Organizational Leadership Decision Making Your Facilitator

Organizational Leadership & Decision Making

Your Facilitator Katrina Mc. Bride, CEO e. Xo associates, inc. Experience: 20 years in finance, business strategy, strategic marketing, corporate training, organizational design and management, and independent consulting Education: – BS psychology – MA organizational management – Trained dispute mediator

Agenda Organizational Leadership and Decision-Making • What is leadership • Issues regarding leadership • The organization and its culture • • Leadership theories and styles Types of leaders Decision making Case studies: exceptional leaders Empowerment Accountability Gender Issues

What is an Organization? A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals Why do Organizations Exist? Organizations exist because they provide the setting in which members can meet their economic, social, validation, and information needs

What is Leadership? “…a social influence process in which the leader seeks the voluntary participation of subordinates in an effort to reach organizational goals. ” What does Leadership Involve? • • • Inspiration Emotional support Common goals Vision Strategic planning Tom Peters and Nancy Austin A Passion for Excellence

Shadow of a Leader Actions Speak Louder than Words What is the shadow of a leader? Whose shadows have influenced you? What is the shadow you cast?

Leading vs. Managing Managers Leaders • • • • Administers Maintains Controls Short-term view Asks how & when Initiates Accepts the status- quo Does things right Innovates Develops Inspires Long-term view Asks what & why Originates Challenges the status – quo • Does the right things

Sources of power Reward Legitimate Coercive Sources of Power Referent Expert

Issues Regarding Leadership

Evolution of leadership 2000 1990 1980 1970 1960 1940 1900 1880 1700 1500 1300 1920 Industrial Age Agricultural Age 1100 Knowledge Age SOURCE: M. Emmi, SCT Corporation

Characteristics of the New Economy • Speed/Efficiency • Effectiveness · Uncertainty/Risk • Quality of Service · Flexibility • Shorter Lead Time · High Productivity /Low Cost

Issues Gaining Prominence • Communications/influence skills • Change management/structuring/risk management skills • Decision making/creativity/forecasting/ project management skills • Attention to corporate governance • Role of the Board of Directors • Marketing/PR/fund raising skills • Human resources and staffing skills

The Organization & Its Culture

Organizational Culture • Shared Values: what we consider important • Beliefs: how things should be done • Norms: the way we do things • Heroes: who personifies the corporate values • Systems: written and unwritten rules

Organizational Culture 4 Functions 1. Organizational Identity Promotion of distinguishing and unique features 2. Enhancing Commitment Becoming a place where people want to stay and contribute. 3. Social System Stability Work environment is positive and reinforcing; conflict is managed effectively 4. Sense-Making Members understand why organizational decisions and goals are made.

Types of Organizational Culture Traditionalist Consensus Driven Profit Driven Structure Futurist top-down, middle-out, conservative, decisions taken TEXT entrepreneurial good at cost by consensus, by independent and chaotic, control, good at business excellent at poor at integration, managers, innovation and good at niche innovation, tailoring, poor at niche good at integration, tailoring innovation, poor at cost poor at control integration innovation, poor at

Manifestations of Culture • What the leaders pay attention to and reward • Leaderships reaction to critical situations • Criteria for resource allocation • Observed criteria for rewards/status • Recruitment, promotion, retirement criteria • Systems and procedures • Rites and rituals • Design of physical space • Hero/war stories

The Role of Leadership in Organizational Culture • • Role-Model: What is paid attention to The ugly baby Style and personality Tone-Setter: • Moral • Values • Symbol of who “Gets Ahead: ” • Leadership qualifications • Goals to reach • Guardian or Designated Change Agent: • Vision • Break from past/model desired behaviors

