UGBA105: Organizational Behavior

1. UGBA105: Organizational Behavior Professor Jim Lincoln Week 4: Lecture Leadership in Organizations

2. Class agenda: Leadership in Organizations Discuss meanings and types of leadership roles and how they differ from “management” Consider examples of leaders in business and politics Discuss how organizations make or find leaders

3. 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 employees can smell, feel, touch their presence” [the elevator test] … “Leaders love their work. That passion is infectious.” … “ ‘It’s only business, not personal’ … IT ALWAYS IS PERSONAL.” … “If you love what you do, it shows. You cannot fake love and succeed.”-Tom Peters

5. Informal Organization Input Environment Resources History Output Systems Unit Individual Formal Organization Tasks Strategy People The Congruence Model

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

7. Leadership as an alignment or coordination mechanism Market- ing Accounting Manu- facturing Engineer ing Human Resources

8. Jack Welch: coordinating 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. Leadership is power; but is all power leadership? What are some other forms of power?

11. Management versus Leadership • Management: the design and implementation of formal systems of control, coordination, and decision-making • Management is about coping with complexity • Leadership: The use of personal capabilities and relationships to direct, inspire, motivate, and empower others • Leadership is about coping with change

12. Lou 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.

13. Carly Fiorina gets the axe at HP; fails as a leader of change Why did Carly fail?

14. Leadership is Janus-faced • Vision: directing and inspiring • Clear picture of future • Passion to achieve • Charisma: motivating & empowering • Personal qualities & capabilities that attract & motivate others

15. Crafting a vision • Must a vision be unique or new? • What are the characteristics of a strong vision?

16. Martin Luther King as 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. Steve Jobs as visionary and charismatic 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

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

19. The Body Shop founder Anita Roddick as charismatic and visionary

20. The charismatic and visionary leader as deviant, eccentric, slightly mad • Deviant, exotic, eccentric, iconoclast; a cut apart; symbolic of a new direction • Charisma may be context-specific • Different mind-set, style, gestalt, way of framing reality • Steve Jobs’ “reality distortion field” • Leaders emerge from unconventional career paths

21. “Never, ever think outside the box”

22. Larry Ellison’s (FAKE) Yale Commencement Speech "Graduates of Yale University, I apologize if you have endured this type of prologue before, but I want you to do something for me. Please, take a good look around you. Look at the classmate on your left. Look at the classmate on your right. Now, consider this: Five years from now, 10 years from now, even 30 thirty years from now, odds are the person on your left is going to be a loser. The person on your right, meanwhile, will also be a loser. And you, in the middle? What can you expect? Loser. Loserhood. Loser Cum Laude. "In fact, as I look out before me today, I don't see a thousand hopes for a bright tomorrow. I don't see a thousand future leaders in a thousand industries. I see a thousand losers. "You're upset. That's understandable. After all, how can I, Larry Ellison, college dropout, have the audacity to spout such heresy to the graduating class of one of the nation's most prestigious institutions? I'll tell you why. Because I, Lawrence "Larry" Ellison, second richest man on the planet, am a college dropout, and you are not. "Because Bill Gates, richest man on the planet is a college dropout, and you are not. "Because Paul Allen, the third richest man on the planet, dropped out of college and you did not. "And for good measure, because Michael Dell, No. 9 on the list and moving up fast, is a college dropout, and you, yet again, are not.“ Oh sure, you may, perhaps, work your way up to No. 10 or No. 11, like Steve Ballmer. But then, I don't have to tell you who he really works for, do I? And for the record, he dropped out of grad school. Bit of a late bloomer." "Finally, I realize that many of you, and hopefully by now most of you, are wondering, 'Is there anything I can do? Is there any hope for me at all?' Actually, no. It's too late. You've absorbed too much, think you know too much. You're not 19 anymore. You have a built-in cap, and I'm not referring to the mortar boards on your heads."

23. Although leadership is personal, it is a role and (therefore) a relation, not an individual attribute • Leadership is inherently relational • Leadership is also situation-specific

24. Are leaders born or made?Leadership traits and skills

25. Tom Peters on gender differences“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure”Title, Special Report, Business Week, 11.20.00

26. More Tom Peters on gender differencesWomen’s Stuff = New Economy MatchImprov skillsRelationship-centricLess “rank consciousness”Self determinedTrust sensitive IntuitiveNatural “empowerment freaks” [less threatened by strong people]Intrinsic [motivation] > Extrinsic

27. Charlotte Beers’ 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”

28. How to find and build leadership • Selection: • Socialization: • What conditions breed leadership?

29. Leadership is hard to come by when the informal organization 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

30. Heroic versus developmental (post-heroic) leadership What are the characteristics of heroic leaders? What are their strengths and weaknesses?

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

32. Michael Dell as heroic leader "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

33. Steve 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)

34. It's an old joke in Silicon Valley: Q: What's the difference between God and Larry Ellison? A: God doesn't think he's Larry Ellison.

35. Jack Welch as heroic leader? 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

36. Heroic versus developmental (post-heroic) leadership What are the characteristics of developmental leaders?

37. Developmental leadership is about teamwork Picture a dog sled. A human is riding, holding a whip, as the team pulls the sled. ``The leader in that group is the lead dog,'' Chambers says. “(A leader) is able to set the course for the team, who never asks the team to do something that she or he is not willing to do themselves, who has the confidence of the team that they will follow him, that when it really gets tough, will be able to set the pace and know how hard the team can run without breaking down. Cisco CEO John Chambers, quoted by Don Gillmore, SiliconValley.com, May 20, 2000

38. Transitioning from “heroic” leadership to developmental leadership L L = Leader L Mature L Experienced Transitional L Start - up C. Manz & H. Sims Business Without Bosses John Wiley, 1993

39. Continuous rotation of leadership and followership in mature teams L L L L L Is this a “mature team?”

40. Takeaway 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

41. Tuesday discussion • Other business; lecture tie-ups • Charlotte Beers case

42. Preparing for the Charlotte Beers case • Assess Ogilyv’s problems in relation to its strategy and environment • Analyze cause and effect relationships behind problems • Consider all the of O’s existing organizational architecture • What were Charlotte’s strengths and weaknesses as a leader? • Critique Charlotte’s analysis of Ogilvy’s problems • Evaluate her approach to: • Crafting the brand stewardship vision • Communicating the vision • Aligning Ogilvy’s organization with the vision • What would you have done differently? • Was there real substance to “brand stewardship” or was Charlotte just a good saleswoman? • How much of what Charlotte did was “leadership” and how much of it was “management”?