social enterprise leadership
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Leadership for SocialEnterprises
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What Executives Do
Functions of a manager (HenriFayol, 1916) Plan
Organize Coordinate Control
Is this leadership ormanagement, or both?
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Outline
Basic leadership principles Leadership styles
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A typical pattern
A successful entrepreneur looks tothe future and other ventures
The organization is led by afollower, who is most likely amanager, not a leader
Leadership gap develops Organization becomes far less
entrepreneurial or begins to fail Social entrepreneur must provide or
find leadership for the organization
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Questions
How does leadership differ frommanagement ?
And how do both relate to socialentrepreneurship?
What are the special leadershipchallenges faced by socialentrepreneurs?
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Executives Are Often Reactive
Data say Executives are usually thrown from activity
to activity (putting out fires) Executives often seek interruption from
subordinates (keeping my ear to theground) Executives prefer over written
communication (updating) Most executives ignore scientific
management techniques (going with mygut)
Mintzberg, Henry: "The Managers Job:Folklore & Fact". Harvard BusinessReview , July/Aug 1975: 353-377.
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Executives Are Often More Involved inManagement than Leadership
The difference between managers andleaders
Bennis & Nanus (1997) Leaders : TheStrategies for Taking ChargeKotter, John P. "What Leaders Really Do.Harvard Business Review (1990)
Managers Leaders
Bennis &Nanis
do thingsright
do the rightthings
Kotter cope withcomplexity
cope withchange
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What Do Managers andLeaders Do?
Lessons
In a stable, high-competition environment,good management is paramount In a dynamic, uncertain environment,
leadership is key
Kotter, John P. "What Leaders ReallyDo. Harvard Business Review (1990)
Function Managers Leaders
Deciding what to do Planning andbudgeting
Settingdirection
Creating networks
of people
Organizing and
staffing
Aligning
peopleEnsure that tasksare accomplished
Controlling andproblem-solving
Motivating andinspiring
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Too Much Management, NotEnough Leadership?
A managerial culture maintains andrelies on stasis Leaders know that your only
opportunity to fix something is before
its broken Leadership relies on vision and theability to effect change
Most U.S. corporations today areovermanaged and underled.
Zaleznick, Abraham. Managers andLeaders: Are They Different?. HarvardBusiness Review (1977)
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Preliminary Conclusionsand Trailing Questions
Management and leadership aredifferent
Effective leadership is important
Change is a key concept for effectiveleaders
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Where Are Social EnterpriseLeaders?
Founder ED/President/CEO Super-volunteer
Catalyzing a community
Active trustee Marshalling a large funding jump
Venture philanthropist
Frumkin, Peter. On Being Nonprofit: AConceptual and Policy Primer (HarvardUniversity Press, 2002)
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The Special Challenge of SocialEnterprise Leadership
For-profit leadership literatureassumptions Power
Autonomy Social entrepreneurs must lead
from above, but also from below Persuasion vs. coercion
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Characteristics ofHigh-Performance Leaders
What doemployeesadmire in aleader? Honesty (88%) Forward-looking
(75%)
Inspiring (68%) Competent (63%)
Light, Paul C. Pathways to NonprofitExcellence (Brookings InstitutionPress, 2002)
According tononprofitexecutives, high-performanceleaders are Honest Faithful to
employees
Decisive Trusting Charismatic
Kouzes, J. & Posner, B. (1995).The Leadership Challenge
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What is the Right NonprofitLeadership Model?
Percent of nonprofit executives thatbelieve in each model
Decisive
leader
Reflective
leader
Collaborativeorganization
6% 34%
Leader-centeredorganization
12% 31%
Light, Paul C. Pathways to NonprofitExcellence (Brookings InstitutionPress, 2002)
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Change Is Inevitable
Sources ofchange Society
(audience anddonor wishes) Markets
(competitors) Technology Government
Leaderships roleas a steward ofchange
Empowering newtalent Helping people to
adapt
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Successful Change
Elements Clear goals
New strategies
New modes ofoperation
Impediments Executives tackle
change alone Employees expect
execs to solve allproblems
Where are we going?
Figuring out howto get there
Getting there
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Conclusions
Seek the right balance betweenmanagement and leadership
but dont confuse them
Effective change is the nexus ofmanagement and leadership Effective nonprofit leaders navigate
special waters Focus on key personal qualities:
courage, skill with people, and vision
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Outline
Basic leadership principles Leadership styles
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Leadership Styles
Coercive leadership Authoritative leadership Affiliative leadership Democratic leadership Pacesetting leadership
Coaching leadership
Goleman, Daniel. "Leadership thatGets Results." Harvard BusinessReview (2000)
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Coercive Leadership
Demands immediate compliance Can achieve short-term results
Positive shock to a moribund environment Key in emergencies
Can create long-term damage Defection Creativity and initiative Non-financial rewards
Coercive leadership can loweremployee compensation
Goleman, Daniel. "Leadership thatGets Results." Harvard BusinessReview (2000)
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Affiliative Leadership
People come first Strives for happiness and harmony Results in fierce loyalty, workplace
trust, and a revered leader
May lower overall effectiveness Poor performance may be tolerated Tendency to groupthink Rudderlessness occurs when clear
direction is needed This style is best when accompanying
another
Goleman, Daniel. "Leadership thatGets Results." Harvard BusinessReview (2000)
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Democratic Leadership
Everybody has a say in the process Opposing viewpoints are protected
and respected
Builds trust, respect, and commitment May be counterproductive
Can lead to endless meetings Inhibits efficient decisionmaking May lead go-getters to defect
Goleman, Daniel. "Leadership thatGets Results." Harvard BusinessReview (2000)
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Pacesetting Leadership
Nobody works harder than theED
Pitches in and sets an example Can create moral problems
among less-able employees Organization is in trouble if
pacesetter leaves
Goleman, Daniel. "Leadership thatGets Results." Harvard BusinessReview (2000)
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Coaching Leadership
Counsels employees Highly values human capital, and
looks for individual strengths Delegates in order to develop
employees Can be extremely time-
consuming
Goleman, Daniel. "Leadership thatGets Results." Harvard Business