Leadership Theories & Styles

Flavor of the week Assigned Leadership. Connective Leadership. Balanced Leadership. Connected Leadership. Muscular Leadership. Toxic Leadership. Fusion Leadership. Complexity Leadership. Character Based Leadership. Emergent Leadership. Directive Leadership. Participative Leadership. Ethical Leadership. Principled Leadership. Team Leadership. Achievement Oriented Leadership. Supportive Leadership. Charismatic Leadership. Wholehearted Leadership. Level 5 Leadership. Authentic Leadership Development. Leadership Training. Executive Development. Team Building. Coaching. Situational Leadership. Principle Centered Leadership. Values Centered Leadership. Inclusive Leadership. Servant Leadership. Transactional Leadership. Transformational Leadership. Total Leadership. Trustee Leadership Identity. Enlightened Leadership at Every Step. Leading Change. Values Based Leadership. Continuous Leadership. Rational Leadership. Visionary Leadership. Strategic Leadership. Contributory Leadership. Virtual Leadership by Example. Integrated Leadership. Institutionalized Leadership. Collaborative Leadership. Appreciative Leadership as a Process. Proactive Leadership. Generative Leadership. Revolutionary Leadership. Total Leadership. Unnatural Leadership. Empowering Leadership. Organizational Leadership. Operational Leadership. Innovative Leadership. Creative Leadership. Synergistic Leadership. Entrepreneurial Leadership. Steward Leadership. Military Leadership. Inspired Leadership. Leaders Building Leaders. Leading Upward. Tomorrow Leader. Quantum Leadership. Alpha Leadership. Lead by Design. Results Based Leadership. Trickle Up Leadership. Leaders to Leaders. Formative Leadership. Distributive Leadership. Integral Leadership. Cross Border Leadership. Invisible Leadership. Social Leadership.

Are Leaders Born or Made? The Born Side: Trait (Competency) and Behavioral • Trait theory - states that there are "born leaders“ for example John Kennedy, Abraham Lincoln, Thomas Jefferson. Great Man Theory -leadership is an innate, inherited ability The Made Side: Situational and Path-Goal • Leaders respond to the situation, for example: the war years "created" George Washington, Winston Churchill, and FDR - "times create the man or woman. "

Trait (Competency) Theories Ralph Stogdill, Richard Mann (1950’s) Dominant Leadership Traits • Drive - level of energy and activity • Integrity • Emotional intelligence • Intelligence • Dominance • Self-confidence • Task-relevant knowledge

Behavioral Styles Theory Based on the behaviors that represent leadership Ohio State studies (1940 -50 s) Consideration High Low structure High consideration High structure High consideration Less emphasis is placed on structuring employee tasks while the leader concentrates on satisfying employee needs and wants The leader provides a lot of guidance about how tasks can be completed while being highly considerate of employee needs and wants Low structure Low consideration High structure High consideration The leader fails to provide necessary structure and demonstrates little consideration for employee needs and wants Primary emphasis is placed on structuring employee task while the leader demonstrates little consideration for employee needs and wants Low Initiating Structure High

What is your Behavioral Style Self-Assessment FORMAL PROMOTING SUPPORTING DOMINANT ANALYZING EASY-GOING CONTROLLING INFORMAL 2000 Senn-Delaney Leadership Consulting

Situational Theories Different Situations: Different Style • Grew out of a need to explain inconsistencies regarding trait and behavior theories • Challenges the idea of one best style of leadership

Situational Theory: Contingency Model Fred Fiedler The contingency model is based on the premise that a leader has one dominant style and will manipulate a situation to fit that style Performance depends on: – Degree which the situation gives the leader control and influence – The leader’s basic motivation

Hersey & Blanchard’s Situational Leadership Theory Supportive behavior High Participating S 3 Share ideas & facilitate In decision making Selling S 2 Explain decisions & Provide opportunity for clarification Telling Delegating S 1 S 4 Provide specific Turn over responsibility Instructions & closely For decisions Supervise performance Implementation Low S 3 S 2 S 4 S 1 Directive Behavior D 4 D 3 D 2 D 1 Developed Developing DEVELOPMENT LEVEL OF INDIVIDUAL High

Path-Goal theories Robert House • Focus on how leaders influence followers’ expectation • The leader’s behavior is okay if followers view it as in line with followers’ satisfaction • Leaders can have more than one style – – Directive Supportive Participative Achievement-oriented

Path-Goal Theory of Leadership Path Leader identifies employee needs. Directive Appropriate goals are established. Supportive behavior Leader provides assistance on employee’s path toward goals. Achievement Effective performance occurs. Leader connects rewards with goal(s) Participative behavior Employees become satisfied and motivated and accept the leader. Motivation Both employees and organization better reach their goals.

Types of Leaders

Transformational Leaders “The Brokers of Dreams” Currently the most popular perspective TRANSFORMATIONAL LEADERSHIP Creating a vision Communicating the vision Building commitment to the vision Modeling the vision

Transformational Leaders Old Problems in New Ways • Charisma: Provides vision and sense of mission, instills pride, gains respect and trust. • Inspiration: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways. • Intellectual stimulation: Promotes intelligence, rationality, and careful problem-solving. • Individualized consideration: Gives personal attention, treats each employee individually, coaches, advises.

