Organizational Leadership & Decision Making

Your Facilitator

Katrina McBride, CEO eXo 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

Why do Organizations Exist?

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

What is an Organization?

Organizations exist because they provide the

setting in which members can meet their

economic, social, validation, and information

needs

“…a social influence process in which the leader seeks the voluntary participation of subordinates

in an effort to reach organizational goals.”Tom Peters and Nancy Austin

A Passion for Excellence

What is Leadership?

• Inspiration• Emotional support• Common goals• Vision • Strategic planning

What does Leadership Involve?

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• Administers• Maintains• Controls• Short-term view• Asks how & when• Initiates • Accepts the status- quo• Does things right

Leaders• Innovates• Develops• Inspires• Long-term view• Asks what & why• Originates• Challenges the

status – quo• Does the right things

RewardCoercive

Referent

Expert

Sources of Power

Legitimate

Sources of power

Issues Regarding Leadership

Evolution of leadership

SOURCE: M. Emmi, SCT Corporation

KnowledgeAge

150

0

198

0

199

0

200

0

110

0

196

0

130

0

170

0

188

0

190

0

192

0

194

0

197

0

AgriculturalAge

IndustrialAge

• Speed/Efficiency

Uncertainty/Risk

Flexibility

High Productivity /Low Cost

Characteristics of the New Economy

• Effectiveness

• Quality of Service

• Shorter Lead Time

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 Culture4 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

TEXTtop-down,

conservative,

good at cost

control,

poor at

innovation and

integration

TEXT

Traditionalist Consensus Driven

Profit DrivenStructure Futurist

middle-out,

decisions taken

by independent

business

managers,

good at niche

tailoring,

good at

innovation,

poor at

integration

middle-out,

decisions taken

by consensus,

good at

integration,

good at

innovation,

poor at niche

tailoring

top-down,

entrepreneurial

and chaotic,

excellent at

innovation,

poor at

integration,

poor at cost

control

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

• The ugly baby•Role-Model:

What is paid attention to

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 weekAssigned 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. 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. Leadership Identity. Enlightened Leadership. Leadership at Every Step. Leading Change. Values Based Leadership. Continuous Leadership. Rational Leadership. Visionary Leadership. Strategic Leadership. Contributory Leadership. Virtual Leadership. Leadership by Example. Integrated Leadership. Institutionalized Leadership. Collaborative Leadership. Appreciative Leadership. 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

Initiating Structure

Con

side

ratio

nHigh

Low

Low High

Low structureHigh 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

High structureHigh consideration

The leader fails to provide necessary structure and demonstrates little consideration for employee needs and wants

Low structureLow consideration

Primary emphasis is placed on structuring employee task while the leader demonstrates little consideration for employee needs and wants

High structureHigh consideration

Ohio State studies (1940-50s)

START

What is your Behavioral StyleSelf-Assessment

FORMAL

INFORMAL

DO

MIN

AN

T

EA

SY

-GO

ING

CONTROLLING ANALYZING

PROMOTING SUPPORTING

2000 Senn-Delaney Leadership Consulting

Situational TheoriesDifferent 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

Performance depends on:– Degree which the situation gives the

leader control and influence– The leader’s basic motivation

The contingency model is based on the premise that a leader has one dominant style and will manipulate a situation tofit that style

Hersey & Blanchard’s Situational Leadership Theory

D4 D3 D2 D1

Developed Developing

DEVELOPMENT LEVEL OF INDIVIDUAL

HighS1

S2S3

S4

High

Su

pp

ort

ive

be

ha

vio

r

Low Directive Behavior

TellingS1

Provide specificInstructions & closely

Supervise performance

ParticipatingS3

Share ideas & facilitateIn decision making

SellingS2

Explain decisions &Provide opportunity for

clarification

DelegatingS4

Turn over responsibilityFor decisions

Implementation

Path-Goal theoriesRobert 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

Leader identifiesemployee needs.

PathAppropriate goalsare established.

DirectiveLeader connectsrewards with goal(s)

Directive

Leader provides assistanceon employee’s path toward goals.

Employees become satisfied andmotivated and accept the leader.

Effective performanceoccurs.

Both employees and organization better reachtheir goals.

Supportive behavior Participative behavior

AchievementMotivation

Types of Leaders

Transformational Leaders“The Brokers of Dreams”

TRANSFORMATIONAL LEADERSHIPTRANSFORMATIONAL LEADERSHIP

Creating a vision

Creating a vision

Building commitmentto the vision

Building commitmentto the vision

Communicatingthe vision

Communicatingthe vision

Modelingthe visionModelingthe vision

Currently the most popular perspective

Transformational LeadersOld 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.

VisionaryCreate 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 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 LeadershipSituations for Application

Charismatic LeadersCharismatic 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

The Decision-Making Process

Process Linked with Superior Outcomes

• Multiple alternatives

• Assumption testing

• Well-defined criteria

• Dissent and debate

• Perceived fairness

"diversity in counsel, unity in command.“-Cyrus the Great, the founder of the Persian Empire

Advocacy Inquiry

Concept of decision making a contest collaborative problem solving

Purpose of discussion persuasion and lobbying testing and evaluation

Participants' role spokespeople critical thinkers

Patterns of behavior strive to persuade others defend your position downplay weakness

present balanced arguments remain open to alternatives accept constructive criticism

Minority views discouraged or dismissed cultivated and valued

Outcome winners and losers collective ownership

Advocacy views Decision-Making as a Contest.

Inquiry views Decision Making as collaborative problem solving

Decision-Making Two Approaches

Case Studies: Exceptional Leaders

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, 1980s 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 eBay 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

CNN’s Top 25

“…power has no sex.” - Katherine Graham

•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.

Katherine GrahamWashington Post Co.

Jack WelchGeneral 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

"Change before you have to." -Jack Welch

• 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.

Herb Kelleher

Southwest Airlines

“If work were more fun, it would feel less like work.” -Herb Kelleher

Steve JobsApple Computers

“Sometimes when you innovate, you make mistakes. - Steve Jobs

•CEO of Apple, which he co-founded in 1976

•CEO of Pixar, the Academy-Award-winning animation studios which he co-

founded in 1986.

•Ignited the personal computer revolution in the 1970s with the Apple II

•Reinvented the personal computer in the 1980s 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

• iLife and professional applications.

• iPod portable music players

• iTunes 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.

•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

“Your most unhappy customers are your greatest source of learning.”- Bill Gates

Bill GatesMicrosoft

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

EmpowermentWhen Did You Feel Powerful?

‘Telling people what you want, giving them the tools to do it, and leaving them alone’

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

AccountabilityThe Mindset

• Making decisions/choices

• Taking responsibility

• Learning from mistakes

• Not blaming others

• Adjusting when necessary

• Keeping ego in check

“The buck stops here.”- Harry Truman

Leadership AccountabilityAttributes

• Focus on the end goal/bottom line/results

• Valuing of others

• Keeps promises and honor commitments

• Willingness to delegate

• 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

Leadership Accountability

Gender Issues

Effectiveness

men > women men = women

women > men women > men

Emergence

men > women men > women (in lab only)

Autocrativeness

men > women men > women

Participativeness

men > women men = women

Relationship-Orientation

women > men women = men

Gender and Leadership

Perception Behavior

Task-orientation

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. 9th 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-dec2001.ppt#23• http://ollie.dcccd.edu/mgmt1374/book_contents/4directin/leading/lead.htm• McGregor, 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/Keynotes5.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.• Excerpted with permission from "What You Don't Know About Making Decisions," Harvard Business Review, Vol.79, No.

8, September, 2001.