ARE 112 - Wk 7 - 5/13

Cooperation vs. Collaboration - Where Leadership Counts

- In today's world, we are looking for collab./ back then was a focus on cooperation (weren't working with multiple markets) - 2+2 = 5 or 1+1 = 3 where the team can come up with a better product than the individual - Lou's book = here's the way I manage IBM - p. 24; if you can solve the problem, I want you at the table = collaborate; by cooperating was really the management team that he had where everyone had their own initiatives; own individual component to the company (weren't working together) - Collaboration says we are going to work together; can eliminate sub-optimization; remember that collaboration has an "L" in it; leaders want you to col(L)aborate - Michael Jordan - stars win games, teams win championships; leadership needs to bring people together - they need to inspire you to work together (organigraph = where people cooperate) - horizontal relationships NOT vertical; leadership is needed to make sure those people feel comfortable working together collaboration = a process of feedback and iteration = can result better than what any single individual can produce alone "People want leadership, they don't want to be led" - Peter Drucker - - Being led is theory X - ex. I want you to do this; people want leadership = they want alignment and direction of where to go (called do versus done) - if I tell you what to do, you are going to do it; if I tell you I want x done, you say , well I can do A,B, and C to get X done or I can do K,L, and M done to get X done - this goes back to that entrepreneurship concept from Mintzberg of a manager where you give the manager some guard rails and a direction to go - but the manager has some flexibility on how to approach solving the problem - we have controls over that to make sure it does not go the wrong way - most people are in a what needs to get done environment and told what to do; its getting away from the micro-managing in the do world - leadership - tell me where to go Some advice on how apply leadership from McKinsey - - You don't have to look at this article over here; they studied leaders and followers; you can't be a leader unless you have followers; not really a hierarchal approach; we're talking about leaders in a level 2 or 3 environment; below, this is organizational management; talent and teams is what you want to have; a group of people who work together <- trust; then you got to have competence; talent = competency; team = people willing to work together as a team - teams need to have trust - project at google - norms are impt. - they had to do with teams - trust each other in the team and assuming everyone in that team is going to be competent; 1. Leader asks themselves - Why would somebody come work for me - leader has to say - I have to have a place that is attractive for people to work - ex. Deloitte - was weak on the work-life balance - not retaining the men and women - they said this is not the place I want to be = they had to change = how do I attract and retain talent (1stthing); 2ndthing - talent development - I need to make sure you develop yourself - this goes into mentoring - the integrity line - about how do I develop you - continued education + manager training - ladder you are going to climb to get better inside the organization - ex. Deliotte - we were not developing the women the way we should've - not good jobs to give them a well rounded career foundation; at the hospital - clinical pathways - people got cross trained in their various tasks; once you got the talent and the teams; talent = abilities - SKA's - now I have to increase your skills and knowledge - I want you to be a better SKA person; 3rd- performance management - evaluation of the process of what teams do; once I got a team that can perform, I got to get you to do it better and better; 4thq. - high performing teams - Together that creates the section around talent and teams - Reduce transaction costs = reduce overhead costs; so you don't get those incomplete contracts from the Williamson interview

Maturity Model

- Where Leadership Can Be Seen - One of Several Examples (revenue increases, customer satisfaction; in today's world where change management occurs, - maturity models) - NOT where leaders can be seen - as a leader, you leave behind leadership - organizations need to change - change management (force coercion, crossover approach) - to get things done inside the organization A. Origin in data processing systems development and known as the CMM - Capability Maturity Model - As data processing systems got more and more sophisticated, mainframe -> PC -> UNIX Ring -> phones -> satellites - tech. was moving very fast - companies were always behind that power curve - the IT tech. applications were often falling behind in what companies were doing; we had to get our capability of using laptops or tablets and take it to maturity levels to apply to what the company had to do = CMM - I got a great tech. here - its not going to work right away b/c I got to get a year to find out what it could actually do for me - I got to get mature in using tablet for the system, so I got to recognize this model over here B. Broaden to a leadership/management approach C. There are five components to the maturity model: 1. Maturity Levels - that is what a manager has to do 2. Key Process Areas - apply leadership skills - to production, strategy - Lou applied it to the marketplace; the doc. applied it to business processes - Deloitte applied it to HR; Alex applied it to the production process 3. Goals. - you got to set goals for that key process area 4. Common Features - what common features do I have in there? (in linking up key processes to that goal) that I can drive to maturity (ex. promoting people based on the work they did) 5. Key Practices - my core competencies D. The leadership comes into play in making sure we follow this maturity level over here E. Five-level process maturity continuum - where the uppermost (5th) level is an ideal state where processes would be systematically managed by a combination of process optimization and continuous process improvement (is the maturity level up top) 1. Initial (chaotic, ad hoc, individual heroics) - the starting point for use of a new or undocumented repeat process. - when you want to do something -communicate this to the people and say look we never have done this before (operation bear hug) or feedback to our managers about how well they are doing on all these various jobs or this data processing system; its chaotic - but you have to accept this initial process that It is not going to work right the first time 2. Repeatable- the process is at least documented sufficiently such that repeating the same steps may be attempted. (done over a period of time in getting it to a repeatable process) - we sold this product to the customer this way and this one worked out and this one didn't - all of a sudden that initial process was that we finally figured out the best way to cook lasagna - finally figured it out, I got a recipe - so its repeatable - my lasagna today was as good as it was last week - so I got my recipe down and its repeatable 3. Defined- the process is defined/confirmed as a standard business process - I got it 5 times, I can now define the process; this is like the end of the cross over approach, this is the same as freezing in change management - its going to be standard business process - this thing works - clinical pathways work/ this promotion process works 4. Capable- the process is quantitatively managed in accordance with agreed-upon metrics. - can it be managed; we can measure ourselves of what we are doing; performance management over here; we now have a system that is capable 5. Efficient- process management includes deliberate process optimization/improvement. (now it is going to be efficient over here - where Alex got the plant working the right way, but he started w/ this chaotic process of small batches and red card and green - worked his way to the point the plant had excess capacity filling all the orders so they sold that product in Spain or France - Lou said we are going to expand our markets in ---- once we got these global services doing system integration -> then systems management - he said we can do this process over and over again efficiently, sustainable process over here 6. This is where a manager really becomes a leader - im going to have you put up with this chaotic environment over here and someone has to succeed - that's terrific but we are not there yet - you work your way through this process; this is often times put on the wall, so we color things in - red = chaotic; green = efficient; everybody knows we are going to accept a growth process side in the organization

