Fluent Essays

The final paper will include an assessment of a business entity or organization that you are familiar with -- Apple Inc.    You will create a 10-page (minimum) double-spaced paper that includes the following: ·  Detailed analysis on how the organization applies the lessons learned in the course, including the following concepts (select those that are applicable to your selected organization): o  Fundamentals of leadership, including leadership styles and traits o  Strategic thinking o  Emotional intelligence o  Communication and leadership o  Organizational culture and climate o  High performing teams o  Managing organizational change o  Problem management and decision making o  Consensus building and negotiation o  Ethics and professional codes of conduct o  Managing conflict o  Strategic planning o  Power and Politics ·   Citing and referencing applicable course materials and textbooks, including: o  Bradberry, T. & Greaves, J. (2009). Emotional intelligence 2.0. San Diego: TalentSmart.   o  Lewis, James P. (2003). Project leadership. New York: McGraw-Hill.   o  Lussier, R.N & Achua, C.F. (2012). Leadership: Theory, application, & skill development (6th Ed.). Mason, OH: South-Western Cengage Learning.   o  Project Management Institute (2017). A guide to the project management body of knowledge (PMBOK Guide, 6th Ed.) Newtown Square, PA: Project Management Institute, Inc.   o  Other academic citations are encouraged, but will not be accepted in lieu of the above. ·  Master’s level academic writing style, including appropriate grammar, sentence structure, punctuation, internal organization including appropriate paragraphs, citations, and references in accordance with the APA Publication Manual.   ·  Overall organization of document to include an introduction, body and conclusion. Understanding Individual Preferences 0 Objectives 1 Describe Jung Typology Test 4-letter type formula Describe Managerial Leadership Skills Describe the Big Five Personality Profile Discuss how identifying and understanding Individual Preferences impact Leader effectiveness 1 19 The Jung Typology Test 2 How to Read your Score Me - 2014 E 100\%--------------------0\%--------------------100\% I * (44\%) S 100\%--------------------0\%--------------------100\% N * (50\%) T 100\%--------------------0\%--------------------100\% F * (75\%) J 100\%--------------------0\%--------------------100\% P * (67\%) 21 How to Read your Score Me – May 7, 2020 E 100\%--------------------0\%--------------------100\% I * (12\%) S 100\%--------------------0\%--------------------100\% N * (28\%) T 100\%--------------------0\%--------------------100\% F * (31\%) J 100\%--------------------0\%--------------------100\% P * (25\%) 21 Personality & Leadership (Lewis, Project Leadership) The Jung Dimensions (basis of Myers-Briggs Type Indicator – MBTI): www.humanmetrics.com/cgi-win/jtypes2.asp Extroversion-Introversion Sensing-Intuition Thinking-Feeling Judging-Perceiving Extroversion (E)-Introversion (I): How we are energized (outside world – objects, people, animals; or inside world – concepts, thoughts, ideas) Sensing (S)-Intuition (N): How we prefer to take in information (facts or patterns and meanings in facts) Thinking (T)-Feeling (F): How we prefer to make decisions (logical analysis or concern for the impact of others) Judging (J)-Perceiving (P): How we prefer to deal with the outside world (planned and orderly or flexible and spontaneous) 20 Personality & Leadership (Lewis, Project Leadership) MBTI Considerations: “It is not how well we think, but how well we act in a given role. If our behavior is adaptive to circumstances, so that we act effectively in such circumstances, then we can be said to be intelligent in those circumstances.” Idealists: Intuitive-Feeling (NF) leaders will be best at diplomacy. They are drawn to the humanities. They communicate ideas using words and are concerned about the feelings of others. Rationals: Intuitive-Thinking (NT) will excel at strategy. They are drawn to the sciences. Guardians: Sensing-Judging (SJ) will be strong at logistics and are natural organizers (make up 80\% of corporate populations). Artisans: Sensing-Perceiving (SP) are driven to master techniques. They enjoy the arts, speech-making, and making deals. However, you seldom find pure types! 22 3 Managerial Leadership Skills Assessment 7 Managerial Leadership Skills (Lussier & Achua, p. 8) Technical Skills: The ability to use methods and techniques to perform a task including knowledge about methods, processes, procedures and techniques, and the ability to use tools and equipment to perform a task. Technical skills can also be called business skills. Interpersonal Skills: The ability to understand, communicate, and work well with individuals and groups through developing effective relationships. Interpersonal skills are also called human, people, and soft skills. Decision-Making Skills: The ability to conceptualize situations and select alternatives to solve problems and take advantage of opportunities. Decision-making skills are often referred to as conceptual skills. 20 Managerial Leadership Skills (Lussier & Achua, p. 8) Three management skills that leaders need to be effective: Technical Skills: The ability to use methods and techniques to perform a task including knowledge about methods, processes, procedures and techniques, and the ability to use tools and equipment to perform a task. Technical skills can also be called business skills. Interpersonal Skills: The ability to understand, communicate, and work well with individuals and groups through developing effective relationships. Interpersonal skills are also called human, people, and soft skills. Decision-Making Skills: The ability to conceptualize situations and select alternatives to solve problems and take advantage of opportunities. Decision-making skills are often referred to as conceptual skills. What is your preference? How can you compensate for weaknesses? 20 3 Big Five Personality Profile 10 Big Five Personality Profile (Lussier & Achua, pp. 32-40) Understanding your (and team members’) personalities is important because personality affects behavior as well as perceptions and attitudes. Understanding personalities helps you, as the leader, to explain and predict your (and team members’) behavior and job performance. 20 Adjustment Surgency Agreeableness Openness to experience Conscientiousness 6 Big Five Personality Profile (Lussier & Achua, pp. 32-40) The Big Five (Lussier & Achua, pp. 32-40) Surgency (Dominance) Leadership and extraversion traits: - Wanting to be in charge Agreeableness Traits related to getting along with people: - Sociable, friendly Adjustment Traits related to emotional stability: - Self-control, calm, good under pressure, relaxed, secure, and positive Conscientiousness Traits related to achievement: - Responsible and dependable Openness to Experience Traits related to willingness to try new things: - Seeks change 7 Traits of Effective Leaders Lussier & Achua – Leadership: Theory, Application & Skill Development Internal locus of control Energy/ Determination Flexibility Dominance Sensitivity to others Self-confidence Intelligence Stability Traits of Effective Leaders Integrity 9 Summary Heading. Text. Heading. Text. Heading. Text. Heading. Text. Use this space for overall reminders or special tips linked to the slide or occasion. Simply select this text and replace it with your own reminders. The Big Five Including Traits of Effective Leaders The Big Five Model of Personality Leadership Traits within the Big Five Surgency Dominance Extraversion Energy/Determination Agreeableness Sociability/Sensitivity Emotional intelligence Adjustment Emotional Stability and Narcissism Self-confidence Conscientiousness Dependability Integrity Openness Flexibility Intelligence Locus of control Lussier & Achua – Leadership: Theory, Application & Skill Development 10 2 - Jung Typology Test Managerial Leadership Skills Assessment Big Five Personality Profile …and others throughout the Semester How does identifying and understanding your Individual Preferences impact your effectiveness as a Leader? 16 Introduction to Leadership Theory 0 Learning Objectives 1 Examine leadership theory paradigms Apply and evaluate the utility of the leadership theory * Primary reference: Lussier & Achua, Leadership: Theory, Application, & Skill Development 1 The Leadership Paradigm The Leadership Paradigm - Is a shared mindset that represents a fundamental way of thinking about, perceiving, studying, researching, and understanding leadership - Has changed over the last 60 years during which it has been studied 2 Leadership Theories The Great Man Theory (1800-1900’s) Trait Theories (1930-1950’s) Behavioral Theories (1940-1960’s) Contingency Theories (1950-1970’s) Integrative/Holistic Theories (1970’s-present) 3 The Great Man Theory Great leaders are born, not made Leadership is primarily a male quality Popular during the 19th century Early leadership research looked at people who were already successful leaders; people of lesser social status had few leadership opportunities hence the idea that leadership is an inherent ability unique to those that were privileged Herbert Spencer (The Study of Sociology, 1896) argued, however, that leaders were products of the society in which they lived 4 Trait Theory Trait studies were conducted during the 1930’s & 1940’s Traits were often a prerequisite for promotion Attempt to identify the distinctive physical, demographic, and psychological traits of individuals that account for leadership effectiveness Examples of Leadership Traits: - High levels of effort, ambition, energy and initiative - Appearance - Aggressiveness - Persuasiveness - Dominance - Self-reliance 5 Trait Theory Strengths/Advantages of Trait Theory - It is valid – a significant amount of research has validated the foundation and basis of the theory. - It serves as a yardstick against which leadership traits of an individual can be assessed. - It gives a detailed knowledge and understanding of the leader element in the leadership process. 