| Today, modern corporate organizations face | | | | appropriate style depends upon two types of |
| compound pressures driven by competition, talent | | | | situational factors: the characteristics of the |
| finding and retention, globalization, financial | | | | follower and the characteristics of the |
| expectations, technology innovation, energy | | | | environment. Three of the most important |
| trends, diverse workforces, environmental | | | | follower characteristics include the locus of control, |
| sustainability, corporate responsibility, the | | | | authoritarianism, and personal abilities. The three |
| proliferation of the Internet, etc. The bottom line | | | | environmental factors include the nature of the |
| is that maintaining the status-quo or doing | | | | task, the formal authority system within the |
| marginally better is not a formula for success. | | | | organization, and the group norms and dynamics |
| Change management and adaptation is ever more | | | | (House et al. 259-273). |
| necessary to be able to set direction, to identify | | | | Vroom and Yetton's "Normative Decision-Making" |
| priorities, to manage complexity, and to deliver | | | | model is also a situational leadership theory since it |
| exceptional results. | | | | identifies the appropriate styles leaders should use |
| John Kotter, Konosuke Matshushita Professor of | | | | in making decisions. The three leadership styles |
| Leadership at Harvard maintains that "Most US | | | | include autocratic decision making, consultative |
| corporations are over managed and under led." In | | | | decision making, and group decision making. The |
| essence, today's managerial jobs require | | | | decision titles determining which style is most |
| management and leadership skills with varying | | | | appropriate include such questions as whether the |
| degrees of focus. The higher we go on the | | | | leader has adequate information to make the |
| corporate ladder, the greater the demand for | | | | decision alone, whether the subordinates will |
| leadership ability. Thus, the increasingly fast | | | | accept the goals of the organization, whether |
| changing environment we face requires more | | | | subordinates will accept the decision if they do not |
| leadership from more people. To cope with these | | | | participate in making it, and whether the decision |
| forces good mastery of leadership and | | | | will produce a controversial solution (Vroom 278). |
| management skills is essential in order to marshal | | | | Although most of the literature on leadership |
| and manage any organization effectively. Hence, | | | | emphasizes the influence of the leader on the |
| the great need to institutionalize leadership | | | | group, the influence of the group upon the leader |
| development. "Institutionalizing a leadership | | | | should not be overlooked. The relationship |
| centered culture--where the business rewards | | | | between the leader and the group implies a |
| people who successfully develop leaders--is the | | | | reciprocal influence. Groups have the capacity to |
| ultimate act of leadership." (Kotter 51-65, 1999). | | | | influence the behavior of their leaders by |
| Leadership Differs from Management | | | | responding selectively to specific leader behaviors. |
| Webster's Third New International Dictionary | | | | The influence of a leader can also be constrained |
| defines leader as "a person who by force of | | | | by several external factors, such as organizational |
| example or qualities of leadership plays a directing | | | | policies, group norms, and individual skills and |
| role, wields commanding influence, or has a | | | | abilities. Other variables have been found to |
| following in any sphere of activity." The strength | | | | neutralize or substitute for the influence of a |
| of leadership comes from the enrolment of minds | | | | leader, such as the skills and abilities of followers |
| to a common cause or vision, and the release of | | | | and the nature of the task itself. |
| intrinsic motivation to achieve extraordinary | | | | Managing Breakdowns for Breakthrough |
| results. This means that anyone in an organization | | | | Performance |
| can be a leader, whether or not that individual is | | | | It is difficult to predict with certainty that the |
| formally identified as such. Indeed, informal leaders | | | | attainment of future visions will occur without the |
| are extremely important to the effectiveness of | | | | occurrence of some setbacks. Breakdowns are |
| most organizations. | | | | situations where the team realizes that the |
| Allen Scherr and Michael Jensen (2-4) offered in | | | | current plan won't work. Contrary to the general |
| their recent Barbados Group Working Paper that | | | | belief of people, breakdowns can be turned into |
| "a leader is an ordinary human being with both a | | | | the driving force behind breakthroughs. This |
| commitment to deliver a result--whose realization | | | | concept is well captured with the saying: |
| would be remarkable and visionary given the | | | | "necessity is the mother of invention". |