Emotional intelligence tools and barriers

1. Communications (we manage by communication, we need to communicate to people what needs to get done - this kind of goes back to that empathy and social skills side of Goleman's article - when we communicate with someone, we are the source and the encoder, so I am going to tell you what to do either by my actions or my words or my deeds; I have an idea - I have to encode that into a message to you - have to send that signal over to you [email or txt message or speech]; somehow I've got to get that over to you; you over there that gets the message, you are the decoder at the destination; you got to decode It to get to you; I am the source, I encode it, I send it to you; then you decode it and that's the destination; hopefully what I said is what you hear - that doesn't always happen - the tool for emotional intelligence is communication) 2. Ex. big corp - did not have emotional intelligence - what they were making became a very popular item in the marketplace (the corp was there really out of luck); the market flatten out - they became a cash cow - he knew the product had to be developed - he started sending these emails to people who were at the CEO minus 2 level - they weren't that big, they were close enough to each other - 2 of the stars of the company - were offended that this person did not have the courtesy to come talk to them face to face on what needed to be done; giving orders rather than asking for input; lack of respect - they left b/c not b/c they were disrespected - they left b/c it was clear to them that this person was not going to last any longer = someone knew is going to come in; if a new boss comes in, generally they bring in their own team b/c the people who stayed probably are not very good - Lou brought in new directors and a HR person; they left b/c this person did not code things the right way; you have to be respectful in the signal piece down here 3. You can do everything right but if you don't do the signal right (communicate right), you have a big problem ---Source/encoder - Signal - Decoder/destination 4. Need for more information and more complex information (the problem here; in a business space, communication - we have to find ways to do face to face - zoom works; Microsoft teams work, but people do need to sit around a table and talk around w/ normal language and body language as well) - you learn that w/ emotional intelligence - you would learn where are my social skills - in the ex's on the first pg of the article 5. Emotional intelligence makes a good leader

HBR Article: "What Leaders Really Do" - Remember the working definition of leadership below: (Kotter) - 3 things a leader does

1. Setting direction - telling you where to go (leadership piece over here) 2. Aligning people - putting teams together 3. Motivation - comes from the skill set in emotional intelligence - = these 3 things kind of hook up with our leadership def. to the right (accomplishing a goal = setting direction; work hard = motivation; inspiring others = aligning people); a follower = tell me where to go = setting direction; right organization of people, and lets motivate us by rewards of success or maybe financial or power A. The article: 1950 - modernity - leaders really became impt.; successful companies were being led by successful people (by leaders), not by technocrats that are really good managers; the whole concept of leadership is somewhere b/w the 1930s and 1950s when leadership became impt. - there really is a diff. b/w managers and leaders - impt. For the organization; you don't really have to read the part about Kodak ; Lou did not create an invention - created it over a period of time - he was fortunate to have worked in McKinsey - consulting firm and learned a lot l - he learned things, observed the world, and got better - he brought a successful approach to the organization when he got to American Express - Lou came there and said, you got this one card here - who's your marketplace? - he said - the market place dictates everything we should do a. The marketplace drives what we do; one card = green card - old white guys had this card; now you want your own card - let's have multiple cards b/c you may want a blue card or a platinum card - you want a card that reflects you and who you are, and that is what you want - the same transaction will occur, but you don't want that old looking green card - we're are going to have these other cards and sell them to college people and women - Lou knew these people wanted their card but they didn't want the green card - he expanded the marketplace - entrepreneurial culture - from Mintzberg's typology - to hire and train people who would thrive in it = team approach from that McKinsey article; clearly communicate to them = emotional intelligence - I got to code something to these young people to get done- this is the direction setting the goal, I am not telling you what to do; I am going to organize you and align you to get this thing done; risk taking - rewarded intelligent risk taking, NOT success - if you failed, you still got a reward - at google, they celebrate failures; if someone tried something then you can move on to something else... ; get rid of the culture of "no"; not organize but align them - IMPT. - piece in the article 2. Leaders actually don't do anything, they motivate people to do things; there is a diff. b/w organizing people and aligning people; organizing = organize these people and then set them in the right direction= aligning them - you might organize everybody, but they don't know what direction they are going to go; leader really prepare the organization for change - change management is the skill set of a leader; implementing that change is really the manager's job b/c in today's world - we are faced w/ transformational forces in the marketplace 3. Impt of leader - to help with struggle through change - that's how you inspire people to change - change from one market position to another (book - penguins - if your one and you live on an iceberg, and its melting, you got to figure out what to do - if this one is melting, I better find another iceberg to go to - others say, it's not melting, its just getting smaller -its getting smaller b/c its melting...)