6 Trait Theory Limitations of Trait Theory - There is bound to be some subjective judgment in determining who is regarded as a ‘good’ or ‘successful’ leader. - The list of possible traits tends to be very long. More than 100 different traits of successful leaders in various leadership positions have been identified. These descriptions are simply generalities. - There is also a disagreement over which traits are the most important for an effective leader. - The model attempts to relate physical traits such as, height and weight, to effective leadership. Most of these factors relate to situational factors. For example, a minimum weight and height might be necessary to perform the tasks efficiently in a military leadership position. In business organizations, these are not the requirements to be an effective leader. 7 Behavioral Leadership Theories Following the study of traits in leaders, researchers focused their attention on studying what the leader says and does in an effort to identify the differences in the behavior of effective leaders versus ineffective leaders Leaders are made, not born – people can learn to become leaders Explored two generic dimensions of effective leader behavior: Task-oriented leadership People-oriented leadership 8 University of Michigan Leadership Model Behavioral Leadership Job-centered Leadership Style (task-oriented): - Leader focuses on getting the job done by defining clear roles and goals for subordinates and closely directing them in their work. Employee-centered Leadership Style (people-oriented): - Leader provides support and interaction facilitation by developing relationships based on mutual trust, support, and respect to meeting employees’ needs 9 Job-Centered Leadership Style Employee-Centered Leadership Style Ohio State University Leadership Model Behavioral Leadership 10 Leader Behaviors Identified Using the Leader Behavior Description Questionnaire (LBDQ): - Initiating structure behavior Focuses on getting the task done Is essentially the same as the job-centered leadership style - Consideration behavior Focuses on meeting people’s needs and developing relationships Is essentially the same as the employee-centered leadership style Ohio State University Leadership Model Behavioral Leadership 11 High Consideration Low Structure and High Consideration Low Structure and Low Consideration High Structure and High Consideration Initiating Structure High Structure and Low Consideration Low High Blake, Mouton, & McCanse Leadership Grid Behavioral Leadership 12 1,9 Country-club leader 9,9 Team leader 1,1 Impoverished leader 9,1 Authority-compliance leader High High Low Low Concern for People Concern for Production 1,1 Impoverished: The leader does the minimum required to stay employed. 1,9 Country-Club: The leader strives for a friendly atmosphere. 9,1 Authority-Compliance: The leader focuses on getting the job done while people are treated like machines. 9,9 Team: The leader strives for maximum performance and employee satisfaction. 5,5 Middle of the Road: The leader strives for satisfactory performance and morale.. Applications of the Behavioral Models 13 There is no one best leadership style in all situations. There has been a consistent finding that employees are more satisfied with a high consideration leader. The models do not prescribe leader behavior, but their classification systems point out that leader behavior affects both “tasks” and “relationships”. Contingency Leadership Theories Contingency Theories - Attempt to explain the appropriate leadership style based on the leader, followers, and situation - Are called “universal theories” - Try to predict which traits and/or behaviors will result in leadership success given the situational variables 14 Contingency Leadership Theories Contingency Leadership Model Focuses on maximizing group performance by matching leadership style with situational contingences Is used to determine if: A person’s leadership style is task- or relationship-oriented The situation (leader–member relationship, task structure, and position power) matches the leader’s style 15 Contingency Leadership Theories 16 Followers leader-member relations Situation leader–member relations task structure position power Leader Contingency Leadership Variables Leadership Styles task-oriented relationship-oriented Fiedler’s Contingency Leadership Model Leadership style is a reflection of personality (trait theory-oriented) and behavior (behavioral-theory oriented) Leaders are not able to change styles, therefore, they must change the context of their job (situation) to be effective Two styles – task motivated or relationship motivated; determined by completing the least-preferred coworker (LPC) scales Next, determine situational favorableness – the degree to which a situation enables the leader to exert influence over others; includes three variables (in order of importance): Leader-member relations – is the relationship good (cooperative and friendly) or poor (antagonistic and difficult)? The better the relations, the more favorable the situation. Task structure – is the task structure or unstructured? The more structured the jobs are, the more favorable the situation. Position power – does the leader have the power to assign work, reward and punish, hire and fire, give raises and promotions? The more power the more favorable the situation. 17 Fiedler’s Contingency Leadership Model 18 If the manager’s LPC leadership style matches the situation, the manager does nothing. If the LPC leadership style does not match the situation, the manager changes the situation to match his or her LPC leadership style. Fiedler’s Contingency Leadership Model If the leadership style does not match the situation, the leader may be ineffective To be effective, the situation must be changed rather than changing leadership styles: If relations are poor, the leader can work to improve them (showing interest, listening, getting the know subordinates) The task can be more or less structured by stating more or less specific standards and procedures, and giving or not giving clear deadlines Leaders with strong position power can downplay it. Leaders with weak power can get more power from their leadership and can be more autocratic. 19 Situational Leadership Model Hersey & Blanchard 20 Source: Adapted from Paul Hersey, Situational Selling (Escondido, CA: Center for Leadership Studies, 1985), p. 19. Contingency Leadership Theories Other Contingency Theories & Models Tannenbaum & Schmidt’s Leadership Continuum Model House’s Path-Goal Leadership Theory Vroom’s Normative Leadership Time-Driven Model Read all about it in Chapter 4 of Lussier & Achau! 21 Integrative/Holistic Leadership Theories Attempt to combine the trait, behavioral, and contingency theories to explain successful, influencing leader–follower relationships Explore why the same behavior by the leader may have a different effect on followers, depending on the situation Communicating, inspiring, and mobilizing diverse coalitions that cross cultural, national, sector and partisan boundaries Core concepts include Inclusion, Share Purpose, Systems Thinking, Inquiry, Constructive Dialogue, and Innovation 22 Integrative/Holistic Leadership Martin Chemers – An Integrated Theory of Leadership 23 Stresses common functions and processes of leadership that cut across theories Effective leadership encompasses three major functions Image Management: a leader’s ability to project an image this is consistent with observer’ expectations Relationship Development: the leader’s success in creating and sustaining motivated and competent followers Resource Utilization: the leader’s capability for deploying the assets of self and others to mission accomplishment Leadership Theories - Summary The Great Man Theory (1800’s/early 1900’s) - Great leaders are born, not made Trait Theories (1930-1950’s) - Attempt to identify the distinctive physical, demographic, and psychological traits of individuals that account for leadership effectiveness Behavioral Theories (1940-1960’s) - Leaders are made, not born – people can learn to become leaders; two generic dimensions of effective leader behavior: task-oriented and people-oriented leadership (University of MI, OH State University, Blake, Mouton, & McCanse) Contingency Theories (1950-1970’s) - Focuses on maximizing group performance by matching leadership style with situational contingences (Fiedler, Hersey & Blanchard) Integrative/Holistic Theories (1970’s-Present) - Attempt to combine the trait, behavioral, and contingency theories to explain successful, influencing leader–follower relationships (Chemers) 24 The Fundamentals of Emotional Intelligence * Learning Objectives 1 Define Emotional Intelligence (EQ) competencies Describe the EQ Leadership Competencies Personal Competence - Self (Emotional) Awareness - Self (Emotional) Management Social Competence - Social (Emotional) Awareness - Relationship Management Team Leadership Understand how to develop EQ Reflect on individual EQ strengths and weaknesses * What is Emotional Intelligence? 