Visionary Create and Articulate • Ability to explain the vision to others • Is an example of the vision – walks the walk • Ability to extend the vision to different contexts

Charismatic Leadership Situations for Application Charismatic leadership is effective when: • The situation offers opportunities for “moral” involvement • Performance goals cannot be easily established or measured • Extrinsic rewards cannot be clearly linked to individual performance • Exceptional effort, behavior, sacrifices, and performance are required of both the leader and followers

Charismatic Leaders Charismatic leader traits and behaviors: – They advocate a vision. – They are not keepers of the status quo • behavior is out of the ordinary • they are perceived as change-agents. – They act unconventional in several ways – counter to norms. – They are willing to make self-sacrifices, take personal risks, to support their vision. – They have strong self-confidence.

Decision-Making

Types of Decisions Leaders Make • Mission/vision • Organizational structure • Performance review • Salary structure • Financial • Investments • Shareholder relations • Corporate structure • Product/manufacturing • Product development • Marketing mix • Positioning message

"diversity in counsel, unity in command. “ -Cyrus the Great, The Decision-Making Process the founder of the Persian Empire Process Linked with Superior Outcomes • Multiple alternatives • Assumption testing • Well-defined criteria • Dissent and debate • Perceived fairness

Decision-Making Two Approaches Advocacy views Decision-Making as a Contest. Inquiry views Decision Making as collaborative problem solving

Case Studies: Exceptional Leaders

CNN’s Top 25 1. Bill Gates, co-founder of Microsoft 2. Sam Walton, former CEO of Wal-Mart 3. Jack Welch, former CEO of General Electric 4. Warren Buffett, CEO of Berkshire Hathaway 5. Lee Iacocca, former CEO of Chrysler 6. Steve Jobs, CEO of Apple 7. Herb Kelleher, chairman of Southwest Airlines 8. Michael Dell, founder of Dell Computer 9. Alan Greenspan, chairman of the Federal Reserve 10. Carl Icahn, 1980 s corporate raider 11. Andy Grove, former CEO of Intel 12. Michael Milken, former junk-bond wizard 13. John Reed, former CEO of Citigroup 14. Ted Turner, founder of CNN 15. Jim Clark, former CEO of Netscape 16. Meg Whitman, CEO of e. Bay 17. Jeff Bezos, founder of Amazon. com 18. Michael Eisner, CEO of Disney 19. Peter Lynch, manager of Fidelity's Magellan Fund 20. Phil Knight, CEO of Nike 21. Katharine Graham, late CEO of Washington Post Co. 22. W. Edwards Deming, influential business consultant 23. Ken Lay, notorious former CEO of Enron 24. Shawn Fanning, founder of Napster 25. Lou Gerstner, former CEO of IBM

“…power has no sex. ” - Katherine Graham Washington Post Co. • Her father, Eugene Meyer, purchased The Washington Post in 1933 • Assumed control of the Washington Post Company following his death. • From 1969 to 1979 she was also publisher of the newspaper. • From 1973 -1991 Graham was board chairman and CEO • Chairman of the Executive Committee until her death in 2001 at 84. Under Katharine Graham's leadership, The Washington Post became known for its hard-hitting investigations, including the publication of the secret Pentagon Papers against the advice of lawyers and against government directives, followed by the Woodward and Bernstein investigation of the Watergate scandal.

"Change before you have to. " -Jack Welch General Electric • Jack Welch paved a new road for business leaders everywhere. • He became the youngest CEO & Chairman of one of America's biggest and most respected companies (General Electric) at age 44 • Proceeded to rewrite the rules of what an incredibly profitable and successful company should be, all while having fun in the process. • GE ranked as America's Most Admired Company 4 years running until Mr. Welch's retirement. • Popularized Six Sigma quality control • Aggressive marketing and PR • Able to effectively communicate key ideas • Personable and persistent, hard and demanding leader • $ 12 billion in 1981 to $280 billion in 2001

“If work were more fun, it would feel less like work. ” -Herb Kelleher Herb Kelleher Southwest Airlines • Started out as the lawyer in the group of Southwest's original founders • Became its President, CEO and Chairman. • Considered the leading image for the airlines, the smoking-drinking. Harley-riding-wisecracking-self-effacing Kelleher • Incorporated the quirky spirit at Southwest into a business strategy • He did so by introducing a small airline with a quirky environment that saluted singing flight attendants and joke-telling pilots. • airline has not had to lay off a single employee despite 9/11 and that has • shown a profit for 30 years straight.