VIII. HBR Articles - In Course Pack

A. "What Make a Leader" - the author thought it was more structural and institutional rather than personal; he interviewed these people face to face - "you're somebody that someone wants to follow = referent power" - referent power does not give you leadership; leaders normally have some level of referent power - so he came up with these categories - from emotional intelligence - framework for someone to learn to be leaders rather than this structural approach to leadership - its more this organigraph concept of leadership; interaction of these skills over here 1-6 from emotional intelligence A. Emotional intelligence (EI) - sometimes known as emotional quotient (EQ) - components: A. From reading - What makes a leader - IQ = ability - smarts; tech. skills =; knowledge = learn how to do things; when you learn to be a leader - we think there's something in terms of being a leader you can learn (knowledge piece of a SKA); you cant get to the starting gate of leadership w.o being smart and having some skill - what makes a good leader = emotional intelligence = Goleman - terrific approach to developing leaders; kind of expensive for small organizations, but can happen for big organizations; promoted into leadership - p. 2 - CEO minus 1 and 2 - "only to fail at that job" - that is that 40% that did not make it - has to do with some kind of failing in emotional intelligence; "highest levels of the company" - CEO minus 1 and 2; he interviewed people and asked them q's and later q's again - in this process he deve. Trained approaches for emotional intelligence; emotional intelligence can be learned 1. Self-awareness a. Lou knew himself; I am not an IT person, you got to help me over there; but I know strategy; "know thyself" 2. Self-regulation a. You can never lose your temper = a good leader; what we can do is manage them b. Lou did not get accept when he was watching all those admin. Assitants carrying dimes in their pockets and gum; you got ur MBA - you shouldn't be carrying dimes and sharpening pencils for this guy; right when he walked into that room, Lou knew that it was a disaster b/c everyone should've been out selling $2 million worth of IBM product; 20 people in the room = $20 mill. Worth of sales; he didn't lose his temper but he knew right away that he had to solve it; getting angry does not solve problems 3. Motivation a. I am going to use all my energy to motivate the company as a leader - Ex. Lou says he likes to win, win, win, - he doesn't like other people to lose, but he says "I want to win" - he was motivated and worked hard 4. Empathy a. Lou's bro came in the office - he felt sorry for his brother - Lou cared about people (his brother could've been put in his position but he got sick) when he put everyone on the profit sharing program - justice rule - he wanted to take care of everyone on that process - moral rights rule - he care about people 5. Social Skills - Manage relationships w. others; you got to get along w/ people - you basically don't want to be a jerk - if you do everything right but you are a jerk, people are going to walk away - Related to referent power

Cooperation vs. Collaboration - Where Leadership Counts (contd)

For example, in talent and teams, the first question is, How do I attract and retain the talentI need to be successful with our business strategy? The second question is about talent development.The third question is about performance management. The fourth question is about high-performing teams. And together, that creates the section around talent and teams—and you get both the "How do I get the right players on the court?," so to speak, and, if I use the Michael Jordan quote, "Talent wins games, but teamwork [...] wins championships"—we also get to how they work together. Then in the section on design and decision making, there are three specific topics we address. First is how do I get higher-quality and higher-speed decision making to happen in my organization? Second is how do we reorganize ourselves to capture maximum value? And the third is how do we reduce overhead costs sustainably?This is the topic of bureaucracy and complexity and costs building up over time. It's something that not only plagues organizations but also civilizations. There are a lot of writers and thinkers who would go back to the fall of great empires and say it was less about a new invading army and more about the weight of the bureaucracy collapsing in upon itself. Then we get to our last section, which has the topics of culture and change management. In that arena, we talk very specifically about how you make your company's culture a competitive advantage. How do you make change happen at scale? We call that a performance transformation. But at an enterprise level, how do you really move an enterprise to go from what we would say is becoming a bigger, fatter caterpillar, so to speak, to going truly caterpillar to butterfly? - - Culture and change management - from Lou; he could not have done the change management if he didn't embrace the culture and got rid of the impediments to the cultural changes; that is why he got rid of the culture of "NO"; McKinsey - what Lou did inside the organization, what Alex did for his team - Deloitte - getting those forms together so people could talk about what is going on ;impt. b/c we want to get things done The last topic is more personal: How do I successfully transition into a new executive role? There are, by some estimates, 8,000 executive transitions at the CEO, CEO-minus-one, or CEO-minus-two level every year in Fortune 500 companies. This is a big deal. By the way, the people who placed those in the positions consider 40 percent not successful. - - Minus 1 and 2 = organizational diagram - boss on top; below - could be 3 people, marketing, finance or Asia, Africa, Europe === that is the CEO minus 1 level; Asia, Korea, Japan, China, Singapore = CEO minus 2 level; these are high positions that if you go back to our diagram - operating w/ these global markets in having to cooperate w/ each other; if a consulting firm does leadership consulting, they are in tune with the fortune 500 companies; when someone gets promoted, they keep a profile on this person over - interested on leadership - 40% not successful = if 100 people get promoted to CEO minus 2 after a year, only 60 are left; normally what happens - this is not my cup of tea - not something I want to do - family, health, don't like to travel - clear that this is not working b/c you brought me in here to reduce costs by 10%, I only got it down by 3% = not something I want to do (its hard to know what you need to be a leader); hard to know to assess if someone is going to be successful in this category over here); point here = leadership is very hard to figure out