2 Anyone can get angry—that is easy… but to [get angry with] the right person, to the right extent, at the right time, for the right reason, and in the right way is no longer something easy that anyone can do. Aristotle Greek philosopher and tutor to Alexander the Great Emotional Intelligence: How leaders handle themselves and their relationships; the ability to perceive, control and evaluate emotions. Emotionally mature and competent leaders are aware of their own strengths and weaknesses. They spend their energy on self-improvement, while immature leaders usually waste their energy denying that there is anything wrong or analyzing the shortcomings of others. Mature, less defensive leaders benefit from feedback in ways that immature people cannot. FM 6-22: Army Leadership * Emotional intelligence is a greater determinant of leader success than purely cognitive skills or technical ability. - James P. Lewis, Project Leadership Two thirds of us are typically controlled by our emotions and are not yet skilled at spotting them and using them to our benefit…too often, we lack the skills to manage our emotions in the heat of the challenging problems we face. Bradberry & Greaves, Emotional Intelligence 2.0 No matter what leaders set out to do – whether it’s creating strategy or mobilizing teams to action – their success depends on how they do it. Even if they get everything else right, if leaders fail in this primal task of driving emotions in the right direction, nothing they do will work as well as it could or should. Goleman, Boyatzis & McKee, Primal Leadership: Realizing the Power of EI As a PM, I hold a pragmatic view of emotional intelligence, thinking of it as “knowing and managing our own emotions and those of others for improved performance.” I am interested in the application of emotional intelligence to life in general, as well as specifically to the field of project management. In a project setting, the understanding and use of emotions helps us to have more enjoyable, predictable, and successful projects. - Anthony Mersino, Emotional Intelligence for Project Managers Why is EQ Important? 3 * People with average IQs outperform those with high IQs 70\% of the time. Research and studies pointed to emotional intelligence as a significant variable for this performance (Bradberry & Greaves). EI based competencies play an increasingly important role at higher levels of organizations where differences in technical skills are of negligible importance (Goleman, et al). EI contributes 80-90\% of the competencies that distinguish outstanding from average leaders. Cognitive competencies, such as technical expertise, surface as threshold abilities – the skills people need simply to do an average job (Goleman, et al). The good news – EQ competencies are not genetically based, but can be learned, so that any individual can potentially improve his or her leadership skills! EI/EQ versus IQ 4 * EQ Leadership Competencies 5 Personal Competency – your ability to stay aware of your emotions and manage your behavior and tendencies - Self (Emotional) Awareness - Self (Emotional) Management Social Competency – your ability to understand other people’s moods, behaviors and motives in order to improve the quality of your relationships - Social (Emotional) Awareness - Relationship Management * EQ Leadership Competencies 6 * EQ Scores and Meanings 7 * Self (Emotional) Awareness 8 Your ability to accurately perceive your own emotions in the moment and understand you tendencies across situations. Being in-tune with your inner emotions and understanding how your feelings affect job performance. Accurate self-assessment: Knowing your strengths and limitations. Self-confidence: Having an accurate assessment of your abilities and playing to your strengths. 83\% of people high is self-awareness are top performers and just 2\% of bottom performers are high in self-awareness. * Self (Emotional) Awareness Strategies 9 Observe the ripple effect of your emotions Lean into your discomfort Know who or what pushes your buttons Keep a journal about your emotions Stop and ask yourself why you do the things you do Check yourself Seek feedback Get to know yourself under stress * Self (Emotional) Management 10 Your ability to use your awareness of your emotions to stay flexible and direct your behavior positively Self-control: Managing your disturbing emotions, even channeling them in useful ways. Transparency: Living your values – being open and candid with others about your feelings, beliefs, and actions. Adaptability: Juggling multiple demands without losing focus or energy – “rolling with the punches.” Achievement: Continually seeking ways to improve – constantly learning and teaching. Initiative: Taking control and cutting through red tape when seeing an opportunity. Optimism: Seeing the glass “half-full” rather than “half-empty.” * Self (Emotional) Management Strategies 11 Create an emotion versus reason list Sleep on it Talk to a skilled self-manager Smile and laugh more Set aside time in your day for problem solving Take control of your self-talk Visualize yourself succeeding Speak to someone who is not emotionally invested in your problem Put a mental recharge into your schedule Accept that change is around the corner * Social (Emotional) Awareness 12 Your ability to accurately pick up on emotions in other people and understand what is really going on with them Empathy: Sensing a wide range of emotional signals in an individual or group and responding to these signals. Organizational Awareness: Reading the political climate of the organization to detect critical social networks and to read key power relationships. Adaptability: Juggling multiple demands without losing focus or energy – “rolling with the punches.” Service: Monitoring customer satisfaction to ensure that customers are getting what they need. * Social (Emotional) Awareness Strategies 13 Greet people by name Watch body language Develop a back-pocket question Plan ahead for social gatherings Live in the moment Practice the art of listening Step into their shoes Seek the whole picture * Relationship Management 14 Your ability to use your awareness of your own emotions and those of others to manage interactions successfully (this skill taps into your abilities of the first three EQ skills) Inspiration: “Walking the talk” and offering a sense of common purpose beyond the day-to-day tasks. Influence: Being persuasive and engaging by finding the right appeal for a listener and building support for initiatives. Developing Others: Showing a genuine interest in those you are helping, understanding their goals, strengths, and weaknesses - coaching. Change Catalyst: Recognizing when change is needed. Challenging the status quo and acting as a champion for a new order. Conflict Management: Drawing out different perspectives while preventing such differences from becoming interpersonal and divisive. Teamwork and Collaboration: Drawing others into active, enthusiastic commitment to a collective effort – developing and cementing relationships. * Relationship Management Strategies 15 Be open and be curious Avoid giving mixed signals Take feedback well Build trust Only get mad on purpose Don’t avoid the inevitable Acknowledge the other person’s feelings When you care show it Explain your decisions, don’t just make them Make your feedback direct and constructive Offer a “fix-it” statement during a broken conversation * Team Leadership 16 “Team Leadership is about getting the right people on your team, successfully communicating with and motivating them, and then clearing conflicts and other roadblocks so that they perform and achieve the project objectives.” - Anthony Mersino Team Leadership Competencies: Communications Conflict Management Inspirational Leadership Ref: Mersino, Emotional Intelligence for Project Managers * Team Leadership - Communications 17 Communicating with Emotional Intelligence: Understand your objective. Choose an appropriate time, place, and mode. Approach others with empathy. Listen and respond to the emotions or others. and not only to the content of what they say. Share your own emotions when appropriate. being as open and honest as possible. Check for understanding and reactions. Ref: Mersino, Emotional Intelligence for Project Managers * Team Leadership – Conflict Management 18 Conflict is inevitable. Conflict may be healthy. Conflict management is a leader’s job. Recognize that there is a conflict. Traditional approaches – which are appropriate? Compromising, Accommodating, Forcing, Avoiding, Collaborating Ref: Mersino, Emotional Intelligence for Project Managers * Team Leadership – Conflict Management 19 Applying EI to Conflict Resolution: Understand the emotions. Identify the underlying need or want: - Want to be recognized Want to be important Want to be productive Want to be promoted Want to feel part of the community Need to make more money Need to express themselves Need to be liked or loved 3) Work together to address the issue or conflict that is caused by the underlying want or need. Ref: Mersino, Emotional Intelligence for Project Managers * Team Leadership – Inspirational Leadership 20 The ability to inspire others by casting a vision for the individual and the team. Vision casting is the process of stating a future, positive picture of the goals or objectives of the team, assisting the team to understand why they are important, and helping the team to connect with those goals and objectives. Mission Vision Values Ref: Mersino, Emotional Intelligence for Project Managers * Interesting Findings 21 EQ tends to increase with age. The biggest EQ gap between Baby Boomers (48-66 years old) and Generation Y (23-35 years old) is in their self-management skills. Women and men have the same average self-awareness score, while men score higher in self-management and women score higher in social awareness and relationship management. CEOs and other senior executives, on average, have the lowest EQ scores in the workplace. Middle managers have the highest EQ scores. * Small Group Discussion 22 1) Pick a group: - Self Awareness - Self Management - Social Awareness - Relationship Management 2) Consider Improvement Strategies. 3) Think of specific examples of how you will use some of the Strategies in your organization. 