BA105: Organizational BehaviorClass agenda: Leadership in OrganizationsWhat is leadership?“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 PetersWhat does leadership do?Slide 6Leadership as an alignment or coordination mechanismJack Welch: coordinating with charisma Business Week May 28, 1998Slide 9Leadership is power; but not all power is leadershipLeadership versus managementCarly Fiorina gets the axe at HP; fails as a leader of changeWhile Lou Gerstner succeeded atWhy did Carly fail?Although leadership is personal, it is a group or organization role, not an individual attributeTwo faces of leadershipCrafting a visionMartin Luther King as visionary leaderSteve Jobs as visionary and charismatic leaderDividing leadership at Microsoft: Bill Gates as visionary, Steve Ballmer as charismatic coachThe charismatic and visionary leader as deviant, eccentric, slightly madLarry Ellison’s (FAKE) Yale Commencement SpeechAre leaders born or made? Leadership traits and skillsTom 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, 11.20.00More Tom Peters on gender differences Women’s Stuff = New Economy Match Improv skills Relationship-centric Less “rank consciousness” Self determined Trust sensitive Intuitive Natural “empowerment freaks” [less threatened by strong people] Intrinsic [motivation] > ExtrinsicCharlotte Beers’ leadership styleHow to find and build leadershipLeadership is hard to come by when the informal organization is undevelopedHeroic versus developmental (post-heroic) leadershipAre American executives excessively prone to “heroic” leadership?Slide 31Slide 32Slide 33It's an old joke in Silicon Valley: Q: What's the difference between God and Larry Ellison?Heroic versus developmental (post-heroic) leadershipDevelopmental leadership is about teamworkRoles in teams: leaders & followersSlide 38Takeaway PointsThursday discussionPreparing for the Charlotte Beers caseBA105: BA105: Organizational BehaviorOrganizational BehaviorProfessor Jim LincolnProfessor Jim LincolnWeek 5: LectureWeek 5: Lecture2Class agenda: Leadership in OrganizationsDiscuss meanings and types of leadership roles and how they differ from “management”Consider examples of leaders in business and politicsDiscuss how can organizations find or make leaders3What is leadership? The use of personal capabilities and relationships to direct, inspire, motivate, and empower others “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, 20004“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 Peters5What does leadership do?Personifies (gives the organization a human face; puts flesh on core values)Creates accountability (attributes agency; assigns credit- and blame)Simplifies (cuts through complexities & ambiguities)Directs (gives guidance)Aligns/coordinates (unifies the organization around the leader’s goals)Inspires & motivates (drives, enthralls, impassions followers to subordinate self-interest to the good of the group)6“Great leaders are almost always great simplifiers who can cut through argument, debate, and doubt to offer a solution everyone can understand”--Colin Powell7Leadership as an alignment or coordination mechanismMarket-ingMarket-ingEngineeringEngineeringManu-facturingManu-facturingHuman ResourcesHuman ResourcesAccountingAccounting8Jack Welch: coordinating with charisma Business Week May 28, 1998GE is a set of operating companies that cooperate through a small, very talented, very thoughtful corporate headquarters.’ It takes a very, very strong personality and tremendous character to be able to keep pushing that kind of an organizationWelch acts as the galvanizing agent, crossing company borders and layers and regularly delivering shocks with his wit and incisiveness. (H)e is exceptionally hands-on and a large force in the minds and hearts of employees, who refer to him as Jack and quote his maxims. (He) has been a combination of charismatic preacher, all-knowing judge, internal ombudsman and hard-driving coach. 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.Charisma is part of his MO: Welch is blunt, quick and often very funny.9Debi 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.”10Leadership is power; but not all power is leadershipWhat are some other forms of power?•Leveraging the formal organization–Exercising authority–Designing and implementing systems•Trading on scarce skills or resources•Maneuvering, manipulation11Leadership versus management•Management: the design and implementation of formal systems of control, coordination, and decision-making•Management is about coping with complexity•Ensuring reliable and efficient operation without undue dependence on people •Leadership is about coping with change–In times of change and uncertainty, “management” is insufficient; leadership is critical •Particularly true of “paradigm-breaking,” discontinuous change•Times of change/uncertainty may call forth great leadership12Carly Fiorina gets the axe at HP; fails as a leader of change13While Lou Gerstner succeeded atLouis 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