Mintzberg article

Leaders - strategic/ managers - control (borderline into the strategy area as well); he was a student of management as opposed to leadership; managers do a lot, leaders don't; contrasting what we think managers do and what they actually do; spend time w/ some executives (CEO minus 1 minus 2 level) - asked them what they did - he wanted to know what managers did; From CEO's and worked his way down to foremen; folklore or myths of the manager; managers have to get things done; leaders have to get you in the right direction; a manager really works hard - many decisions - where do we ship this, what do we do in this production line over here, when do we run payroll = not reflective- we just give him the raise (you don't need to know the ex's for the quiz); very busy; ritual - every Thurs. morning = 20 min phone call w/ your 3 sales reps, got to go to HR every Friday to see who quit and who fired = everyone wants attention; verbal media - want to make sure the info. Is there so they can access it and then use it - we don't manage by paper, we manage by what' on the paper); MIS - floor you walk on with meetings - artificial intelligence systems - works at a transaction level - does not work very well at an executive level - I cant tell you everything that has to be done b/c it is so ad hoc; its hard to automate what is inside your brain; the person in the job rather than the job in the person- job in the person - how you start out your career - you got a job to do, you're the person - auditor, engineer; as we move up that level (Maxwell), we move from the job in the person to the person in the job; you have to have values first - Lou - manage by principal (values), not procedures - values matter + young woman case + project Aristotle - impt. Of norms to keep that team together - in emotional intelligence - we have values; competency and goodwill; goodwill is the values piece; competencies = SKA's; market dictates what we do = Lou saw this over and over again; frame of the job - you want to find the problem and correct solution for; the leader has to make you into a manager - move you from a manager to a leader

Leadership Tool:

Path-Reward (Theory of) Leadership - An Example (organizations will use these tools to develop you into a leader) - right tools to be a leader; one of many; not really a theory, more empirical; as a manager - I have to behave a certain way - you have to lead as a manager - management skills from Mintzberg - how do I apply it to a particular situation; the "path" is directive, supportive, and participative - I walk you down a path, you expect a reward - not out of being selfishness but of being responsible for yourself ; this is 1 approach organizations would have; back to integrity line - were you honest, selfless when you set the rewards out there, did you tell people what needed to be done; people know this model and that you are out there to support them - they know its okay to contact you if there is a problem - Lou - power and money - everyone on the profit sharing plan 1. Directive behavior (has to do with aligning people) a. Can be "what to do" - sometimes you do tell people what to do (sometimes you got to be theory x) b. Can be "what needs to be done"(theory Y side) - what you'd normally like to be - I sit you in the right direction - articulate the goals - back to Goldratt - what are our goals not vision (I cant motivate or align you until I tell you what the goals are - I am assuming you are going to achieve these goals - operation bear hug - Lou wasn't going to hug the customers - he delegated that to employees - I trust them and I want customers to know I trust you - when you talk to them its no diff. from me talking to them - Lou - ill support you c. Articulates the goals 2. Supportive behavior a. Exhibits Maslow hierarchy - making sure they have everything they need to accomplish things b. This is the empathy part - from emotional intelligence; support both ways - you and I in this process 3. Participative behavior (you see your part of the leadership process) a. Asking for feedback on tasks and goals (interactive process of collaboration - leader said I told you what needed to be done - all I know was that that wasn't we needed to get done or do but it was an idea, I aligned you - I didn't tell you exactly what to do - so I want you to get some feedback for you - I want you to know I am going to participate in your pain over here) b. Listening to advice on tasks and goals (you got some ideas, I am going to listen to you) - Lou - ill bring everyone to the table who can help solve a problem & ill listen to you 4. Achievement behavior (the reward piece) a. Stretch goals - we in the past have always hit the number 80, lets try to get 82 or 84 - similar to the continuous improvement model but there is nothing with hitting the goal at 80 - we can stretch it out to 82 - that's better - when you get there, there should be a realistic reward for you b. Realistic rewards (bonus, promotion - something that you are rewarded for - if I don't give you a reward then you are going to find someone else that will - this is not out of selfishness, just being responsible to yourself) 5. How do you get there from here - A whole bunch of companies were interested in leadership (always have been) - studied leadership - Bain - talked to people who were leaders - Leadership models - Post great recession 2008/2010; a lot of companies were getting back on their feet - leadership - lots of change was going on inside the organization - Model that says you should be promoted every 5 years; in todays world - every 3 yrs - Interviewed people who got promoted - what are you good at? - Hypothesis - we think you should be good at these 5 things; "any of these 4 strengths can make you exceptional = you can inspire people"; any four of these qualities, they found in inspirational leaders; Centeredness = not about centeredness in your personal life; we are talking about centeredness in your organizational life - you recognize what you are good at and you are going to do those 4 things and you are going to find other people who are good in these other things (you don't have to have all 4 of these; whatever you are good at you should be good at) if you are good at two of these things, you should learn/ recognize the fact that I am not good at these traits - am I really good at these things - these skills sets - can trace them back a bit to the integrity line - humble, selfless, honest, consistent - you kind of find those same qualities here - they communicate these general skills they saw - not easy for them to do - you want to be a leader? - take that assessment of who you are - I should be here and if I am not here why is that - they were not taking this into a leadership training program- you can be trained to be a leader- Mintzberg article = deepen your brain/ mind - you are not an algorithm as a leader - you got some other model to look at - Developing inner resources - self awareness, empathy - Setting the tone - aligning the organization - Connecting w/ others - social skills - Leading the team - motivation and direction/ vision

what leaders really do - contd.