4) Report out to the large group. * MGMT 560 – Organizational Leadership Effective Thinking * * “Strategic thinking is an examination of the environment and is an intuitive and creative process that results in the fusion of issues, patterns, interrelationships, and opportunities.” (D. McCauley, National Defense University) “The ability to make a creative and holistic synthesis of key factors affecting an organization and its environment in order to obtain sustainable competitive advantage and long-term success. Strategic thinking meshes anticipated requirements with future organizational capabilities to ensure the organization “wins” in the future.” (U.S. Army War College) “If you are thinking about how to better posture your organization to succeed in the future, then you are conducting strategic thinking.” (CAPT D.E. Waters, USN, Ret.) What is Strategic Thinking? * “…staffs that support strategic leaders…should be able to think strategically in order to properly support their senior leaders.” “ Strategic thinking requires both critical and creative thinking to be effective. In order to think strategically, leaders and their staffs must develop innovative strategic options and then evaluate these ideas through effective critical thinking.” (Ref: Waters, D.E., Understanding Strategic Thinking and Developing Strategic Thinkers) Why is Strategic Thinking Important? * Strategic Thinking Reference: Meinhart, R.M, Leadership and Strategic Thinking. Strategic Thinking Systems thinking – a discipline of seeing wholes. It is a framework for seeing interrelationships rather than things, for seeing patterns of change rather than static “snapshots.” – Peter Senge Thinking in time – the use of history or past experiences. An understanding of why occurrences happened. Ethical thinking – considering ethical dimensions of ambiguous, complex issues to ensure that costly mistakes or blind spots do not occur. Critical thinking – the deliberate, conscious, and appropriate application of reflective skepticism. Creative thinking – the ability to produce novel ideas that are valued by others. * Systems Thinking (Peter Senge – The Fifth Discipline) “Systems thinking is a discipline of seeing wholes. It is a framework for seeing interrelationships rather than things, for seeing patterns of change rather than static “snapshots.” The essence of systems thinking (a shift in mind): Seeing interrelationships rather than linear cause-effect chains Seeing processes of change rather than snapshots “Reality is made up of circles but we see straight lines.” “The search for scapegoats…is a blind alley.” Reinforcing and balancing feedback Delays Self-fulfilling prophecy – vicious versus virtuous cycles * Organizations and the System Concept (Katz & Kahn, 1978) “An energetic input-output system in which the energetic return from the output reactivates the system.” “Transactions between the organization and its environment.” “Systems theory is basically concerned with problems of relationships, of structure, and of interdependence rather than with the attributes of objects.” * Thinking in Time The use of history or past experiences. An understanding of why occurrences happened. Convergent thinking (thinking inward rather than thinking outward) “Having seen the future that we want to create, what must we keep from our past, lose from the past, and create in our present, to get there?” Thinking in Time Thinking in time has three components (Neustadt & May, 1986): Recognition that the future has no place to come from but the past, hence the past has predictive value. Recognition that what matters for the future is departures from the past, alterations, changes. Continuous comparison from the present to future to past and back. “Strategic Thinking (Thinking in Time) connects the past, present, and future and in this way uses both an institution’s memory and its broad historical context as critical inputs into the creation of the future” (Lawrence, 1999). Thinking in Time The use of history can stimulate imagination: Seeing the past can help one envision future alternatives. The use of experience in the process of deciding what to do today about the prospect for tomorrow. What does the organization need to “decide today about the prospect of tomorrow”? How can “seeing the past” help with these decisions? Ethical Thinking Ethical Guidelines or Principles GOLDEN RULE — Are you treating others as you would want to be treated? THE GUT-FEELING TEST — Body reactions such as a gut-feeling often indicate the need for more thought. Intuition can give a sense of right and wrong before our brains have thought it out. PUBLICITY — Would you be comfortable if your reasoning and decision were on the front page of tomorrow’s newspapers or on the TV news? KID-ON-YOUR-SHOULDER — Would you be comfortable if young children were observing you? Are you practicing what you preach? THE ROLE-MODEL TEST — What would a person you respect think or feel about a decision you are proposing? Other approaches: WORST-CASE SCENARIOS - It is sometimes helpful to consider the worst case scenario. This may highlight consequences or possibilities you had not thought of before. CHANGING GOALS/METHODS - Consider whether ethically questionable conduct can be avoided by modifying goals or methods. CONSULTATION - Consider consulting with those likely to be affected in order to get their input or consent. This may avoid unethical options all together. Ref: Holistic Education Network * Ethical Thinking Three Types of Ethical Thinking Ends-based thinking - deciding to do whatever provides the greatest good for the greatest number. This is known as the principle of utilitarianism. It relies on being able to predict the consequences of different actions. Rule-based thinking - deciding what to do based on a rule that you believe should be a general principle that is always followed. Rule-based thinking acknowledges that you can never really know all the consequences of your actions and that it is better to stick to ones principles. Care-based thinking - deciding what to do based on the idea that this is what we would want others to do to you. This is known as the principle of reversibility and is at the center of most religious teachings. Making ethical decisions is not about applying just one of these ways of thinking, nor is it about applying all of them and choosing the action that wins the majority. It is about creative and reflective thinking to become aware of the complexity and possibilities of an ethical issue. It is about using heart and head - hopefully also with the wisdom of the soul. Thinking ethically is not a purely logical rational process. In the final analysis intuition might be a deciding factor in making a decision. Ref: Holistic Education Network * Critical Thinking “The deliberate, conscious, and appropriate application of reflective skepticism.” “A well-cultivated critical thinker raises vital questions and problems, gathers and assesses relevant information, and can effectively interpret it; comes to well-reasoned conclusions and solutions, testing them against relevant criteria and standards; thinks open-mindedly within alternative systems of thought, recognizing and assessing, as need be, their assumptions, implications, and practical consequences; and communicates effectively with others in figuring out solutions to complex problems.” (Paul & Elder, Critical Thinking) Reference: Gerras S.J., Thinking Critically about Critical Thinking: A Fundamental Guide for Strategic Leaders * Critical Thinking * Reference: Gerras S.J., Thinking Critically about Critical Thinking: A Fundamental Guide for Strategic Leaders Critical Thinking Inferences – an intellectual act in which we conclude something based on a perception as to how the facts and evidence of a situation fit together. Assumption – something that is taken for granted. Point of View – a frame of reference. * Reference: Gerras S.J., Thinking Critically about Critical Thinking: A Fundamental Guide for Strategic Leaders Critical Thinking Traps and Errors Confirmation Trap – a condition in which people tend to seek confirmatory information for what they think is true and either fail to search for or discard inconsistent and disconfirming evidence. Fundamental Attribution Error – a phenomenon in which people tend to have a default assumption that what a person does is based more on what “type” of person he is, rather than the social and environmental forces at work in that situation. * Reference: Gerras S.J., Thinking Critically about Critical Thinking: A Fundamental Guide for Strategic Leaders Critical Thinking Reasoning/Logical Fallacies Arguments Against the Person – when someone tries to attack the person representing an argument rather than the argument itself. False Dichotomy – when someone presents a complex situation in black and white terms, i.e., they present only two alternatives when many exist. Appeal to Unqualified Authority – when a cited authority is weakly credentialed for the matter at hand. False Cause – someone argues that because two events occurred together and one followed the other closely in time, then the first event caused the second event. Appeal to Fear – an implicit or explicit threat of harm to advance your position. * Reference: Gerras S.J., Thinking Critically about Critical Thinking: A Fundamental Guide for Strategic Leaders Critical Thinking Reasoning/Logical Fallacies Appeal to the Masses – an assertion that if something is good for everyone else, it must be good for me. Slippery Slope – when the conclusion of an argument rests upon an alleged chain reaction and there is not sufficient reason to conclude that the chain reaction will actually take place. Weak Analogy – the analogy used in not strong enough to support the conclusion that is being drawn. Red Herring – the attention of a reader or listener is diverted with the insertion of some distracting information that is flashy, eye-catching and generally not relevant to the topic at hand. * Reference: Gerras S.J., Thinking Critically about Critical Thinking: A Fundamental Guide for Strategic Leaders Critical Thinking * Reference: Gerras S.J., Thinking Critically about Critical Thinking: A Fundamental Guide for Strategic Leaders Creative Thinking Creative thinking involves thinking in new, innovative ways while capitalizing on imagination, insight, and novel ideas. Organizational Characteristics that Support Creativity: Risk taking is acceptable Project Team members have access to knowledge sources Creativity is rewarded New ideas and ways of doing things are welcomed Information is free flowing Good ideas are supported * Creative Thinking Enhances individual and group creative problem solving processes. Facilitates innovation