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WHAT LEADERS

REALLY DO?

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AUTHORS BELIEFy Leadership and management are two distinctive acomplementary systems, each having its own functionand its own characteristic activities, but both are

necessary for the management of complexorganisations

y It tell us that, management is about planning,controlling, and putting appropriate structures andsystems in place

y Leadership has more to do with anticipating change,coping with change, and adopting a visionary stance.

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WHAT LEADERS REALLY DO?y They spend time building relationships with a wide

variety of

y Broad Interest and Breadth of Knowledge

y Curious about business, people, and ideas

y

Humor and Fun

y Influence and Impact

y

Stamina for long working hours

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SETTING A DIRECTION VERSUS

PLANNING AND BUDGETING

y Setting a direction, identify the best approaches to

selecting the best goals and methods/strategies toachieve those goals

y Planning and budgeting are essential for the

effective and efficient use of resources in running aorganization, best use is made of these processes ifthey are in balance

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DIFFERENCEPlanning and Budgeting Setting a direction

y It is a management

process

y Deductive in nature

y Designed to produceresult

y It is a leadership

process

y Inductive in nature

y It create vision andstrategy

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SETTING A DIRECTIONy Leaders create and share a powerful vision and develop a

clear plan for action

yEffective leaders are able to make things happen andachieve the results they require

y Think bigger about whats possible and get what you

deserve out of life

y help others on your team to be more decisive andachieve your desired bottom line results

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PLANNING AND BUDGETINGy Planning is always a time consuming process

y Planning has to be redone in a dynamic businessenvironment

y Planning and budgeting need support of direction

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LOU GERNSTER AT AMERICAN

EXPRESSy Challenge facedMany Banks were offering or planning to introduce credit

cards through Visa and Master cards that would competewith themFinancial firms are coming into travels' checks business

yApproach for the problemThey focus specially on the global marketplace Introducing new range of products and services to increase

the productivity and to reduce the costProviding the best possible service to the customer

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LOU GERNSTERy BeliefAs the organization should serve in top line productThe organization should have one product i.e. green card

yApproachSpecial training for the graduates management for the up

gradationsEncourage risk taking among all the employeesOrganizing Great performance program to recognize and

reward to employee for exceptionally costumer service

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ACHIEVEMENTy By 1988 American Express were issued in 29 currencies

y In 1988 It became the 5th largest direct mail merchantin the United States

y TRSs net income increased a phenomenal 500%between 1978 and 1987

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LOUGERSTNER QUOTES:y Watch the turtle. He only moves forward by

sticking his neck out.

y ''You have to be fast on your feet and adaptive orelse a strategy is useless

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ORGANIZINGy Involves creating human systems that can implement

plans efficiently

y Complex decisions taken by a firm

y Job structuring

y Recruiting people

y Provide training for needy peopley Communicate plans to workforce

y Deciding how much authority to delegate

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ALIGNMENTy Communication change

y Talking to more people than in organizing

y Target audience

Managers Sub-ordinates

Bosses

Peers

Staff in other parts of the organization

Govt officials

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COMMUNICATION CHALLENGES

y To get people to comprehend a vision of an alternative

future

y Big challenge in leadership efforts is credibility-gettingpeople to believe the message

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HOW ALIGNMENT LEADS TO

EMPOWERMENT ?

y Clear direction can help lower-level initiate actions

without feeling vulnerable

y Superiors will have more difficulty

in reprimanding them

y Everyone aiming at the same target

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EASTMAN KODAKS

TURN AROUNDy Eastman kodak entered the copy business in early

1970s

y Business grew but costs were high, profits were hard tofind

y The new GM Chuck Trowbridge met with every keyperson at Kodak

yVision: To become a world-class manufacturingoperation

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EASTMAN KODAKS TURN

AROUND (CONT.)y Measures adopted by Crandall to Align people

y Weekly meetings

y MonthlyCopy product Forum

y QtrlyState of department meetings

y Dialog letters

y

Put up huge charts in main hallway

Results: Quality increased, defects decreased,

productivity(units/employee) doubled

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WHAT DOES

MANAGEMENT DO?y Follow control mechanism

y For example: Well managed factoryPlanning process, Organizing Process and

Control Process

y Purpose of Systems and Structure

y Leads to a monotonous job

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WHAT DOES LEADERS

DO?ySet a grand vision for the team

yMotivate and inspire people

yEmployees fell ownership of the firm andtheir ideas

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WAYS TO MOTIVATE?yArticulate the vision

y Involve people in decision making

yEnhance self esteem

yRecognition and Reward

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CULTURE OF LEADERSHIPy Recruit people with leadership potential

y

Create challenging opportunities early in theircareer

y Manage their career patterns

yYoung employees are visible to senior management

y Spot people early and develop the necessary skills

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CULTURE OF

LEADERSHIP(CONT.)y Senior management plays an important role in

developing leaders

y Encourage managers to participate in these activities

y Well led business tend to recognize and reward peoplewho successfully develop leaders

y Leads to spectrum of leaders within the organizationat all levels

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PROCTER & GAMBLEy Market leaders for about 20 years in Paper Products

y Market Share fell from 70% in 1970 to 52% in 1984

y Mr. Richard Nicolosi joined in as an Associate General

Manager in Paper Products

y Found out that people are preoccupied with internal

goals and projects

y To solve the issues he stressed on teamwork and multiple

leadership roles

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PROCTER & GAMBLEy Formed small groups and passed on the responsibilities to

these teams

y Introduced the new brand business team

y Planned a motivational event to communicate the vision

y Passed on the message that Each Of Us Is ALeader

y Created a highly motivated team to accomplish the vision

y In turn helped them to capture a higher market share and

increase in bottom line