Since change is the function of leadership, being able to generate highly energized be- havior is important for coping with the inevi- table barriers to change. Just as direction setting identifies an appropriate path for movement and just as effective alignment gets people moving down that path, successful motivation ensures that they will have the energy to overcome obstacles. - According to the logic of management, control mechanisms compare system behavior with the plan and take action when a devia- tion is detected. In a well-managed factory, for example, this means the planning process establishes sensible quality targets, the orga- nizing process builds an organization that can achieve those targets, and a control process makes sure that quality lapses are spotted im- mediately, not in 30 or 60 days, and corrected. For some of the same reasons that control is so central to management, highly motivated or inspired behavior is almost irrelevant Leadership is different. Achieving grand visions always requires a burst of energy. Motivation and inspiration energize people, not by pushing them in the right direction as control mechanisms do but by satisfying basic human needs for achievement, a sense of belonging, recognition, self-esteem, a feeling of control over one's life, and the ability to live up to one's ideals. Such feelings touch us deeply and elicit a powerful response. Good leaders motivate people in a variety of ways. First, they always articulate the orga- nization's vision in a manner that stresses the values of the audience they are addressing. This makes the work important to those indi- viduals. Leaders also regularly involve people in deciding how to achieve the organization's vision (or the part most relevant to a particular individual). This gives people a sense of con- trol. Another important motivational technique is to support employee efforts to realize the vision by providing coaching, feedback, and role modeling, thereby helping people grow professionally and enhancing their self-esteem. Finally, good leaders recognize and reward success, which not only gives people a sense of accomplishment but also makes them feel like they belong to an organization that cares about them. When all this is done, the work itself becomes intrinsically motivating. Strong networks of informal relationships— the kind found in companies with healthy cultures—help coordinate leadership activi- ties in much the same way that formal struc- ture coordinates managerial activities. - In fact, extensive informal networks are so important that if they do not exist, creating them has to be the focus of ac- tivity early in a major leadership initiative. - Recruiting people with leadership potential is only the first step. Equally important is managing their career patterns. Individuals who are effective in large leadership roles often share a number of career experiences. Corporations that do a better-than-average job of developing leaders put an emphasis on creating challenging opportunities for rela- tively young employees. In many businesses, decentralization is the key. By definition, it pushes responsibility lower in an organization and in the process creates more challenging jobs at lower levels. - Over the years, 3M has had a policy that at least 25% of its revenue should come from products in- troduced within the last five years. That en- courages small new ventures, which in turn offer hundreds of opportunities to test and stretch young people with leadership potential. Armed with a clear sense of who has con- siderable leadership potential and what skills they need to develop, executives in these companies then spend time planning for that development. Sometimes that is done as part of a formal succession planning or high-potential development process; often it is more informal. In either case, the key ingredient appears to be an intelligent as- sessment of what feasible development op- portunities fit each candidate's needs. Such strategies help create a corporate cul- ture where people value strong leadership and strive to create it. Just as we need more people to provide leadership in the complex organizations that dominate our world today, we also need more people to develop the cul- tures that will create that leadership. Institutionalizing a leadership-centered culture is the ultimate act of leadership. - Well-led businesses tend to recognize and reward people who successfully develop leaders.

"What Leaders Really Do"

The fact of the matter is that leadership skills are not innate. They can be acquired, and honed. But first you have to appreciate how they differ from management skills. Management is about coping with com- plexity; it brings order and predictability to a situation. But that's no longer enough—to succeed, companies must be able to adapt to change. Leadership, then, is about learning how to cope with rapid change. - Management involves planning and budgeting. Leadership involves setting direction. - Management involves organizing and staffing. Leadership involves aligning people. - Management provides control and solves problems. Leadership provides motivation. 1. Planning and budgeting versus setting direction. The aim of management is predictability—orderly results. Leadership's function is to produce change. Setting the direction of that change, therefore, is essential work. There's nothing mystical about this work, but it is more inductive than planning and budgeting. It involves the search for patterns and relationships. And it doesn't produce detailed plans; instead, direction-setting results in visions and the overarching strategies for realizing them. 2. Organizing and staffing versus aligning people. Managers look for the right fit be- tween people and jobs. This is essentially a design problem: setting up systems to ensure that plans are implemented precisely and efficiently. Leaders, however, look for the right fit between people and the vision. This is more of a communication problem. It in- volves getting a large number of people, in- side and outside the company, first to believe in an alternative future—and then to take initiative based on that shared vision. 3. Controlling activities and solving prob- lems versus motivating and inspiring. Man- agement strives to make it easy for people to complete routine jobs day after day. But since high energy is essential to overcoming the barriers to change, leaders attempt to touch people at their deepest levels—by stirring in them a sense of belonging, idealism, and self-esteem.