and creativity in an environment marked by ambiguity, complexity, and change. Without creative thinking, potential solutions may never be explored or discovered. Our predilection for quick answers and easy solutions hinders the process of divergent (creative) and convergent (critical) thinking. Creative thinking tends to be wasteful of time and energy without critical thinking (convergent thinking) Creative Thinking “Weird Ideas that Work” (Sutton, R.L.): Decide to do something that will probably… fail, then convince yourself and everyone else that success is certain (succeed, then convince yourself and everyone else that success is certain). Think of some… ridiculous or impractical things to do, and plan to do them (sound or practical things to do, and plan to do them). Seek out… “slow learners” (of the organizational code); people who make you feel uncomfortable, even those you dislike; people you (probably) don’t need (and be attentive to people who will evaluate and endorse your work). Take your past successes… and forget them (and replicate them). Ignore people… who have solved the exact problem you face (who have never solved the exact problem you face). Black – weird ideas that work Purple – conventional ideas that work * Strategic Thinking Framework References Allen, C.D. (2009). Creative thinking for individual and teams: An essay on creative thinking for military professional. Carlisle, PA: U.S. Army War College. Allen, C.D. & Gerras, S.J. (Nov-Dec, 2009). Developing creative and critical thinkers. Military Review, 77-83. Allen, C.D., Cunningham, G.K., & Klinger, J. (2009). Systems thinking for strategic leaders. Carlisle, PA: U.S. Army War College. Dorff, R.H. (2001). A primer in strategic development. Carlisle, PA: U.S. Army War College. Gerras, S.J. (2008). Thinking critically about critical thinking: A fundamental guide for strategic leaders. Carlisle, PA: U.S. Army War College. Joint Publication 5-0 (Aug, 2011). Joint operation planning. Arlington, VA: Joint Chiefs of Staff. Katz, D. & Kahn, R.L. (1978). The social psychology of organizations. New York: John Wiley & Sons. Lawrence, E. (1999). Strategic Thinking: A discussion paper. Public Service Commission of Canada. Liedtka, J. (1998). Strategic thinking: Can it be taught? Long Range Planning, 31(1), 121. McCauley. D. (Feb, 2011). Strategic thinking: Providing the competitive edge [Electronic version]. Small Wars Journal. McConnell, R., Lira, L.L., Gerges, M. & McCollum, B. (2011). How we think: Thinking critically and creatively and how military professionals can do it better [Electronic version]. Small Wars Journal. Neustadt, R.E. & May, E.R. (1986). Thinking in time: The uses of history for decision makers. New York: The Free Press. Puccio, G.J. & Murdock, M.C. (2006). Creative leadership: Skills that drive change. Thousand Oaks, CA: Sage Publications. Senge, P.M. (1990). The fifth discipline: The art & practice of the learning organization. New York: Doubleday. Waters, D.E. (2011). Understanding strategic thinking and developing strategic thinkers. Joint Forces Quarterly, 63(4), 113-119. Strategic Thinking Framework Creative Thinking Thinking In Time Systems Thinking Ethical Thinking Critical Thinking Foundation Know Yourself, Know Others and Reflect MGMT 560 – Organizational Leadership Fundamentals of Communication and Leadership * Planning the Message (Lussier & Achua. Leadership: Theory, Application, & Skills Development) What is the goal of the message? Who should receive the message? Will you send the message? When will the message be transmitted? Where will the message be transmitted? 10 The Oral Message-Sending Process (Lussier & Achua. Leadership: Theory, Application, & Skills Development) Develop rapport Helps prepare the listener to receive the message State your communication objective What is the desired end result? Transmit your message Tell the receiver what is wanted Check the receiver’s understanding Ask direct questions and/or use paraphrasing Get a commitment and follow-up 11 The Importance of Listening (Lussier & Achua. Leadership: Theory, Application, & Skills Development) Failure to listen is a major reason leaders fail Few people are good listeners Most people have a passionate desire to be heard * 13 The Message-Receiving Process (Lussier & Achua. Leadership: Theory, Application, & Skills Development) Listening Paying attention Avoiding distractions Staying tuned in Not assuming and interrupting Watching nonverbal cues Asking questions Taking notes Conveying meaning Checking Understanding Paraphrasing Watching nonverbal cues Analyzing Thinking Waiting to evaluate until after listening Feedback (Lussier & Achua. Leadership: Theory, Application, & Skills Development) Is the process of verifying messages and determining if objectives are being met Forms of feedback Questioning Paraphrasing Allowing comments and suggestions Allows leaders to know how they and the organization are progressing to meet objectives Used to measure performance Giving and receiving feedback must be an ongoing process to be effective * Accepting Criticism (Lussier & Achua. Leadership: Theory, Application, & Skills Development) To improve your performance and get ahead in an organization, you have to be open to feedback (criticism) People do not really enjoy being criticized, even when it is constructive When you get criticism: View it as an opportunity to improve Stay calm Don’t get defensive Don’t blame others * Feedback: Reasons Why People Do Not Ask Questions (Lussier & Achua. Leadership: Theory, Application, & Skills Development) Receivers feel ignorant Receivers are ignorant Receivers are reluctant to point out the sender’s ignorance Receivers have cultural barriers * How to Get Feedback on Messages (Lussier & Achua. Leadership: Theory, Application, & Skills Development) Be open to feedback Be aware of nonverbal communication Ask questions Use paraphrasing * Communication & Leadership Self Reflection (Self-Assessment 6-1 – Listening Skills, p. 188): What are your strengths and weaknesses as a listener? How can you improve your skills? * Organizational Culture and Leadership Climate MGMT 560 – Organizational Leadership * Organizational Culture The personality of an organization comprised of beliefs/assumptions, values/norms, and artifacts (Schien, 1985). Beliefs & Assumptions (invisible) The core of culture; taken for granted Represent what members believe to be reality The unquestioned “truth” * Organizational Culture How to define an organization’s core assumptions: What is the “correct” way for members to behave (dominant, harmonizing, passive)? What is the organization’s relationship to its environment (dominant, submissive, harmonizing, searching out a niche)? How is truth determined (pragmatic test, reliance on wisdom, social consensus)? Is time oriented on the past, present, or future? Are people (& other organizations) basically good, neutral, or evil? What is the “correct” way for people to relate to each other, to distribute power (competitive or cooperative)? Is the organization highly diverse or homogeneous; are members encouraged to innovate or conform? * Organizational Culture Values & Norms (greater level of awareness): Values – social principles, goals, and standards held within a culture to have worth Define what members care about, such as freedom, democracy, tradition, wealth or loyalty Basis for defining what is right and wrong Norms – unwritten rules that allow members of a culture to know what is expected of them in a wide variety of situations Values define what is valued, while norms define what is considered normal or abnormal * Organizational Culture Artifacts (visible, but often undecipherable) Visible, tangible, and audible remains of behavior grounded in cultural norms, values, and assumptions Categories: Physical manifestations (logo, décor, dress, physical layout) Verbal manifestations (anecdotes, names, history, metaphors) Behavioral manifestations (ceremonies, traditions/customs, rewards and punishments) * Organizational Culture According to Shein: “The essence of culture is its core assumptions and established beliefs. This core reaches outward through values and behavioral norms that are recognized, responded to, and maintained by members of the culture. The values and norms, in turn, influence the choices and other actions taken by cultural members. Finally, culturally guided action produces artifacts.” * Leadership Climate * Leadership Climate Beliefs and perceptions held by members of an organization as a result of leadership actions Culture-embedding mechanisms that define Climate (Schneider, 1990): What do leaders pay attention to? How do leaders react to incidents and crises? What criteria is used to distribute resources? How do leaders role model, teach, and coach? What criteria is used to allocate awards? What criteria is used for recruitment, promotions, retirement, and excommunication? * What are some Positive Leadership Climate Indicators? * Positive Climate Indicators Trust exists in the organization Teamwork, fair play, and information sharing Open, candid communications Project team member job satisfaction Team members (and families) attend social activities Establishing a Positive Leadership Climate Determine the “health” of your team Identify climate areas you want to influence Establish clear goals & objectives for each area Execute plan; leadership climate is created from the TOP down Actions You Can Take Communicate a sense of vision or focus Establish high, attainable, clearly understood standards Encourage competition against standards rather than each other Allow subordinates freedom to exercise initiative Establish accountability at appropriate level Show confidence in subordinates Encourage & reward prudent risk-taking Achieve high performance through positive motivation and rewards Underwrite honest mistakes Share decision making with subordinates Give clear tasks with boundaries of autonomy Actions You Can Take Actions You Can Take Listen to subordinates and seek ideas Demonstrate concern about the welfare of subordinates Establish and model high ethical standards PRACTICE WHAT YOU PREACH Forming the Team & Types of Teams 0 Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results. ~Andrew Carnegie 1 1 Leadership Definition – A Review “The knowledge, skills and behaviors needed to guide, motivate, and direct a team, to help an organization achieve its business goals.” 