Positive Leadership: Managing Change

Most companies wait until a crisis point to launch a transformational initiative. 

However, in today’s environment, companies need to embrace pre-emptive transformation. 

Four types of companies succeed at pre-emptive transformation:

Continuous adapters

These companies continuously evolve their business models by making small changes. McDonald’s, which rode the 1960s baby boom by drawing teenagers into the workforce and harnessed globalisation in the 1970s and 1980s to expand globally, is an example.

Ambidextrous players

A company of this type maintains a balance between exploitation of existing strengths and exploration, even after finding a successful model. For example, digital-technology and chip company Qualcomm uses returns from past successes (e.g. WCDMA) to fuel future ones (e.g. LTE).

Industry shakers

These companies seek to drive industry-level change rather than become victims of it. Amazon, for example, generates razor-thin profits because it continually reinvests in its future, and even in self-disruption (as with the Kindle in 2007).

Portfolio shifters

These companies run a portfolio of businesses and actively adjust their emphasis over time. 3M, for example, has more than 35 business units divided among 6 reporting segments, and its strategic acquisitions and divestments reflect the evolving demand landscape.

Successful pre-emptive transformers share several key traits:

 External orientation

 Long-term perspective

 Ambidexterity

 Adaptiveness

 A disruptive mentality

 Healthy paranoia

 Resource fluidity

 Constant focus on simplicity

Leaders today need to engage in continuous pre-emptive renewal. They need to look beyond short-term financial performance, watch for potential disruptions and shifts and then pre-emptively address them.

Positive Leadership: Managing Change

Military Leadership as a Role Model for Business Leadership

Military service—particularly service in the crucible of combat—is exceptionally effective at developing leaders. Why? It's nurture, not nature.

First, in all services, military leadership qualities are formed in a progressive and sequential series of carefully planned training, educational, and experiential events—far more time-consuming and expensive than similar training in industry or government. Secondly, military leaders tend to hold high levels of responsibility and authority at low levels of our organisations. Finally, and perhaps most importantly, military leadership is based on a concept of duty, service, and self-sacrifice; soldiers take an oath to that effect.

Soldiers view their obligations to followers as a moral responsibility, defining leadership as placing follower needs before those of the leader, and this value priority is taught to junior leaders. Military leadership extends to caring for the families of soldiers, sailors and airmen, especially when service members are deployed.

When serving in crisis conditions where leadership influences the physical well being or survival of both the leader and the led—in extremis contexts—transactional sources of motivation (e.g. pay, rewards, or threat of punishment) become insufficient. Why should a person be motivated by rewards when he might not live to enjoy them? Why would a person fear administrative punishment when compliance might lead to injury or death? Soldiers in such circumstances must be led in ways that inspire, rather than require, trust and confidence. When followers have trust and confidence in a charismatic leader, they are transformed into willing, rather than merely compliant, agents. 

In the language of leadership theorists, such influence is termed transformational leadership, and it is the dominant style of military leaders.

Contrast the military leader value set reflecting service to the one that currently exists in some businesses. Are we likely to see business leaders placing the well-being of their shareholders and employees above their own – in compensation discussions for instance? The quantity of compensation awarded to the ceo of Marks and Spencer for instance isn't as relevant as the message to followers that, when times were tough, the leader puts his personal well being ahead of theirs.

Such perceptions of a military leader in combat would render that leader mistrusted and ineffective in the eyes of soldiers forever. Why should business leaders expect anything else on the part of people desperate about the loss of their equity or employment or lifestyles? The current economic environment, partly caused by a crisis of self-service leadership, has created belt-tightening reminiscent of a world war, with budgets slashed, travel funding restricted, training programmes cut, personnel layoffs, and other draconian, cash-saving measures in place. 

CEOs have to start leading like generals—even if that means living a lifestyle in common with their troops. The best leadership—whether in peacetime or war—is borne as a conscientious obligation to serve.

In many business environs it is difficult to inculcate a value set that makes leaders servants to their followers. In contrast, leaders who have operated in the crucibles common to military and other dangerous public service occupations tend to hold such values. Tie selflessness with the adaptive capacity, innovation, and flexibility demanded by dangerous contexts, and one can see the value of military leadership as a model for leaders in the private sector.

In your own development as a leader, have you found value in putting other people first? Did it seem out of place in competitive, results-oriented businesses? Did it powerfully influence people, or did it merely suggest weakness? And have you had role models in business that you see as effective because of their servant leader orientation?

Military Leadership as a Role Model for Business Leadership

Leadership Tactics Which Impact the Bottom Line

Leaders matter, especially in business.  To get ahead, to stay ahead, you must lead.  These four tactics can be used by any business leader, and have been scientifically shown to increase a business’ bottom line.

1. Charisma – the leader sees what is really important and instills a sense of mission, pride and respect in employees.  Money is not enough, employees need to see why their work is important.

