Leadership
The difference between transformational leadership and transactional management.
MANAGEMENT
________________________________________
Planning and budgeting – establishing detailed steps and timetables for achieving needed results, and then allocating the resources necessary to make that happen
Organising and staffing – establishing some structure for accomplishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people, and creating methods or systems to monitor implementation
Controlling and problem solving – monitoring results vs. plan in some detail, identifying deviations, and then planning and organising to solve these problems
Produces a degree of predictability and order, and has the potential of consistently producing key results expected by various stakeholders (eg, for customers, always being on time; for stockholders, being on budget)
LEADERSHIP
________________________________________
Establishing direction – developing a vision of the future, often the distant future, and strategies for producing the changes needed to achieve that vision
Aligning people – communicating the direction by words and deeds to all those whose cooperation may be needed so as to influence the creation of teams and coalitions that understand the vision and strategies, and accept their validity
Motivating and inspiring – energising people to overcome major political, bureaucratic and resource barriers to change by satisfying very basic, but often unfulfilled, human needs
Produces change, often to a dramatic degree, and has the potential of producing extremely useful change (eg, new products that customers want, new approaches to labour relations that help make a firm more competitive)
Excellent management, by its very nature, is somewhat conservative, methodically incremental, and short-term oriented. As a result, the very best management cannot produce major change.
As workers take on more management tasks, managers must take on more leadership tasks – holding a vision for the business, articulating it to workers and customers, and creating an environment that truly empowers workers. Shedding the traditional 'command and control' model for one of 'lead and enable'.
Successful executives will be masters at getting people to work effectively together, managing conflict, and being effective coaches.
In any empowered organisation, what is important is what is measured. Measures must track people's contribution to their team, and the team's contribution to the success [of the organisation].
The more serious question is whether managers can make the transition.
The more important question is whether we – as senior executives – can provide the leadership and support they will need.
Without leadership, firms cannot adapt to a fast-moving world. If organisations are going to live up to their potential, we must find, develop and encourage more people to lead in the service of others.
Excellent leadership from the the top (is) the essential ingredient. This leadership empowers other managers and employees who see the need for change but have been constrained by the old culture. It also helps to win over the hearts and minds of others who have not yet recognised the necessity of major change. In many organisations today, providing this kind of leadership is surely the number one challenge for top executives.
Three key issues: competence, confidence and commitment.
i) Competence
Competence is assessed at four levels: (1) can do the work by referring to the manual: (2) can do the work without referring to the manual: (3) has enough competence to suggest improvements: (4) has the ability to train others.
This is the objective: to develop people so that they can run the business with the minimum of supervision. Companies such as GE and Rover set out to give their people the additional competencies that they need to 'manage' themselves: skills such as decision making, inter-personal skills, including assertiveness, and recruitment.
ii) Confidence
People need to feel confident if they start making decisions on our behalf; they will be praised for getting them right, and coached and encouraged, not ciriticised, when they get them wrong. As Tom Peters has said, we must praise people for making mistakes. It is the only way they will gain both experience and confidence.
iii) Commitment
Finally, we have to gain the commitment of those we wish to lead so that they become independent 'entrepreneurs' on our behalf.
GE leadership values
GE LEADERS - ALWAYS WITH UNYIELDING INTEGRITY:
? Create a clear, simple, reality-based, customer-focused vision and are able to communicate it straightforwardly to all constituencies
? Reach – set aggressive targets … Understand accountability and commitment and are decisive
? Have a passion for excellence … Hate bureaucracy and all the nonsense that comes with it
? Have the self-confidence to empower others and behave in a bound-aryless fashion… Believe in and are committed to 'work out' as a means of empowerment … Are open to ideas from anywhere
? Have, or have the capacity to develop, global brains and global sensitivity, and are comfortable building diverse global teams
? Stimulate and relish change … Are not frightened or paralysed by it … See change as opportunity, not a threat
? Have enormous energy and the ability to energise and invigorate others … Understand speed as a competitive advantage and see the total organisation benefits that can be derived from a focus on speed
Professor Chris Bartlett of Harvard, wrote a brilliant series of three articles for the Harvard Business Review on 'Changing the Role of Top Management'6, in which they stress the need for a new leadership doctrine.
