business• Bureaucracy is eliminated

Jack Welch’s management approach

Adhocracy• We can change everyone’s job• We had to get out of those businesses; they were

yesterday’s business on their way out• He could see all the way to the horizon• No one accused him of having a passion deficit

Market• Don’t let anyone get between you and your

customer• I want us to be young in less than a year• I went harder when criticized• Focuses too much on bottom line• Always does several things at once• If we go digital we’ll own the business• We’re here to make this transition perfect

Jack Welch’s management approach

Customer satisfaction and complaints – Evidence from research

• A typical business hears from only 4% of its dissatisfied customers. The other 96% just go quietly away… and 91% never come back

• A survey on “Why customers Quit” fond that: 17% move away or leave away for competitive reasons, 14% dissatisfied with product, and 69% unpleasantness by an employee/ sales person

• On the average, a typical dissatisfied customer will tell 8 to 10 people about the problem. One in five will tell 20

• It costs 7 to 10 times more to get a new customer than to keep an existing one

The five dimensions of emotional intelligenceThe ability to manage oneself• Self – awareness• Self – regulation• Self – motivation

The ability to manage others• Empathy• Interpersonal competence

Two major obstacles to effective communicationDefensiveness• When individual feels threatened or attacked • Self-protection becomes paramount• Energy is spent on constructing a defense rather than on

listeningDisconfirmation• When individual feels incompetent, unworthy, or

insignificant • Attempts to reestablish self-worth take precedence• Energy spent trying to portray self-importance than on

listening

Differences between Power and Empowerment

Power• External source• Capacity to get others

to do what you want• Relatively few have

power• Leads to competition• Can be bestowed on

another

Empowerment• Internal source• Capacity to get others

to do what they want• Almost everyone can

have empowerment• Leads to cooperation• Can not bestowed on

another; must be self-developed

• Develop a personal vision• Tell the truth about current reality• Do the tough things no one else wants to do (be

respected rather to popular)• Restructure the top team, if necessary• Build a powerful guiding coalition• Guide the created shared vision

Mr. J J Irani – a CEO must do (1985)

Mr. J J Irani – a CEO must do (1985)

• Take the responsibility of main change agent• Create endless opportunities for two-way

communication• Create opportunities for innovation• Maintain focus• Realign HR systems• Model the desired managerial behavior – above all

maintain CREDIBILITY• Preserve the core values of TATAs and SELF

Mr. Kishore chauker – key attributes of effective leadership• Risk taking• Courage of conviction• Open minded• Ability to decide (grasp and synthesize)• Ability to inspire• Communicative• To choose right people• Ethics• Have followers (Precipitate change)

Thanks