"What makes a leader" - Daniel G.

What distinguishes great leaders from merely good ones? It isn't IQ or technical skills, says Daniel Goleman. It's emotional intelligence: a group of five skills that en- able the best leaders to maximize their own and their followers' performance. the EI skills are - Self-awareness—knowing one's strengths, weaknesses, drives, values, and impact on others - Self-regulation—controlling or redirect- ing disruptive impulses and moods - Motivation—relishing achievement for its own sake - Empathy—understanding other people's emotional makeup - Social skill—building rapport with others to move them in desired directions - p. 1 - pdf - In his research at nearly 200 large, global companies, Goleman found that while the qualities traditionally asso- ciated with leadership—such as intelligence, toughness, determination, and vision—are re- quired for success, they are insufficient. Truly effective leaders are also distinguished by a high degree of emotional intelligence, which includes self-awareness, self-regulation, motivation, empathy, and social skill. These qualities may sound "soft" and unbusinesslike, but Goleman found direct ties between emotional intelligence and measurable business results. I have found, however, that the most effective leaders are alike in one crucial way: They all have a high degree of what has come to be known as emotional intelligence. It's not that IQ and technical skills are irrelevant. They do matter, but mainly as "threshold capabilities"; that is, they are the entry-level requirements for ex- ecutive positions. But my research, along with other recent studies, clearly shows that emo- tional intelligence is the sine qua non of leader- ship. Without it, a person can have the best training in the world, an incisive, analytical mind, and an endless supply of smart ideas, but he still won't make a great leader. Most large companies today have employed trained psychologists to develop what are known as "competency models" to aid them in identifying, training, and promoting likely stars in the leadership firmament. The psy- chologists have also developed such models for lower-level positions. Moreover, my analysis showed that emo- tional intelligence played an increasingly impor- tant role at the highest levels of the company, where differences in technical skills are of neg- ligible importance. In other words, the higher the rank of a person considered to be a star per- former, the more emotional intelligence capabilities showed up as the reason for his or her effectiveness. When I compared star perform- ers with average ones in senior leadership posi- tions, nearly 90% of the difference in their pro- files was attributable to emotional intelligence factors rather than cognitive abilities. - Self-awareness means having a deep un- derstanding of one's emotions, strengths, weak- nesses, needs, and drives. People with strong self-awareness are neither overly critical nor un- realistically hopeful. Rather, they are honest— with themselves and with others. - People who have a high degree of self- awareness recognize how their feelings affect them, other people, and their job performance. Thus, a self-aware person who knows that tight deadlines bring out the worst in him plans his time carefully and gets his work done well in ad- vance. Another person with high self-awareness will be able to work with a demanding client. She will understand the client's impact on her moods and the deeper reasons for her frustration - Such self-knowledge often shows itself in the hiring process. Ask a candidate to describe a time he got carried away by his feelings and did something he later regretted. Self-aware candidates will be frank in admitting to failure— and will often tell their tales with a smile. One of the hallmarks of self-awareness is a self- deprecating sense of humor. So too goes the debate about emotional intelligence. Are people born with certain levels of empathy, for example, or do they acquire empathy as a result of life's expe- riences? The answer is both. Scientific inquiry strongly suggests that there is a genetic com- ponent to emotional intelligence. Psychological and developmental research indicates that nurture plays a role as well. How much of each perhaps will never be known, but research and practice clearly demonstrate that emotional intelligence can be learned. - One thing is certain: Emotional intelligence increases with age. There is an old-fashioned word for the phenomenon: maturity. Yet even with maturity, some people still need training to enhance their emotional intelligence. Un- fortunately, far too many training programs that intend to build leadership skills—includ- ing emotional intelligence—are a waste of time and money. The problem is simple: They focus on the wrong part of the brain. - To enhance emotional intelligence, organi- zations must refocus their training to include the limbic system. They must help people break old behavioral habits and establish new ones. That not only takes much more time than conventional training programs, it also requires an individualized approach. Self-aware people can also be recognized by their self-confidence. They have a firm grasp of their capabilities and are less likely to set them- selves up to fail by, for example, overstretching on assignments. They know, too, when to ask for help. And the risks they take on the job are calculated. They won't ask for a challenge that they know they can't handle alone. They'll play to their strengths. People engaged in such a conversation feel bad moods and emotional impulses just as everyone else does, but they find ways to control them and even to channel them in useful ways. - But if he had a gift for self-regulation, he would choose a different approach. He would pick his words carefully, acknowledging the team's poor performance without rushing to any hasty judgment. He would then step back to consider the reasons for the failure. Are they personal—a lack of effort? Are there any miti- gating factors? What was his role in the debacle? After considering these questions, he would call the team together, lay out the incident's con- sequences, and offer his feelings about it. He would then present his analysis of the problem and a well-considered solution. - Second, self-regulation is important for com- petitive reasons. Everyone knows that business today is rife with ambiguity and change. Companies merge and break apart regularly. Technology transforms work at a dizzying pace. People who have mastered their emotions are able to roll with the changes. When a new program is announced, they don't panic; instead, they are able to suspend judgment, seek out information, and listen to the executives as they ex- plain the new program. As the initiative moves forward, these people are able to move with it. Sometimes they even lead the way I want to push the importance of self- regulation to leadership even further and make the case that it enhances integrity, which