? Changing sources of competitive advantage: from assets and resources to knowledge and creativity
? Changing moral contract with people: from employment security to employability
? Changing corporate philosophy: from organisation man to the individualised corporation
? Changing the role of top management:
from Strategy to Purpose
beyond Structure to Process
beyond Systems to People
from a Constraining Environment to a Liberating Philosophy
To a very real degree, the success of the businesses we run is a reflection of our ability to transform ourselves into effective leaders.
In Japan, senior executives, until now, have ruled their organisations with a 'rod of iron' but– an important but – they have always known when to listen and when to delegate. Listening is a crucial element. For many executives, making the time to listen is the biggest problem.
Built to last
Visionary companies are premier institutions – the crown jewels – in their industries, widely admired by their peers and having a long track record of making a significant impact on the world around them. The key point is that a visionary company is a organisation – an institution.
All individual leaders, no matter how charismatic or visionary, eventually die; and all visionary products and services – all 'great ideas' – eventually become obsolete.
One of the conclusions is that 'A charismatic visionary leader is absolutely NOT required for a visionary company and, in fact, can be detrimental to a company's long-term prospect.'
The key difference, we believe, is one of orientation – key people at formative stages of the visionary company have a stronger organisational orientation than in the comparison companies, regardless of their personal leadership style.
Truly successful Chief Executives of visionary companies know how to 'build a clock': by focusing on building their organisation.
In fact, the theme of The Easier Way is for us to refocus our energies, to transform our approach, to recognise that our priority task is to build a 'visionary organisation'. They use the term 'architect' or 'clock builder'. I prefer to use the term 'conductor'. We have to recognise that to be effective we have to be a conductor orchestrating the efforts of every member of our team, by spending time on the 11 pillars we have yet to discuss.
Strategy Plan of the South Devon College that Dr Terry Keen, its Principal and Chief Executive, was expected to:
Measurably demonstrate that he can:
? Provide employees with opportunities to develop their full potential.
? Bring into being, natural, self-motivated work units/teams wherever possible.
? Create 'customer thinking' throughout the organisation.
? Make systems, methods and procedures work for the benefit of employees, customers and suppliers.
? Obtain feedback on performance and practices and communicate these findings.
? Guide the Corporation on strategic goals and targets and to be involved in short and long-term planning.
? Delegate wherever possible.
? Educate and train in order to create a knowledge-based culture.
? Involve people as never before in order to tap ideas, creativity and innovation.
? Plan for future challenges and opportunities.
? Relate to customer needs.
? Share all information in order to create efficiency and understanding.
? Support staff and practise an holistic approach to human relations.
? Place the College in a premier position, nationally and internationally, by his continuing involvement in national and international developments.
COMPANY CHARTER
Hewlett Packard: The HP Way
A) Organisational Values
HP's values are a set of deeply held beliefs that govern and guide our behaviour in meeting our objectives and in dealing with each other, our customers, shareholders and others.
? We have trust and respect for individuals. We apprach each situation with the understanding that people want to do a good job and will do so, given the proper tools, and support. We attract highly capable, innovative people and recognise their efforts and contributions to the company. HP people contribute enthusiastically and share in the success that they make possible.
? We focus on a high level of achievement and contribution. Our customers expect HP products and services to be of the highest quality and to provide lasting value. To achieve this, all HP people, but especially managers, must be leaders who generate enthusiasm and respond with extra effort to meet customers needs. Techniques and management practices which are effective today may be outdated in the future. For us to remain at the forefront in all our activities, people should always be looking for new and better ways to do their work.