2. Individualised Consideration – the leader gives projects to his team in order to promote learning and growth. The leader also provides coaching and teaching.  You can’t keep giving your most important projects to your best people; it is vital that all your team all grow and learn.

3. Intellectual Stimulation – the leader pushes colleagues to think in new ways and to use reason and creative problem solving.  You must push your team to go past what has worked before, because it may not work tomorrow.

4. Contingent Reward – the leader provides rewards when colleagues follow expected actions and contracts.  While money is not enough, it is important.  Staff need to know that you can get them the rewards that they want.

Together the first three tactics constitute a theory of leadership known as “Transformational leadership”, and the fourth tactic is half of what is called “Transactional leadership”.

The other half of transactional leadership is “Management by exception”, where the leader has staff follow the established rules and patterns as long as they are meeting performance goals.  Management by exception does not help a business’ bottom line, it is the opposite of transformational leadership and allows your competition to catch up and surpass you.

In the study linked to above, the researchers discovered a few more things about these tactics.

• They are more useful in public rather than private businesses. This may be because publicly held businesses are more bureaucratic and so need more people who can push new ideas.
• They are just as effective when used by leaders low on the org chart as when used by those at the top.  This is very important.  It means that no matter where you are in the company you can be a great leader and have a real impact on the business.
• They are more effective at making staff feel like things are going well, rather than affecting objective performance (like revenue). This is most pronounced with contingent rewards – the transformational tactics affect both employee sentiment and company performance quite a lot.

What all does this tell us?

1. Just doing what has worked, and is working, isn’t enough.  Other managers in other companies are trying new things, and eventually your old ways won’t be good enough any more.
2. You need to give a sense of mission to your employees.
3. You need to inspire them to come up with new ideas, and to give them opportunities to learn, try new things, and grow.
4. Inspiration is not enough.  Your team also need to see real rewards.

Leadership Tactics Which Impact the Bottom Line

Developing Young Leaders in the Military

The philosophy of the Norwegian Naval Academy in Bergen is that “It is people, not technology and strategy, that win wars. Further, fighting spirit and endurance is shaped not by material benefits, but by a close and determined bond between leaders and crew.”

The Naval Academy places practical and theoretical leadership training at the heart of their bachelor program in military science – preparing officers for operational leadership at sea.

A key challenge to this leadership development is a healthy balance between theory, coaching and practical training – in a realistic context out of the classrooms. HNoMS Statsraad Lehmkuhl, a 95 years old barque, with fifty sails, three masts, and a solid old fashioned rig – system meets this challenge. A three months cruise in the North sea and the Atlantic ocean in the storm – season marks a significant starting point for the cadet’s leadership training. The old lady does not carry advanced computer technology, electric engines or hydraulic systems that reduce the role of humans merely into computer operators. The sailing ship demands human cooperation at its best, to overcome and work with the rough weathers at sea. The ship and the nature immediately give feedback on poor leadership and cooperation.

Inspiring leadership is based on practical seamanship skills and tradition. At HNoMS Statsraad Lehmkuhl the cadets learn old-fashioned seamanship, knots, tackling, shanties, and maintenance in a way often ignored in modern navies. By this, they develop a sound respect for practical knowledge and traditions grown from thousands of years of accumulated experience. These skills also stimulate the cadet’s identity and pride as sailors. Military professionalism builds also on high academic standards. During the cruise professors are giving lectures in history, English, international affairs, leadership, psychology and ethics.

Leadership calls also for social skills, moral character and emotional intelligence. The cruise is a challenging kind of social training. Three months working and living together 24-7, sleeping in columns of hammocks with 20 cm “private” space on each side represents a good training ground for social interaction. The cadets are not allowed to bring computers, music, cell phones etc that can help them escape from boredom, homesickness, conflicts etc. They must develop their skills to communicate and face problems in a constructive manner. They learn to lean on their shipmates when facing hardship and difficulties. By this, comradeship, esprit de corps, and mutual trust may develop; for some, lasting the rest of their professional careers.

The cruise works. Research shows that the cruise influences the cadet’s leadership skills more than any other single activity at the academy. Emotional intelligence and transformational leadership changes significantly – in a positive way. The same goes for cohesion and ability to participate in - and build high performance groups. And last, but not least, the cruise leaves most cadets with a new confidence when it comes to both seeking leadership, and meeting the sea as sailors.

Developing Young Leaders in the Military

What History Tells Us About Effective Leadership

What do we actually know about effective leadership? One hundred years of research on the topic has led to some clear answers.

First, are leaders born or made? The answer is both, but more made than born. Leadership is a complex and sophisticated social role. Although certain qualities do predispose some people to attain leadership positions and be better at leading, effective leaders actually hone their skills through experience, conscious self-development, education, and training.

Second, does leadership training work? Relatively recent analyses of over 100 years of leadership training and development efforts suggests that most programsme do indeed lead to some positive change. Is the change dramatic? Sometimes. Certain crucible, or trigger, events can lead to substantial improvement in leadership ability. For the most part, however, leadership development is a long-term and incremental process.