| current circumstances--and the integrity to | | | | Breakdowns are opportunities for a truly |
| execute on this commitment to accomplish the | | | | committed team to find alternate solutions; this |
| desired results." One key idea of this definition is | | | | only happens by identifying the problem and |
| that "integrity" in the sense of leadership includes | | | | working on it as a team. Expanding on the |
| honoring your word--and that means either | | | | breakdown notion, there are two essential |
| keeping your word or acknowledging that one will | | | | elements to every breakdown: 1) the |
| not be keeping it, and cleaning up any mess that | | | | commitment and 2) the recognition and |
| causes for those who were counting on that | | | | acknowledgment that, given the current course |
| word being kept." (Erhard et al. 36). | | | | and speed, the commitment will not be realized. |
| Kotter defines management as being about coping | | | | First, if there is no commitment there will never |
| with complexity, planning and budgeting, organizing | | | | be a breakdown; because in the absence of any |
| and staffing, controlling and problem solving. To | | | | commitment, whatever happens is acceptable. So, |
| this end, he asserted that management involves | | | | when there is no buy-in and commitment is |
| setting targets and goals, establishing detailed | | | | unclear or vague, the existence of a breakdown |
| plans for reaching goals, allocating resources, | | | | will lack urgency, and may not even be visible to |
| establishing organizational structure, delegating | | | | some or all of the people involved. Second, to the |
| authority and responsibility, monitoring results vs. | | | | degree that one can accurately predict the |
| plan, identifying deviations from plan, and planning | | | | outcome of the present course, breakdowns will |
| and organizing solutions (51-65, 1999). | | | | be identified earlier, and thereby increase the |
| Consequently, what great managers have in | | | | likelihood that the issues will be resolved. On the |
| common is an appreciation of their strengths as | | | | other hand, to the extent we cannot see that the |
| well as an understanding of their limitations. Being | | | | forecast of the present approach is failure, no |
| aware that performance hinges on how well they | | | | breakdown will be noticed or, if it is, it will likely be |
| figure out the pressures and priorities of their | | | | too late to overcome the obstacles (Scherr, Allen |
| particular job, they find a course that works for | | | | 13-14). |
| them. According to Sternberg "finding this individual | | | | The act of managing and communicating the |
| path to success is the hallmark of managerial | | | | existence of breakdowns helps to expedite the |
| intelligence." (314-315). | | | | timely finding of new solutions and breakthroughs. |
| Management is fundamentally about minimizing risk | | | | If everyone is committed to the same overall |
| and maximizing adherence to plan and | | | | vision, then a breakdown in another area that will |
| predictability. In comparison, leadership copes with | | | | prevent the overall vision from being realized is a |
| the unknown, the dreams, and the vision that | | | | breakdown for all. When a committed and |
| generates breakthrough performance. Accordingly, | | | | motivated team faces a breakdown, they |
| what one person views as possible may be a pipe | | | | re-create their commitment instead of giving up. |
| dream to another. The subject of leadership is | | | | Renewing the commitment shifts people's |
| one where the results to be produced are | | | | point-of-view and often allows them to see |
| accompanied by greater risk and uncertainty than | | | | opportunities and solutions that were not |
| what is normally considered to be acceptable in | | | | previously visible. |
| the realm of management. A scholarly gem of | | | | The quality movement offers methodologies (e.g., |
| the Renaissance was Machiavelli's The Prince (1513 | | | | Lean Six Sigma, ISO 9001, TQM, CMMI, ACE, etc.) |
| 1962). Machiavelli's thesis is as good today as it | | | | to help with the identification of some type of |
| was in 1513. It declared that "there is nothing | | | | breakdowns by checking what is not broken and |
| more difficult to take in hand, more perilous to | | | | finding ways to drive continual improvement. |
| conduct, or more uncertain in its success, than to | | | | Bringing in a fresh perspective to observe what is |
| take the lead in the introduction of a new order | | | | "business-as-usual" can help to spot breakdowns, |
| of things." | | | | which may have been invisible otherwise. |
| Obviously, both leadership and management are | | | | Expectations + Commitment is the Dialect of |
| vital for a well-functioning organization. It is critical | | | | Successful Leadership |
| to emphasize and understand Kotter's incisive | | | | Expectations and commitment play a central role |
| conclusion about the tensions between leadership | | | | in the effectiveness of leadership. It is known that |