'The principles of the HP way are still the basis for how we operate.' John Young, 1988
? We conduct our business with uncompromising integrity. We expect HP people to be open and honest in their dealings to earn the trust and loyalty of others. People at every level are expected to adhere to the highest standards of business ethics and must understand that anything less is totally unacceptable. As a practical matter, ethical conduct cannot be assured by written HP policies and codes; it must be an integral part of the organisation, a deeply ingrained tradition that is passed from one generation of employees to another.
? We achieve our common objectives through teamwork. We recognise that it is only through effective co-operation within and among organisations that we can achieve our goals. Our commitment is to work as a world-wide team to fulfil the expectations of our customers, shareholders and others who depend upon us. The benefits and obligations of doing business are shared among all HP people.
? We encourage flexibility and innovation. We create a work environment which supports the diversity of our people and their ideas. We strive for overall objectives which are clearly stated and agreed upon, and allow people flexibility in working toward goals in ways which they help determine are best for the organisation. HP people should personally accept responsibility and be encouraged to upgrade their skills and capabilities through ongoing training and development. This is especially important in a technical business where the rate of progress is rapid and where people are expected to adapt to change.
B) Corporate Objectives
HP's corporate objective are guiding principles for all decision-making by HP people.
Profits To achieve sufficient profit to finance our company growth and to provide the resources we need to achieve our other corporate objectives.
Customers To provide products and services of the highest quality and the greatest possible value to our customers, there by gaining and holding their respect and loyalty.
Fields of Interest To participate in those fields of interest that build upon our technology and customer base, that offer opportunities for continuing growth, and that enables us to make a needed and profitable contribution.
Growth To let our growth be limited only by our profits and our ability to develop and produce innovative products that satisfy real customer needs.
Our People To help HP people share in the company's success which they make possible; to provide employment security based on their performance; to ensure them a safe and pleasant work environment; to recognise their individual achievements; and to help them gain a sense of satisfaction and accomplishment from their work.
Management To foster initiative and creativity by allowing the individual great freedom of action in attaining well-defined objectives.
Citizenship To honour our obligations to society by being an economic, intellectual and social asset to each nation and each community in which we operate.
'Improvement is accomplished by better methods, better techniques, better machinery and equipment and by people continually finding better ways of doing their jobs and to work together as a team. I will never see the day when there is not yet room for improvement.'
C) Strategies and Practices
HP's values and objectives guide us in forming our strategies and practices and in managing a dynamic business in a changing world.
Management by Wandering Around: An informal HP practice which involves keeping up to date with individuals and activities around the entity through informal or structured communication. Trust and respect for individuals are apparent when MBWA is used to recognise employees' contributions and to listen to employees' concerns and ideas.
MBWA Might Look Like: A manager consistently reserving time to walk through the department or to be available for impromptu discussions.
Individuals networking across the organisation.
Coffee talks, communication lunches, hallway conversations.
"The HP way, when you really come down to it, is respecting the integrity of the individual." Bill Hewlett, 1987
Management By Objectives HP's practice of participative management. Individuals at each level contribute to company goals by developing objectives which are integrated with their manager's and those of other parts of HP. Flexibility and innovation in recognising that alternative approaches to meeting objectives provide effective means of meeting customer needs.
MBO is Reflected In: Written plans which can be traced through the organisation.
Co-ordinated and complementary efforts, and cross-organisational intergration.
Shared plans and objectives.
Open Door Policy The assurance that no adverse consequences should result from responsibly raising issues with management or personnel. Trust and integrity are important parts of the Open Door Policy.
Open Door May be Used To share feelings and frustrations in a constructive manner.
Gain clearer understanding of alternatives.
To discuss career options, business conduct, communication breakdowns.
Total Quality Control A management philosophy and operating methodology to improve quality and achieve customer satisfaction. TQC efforts to offer the best possible products and services to our customers are supported by our value of achievement and contribution.
TQC Encourages: Continuous process improvement using scientific methods.
Universal participation in quality and customer satisfaction.
Meeting or exceeding internal and external customer expectations.
For more Information
* Success & Business Skills, Emotional Intelligence, Social Intelligence, Creative Thinking, *
The difference between transformational leadership and transactional management.