Third, are there certain elements that all (or most) great leaders share?

We are quite sure that the theory of transformational leadership represents the very best elements of leadership. Effective leaders tend to be inspirational, visionary, and serve as positive role models for their followers. But the very best leaders also care sincerely about their followers, their well-being and their personal development. Great leaders also empower followers and encourage them to be creative and to take initiative.

Fourth, is leadership situation specific? In other words, if you are a successful leader in one area, such as at work, will you also be a successful leader in the community, or in a different company? Although this question has not been thoroughly researched, it is likely that the same transformational qualities and skills will transfer to other settings. The limitation, of course, is that knowledge of the particular setting, and understanding of its “culture” is required. So, a period of adjustment and learning is needed to allow the leader to use transformational abilities in the new environment.

Finally, how early in life does leadership begin to develop? This is a fascinating question, and one that current research is exploring. There has been little longitudinal research on the early “roots” of leadership, but initial results suggest that the foundation of leadership begins at a very early age. Encouragement from parents and teachers likely plays a very important part, as well as early exposure to a variety of social situations, and novel experiences.

What are the implications for personal leadership development? Leadership is complex, but it can be developed. We know the building blocks of leadership success, and it is clear that devoting time and energy to your personal development pays off.

What History Tells Us About Effective Leadership

Four Things You Can Do to Become a Better Leader

Research clearly shows that transformational leaders - leaders who are positive, inspiring, and who empower and develop followers - are better leaders. They are more valued by followers and have higher performing teams. By working on the 4 key components of transformational leadership, we can all become better leaders (and better persons, in general).

1. Be a Positive Role Model. Set a positive example and don't ask others to do what you yourself are unwilling to do. Alexander the Great was a successful military leader who was adored by his troops, because Alexander was out in front leading the charge into battle.

2. Be Optimistic and Inspirational. Have a "can do" attitude, and use that attitude to motivate. Let followers know your positive vision for the work team or company and inspire them to achieve it.

3. Challenge, but Support. Transformational leaders challenge followers to be creative, innovative, and to take risks, and this is how they together achieve extraordinary results. But, it is critical to support innovation and risk-taking. Don't blame. Instead, use setbacks as positive learning experiences.

4. Listen to Followers and Be Genuinely Concerned. Research shows this may be most important. You can't be the type of leader who empowers and develops followers if you don't have genuine positive regard for your team members. You need to focus on their positive assets, be "in tune" with each member, and demonstrate that you care about each individual's performance and personal development.

OK, here's the "extra" factor: Be Honest and "Authentic" The truly exceptional leaders are straightforward, honest, and don't "play games." They don't use followers to achieve personal gains, but work together for mutually beneficial outcomes.

Being a great leader isn't easy, but we do know that these characteristics are the "recipe" for success.

Four Things You Can Do to Become a Better Leader

Are You a Transformational Leader?

One of the most popular theories of leadership today is transformational leadership. What is a transformational leader? Originally focused on leaders who "transform" groups or organisations, transformational leaders focus on followers, motivating them to high levels of performance, and in the process, help followers develop their own leadership potential.

There are 4 components to transformational leadership, sometimes referred to as the 4 I's:

• Idealized Influence (II) - the leader serves as an ideal role model for followers; the leader "walks the talk," and is admired for this.
• Inspirational Motivation (IM) - Transformational leaders have the ability to inspire and motivate followers. Combined these first two I's are what constitute the transformational leader's charisma.
• Individualized Consideration (IC) - Transformational leaders demonstrate genuine concern for the needs and feelings of followers. This personal attention to each follower is a key element in bringing out their very best efforts.
• Intellectual Stimulation (IS) - the leader challenges followers to be innovative and creative. A common misunderstanding is that transformational leaders are "soft," but the truth is that they constantly challenge followers to higher levels of performance.

Research evidence clearly shows that groups led by transformational leaders have higher levels of performance and satisfaction than groups led by other types of leaders.

Why? Because transformational leaders hold positive expectations for followers, believing that they can do their best. As a result, they inspire, empower, and stimulate followers to exceed normal levels of performance and, transformational leaders focus on and care about followers and their personal needs and development.

See if you have transformational leadership qualities (Agree or Disagree).

• 1. I would never require a follower to do something that I wouldn't do myself.
• 2. My followers would say that they know what I stand for.
• 3. Inspiring others has always come easy to me.
• 4. My followers have told me that my enthusiasm and positive energy are infectious.
• 5. My followers would say that I am very attentive to their needs and concerns.
• 6. Even though I could easily do a task myself, I delegate it to expand my followers' skills.
• 7. Team creativity and innovation are the keys to success.. I encourage my followers to question their most basic way of thinking.

(Items 1 & 2 = II; 3 & 4 = IM; 5 & 6 = IC; 7 & 8 = IS)

To learn more about transformational leadership, read: Transformational Leadership

Are You a Transformational Leader?