is not only a personal virtue but also an orga- nizational strength. - Many of the bad things that happen in companies are a function of im- pulsive behavior. People rarely plan to exag- gerate profits, pad expense accounts, dip into the till, or abuse power for selfish ends. Instead, an opportunity presents itself, and people with low impulse control just say yes. - The signs of emotional self-regulation, there- fore, are easy to see: a propensity for reflection and thoughtfulness; comfort with ambiguity and change; and integrity—an ability to say no to impulsive urges. Motivation: - If there is one trait that virtually all effective leaders have, it is motivation. They are driven to achieve beyond expectations—their own and everyone else's. The key word here isachieve. Plenty of people are motivated by ex- ternal factors, such as a big salary or the status that comes from having an impressive title or being part of a prestigious company. By con- trast, those with leadership potential are moti- vated by a deeply embedded desire to achieve for the sake of achievement. - The first sign is a passion for the work itself—such people seek out creative challenges, love to learn, and take great pride in a job well done. They also display an unflagging energy to do things better. People with such energy often seem restless with the status quo. They are persistent with their questions about why things are done one way rather than another; they are eager to explore new approaches to their work. - Of course, an employee who combines self-awareness with internal motiva- tion will recognize her limits—but she won't settle for objectives that seem too easy to fulfill. - And it follows naturally that people who are driven to do better also want a way of tracking progress—their own, their team's, and their company's. Whereas people with low achieve- ment motivation are often fuzzy about results, those with high achievement motivation often keep score by tracking such hard measures as profitability or market share. I know of a money manager who starts and ends his day on the In- ternet, gauging the performance of his stock fund against four industry-set benchmarks. Executives trying to recognize high levels of achievement motivation in their people can look for one last piece of evidence: commit- ment to the organization. When people love their jobs for the work itself, they often feel committed to the organizations that make that work possible. Committed employees are likely to stay with an organization even when they are pursued by headhunters waving money. Empathy: - Of all the dimensions of emotional intelligence, empathy is the most easily recognized. We have all felt the empathy of a sensitive teacher or friend; we have all been struck by its absence in an unfeeling coach or boss. But when it comes to business, we rarely hear people praised, let alone rewarded, for their empathy. The very word seems unbusinesslike, out of place amid the tough realities of the marketplace. - Rather, empa- thy means thoughtfully considering employees' feelings—along with other factors—in the pro- cess of making intelligent decisions. Empathy is particularly important today as a component of leadership for at least three rea- sons: the increasing use of teams; the rapid pace of globalization; and the growing need to retain talent. (p. 9) - A team's leader must be able to sense and understand the viewpoints of everyone around the table. - Globalization is another reason for the rising importance of empathy for business leaders. Cross-cultural dialogue can easily lead to mis- cues and misunderstandings. Empathy is an antidote. People who have it are attuned to subtleties in body language; they can hear the message beneath the words being spoken. Be- yond that, they have a deep understanding of both the existence and the importance of cultural and ethnic differences. - Leaders have always needed empathy to develop and keep good people, but today the stakes are higher. When good people leave, they take the company's knowl- edge with them. - But what makes coaching and mentoring work best is the na- ture of the relationship. Outstanding coaches and mentors get inside the heads of the people they are helping. They sense how to give effec- tive feedback. They know when to push for better performance and when to hold back. In the way they motivate their protégés, they demonstrate empathy in action. Social Skill: - The first three components of emotional in- telligence are self-management skills. The last two, empathy and social skill, concern a per- son's ability to manage relationships with others. - Social skill, rather, is friendli- ness with a purpose: moving people in the di- rection you desire, whether that's agreement on a new marketing strategy or enthusiasm about a new product. Socially skilled people tend to have a wide circle of acquaintances, and they have a knack for finding common ground with people of all kinds—a knack for building rapport. That doesn't mean they socialize continually; it means they work according to the assumption that nothing important gets done alone. Such people have a network in place when the time for action comes. - Social skill is the culmination of the other dimensions of emotional intelligence. - people tend to be very effective at managing relationships when they can understand and control their own emotions and can empathize with the feelings of others. - Even motivation con- tributes to social skill. Remember that people who are driven to achieve tend to be optimistic, even in the face of setbacks or failure. When people are upbeat, their "glow" is cast upon conversations and other social encounters. They are popular, and for good reason. - Socially skilled people, for instance, are adept at man- aging teams—that's their empathy at work. Likewise, they are expert persuaders—a mani- festation of self-awareness, self-regulation, and empathy combined. Given those skills, good persuaders know when to make an emotional plea, for instance, and when an appeal to reason will work better. And moti- vation, when publicly visible, makes such people excellent collaborators; their passion for the work spreads to others, and they are driven to find solutions. - They seem to be idly schmoozing—chatting in the hallways with colleagues or joking around with people who are not even connected to their "real" jobs. So- cially skilled people, however, don't think it makes sense to arbitrarily limit the scope of their relationships. They build bonds widely because they know that in these fluid times, they may need help someday from people they are just getting to know today. - After all, the leader's task is to get work done through other people, and social skill makes that possible. A leader who cannot express her empathy may as well not have it at all. And a leader's motivation will be useless if he cannot communicate his passion to the or- ganization. Social skill allows leaders to put their emotional intelligence to work.