“Sometimes when you innovate, you make mistakes. - Steve Jobs Apple Computers • CEO of Apple, which he co-founded in 1976 • CEO of Pixar, the Academy-Award-winning animation studios which he cofounded in 1986. • Ignited the personal computer revolution in the 1970 s with the Apple II • Reinvented the personal computer in the 1980 s with the Macintosh. • Today, Apple continues to lead the industry in innovation with its • award-winning desktop and notebook computers, • OS X operating system, and • i. Life and professional applications. • i. Pod portable music players • i. Tunes online music store. • Grew up in the apricot orchards which later became known as Silicon Valley, • Still lives there with his wife and three children.

“Your most unhappy customers are your greatest source of learning. ” - Bill Gates Microsoft • Began programming computer at 13 • Founded Microsoft in 1975 with childhood friend Paul Allen • Left Harvard University in his junior year to devote his energies to Microsoft • Guided by a belief that the computer would be a valuable tool on every office desktop and in every home • Gates' foresight and his vision for personal computing have been central to the success of Microsoft and the software industry. • Investment of approximately $6. 2 billion on research and development in the 2005 fiscal year The Bill and Melinda Gates Foundation has donated more than $27 billion (as of March 2004) to global health and education initiatives

Empowerment Accountability Gender Issues

Empowerment is a Scary Word? • Employees want it but fear the responsibility • Over committed leaders need for their employees to take on more responsibility but fear the loss of control

‘Telling people what you want, giving them the tools to do it, and leaving them alone’ Empowerment When Did You Feel Powerful? What empowerment is: • Clarity of vision • Involvement • Valuing the individual • Commitment • Accountability What empowerment is not: • A democracy • Decision by committee • Positioning blame • Ignoring of performance issues • Lacking boundaries

Benefits of Empowerment • • Higher productivity Committed workforce High quality sustained over time Initiative and accountability Cooperation and teamwork Job satisfaction More attention to strategic planning Competitive advantage

Barriers to Empowerment • Lack of trust • Reluctance to give up power • Lack of understanding what it is • Corporate culture • Corporate leadership style

“The buck stops here. ” - Harry Truman Accountability • Making decisions/choices • Taking responsibility • Learning from mistakes • Not blaming others • Adjusting when necessary • Keeping ego in check The Mindset

Leadership Accountability Attributes • Focus on the end goal/bottom line/results • Valuing of others • Keeps promises and honor commitments • Willingness to delegate

Leadership Accountability • Focuses on outcomes more than means • Sets high expectations for everyone • Practices conflict resolution skills • Designs accurate performance indicators • Identifies what needs to be tight versus loose control • Nurtures win/win performances and partnership agreements • Appreciates, values, and recognizes each person in the organization

Gender Issues

6 steps to Effective Leadership • Clarify what is possible • Clarify what others can contribute • Support other’s contributions • Be relentless • Measure and celebrate progress

Sources and References • Robbins, S. 9 th edition. Organizational behavior. Upper Prentice Hall: Saddle River, NJ • Senn-Delaney. 2000. Leadership, team building, culture change. Private publisher • University of Phoenix. 2002. Organizational leadership. Complied text. Private publisher • http: //www. hftp. org/members/bottomline/backissues/1996/aug-sept/historia. htm • http: //cf. villanova. edu/archived/NAJDAWI/presentations/AACSB-drive-dec 2001. ppt#23 • http: //ollie. dcccd. edu/mgmt 1374/book_contents/4 directin/leading/lead. htm • Mc. Gregor, D. (April 9, 1957). Proceedings of the Fifth Anniversary Convocation of the School of Industrial Management, "The Human Side of Enterprise. " Massachusetts Institute of Technology. • http: //www. carnahanpresents. com/Keynotes 5. asp • Butler, D. , & Geis, F. L. (1990). Nonverbal affect responses to male and female leaders: Implications for leadership evaluations. Journal of Personality and Social Psychology, 58, 48 -59. • Fiske, S. T. , Bersoff, D. N. , Borgida, E. , Deaux, K. , & Heilman, M. E. (1991). Social science research on trial: Use of sex stereotyping research in Price Waterhouse v. Hopkins. American Psychologist, 46, 1049 -1060. • Lord, R. G. , & Maher, K. J. (1991). Leadership and information processing: Linking perceptions and performance. Boston, MA: Unwin Hyman. • Price Waterhouse v. Hopkins, 109 S. Ct. 1775 (1989). • www@nubshub. napier. ac. uk • John P. Kotter in his book, A Force for Change: How Leadership Differs from Management (The Free Press, 1990), • http: //growth-strategies. com/subpages/articles/121. html • Culture categories copyright 2001 N. Dean Meyer and Associates Inc. • Bennis, W. & Nanus, B. (1985). Leaders: Strategies for taking charge. New York: Harper Collins Publishers.