UGBA105: UGBA105: Organizational BehaviorOrganizational Behavior

Professor Jim LincolnProfessor Jim LincolnWeek 4: LectureWeek 4: Lecture

Leadership in OrganizationsLeadership in OrganizationsFortune Magazine 10/07 issue has a

special section on leadership (see link):

2

Class agenda: Class agenda: Leadership in OrganizationsLeadership in Organizations

Discuss the “manager as leader” role --And how it differs from the “manager as engineer”

Examine cases of leaders in business and politicsDiscuss how organizations make or find leadersConsider varieties of leadership

--Some are better than others

3

What is leadership? What is leadership?

“A leader is a person who leads because of people's confidence and trust in their ability, as opposed to their formal title and their ability to do a command-and-control mentality”

Cisco CEO John Chambers, quoted by Don Gillmore, SiliconValley.com,

May 20, 2000

4

““Leaders are living individuals whom Leaders are living individuals whom employees can smell, feel, touch their employees can smell, feel, touch their

presence”presence” [the elevator test] … “Leaders [the elevator test] … “Leaders love their work. That passion is love their work. That passion is

infectious.” … “ ‘It’s only business, not infectious.” … “ ‘It’s only business, not personal’ … IT ALWAYS IS personal’ … IT ALWAYS IS

PERSONAL.” … “If you love what you PERSONAL.” … “If you love what you do, it shows. You cannot fake lovedo, it shows. You cannot fake love

and succeed.” and succeed.” -Tom Peters-Tom Peters

5

Strategy

Input Environment

Resources

History

OutputSystems

Unit

Individual

Informal

Organization

Tasks

People

Formal

Organization

Leadership is about what parts of the Leadership is about what parts of the organization?organization?

6

What exactly does What exactly does leadership leadership dodo??

Personifies Creates accountability Simplifies Directs Coordinates Motivates

7

“Great leaders are almost always great simplifiers who can cut through argument, debate, and doubt to offer a solution everyone can understand”

--Colin Powell

8

GE’s Jack Welch: GE’s Jack Welch: coordinating with charismacoordinating with charisma

(He) has been a combination of charismatic preacher, all-knowing judge, internal ombudsman and hard-driving coach.

If leadership is an art, then surely Welch has proved himself a master painter. Few have personified corporate leadership more dramatically.

Business Week May 28, 1998

9

Debi Marchovik, a Southwest flight attendant for six years, sums up what motivates a lot of the airline’s employees: “you don’t want to let Herb (Southwest Airlines CEO Herb Kelleher) down.”

10

Management is Management is JanusJanus-faced:-faced:

Manager as engineer: Manager as engineer: trained technician who trained technician who uses a professional uses a professional body of knowledge to body of knowledge to create formal systems create formal systems that plot strategy, that plot strategy, make decisions, incent make decisions, incent people, and coordinate people, and coordinate units in maximally units in maximally efficient ways.efficient ways.

Manager as leaderManager as leader: : individual who leverages individual who leverages highly personal resources highly personal resources (energy, stamina, charisma, (energy, stamina, charisma, vision, warmth, charm, vision, warmth, charm, gregariousness, toughness, gregariousness, toughness, daring, know-how) to daring, know-how) to inspire, empower, and inspire, empower, and channel the actions of others.channel the actions of others.

Janus: The Roman God of doorways

Janus: The Roman God of doorways

11

• Manager as engineer: MAE is about coping with complexity

• Manager as leader: MAL is about coping with change

When should the manager When should the manager wear each hat???wear each hat???

12

Strategy

Input Environment

Resources

History

OutputSystems

Unit

Individual

Informal

Organization

Tasks

Leader

Formal

Organization

Leadership means changing the Leadership means changing the organization to fit the leaderorganization to fit the leader

13

Lou Gerstner as change agent at IBMLou Gerstner as change agent at IBM

Louis V. Gerstner, Jr. was chairman of the board of IBM Corporation from April 1993 until his retirement in December 2002. He served as chief executive officer of IBM from 1993 until March 2002. In January 2003 he assumed the position of chairman of The Carlyle Group, a global private equity firm located in Washington, DC.

14

Carly Fiorina gets the Carly Fiorina gets the axeaxe at HP; at HP; fails as a leader of change fails as a leader of change

Or did she fail, and, if so, why?

15

The two sides to each face of The two sides to each face of management:management:

Manager as leader

1. Visionary: Directing and inspiring

1. Clear picture of future

2. Passion to achieve

2. Charismatic: Motivating & empowering

Manager as engineer

1. Planner: Designing the systems that

will move the org in the right directions

2. Implementer:Executing those systems

once they are in place

16

Martin Luther King Martin Luther King as visionary leaderas visionary leader

Strong, clear vision – Put an end to “de jure”

discrimination– Consistent strategy of

nonviolence– Appeals to core American

values

Powerful communicator of vision– “I have a dream speech”

Less charismatic a personality than other civil rights leaders (e.g., Malcolm X or Stokely Carmichael)

17

Dividing leadership at Microsoft: Dividing leadership at Microsoft: Bill Gates Bill Gates as as visionary, visionary, Steve BallmerSteve Ballmer as charismatic coach as charismatic coach

18

Steve Jobs Steve Jobs as visionary as visionary and and charismatic leadercharismatic leader

“Do you want to sell sugar water to children for the rest of your life, or do you want to change the world?”Steve Jobs’ 1983 recruitment pitch to Pepsi CEO John Sculley

“His defining characteristic is an unalloyed confidence—some might call it arrogance—that his own judgment is correct, whatever other people say. This is coupled with extraordinary powers of persuasion: he is said to be surrounded by a “reality distortion field” that enables him to convince everyone in his immediate vicinity that he is right. And he is unquestionably the greatest showman in the computer industry.”