"What leaders really do" - contd. - Kotter

it's expressed, retired Harvard Business School professor John Kotter proposes that management and leadership are different but complementary, and that in a changing world, one cannot function without the other. - Managers promote stability while leaders press for change, and only organizations that embrace both sides of that contradiction can thrive in turbulent times. Most U.S. corporations today are over- managed and underled. They need to develop their capacity to exercise leadership. Success- ful corporations don't wait for leaders to come along. They actively seek out people with leadership potential and expose them to career experiences designed to develop that potential. But while improving their ability to lead, companies should remember that strong leadership with weak management is no better, and is sometimes actually worse, than the reverse. The real challenge is to combine strong leadership and strong management and use each to balance the other. But when it comes to preparing people for executive jobs, such companies rightly ignore the recent literature that says people cannot manage and lead. They try to develop leader- managers. Once companies understand the fundamental difference between leadership and management, they can begin to groom their top people to provide both. Leadership is about coping w/ change - Part of the reason it has become so important in recent years is that the busi- ness world has become more competitive and more volatile. Faster technological change, greater international competition, the deregulation of markets, overcapacity in capital- intensive industries, an unstable oil cartel, raiders with junk bonds, and the changing demographics of the work-force - More change always demands more leadership. - Companies manage complexity first by planning and budgeting—setting targets or goals for the future (typically for the next month or year), establishing detailed steps for achieving those targets, and then allocating resources to accomplish those plans. By contrast, leading an organization to constructive change begins by setting a direction—developing a vision of the future (often the distant future) along with strategies for producing the changes needed to achieve that vision. - Management develops the capacity to achieve its plan by organizing and staffing— creating an organizational structure and set of jobs for accomplishing plan requirements, staffing the jobs with qualified individuals, communicating the plan to those people, delegating responsibility for carrying out the plan, and devising systems to monitor imple- mentation. The equivalent leadership activity, however, is aligning people. This means com- municating the new direction to those who can create coalitions that understand the vision and are committed to its achievement. - Finally, management ensures plan accomplishment by controlling and problem solving— monitoring results versus the plan in some detail, both formally and informally, by means of reports, meetings, and other tools; - dentifying deviations; and then planning and organizing to solve the problems. But for leadership, achieving a vision requires motivating and inspiring—keeping people moving in the right direction, despite major obstacles to change, by appealing to basic but often untapped human needs, values, and emotions. - Since the function of leadership is to produce change, setting the direction of that change is fundamental to leadership. Setting direction is never the same as planning or even long-term planning, although people often confuse the two. Planning is a management process, de- ductive in nature and designed to produce orderly results, not change. Setting a direction is more inductive. - leaders gather a broad range of data and look for patterns, relationships, and linkages that help explain things. What's more, the direction-setting aspect of leadership does not produce plans; it creates vision and strategies. These describe a business, technology, or corporate culture in terms of what it should become over the long term and articulate a feasible way of achieving this goal. - investing to increase productivity and to lower costs, TRS could provide the best service possible to customers who had enough discretionary income to buy many more services from TRS than they had in the past. - Lou Within a week of his appointment, Gerst- ner brought together the people running the card organization and questioned all the principles by which they conducted their business. In particular, he challenged two widely shared beliefs—that the division should have only one product, the green card, and that this product was limited in potential for growth and innovation. Gerstner also moved quickly to develop a more entrepreneurial culture, to hire and train people who would thrive in it, and to clearly communicate to them the overall direction. He and other top managers rewarded intelligent risk taking. To make entrepreneurship easier, they discouraged unnecessary bureaucracy. They also upgraded hiring standards and created the TRS Graduate Management Program, which offered high-potential young people special training, an enriched set of experiences, and an unusual degree of exposure to people in top management. What's crucial about a vision is not its originality but how well it serves the inter- ests of important constituencies—customers, stockholders, employees—and how easily it can be translated into a realistic competitive strategy. Bad visions tend to ignore the legitimate needs and rights of important constituencies—favoring, say, employees over customers or stockholders. Long-term planning is always time consuming. Whenever something unexpected hap- pens, plans have to be redone. In a dynamic business environment, the unexpected often becomes the norm, and long-term planning can become an extraordinarily burdensome activity. That is why most successful corporations limit the time frame of their planning activities. Indeed, some even consider "long- term planning" a contradiction in terms. In a company without direction, even short-term planning can become a black hole capable of absorbing an infinite amount of time and energy. With no vision and strategy to provide constraints around the planning process or to guide it, every eventuality deserves a plan. - Under these circumstances, contingency planning can go on forever, draining time and attention from far more essential activities, yet without ever providing the clear sense of direction that a company desperately needs. After awhile, managers inevitably become cynical, and the planning process can degenerate into a highly politicized game. - the idea of getting people moving in the same direction appears to be an organizational problem. What executives need to do, however, is not organize people but align them. - Aligning is different. It is more of a communications challenge than a design problem. Aligning invariably involves talking to many more individuals than organizing does. The target population can involve not only a manager's subordinates but also bosses, peers, staff in other parts of the organization, as well as suppliers, government officials, and even customers. Anyone who can help implement the vision and strategies or who can block implementation is relevant. Alignment helps overcome this problem by empowering people in at least two ways. First, when a clear sense of direction has been com- municated throughout an organization, lower- level employees can initiate actions without the same degree of vulnerability. As long as their behavior is consistent with the vision, su- periors will have more difficulty reprimanding them. Second, because everyone is aiming at the same target, the probability is less that one person's initiative will be stalled when it comes into conflict with someone else's.