MANAGEMENT
________________________________________
Planning and budgeting – establishing detailed steps and timetables for achieving needed results, and then allocating the resources necessary to make that happen
Organising and staffing – establishing some structure for accomplishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people, and creating methods or systems to monitor implementation
Controlling and problem solving – monitoring results vs. plan in some detail, identifying deviations, and then planning and organising to solve these problems
Produces a degree of predictability and order, and has the potential of consistently producing key results expected by various stakeholders (eg, for customers, always being on time; for stockholders, being on budget)
LEADERSHIP
________________________________________
Establishing direction – developing a vision of the future, often the distant future, and strategies for producing the changes needed to achieve that vision
Aligning people – communicating the direction by words and deeds to all those whose cooperation may be needed so as to influence the creation of teams and coalitions that understand the vision and strategies, and accept their validity
Motivating and inspiring – energising people to overcome major political, bureaucratic and resource barriers to change by satisfying very basic, but often unfulfilled, human needs
Produces change, often to a dramatic degree, and has the potential of producing extremely useful change (eg, new products that customers want, new approaches to labour relations that help make a firm more competitive)
Excellent management, by its very nature, is somewhat conservative, methodically incremental, and short-term oriented. As a result, the very best management cannot produce major change.
As workers take on more management tasks, managers must take on more leadership tasks – holding a vision for the business, articulating it to workers and customers, and creating an environment that truly empowers workers. Shedding the traditional 'command and control' model for one of 'lead and enable'.
Successful executives will be masters at getting people to work effectively together, managing conflict, and being effective coaches.
In any empowered organisation, what is important is what is measured. Measures must track people's contribution to their team, and the team's contribution to the success [of the organisation].
The more serious question is whether managers can make the transition.
The more important question is whether we – as senior executives – can provide the leadership and support they will need.
Without leadership, firms cannot adapt to a fast-moving world. If organisations are going to live up to their potential, we must find, develop and encourage more people to lead in the service of others.
Excellent leadership from the the top (is) the essential ingredient. This leadership empowers other managers and employees who see the need for change but have been constrained by the old culture. It also helps to win over the hearts and minds of others who have not yet recognised the necessity of major change. In many organisations today, providing this kind of leadership is surely the number one challenge for top executives.
Three key issues: competence, confidence and commitment.
i) Competence
Competence is assessed at four levels: (1) can do the work by referring to the manual: (2) can do the work without referring to the manual: (3) has enough competence to suggest improvements: (4) has the ability to train others.
This is the objective: to develop people so that they can run the business with the minimum of supervision. Companies such as GE and Rover set out to give their people the additional competencies that they need to 'manage' themselves: skills such as decision making, inter-personal skills, including assertiveness, and recruitment.
ii) Confidence
People need to feel confident if they start making decisions on our behalf; they will be praised for getting them right, and coached and encouraged, not ciriticised, when they get them wrong. As Tom Peters has said, we must praise people for making mistakes. It is the only way they will gain both experience and confidence.
iii) Commitment
Finally, we have to gain the commitment of those we wish to lead so that they become independent 'entrepreneurs' on our behalf.
GE leadership values
GE LEADERS - ALWAYS WITH UNYIELDING INTEGRITY:
? Create a clear, simple, reality-based, customer-focused vision and are able to communicate it straightforwardly to all constituencies
? Reach – set aggressive targets … Understand accountability and commitment and are decisive
? Have a passion for excellence … Hate bureaucracy and all the nonsense that comes with it
? Have the self-confidence to empower others and behave in a bound-aryless fashion… Believe in and are committed to 'work out' as a means of empowerment … Are open to ideas from anywhere
? Have, or have the capacity to develop, global brains and global sensitivity, and are comfortable building diverse global teams
? Stimulate and relish change … Are not frightened or paralysed by it … See change as opportunity, not a threat
? Have enormous energy and the ability to energise and invigorate others … Understand speed as a competitive advantage and see the total organisation benefits that can be derived from a focus on speed
Professor Chris Bartlett of Harvard, wrote a brilliant series of three articles for the Harvard Business Review on 'Changing the Role of Top Management'6, in which they stress the need for a new leadership doctrine.