2 “Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results.” Leadership & Teamwork The Project Team Leader is responsible for “directing individual accomplishments toward organizational objectives.” High Performing Teams require High Performing Leadership. 3 3 Forming the Team 4 Forming the Team Charter the team - Articulate the project end state (goals, objectives) – what does success look like? Develop a plan to achieve your goals and objectives and build ownership – involve the team in the planning process Know yourself (strengths, weaknesses, motivations) Know your team (strengths, weaknesses, motivations) Define the “5 Rs” Build trust Celebrate success – learn from setbacks 5 Chartering the Team Define the following: Team Mission Background and Context Scope of Work Objectives End State Team Composition Define Process and Timeline Have members sign the charter (if necessary) Periodically review the charter 6 Forming the Team Know Yourself & Your Team (Strengths, Weaknesses, Motivations) 7 Personality & Leadership (Lewis, 2003) MBTI Considerations: “It is not how well we think, but how well we act in a given role. If our behavior is adaptive to circumstances, so that we act effectively in such circumstances, then we can be said to be intelligent in those circumstances.” Idealists: The Intuitive-Feeling (NF) project manager will be best at diplomacy. They are drawn to the humanities. They communicate ideas using words and are concerned about the feelings of others. Rationals: Intuitive-Thinking (NT) will excel at strategy. They are drawn to the sciences. Guardians: Sensing-Judging (SJ) will be strong at logistics and are natural organizers (make up 80\% of corporate populations). Artisans: Sensing-Perceiving (SP) are driven to master techniques. They enjoy the arts, speech-making, and making deals. However, you seldom find pure types 8 Leadership Styles (Hersey & Blanchard, Situational Leadership) 9 Application to leading Teams? Team Development Tuckman – Stages of Team Development: Performing Norming What leadership style would you use Storming during these stages?? Forming Thaw/Freeze Model: Unconsciously Competent Consciously Competent Consciously Incompetent Unconsciously Incompetent 10 The 5 R’s The 5 R’s should be clearly outlined to help guide Project Team members by defining expectations and accountability Rules: What rules (written and unwritten) should the team abide by? Roles: What are the roles of the team and individual members of the team? Relationships: What relationships (internal and external) are necessary to achieve team success? Responsibilities: What are the specific responsibilities of the team and individual members of the team? Results: What are the expected results (goals/objectives) of the team and each member of the team? 11 Types of Teams 12 Types of Teams (Lussier & Achua) 13 Virtual Team Self-Managed Team Functional Team Cross-Functional Team Types of Teams Types of Teams (Lussier & Achua) Functional Team: Is a group of employees belonging to the same functional department, such as marketing, R&D, production, human resources, or information systems who have a common objective The structure is generally more hierarchical with the functional leader making all the decisions and expecting his or her followers to implement them Team members tend to focus on their local area of specialization ignoring the overall organizational mission There is no one best leadership style to use The use of functional structure has been in decline In what circumstances would it be beneficial to use a Functional Team? 14 Types of Teams (Lussier & Achua) Cross-Functional Team: Is made up of members of different functional departments of an organization who are brought together to perform unique tasks to create new and non-routine products or services Some members may be from outside the organization Interaction, cooperation, coordination, information sharing, and cross-fertilization of ideas among people from different functional areas produces better quality products/services with shorter development cycles In what circumstances would it be beneficial to use a Cross-Functional Team? 15 Types of Teams (Lussier & Achua) Guidelines for Effective Cross-Functional Teams: Develop consensus around a common mission and goals that focus on organizational outcomes. Implement team-based performance measures, feedback, and reward systems. Ensure effective leadership and top management support. Promote the use of team building, skill development, and team training as common practices. Assemble the right skills. Organize at the right size. 16 Types of Teams (Lussier & Achua) Virtual Team: Is one whose members are geographically distributed, requiring them to work together through electronic means with minimal face-to-face interaction Can have significant collaboration, communication, and leadership challenges to team interaction, information sharing, and knowledge integration – What are these challenges? 17 In what circumstances would it be beneficial to use a Virtual Team? Types of Teams (Lussier & Achua) Self-Managed Team: Are relatively autonomous and are usually cross-functional in membership makeup Share or rotate leadership responsibilities Hold themselves mutually responsible for a set of performance goals assigned by higher management Have wide latitude in decision making in managing themselves, planning and scheduling work, and taking action on problems 18 In what circumstances would it be beneficial to use a Self-Managed Team? Other Types of Teams Problem Solving Teams/Task Force/Tiger Team Product Design Team Quality Circle Project Team Others?? How do you determine which type of team is best? 19 Project Management Institute (2017). A guide to the project management body of knowledge (PMBOK Guide), 6 th Ed. Newtown Square, PA: Project Management Institute, Inc. MGMT 560 – Organizational Leadership Leading Change Harrisburg University of Science & Technology * Harrisburg University of Science & Technology * The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.“ - Peter Drucker Change is the law of life and those who look only to the past or present are certain to miss the future. - John F. Kennedy “Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.” - Margaret Mead “If you always do what you’ve always done, you’ll always get what you’ve always got.” - Anonymous “I alone cannot change the world, but I can cast a stone across the waters to create many ripples.” - Mother Teresa The rate of change is not going to slow down anytime soon. If anything, competition in most industries will probably speed up even more in the next few decades. - John P. Kotter Harrisburg University of Science & Technology * Thoughts on Change Harrisburg University of Science & Technology Organizational Change: An alteration in an organization’s alignment with its external environment Change can be transformational or incremental Organizational change is any transition that requires a change in human performance Lussier, R.N. & Achua, C.F., Leadership: Theory, Application, & Skill Development. Leading Change & Transition * * Understanding Change * Understanding Change Leading Change (Kotter, 2012) Patterns of success: Associated with a multi-step process that creates power and motivation Process is driven by high-quality leadership, not just excellent management Aspects of Management: planning, budgeting, organizing, staffing, controlling, problem solving Aspects of Leadership: establishing direction, aligning people, motivating and inspiring “Corporate cultures discourage employees from learning how to lead.” DO YOU AGREE?? Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology * Harrisburg University of Science & Technology * Lussier, R.N. & Achua, C.F., Leadership: Theory, Application, & Skill Development. The Leader’s Role in Leading Change Options that leaders can use to effectively manage change rather than simply reacting to it include: Articulating a compelling reason for change Having open and regular communications Having a road map for implementation Having training programs for required skills/competencies Forming a coalition of supporters and experts Staying the course in spite of perceived difficulties Recognizing and rewarding the contributions of others Carefully managing resources and priorities Keeping the process transparent Having a plan for dealing with resistance The Eight-Stage Process Establishing a Sense of Urgency Creating the Guiding Coalition Developing a Vision and Strategy Communicating the Change Vision Empowering Broad-Based Action Generating Short-Term Wins Consolidating Gains and Producing More Change Anchoring New Approaches in the Culture Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology * Harrisburg University of Science & Technology The Eight-Stage Process The first four steps help “defrost the hardened status quo.” - YOU MUST ADDRESS THESE STEPS Phases five through seven introduce new practices Step eight grounds the changes in the culture Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology * Harrisburg University of Science & Technology 1. Establishing a Sense of Urgency “People will find a thousand ingenious ways to withhold cooperation…” Ineptitude & complacency are not necessarily linked Nine sources of complacency. Big egos and arrogant cultures reinforce complacency “Never underestimate the magnitude of the forces that reinforce complacency and that help maintain the status quo.” Ways to raise the urgency level. No crises? Create one!! How?? Key players are often middle- and lower-level managers Muster up the courage to listen carefully to outsiders (customers, suppliers, stockholders) – What is the urgency rate? What is the level of complacency? Harrisburg University of Science & Technology * Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology Ways to Raise the Urgency Level Create a crisis – allow a financial loss, expose managers to major weaknesses, allow errors to blow up. Eliminate obvious examples of excess. Set revenue, income, productivity, customer satisfaction, and cycle-time targets so high that they can’t be achieved by conducting business as usual. Insist that more people be held accountable for broader measures of performance. Send more data about customer satisfaction and financial performance to more employees (especially weaknesses). Insist that people talk to unsatisfied customers, unhappy suppliers, and disgruntled shareholders. Use consultants to force more relevant data and honest discussion. Stop senior management “happy talk.” Bombard people with information on future opportunities, on the rewards for capitalizing on these opportunities, and on the organization’s current inability to pursue those opportunities. Harrisburg University of Science & Technology * Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology Sources of Complacency The absence of a major and visible crisis Too many visible resources Low overall performance standards Organizational structures that focus employees on narrow functional goals Internal measurement systems that focus on the wrong performance measures A lack of sufficient performance feedback from external sources A kill-the-messenger-of-bad-news, low-candor, low-confrontation culture Human nature, with its capacity for denial, especially if people are already busy or stressed Too much happy talk from senior management Harrisburg University of Science & Technology * Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology Why People Resist Change * Threat to one’s self-interest Uncertainty Lack of confidence that change will succeed Lack of conviction that change is necessary Distrust of leadership Threat to personal values Fear of being manipulated Lussier, R.N. & Achua, C.F., Leadership: Theory, Application, & Skill Development. Minimizing Resistance to Change * Lussier, R.N. & Achua, C.F., Leadership: Theory, Application, & Skill Development. Effective leaders ensure that they keep employees informed, supported, and motivated about any change initiatives Change agents should pay attention to the “5-Ps”—purpose, priorities, people, process, and proof Training, education and mentoring are needed to help employees acquire skills and capabilities for their role in the implementation process or for their new responsibilities People-Centered Recommendations for Minimizing Resistance to Change * Show relentless support and unquestionable commitment to the change process Communicate the need and the urgency for change to everyone Maintain ongoing communication about the progress of the change Avoid micromanaging and empower people to implement the change Ensure that change efforts are adequately staffed and funded Anticipate and prepare people for the necessary adjustment that change will trigger such as career counseling and retraining Lussier, R.N. & Achua, C.F., Leadership: Theory, Application, & Skill Development. Task-Centered Recommendations for Minimizing Resistance to Change * Assemble a coalition of supporters inside and outside the organization Align organizational structure with new strategy, for consistency Transfer the implementation process to a working team Recruit and fill key positions with competent and committed supporters Know when and how to use ad hoc committees or task forces to shape implementation activities Recognize and reward the contributions of others to the change process Lussier, R.N. & Achua, C.F., Leadership: Theory, Application, & Skill Development. 2. Creating the Guiding Coalition The belief that one highly visible leader can transform an organization is dangerous A strong guiding coalition is needed with the right composition, level of trust, and shared objective The low credibility committee Decision making in today’s business environment Key characteristics needed for an effective guiding coalition: Position power Expertise Credibility Leadership Individuals that sabotage success: egomaniacs, snakes, and the reluctant player “Personnel problems that can be ignored during easy times can cause serious trouble in a tougher, faster-moving, globalizing economy.” The Right People + Trust + A Common Goal = Effective Teamwork Harrisburg University of Science & Technology * Harrisburg University of Science & Technology Decision Making in Today’s Environment Today’s Environment: Demands more large-scale change via new strategies, reengineering, restructuring, mergers, acquisitions, downsizing, new product or market development, etc. Decisions Made Inside the Organization Are: Based on bigger, more complex, more emotionally charged issues Made more quickly Made in a less certain environment Require more sacrifice from those implementing the decisions A New Decision-Making Process: Is required because no one individual has the information needed to make all major decisions or the time and credibility needed to convince lots of people to implement the decisions Must be guided be a powerful coalition that can act as a team Harrisburg University of Science & Technology * Harrisburg University of Science & Technology 3. Developing a Vision and Strategy Authoritarian decree &/or micromanagement – common and ineffective Vision – a picture of the future with commentary on why people should strive to create that future By providing a direction it simplifies detailed decisions It motivates people to take action in the right direction It helps coordinate actions in a fast and efficient way Can “clear the decks” of expensive and time-consuming clutter The relationship of vision, strategies, plans, and budgets Characteristics of an effective vision Strategic feasibility – stretching resources and capabilities with great leadership that makes ambitious goals look doable Creating an effective vision is not easy: Vision is not a component of effective management, but of effective leadership A vision statement may appear to be rather simple and straightforward, but data and synthesis are also required Head & heart are required Lack of teamwork = endless negotiation If urgency is not high, the process will not be completed “An ineffective vision may be worse than no vision at all” What’s the Vision of your organization?? Harrisburg University of Science & Technology * Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology Vision, Strategies, Plans & Budgets Leadership Creates: Management Creates: Harrisburg University of Science & Technology * Vision A sensible and appealing picture of the future Strategies A logic for how the vision can be achieved Plans Specific steps and timetables to implement the strategies Budgets Plans converted into financial projections and goals Harrisburg University of Science & Technology Characteristics of an Effective Vision Imaginable: Conveys a picture of that the future will look like Desirable: Appeals to the long-term interests of employees, customers, stockholders, and others who have a stake in the enterprise Feasible: Comprises realistic, attainable goals Focused: Is clear enough to provide guidance in decision making Flexible: Is general enough to allow individual initiative and alternative responses in light of changing conditions Communicable: Is easy to communicate; can be successfully explained within five minutes Harrisburg University of Science & Technology * Harrisburg University of Science & Technology 4. Communicating the Change Vision Quality versus quantity If urgency rate isn’t high, people won’t listen If guiding coalition does not have the right people it will have difficulty creating and sending an appropriate message Selling a poor vision is a tough job “A gallon of information dumped into a river of routine communication” Accepting a vision is an intellectual and emotional task Key elements in the effective communication of a vision: Simplicity Metaphor, analogy, and example Multiple forums Repetition Leadership by example Explanation of seeming inconsistencies Give-and-take If people don’t accept the vision the next two steps (empowering individuals for broad-based action and creating short-term wins) will fail Harrisburg University of Science & Technology * Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology 5. Empowering Broad-Based Action Barriers to Empowerment Formal Structures Lack of Needed Skills Personnel & Information Systems Discouraging Bosses Empowering People to Effect Change Communicate a sensible vision to employees Make structures compatible with the vision Provide the training employees need Align information and personnel systems to the vision Confront supervisors who undercut needed change Harrisburg University of Science & Technology * Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology 6. Generating Short-Term Wins The Role of Short-Term Wins Provide evidence that sacrifices are worth it Reward change agents with a pat on the back Help fine-tune vision and strategies Undermine cynics and self-serving resisters Keep bosses on board Build momentum Characteristics of Short-Term Wins: It’s visible It’s unambiguous It’s clearly related to the change effort Planning versus Praying Keep the Pressure (Maintain Sense of Urgency) The Role of Leadership and Management Harrisburg University of Science & Technology * Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology 7. Consolidating Gains and Producing More Change “Short-terms wins are essential to keep momentum going, but the celebration of those wins can be lethal if urgency is lost. With complacency up, the forces of tradition can sweep back with remarkable speed and force.” Progress can slip for two reasons: Corporate culture (next stage) Increased interdependence – difficult to change without changing everything What success looks like in Stage 7: More change, not