The Economist

2/5/04

19

Although leadership is Although leadership is personalpersonal, it is a , it is a rolerole and (therefore) a and (therefore) a relation, relation,

not a not a traittrait or or attributeattribute of individuals of individuals

• Leadership is inherently relational

• Leadership is also situation-specific

20

Still, some people have more leadership Still, some people have more leadership potential than others.potential than others.

Quality/behavior Immutable (trait)

Learnable (skill)

Passion, commitment Med Med

Aggressiveness/toughness Hi Med

Energy Hi Lo

Extroversion Hi Lo-med

Empathy, sensitivity, “emotional intelligence” Med Med

Confidence Lo Hi

Cognitive intelligence Hi Lo

Networking/team-building ability Med Med

Genius/imagination Hi Lo

Charm, smoothness Hi Med

Eccentricity, zaniness Hi Lo

Public speaking skills Med Med

Physical features (voice, height, looks, gender) Hi Lo

21

Tom Peters on gender Tom Peters on gender

Women’s Stuff = New Economy MatchWomen’s Stuff = New Economy Match

Improv skillsImprov skillsRelationship-centricRelationship-centric

Less “rank consciousness”Less “rank consciousness”Self determinedSelf determinedTrust sensitive Trust sensitive

IntuitiveIntuitiveNatural “empowerment freaks” [less Natural “empowerment freaks” [less

threatened by strong people]threatened by strong people]

22

Charlotte Beers’ Charlotte Beers’ leadership style leadership style

A cowboy's daughter from southeast Texas… Beers reckons that Southern charm is simply smart business. "Yes, I call CEOs 'honey,' but to me, that's wry Texas humor," she says. "I'm likely to say the most outrageous thing in the room--to liven things up."

--Fortune, 1966: “Women, sex, and power”

23

The Body ShopThe Body Shop founder founder Anita Anita RoddickRoddick (1943-2007) (1943-2007)

A visionary and A visionary and charismatic leadercharismatic leader

24

How to find and build leadershipHow to find and build leadership

Selection: who to pick?Recruit & promote on leadership traits & skillsBeware of selecting on experience

Socialization: how to grow?Formal organization

StructureSystems (HR, accounting)Training

Informal organization

25

Leadership is hard to come by when the Leadership is hard to come by when the informal organizationinformal organization is undeveloped is undeveloped

• Weak culture

• Fragmented networks

• Negative politics

But that makes it all the more important • The leader’s task is to create the context

• Strong cultures usually originate with visionary leaders

26

Heroic versus developmental Heroic versus developmental (post-heroic) leadership(post-heroic) leadership

What can you tell one from the other?

Which is best when?

27

Are American executives prone to Are American executives prone to “heroic” leadership?“heroic” leadership?

28

"If Michael weren't as involved, I'd worry. There's no one who can make that company run like Michael," says Doug MacGregor, a former Dell vice president who is now a researcher at Harvard Business School.

Wall Street Journal, August 31, 2000

Michael Dell as heroic leaderMichael Dell as heroic leader

29

Steve Jobs as heroic leaderSteve Jobs as heroic leader

“But with so much of its future resting on the power--and instincts--of one person, Apple is vulnerable. What if Jobs gets distracted or falls off his game?”

From “Yes, Steve, you fixed it. Congrats! Now what's Act Two?” (Business Week, July 31, 2000)

30

It's an old joke in Silicon Valley:It's an old joke in Silicon Valley: Q: What's the difference between Q: What's the difference between God and Larry Ellison?God and Larry Ellison?

31

In this classroom, where Welch has appeared more than 250 times in the past 17 years to engage some 15,000 GE managers and executives, something extraordinary happens.

This is …. Professor Welch, coach and teacher to 71 high-potential managers attending a three-week development course.

He cultivates and rewards the same qualities in the system and in his employees -- aggressiveness, high energy -- that he prizes in himself. Employees who don't measure up are weeded out.

Business Week May 28, 1998

Jack Welch as heroic leader?Jack Welch as heroic leader?

32

Developmental leadership is Developmental leadership is about mentoring and teamworkabout mentoring and teamwork

L

L

L

L

Is this a “mature team?”

L

33

L

L

L

L

L = Leader

Start - up

Transitional

Experienced

Mature

Developmental leadership is about making Developmental leadership is about making the (heroic) leader obsoletethe (heroic) leader obsolete

34

Takeaway PointsTakeaway Points• Leadership is:

– Personalistic, charismatic– Relational (requires followership/teamwork)

• Leadership consists of vision and charisma– Crafting a vision is the easy part; selling it is hard– Anyone can become charismatic

• Leadership requires fertile ground to fluorish• There is no one best style of leadership (congruence model).

However:– Heroic leadership is effective in the short run but disempowers

followers and creates succession crisis– Developmental leadership empowers followers & grows next-

generation leaders (but may be slow)

35

Wednesday discussionWednesday discussion

• Other business; lecture tie-ups

• Charlotte Beers case