| and management: ". . . even more fundamentally, | | | | leaders who expect more typically get more (e.g., |
| leadership and management differ in terms of | | | | Likert, 1961, 1967; McGregor 1960). By inviting |
| their primary function. The first can produce | | | | each relevant individual to make a personal |
| useful change, the second can create orderly | | | | commitment to the realization of the vision, a |
| results which keep something working efficiently. | | | | leader is in practice working towards a self-fulfilling |
| This does not mean that management is never | | | | prophesy. The main implication of creating the |
| associated with change; in tandem with effective | | | | Pygmalion effect by expecting committed players |
| leadership, it can help produce a more orderly | | | | to excel is to drive high performance. |
| change process. Nor does this mean that | | | | Eden (184) points out that "a leader who wants |
| leadership is never associated with order; to the | | | | to be a more positive Pygmalion should point out |
| contrary, in tandem with effective management, | | | | to the subordinates that they have much |
| an effective leadership process can help produce | | | | untapped potential, and in general get them to |
| the changes necessary to bring a chaotic situation | | | | believe that they can achieve more." Business |
| under control." (Kotter 7, 1990). This conflict can | | | | schools teach many variation of this theme to |
| be useful; however, it is not a trivial exercise. | | | | develop leadership skills, i.e., Expectation and |
| Proper balance is essential for both short-term | | | | Self-efficacy Training, Immunizing against the |
| and long-term success of any business. | | | | Golem Effect, Avoiding Negative Stereotypes, |
| Leadership is about being comfortable with | | | | Clearing the Record, Setting Challenging Goals and |
| change, and understanding that the status quo | | | | Objectives, etc. |
| works against progress in most cases. Every | | | | Culture of an organization is closely involved in the |
| quarter and every month, there is change--things | | | | realization of expectations and self-fulfilling |
| are in constant motion. While others may not be | | | | prophecies. Schein (189-190) has researched how |
| aware of this, leaders assume it. In knowing that | | | | culture impacts the effectiveness of an |
| change is inevitable, the true leader seeks positive | | | | organization. In his own words, "productivity is a |
| change for a purpose and for the better. Kotter | | | | cultural phenomenon par excellence, both at the |
| defines leadership as consisting of the following | | | | small-work-group level and at the level of the |
| three elements: 1) establishing direction, 2) aligning | | | | total organization." To this end, myth making is a |
| people, and 3) motivating and inspiring them. This | | | | promising way of molding organizational culture. |
| is a great definition but the paper of Allan Scherr | | | | Managing myths is a worthy cause for those |
| and Michael Jensen, adds further insight into the | | | | influencing the culture "...the unique and essential |
| domain of leadership by agreeing with Kotter's | | | | function of leadership is the manipulation of |
| work but adding two more elements: | | | | culture." (Schein 317). |
| "Communicating breakdowns, and managing | | | | Think about the encouraging self-fulfilling prophecy |
| breakdowns." (Scherr, Jensen 4). | | | | aroused by the wide spread belief that "Nothing is |
| Legendary leader, Jack Welch remarked in a WSJ | | | | impossible" or that "Will is the measure of power" |
| editorial (2004) that after 30 years of leading he | | | | compared to the Golem effect that comes from |
| knows what leaders look like and act like. His | | | | myths such as "Our products lack quality" or that |
| process assesses four essential traits (each one | | | | "We operate on Murphy's law and the Peter |
| starting with an E, a nice coincidence): 1) great | | | | Principle". Therefore, symbolic expressions of a |
| positive Energy, 2) ability to Energize others, 3) | | | | high achievement culture are important in the |
| Edge or the courage to make tough yes-or-no | | | | enhancement of expectations. |
| decisions, and 4) Execution follow through to get | | | | Business as usual is often the enemy of |
| the job done. He concluded his assessment with | | | | breakthrough performance and effective |
| an observation about integrity and general | | | | leadership. When things are very bad, the need |
| intelligence as necessary attributes to complete | | | | for change is pushed in our faces. When a |
| the profile of a strong leader type. | | | | situation is unbearable, it seems that taking action |
| As we gather, there is no shortage of leadership | | | | is the right thing to do, and most are willing to |
| definitions. The many dimensions into which | | | | work hard at it. However, when things are good, |
| leadership has been cast can make the subject | | | | well hey, everything is fine. The problem with |