? Changing sources of competitive advantage: from assets and resources to knowledge and creativity
? Changing moral contract with people: from employment security to employability
? Changing corporate philosophy: from organisation man to the individualised corporation
? Changing the role of top management:
from Strategy to Purpose
beyond Structure to Process
beyond Systems to People
from a Constraining Environment to a Liberating Philosophy
To a very real degree, the success of the businesses we run is a reflection of our ability to transform ourselves into effective leaders.
In Japan, senior executives, until now, have ruled their organisations with a 'rod of iron' but– an important but – they have always known when to listen and when to delegate. Listening is a crucial element. For many executives, making the time to listen is the biggest problem.
Built to last
Visionary companies are premier institutions – the crown jewels – in their industries, widely admired by their peers and having a long track record of making a significant impact on the world around them. The key point is that a visionary company is a organisation – an institution.
All individual leaders, no matter how charismatic or visionary, eventually die; and all visionary products and services – all 'great ideas' – eventually become obsolete.
One of the conclusions is that 'A charismatic visionary leader is absolutely NOT required for a visionary company and, in fact, can be detrimental to a company's long-term prospect.'
The key difference, we believe, is one of orientation – key people at formative stages of the visionary company have a stronger organisational orientation than in the comparison companies, regardless of their personal leadership style.
Truly successful Chief Executives of visionary companies know how to 'build a clock': by focusing on building their organisation.
In fact, the theme of The Easier Way is for us to refocus our energies, to transform our approach, to recognise that our priority task is to build a 'visionary organisation'. They use the term 'architect' or 'clock builder'. I prefer to use the term 'conductor'. We have to recognise that to be effective we have to be a conductor orchestrating the efforts of every member of our team, by spending time on the 11 pillars we have yet to discuss.
Strategy Plan of the South Devon College that Dr Terry Keen, its Principal and Chief Executive, was expected to:
Measurably demonstrate that he can:
? Provide employees with opportunities to develop their full potential.
? Bring into being, natural, self-motivated work units/teams wherever possible.
? Create 'customer thinking' throughout the organisation.
? Make systems, methods and procedures work for the benefit of employees, customers and suppliers.
? Obtain feedback on performance and practices and communicate these findings.
? Guide the Corporation on strategic goals and targets and to be involved in short and long-term planning.
? Delegate wherever possible.
? Educate and train in order to create a knowledge-based culture.
? Involve people as never before in order to tap ideas, creativity and innovation.
? Plan for future challenges and opportunities.
? Relate to customer needs.
? Share all information in order to create efficiency and understanding.
? Support staff and practise an holistic approach to human relations.
? Place the College in a premier position, nationally and internationally, by his continuing involvement in national and international developments.
COMPANY CHARTER
Hewlett Packard: The HP Way
A) Organisational Values
HP's values are a set of deeply held beliefs that govern and guide our behaviour in meeting our objectives and in dealing with each other, our customers, shareholders and others.
? We have trust and respect for individuals. We apprach each situation with the understanding that people want to do a good job and will do so, given the proper tools, and support. We attract highly capable, innovative people and recognise their efforts and contributions to the company. HP people contribute enthusiastically and share in the success that they make possible.
? We focus on a high level of achievement and contribution. Our customers expect HP products and services to be of the highest quality and to provide lasting value. To achieve this, all HP people, but especially managers, must be leaders who generate enthusiasm and respond with extra effort to meet customers needs. Techniques and management practices which are effective today may be outdated in the future. For us to remain at the forefront in all our activities, people should always be looking for new and better ways to do their work.
