Management & Leadership

MGMT 704 - Centennial College

Suzanne Peters Seminar No. 9

Let’s start with a videoIBM THINK Forum | A Conversation on Leading in Times of Deep Structural Change

https://www.youtube.com/watch?v=uvap38caLic 25:20

A conversation with: • Jamie Dimon, Chairman and Chief Executive Officer, JP Morgan

Chase & Co.• Dr. Victor K. Fung, Li & Fung Limited• Jim McNerney, Chairman, President and CEO, The Boeing Company

Moderated by Dr. Fareed Zakaria, CNN Host, Fareed Zakaria GPS, Editor-at-Large, TIME, Columnist, The Washington Post, and Author.

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How Winning Leaders Make Great Calls…

Chapter 2: Framework for Leadership Judgementby Noel M. Tichy and Warren G. Bennis

“Fingerspitzengefühl”

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Review

The Judgment Calls MatrixJudgment: The essence of effective leadership

It is a contextually informed decision-making process encompassing three domains: people, strategy and crisis.

Within each domain, leadership judgment follows a three-phase process: preparation, the call and execution.

Good leadership judgment is supported by knowledge of one’s self, social network, organization, and stakeholders.

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Leadership Judgment Process

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Preparation Phase Call Phase Execution Phase

Sense /Identify

Frame / Name

Mobilize /

AlignCall Make It

HappenLearn / Adjust

Redo Redo Redo

Also of note…Two processes are required by the leader:

Cognitive – The ability to distinguish the important signals from the unimportant

Emotional – Having the guts to face that something is indeed a crisis… including the ability to make really tough calls.

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Assignment 4: Due Monday, March 23

You are the head of a division (e.g. sales, distribution, marketing) in one of the world’s leading video game companies. One month prior to the release of the best product your company has ever produced, a major crisis threatens the launch.

• Define your role in the organization and in this particular situation

• Define the crisis and potential outcomes ranging from worst- to best-case scenario

• Apply the judgment calls matrix to address the issue, including reference to:

•3 domains: people, strategy and crisis•3-phase process: preparation, the call and execution•Knowledge of one’s self, social network, organization, and

stakeholders

Submit a clear and insightful paper referencing course material and any other suitable resources. Maximum 1,200 words in total. Include all references.

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Why Good Leaders Make Bad Decisionsby Andrew Campbell, Jo Whitehead and Sydney Finkelstein in Harvard Business Reivew, February 2009

Neuroscience reveals what distorts a leader’s judgment…Using a database of 83 flawed decisions, it was concluded

that flawed decisions start with errors in judgment.

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Review

Unconscious processesOur brains do not naturally follow the classic textbook model: • Lay out the options• Define the objectives• Assess each option

against each objective

…our brains leap to conclusions and are reluctant to consider alternatives and we are particularly bad at revisiting our initial assessment of a situation – our initial frame.

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Instead, we analyze a situation using pattern recognition and arrive at a decision to act or not by using emotional tags.

Concept: Red Flag Conditions

1. The presence of inappropriate self-interest

2. The presence of distorting attachments3. The presence of misleading memories

How do you safeguard against your biases?10

Identifying Red Flags1. Lay out the range of options2. List the main decision makers3. Choose one decision maker to focus on4. Check for inappropriate self-interest or

distorting attachments5. Check for misleading memories6. Repeat the analysis with the next most

influential person7. Review the list of red flags you have

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Safeguarding Against Biases

• Inject fresh experience or analysis• Introduce further debate and challenge• Impose stronger governance

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Time for a video…Challenges of Decision Making and Change

https://www.youtube.com/watch?v=eLjVEmXV-_Y&index=4&list=PL6C161A90DADCAAEE 1:13-3:55, 5:00-6:02

Sam Palmisano, Former Chairman, President and CEO, IBMOpening remarks: IBM's THINK Forum, September 2011

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Chapter 9: Transformational LeadershipIn Leadership: Theory and Practice by Peter Northouse

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New Material…

“Transformational leadership is a process that changes and transforms people. It is concerned with emotions, values, ethics, standards, and long-term goals and includes assessing followers’ motives, satisfying their needs, and treating

them as full human beings. Transformational leadership involves an exceptional form of influence that

moves followers to accomplish more than what is usually expected of them. It is a process that often incorporates charismatic

and visionary leadership.”

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Transformational Leadership

Time for a video…

https://www.youtube.com/watch?v=1nlgmKJEcS8

Louis V. Gerstner, Jr.Former Chairman & CEO, IBM

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Charismatic leadershipSynonymous with transformational leadership?

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Personality Characteris

tics

•Dominant•Desire to influence•Confident •Strong values

Behaviours

•Sets strong role model•Shows competence•Articulates goals•Communicates high expectations•Expresses confidence•Arouses motives

Effects on Followers

•Trust in leader’s ideology•Belief similarity between leader and follower•Unquestioning acceptance•Affection toward leader•Obedience•Identification with leader•Emotional involvement•Heightened goals•Increased confidence

Bass ModelLeadership Continuum

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TransformationalLeadership

TransactionalLeadership

Laissez-Faire Leadership

Leadership Factors

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TransformationalLeadership

1. Idealized influence / Charisma

2. Inspirational motivation

3. Intellectual stimulation

4. Individualized consideration

TransactionalLeadership

5. Contingent reward/ Constructive transactions

6. Management-by-Exception -- active and passive, corrective transactions

Laissez-FaireLeadership

7. Laissez-Faire,

Non-transactional

Full Range of Leadership Model

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Effective

Ineffective

ActivePassive

LFMBE

CRIC

ISIM

II

Abbreviation

Leadership Component

II Idealized Influence

IM Inspirational Motivation

IS Intellectual Stimulation

IC Individualized Consideration

CR Contingent Reward

MBE Management-by-Exception

LF Laissez-Faire

Frequen

cy

Source: From Bass, B.M., & Avolio, B.J., 1994. Improving Organizational Effectiveness Through Transformational Leadership. Sage Publications Inc.

Additive Effect of Transformational Leadership

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Bennis and NanusFour common strategies used by leaders in transforming organizations:

1. Clear vision of the future state of their organizations

2. “Social architects” for the organization

3. Created trust by making their own positions clearly known and then standing by them

4. Used “creative deployment of self through positive self-regard”

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Kouzes and PosnerFive fundamental practices that enable leaders to get extraordinary things accomplished:

1. Model the way

2. Inspire a shared vision

3. Challenge the process

4. Enable others to act

5. Encourage the heart23

Time for a video…

People are your Competitive Advantage

https://www.youtube.com/watch?v=Fw6_LpI0BDQ

Herb Kelleher, FounderSouthwest Airlines

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Assignment 5: Due Monday, March 30

Read the case study provided from Peter Northouse’s Leadership: Theory and Practice and answer the four questions below.

1. If you were consulting with the board of directors at HTE, what would you advise them regarding Mr. Barelli’s leadership from a transformational perspective?

2. Did Mr. Barelli have a clear vision for HTE? Was he able to implement it?

3. How effective was Mr. Barelli as a change agent and social architect for HTE?

4. What would you tell Mr. Barelli to do differently if he had the chance to return as president of HTE?

Submit a clear and insightful paper referencing course material and any other suitable resources. Maximum 1,200 words in total. Include all references.

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