| ambiguous. Nevertheless, there is adequate | | | | business as usual is that it leads to complacency |
| similarity among definitions to find common | | | | and mediocrity, and over time such lack of |
| ground. Leadership has been conceived as the | | | | leadership can be costly and detrimental to the |
| exercise of influence, as a function of personality, | | | | organization. Napoleon offered his opinion about |
| as a mode of persuasion, as particular behaviors, | | | | the importance of leadership in his famous quip |
| as a means to achieve future visions, as an | | | | that he would rather have an army of rabbits led |
| approach to induce commitment, as a creative | | | | by a lion than an army of lions led by a rabbit. |
| mind set, as an achievement instrument, and as a | | | | Much like in professional sports the need for |
| mixture of such conceptions. | | | | performance in today's competitive environment |
| Situational Theories of Leadership | | | | dictates the notion of "doing it now or it is not for |
| The inability of researchers to recognize | | | | long". |
| conclusively all the dimensions of leadership | | | | Works Cited |
| resulted in the development of four popular | | | | Kotter, John. On What Leaders Really Do. Boston: |
| situational theories of leadership. These theories | | | | Harvard Business School Press, 1999. |
| propose that the most effective leadership style | | | | Erhard et al. "Integrity: A positive model that |
| depends upon situational variables, especially the | | | | incorporates the normative phenomena of |
| characteristics of the group and the nature of the | | | | morality, ethics, and legality". Negotiations, |
| task. | | | | Organizations and Markets (NOM) Working Paper |
| Hersey and Blanchard developed a "Situational | | | | No. 06-11; and Barbados Group Working Paper No. |
| Leadership" model that harmonized different | | | | 03-06. SSRN, 2007. |
| combinations of task behavior and relationship | | | | Kotter, John. A Force For Change: How Leadership |
| behavior with the maturity of the followers. | | | | Differs From Management. New York: The Free |
| Depending on the readiness of the subordinates, | | | | Press, 1990. |
| the appropriate leadership style is first telling; then | | | | Scherr, Allen, Michael Jensen. "A new Model for |
| selling; then participating; and finally, for highly | | | | Leadership". Negotiations, Organizations and |
| mature followers, delegating (Vecchio 334-350). | | | | Markets (NOM) Working Paper No. 06-10; and |
| The most extensively researched situational | | | | Barbados Group Working Paper No. 02-06. SSRN, |
| leadership theory is Fred Fiedler's "Contingency | | | | 2006. |
| Theory" of leadership. Fiedler used the LPC scale | | | | Ayman et al. "The Contingency Model of |
| to measure the leader's orientation toward either | | | | Leadership Effectiveness: Its Level of Analysis." |
| the task or the person. The most appropriate | | | | Leadership. Ed. Robert P. Vecchio. Indiana: |
| leadership style was then determined by | | | | University of Notre dame Press, 2002. |
| assessing three situational variables: whether the | | | | Vecchio, Robert. "Situational Leadership Theory: |
| relationships between the leader and the | | | | An Examination of a Prescriptive Theory." |
| members were good or poor, whether the task | | | | Leadership. Ed. Robert P. Vecchio. Indiana: |
| was structured or unstructured, and whether the | | | | University of Notre dame Press, 2002. |
| power position of the leader was strong or weak. | | | | House et al. "Path Goal Theory of Leadership." |
| When these three situational variables created an | | | | Leadership. Ed. Robert P. Vecchio. Indiana: |
| extremely favorable or extremely unfavorable | | | | University of Notre dame Press, 2002. |
| situation, the most effective leadership style was | | | | Vroom, Victor. "Can Leaders Learn to Lead." |
| a task-oriented (low LPC) leader. However, a | | | | Leadership. Ed. Robert P. Vecchio. Indiana: |
| leader with a high concern for interpersonal | | | | University of Notre dame Press, 2002. |
| relationships (high LPC) was more effective in | | | | Sternberg, Robert. "Managerial Intelligence: Why IQ |
| situations where there were intermediate levels of | | | | Isn't Enough." Leadership. Ed. Robert P. Vecchio. |
| favorableness (Ayman et al. 351-377). | | | | Indiana: University of Notre dame Press, 2002. |
| The "Path Goal" model is another situational | | | | Eden, Dov. "Leadership and Expectations: |
| leadership theory. This theory is derived from | | | | Pygmalion Effects and other Self-Fulfilling |
| expectancy theory and suggests that effective | | | | Prophecies in Organizations." Leadership. Ed. Robert |
| leaders must clarify the goal paths and increase | | | | P. Vecchio. Indiana: University of Notre dame |
| the goal attractiveness for followers. Four distinct | | | | Press, 2002. |
| leadership styles are proposed in the model: | | | | Schein, E. H. Organizational Culture and Leadership. |
| directive, supportive achievement-oriented and | | | | San Francisco: Jossey-Bass, 1985. |
| participative leadership styles. The most | | | | |