'The principles of the HP way are still the basis for how we operate.' John Young, 1988
? We conduct our business with uncompromising integrity. We expect HP people to be open and honest in their dealings to earn the trust and loyalty of others. People at every level are expected to adhere to the highest standards of business ethics and must understand that anything less is totally unacceptable. As a practical matter, ethical conduct cannot be assured by written HP policies and codes; it must be an integral part of the organisation, a deeply ingrained tradition that is passed from one generation of employees to another.
? We achieve our common objectives through teamwork. We recognise that it is only through effective co-operation within and among organisations that we can achieve our goals. Our commitment is to work as a world-wide team to fulfil the expectations of our customers, shareholders and others who depend upon us. The benefits and obligations of doing business are shared among all HP people.
? We encourage flexibility and innovation. We create a work environment which supports the diversity of our people and their ideas. We strive for overall objectives which are clearly stated and agreed upon, and allow people flexibility in working toward goals in ways which they help determine are best for the organisation. HP people should personally accept responsibility and be encouraged to upgrade their skills and capabilities through ongoing training and development. This is especially important in a technical business where the rate of progress is rapid and where people are expected to adapt to change.
B) Corporate Objectives
HP's corporate objective are guiding principles for all decision-making by HP people.
Profits To achieve sufficient profit to finance our company growth and to provide the resources we need to achieve our other corporate objectives.
Customers To provide products and services of the highest quality and the greatest possible value to our customers, there by gaining and holding their respect and loyalty.
Fields of Interest To participate in those fields of interest that build upon our technology and customer base, that offer opportunities for continuing growth, and that enables us to make a needed and profitable contribution.
Growth To let our growth be limited only by our profits and our ability to develop and produce innovative products that satisfy real customer needs.
Our People To help HP people share in the company's success which they make possible; to provide employment security based on their performance; to ensure them a safe and pleasant work environment; to recognise their individual achievements; and to help them gain a sense of satisfaction and accomplishment from their work.
Management To foster initiative and creativity by allowing the individual great freedom of action in attaining well-defined objectives.
Citizenship To honour our obligations to society by being an economic, intellectual and social asset to each nation and each community in which we operate.
'Improvement is accomplished by better methods, better techniques, better machinery and equipment and by people continually finding better ways of doing their jobs and to work together as a team. I will never see the day when there is not yet room for improvement.'
C) Strategies and Practices
HP's values and objectives guide us in forming our strategies and practices and in managing a dynamic business in a changing world.
Management by Wandering Around: An informal HP practice which involves keeping up to date with individuals and activities around the entity through informal or structured communication. Trust and respect for individuals are apparent when MBWA is used to recognise employees' contributions and to listen to employees' concerns and ideas.
MBWA Might Look Like: A manager consistently reserving time to walk through the department or to be available for impromptu discussions.
Individuals networking across the organisation.
Coffee talks, communication lunches, hallway conversations.
"The HP way, when you really come down to it, is respecting the integrity of the individual." Bill Hewlett, 1987
Management By Objectives HP's practice of participative management. Individuals at each level contribute to company goals by developing objectives which are integrated with their manager's and those of other parts of HP. Flexibility and innovation in recognising that alternative approaches to meeting objectives provide effective means of meeting customer needs.
MBO is Reflected In: Written plans which can be traced through the organisation.
Co-ordinated and complementary efforts, and cross-organisational intergration.
Shared plans and objectives.
Open Door Policy The assurance that no adverse consequences should result from responsibly raising issues with management or personnel. Trust and integrity are important parts of the Open Door Policy.
Open Door May be Used To share feelings and frustrations in a constructive manner.
Gain clearer understanding of alternatives.
To discuss career options, business conduct, communication breakdowns.
Total Quality Control A management philosophy and operating methodology to improve quality and achieve customer satisfaction. TQC efforts to offer the best possible products and services to our customers are supported by our value of achievement and contribution.
TQC Encourages: Continuous process improvement using scientific methods.
Universal participation in quality and customer satisfaction.
Meeting or exceeding internal and external customer expectations.
For more Information
* Success & Business Skills, Emotional Intelligence, Social Intelligence, Creative Thinking, *
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