less – additional and bigger change projects More help – additional people are brought in, promoted, and developed Leadership from senior management – clarity of shared purpose Project management and leadership from below – lower ranks provide leadership for specific projects Reduction of unnecessary interdependencies – make change easier Harrisburg University of Science & Technology * Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology What Success Looks Like More change, not less – the guiding coalition uses the credibility afforded by short-term wins to tackle additional and bigger change projects. More help – additional people are brought in, promoted, and developed to help with all the changes. Leadership from senior management – senior people focus on maintaining clarity of shared purpose for the overall effort and keeping urgency levels up. Project management and leadership from below – lower ranks in the hierarchy both provide leadership for specific projects and manage these projects. Reduction of unnecessary interdependencies – to make change easier in both the short and long term, managers identify unnecessary interdependencies and eliminate them. Harrisburg University of Science & Technology * Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology 8. Anchoring New Approaches in the Culture Culture is powerful for three reasons: Individuals are selected based on compatibility with culture and then indoctrinated Culture exerts itself though the actions of the people in the organization It is unconscious Confront inconsistencies between culture and change efforts “…the challenge is to graft the new practices onto the old roots while killing off the inconsistent pieces.” Anchoring Change in a Culture (Table 10-1, p. 166) Comes last, not first Depends of results Requires a lot of talk May involve turnover Makes decisions on succession crucial Harrisburg University of Science & Technology * Kotter, John P. (2012). Leading change. Boston: Harvard Business School Press. Harrisburg University of Science & Technology Problem Management and Decision Making 0 What is Problem Management & Decision Making? Problem Management - ? Decision Making - ? 2 What is Problem Management & Decision Making? Problem Management – Activities required to diagnose the root cause of incidents and to determine resolution to those problems. Decision Making – The thought process of selecting a logical choice from the available options. When trying to make a good decision, a leader must weigh the positives and negatives of each option, and consider all the alternatives. 3 Some Bad Decisions... There is no reason anyone would want a computer in their home. --Ken Olson, president, chairman and founder of Digital Equipment Corp., 1977 Heavier-than-air flying machines are impossible. -- Lord Kelvin, president, Royal Society, 1895. We dont like their sound, and guitar music is on the way out. --Decca Recording Co. rejecting the Beatles, 1962. This telephone has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us. -- Western-Union internal memo, 1876. Alexander Bell offered the patent for the Telephone to Western-Union in 1876 for $100,000. They declined. The telephone patent has been estimated as the most valuable patent of all time. Drill for oil? You mean drill into the ground to try to find oil? Youre crazy. -- Drillers who Edwin L. Drake tried to enlist to his project to drill for oil in 1859 5 Some Good Decisions... - Apple’s decision to chase the prize of the first saleable PC created an industry. - Henry Ford’s decision to start his own company in 1903 led to the first mass production line, created a mass market in automobiles, launched a corporate giant, changed perceptions of travel, led to the establishing of a variety of other industries, and provided a blueprint for industrial production. - In 1981, a group of 13 senior Harley-Davidson executives led by Vaughn Beals bought the company. They celebrated with a victory ride from the company’s factory in York to its headquarters in Milwaukee. Then they made a great decision: The new owners started the Harley Owners Group (H.O.G.) to get customers more involved with the brand. It worked. - The New Coke fiasco of 1985 was one of the worst decisions on record. So, wherein lies the greatness? The decision to go back to the original recipe was brave and (relatively) speedy. We all screw up. The brave thing to do is to hold your hands up and admit it. 6 Decision Making Models 5 Decision Making Models Incremental Model Polis Model Garbage Can Model Bargaining Model Participative Model Rational Model Gerras, S.J. (Ed.) (2010). Strategic leadership primer (3rd Ed.). Carlisle, PA: Department of Command, Leadership, and Management; U.S. Army War College. 6 Decision Making Models Incremental Model (Charles Lindblom): Decisions are made in small analytical increments in response to events and circumstances where the decision-maker’s analysis is focused on familiar, better-known experiences. 1. Only a few options are considered 2. Decisions are the product of negotiated settlements 3. Changes are made gradually over time 4. Decisions tend to be made reactively 5. Political considerations are important in determining outcomes 7 . Gerras, S.J. (Ed.) (2010). Strategic leadership primer (3rd Ed.). Carlisle, PA: Department of Command, Leadership, and Management; U.S. Army War College. Decision Making Models Incremental Model (Charles Lindblom): Decisions are made in small analytical increments in response to events and circumstances where the decision-maker’s analysis is focused on familiar, better-known experiences. the attainment of short-term solutions may be at the expense of more important and far-reaching goals small changes are more subject to correction if they produce unfavorable outcomes decision making is slowed down in order to avoid big mistakes sometimes resulting in “kicking the can down the road” 8 Gerras, S.J. (Ed.) (2010). Strategic leadership primer (3rd Ed.). Carlisle, PA: Department of Command, Leadership, and Management; U.S. Army War College. Decision Making Models Polis Model (Deborah Stone): Assumes inconsistencies in life where the political community is able to deal with less than comprehensive and reliable information. Decisions are made and solutions formed with inducements, rules, rights, and powers as the driving forces. Characteristics: State goals ambiguously and keep some secret. Be prepared to shift and redefine goals as the political situation dictates. Keep undesirable alternatives off the agenda by not mentioning them. Make your preferred alternative appear to be the only feasible one. Focus on one part of the causal chain and ignore politically difficult ones. Use rhetorical devices to blend alternatives to prevent strong opposition. Selectively project consequences that make your decision look the best. Choose the action that hurts powerful constituents the least, but portray your decision as creating the maximum social good. 9 Gerras, S.J. (Ed.) (2010). Strategic leadership primer (3rd Ed.). Carlisle, PA: Department of Command, Leadership, and Management; U.S. Army War College. Decision Making Models Garbage Can Model (March, Cohen, & Olsen): Decisions are made based on chance and unsystematic interactions of actors and opportunities, and the current availability of resources. Organizations have inconsistent and ill-defined preferences, and operate on the basis of trial and error Stakeholders only partially understand the processes Decision-makers often act whimsically and impulsively Organizations produce many solutions for which there are no immediate problems, and these are dumped in a holding can—the garbage can Problems needing solutions will arise in the future and a search through the garbage can might yield a solution. In this sense, the garbage can is really an “opportunity” can. 10 Gerras, S.J. (Ed.) (2010). Strategic leadership primer (3rd Ed.). Carlisle, PA: Department of Command, Leadership, and Management; U.S. Army War College. Decision Making Models Bargaining Model: Bargaining reflects a decision making process both between individuals within an organization and between organizations through their representatives. This perspective requires an understanding of the principles of negotiation. The essence of decision making of groups involves tradeoffs between constituents that may have competing interests and agendas. In seeking to identify common interests and mutual benefit for the involved parties, some concessions may be made, but the resulting decision should produce a condition that is acceptable to either side. 11 Gerras, S.J. (Ed.) (2010). Strategic leadership primer (3rd Ed.). Carlisle, PA: Department of Command, Leadership, and Management; U.S. Army War College. Decision Making Models Bargaining Model: The essence of decision making of groups involves tradeoffs between constituents that may have competing interests and agendas. Advantage: effective for addressing and presenting issues that get multiple perspectives Disadvantage: may not result in the best alternative since consensus sometimes results in achieving a decision that all will accept 12 Gerras, S.J. (Ed.) (2010). Strategic leadership primer (3rd Ed.). Carlisle, PA: Department of Command, Leadership, and Management; U.S. Army War College. Decision Making Models Participative Model: The participative decision making perspective is an expansion of the bargaining approach and attempts to include all those directly affected by the decision. It is the most democratic form of decision making. Providing the opportunity to voice an opinion is not the same as giving power to make the decision. Groups can wield significant power and present obstacles if not appropriately included in the decision process. Participative decision making is slow and expensive. An effective means to collect information, the amount and unorganized nature of the information must be addressed. The quality of decision making depends on the expertise and commitment of participants – subordinate self-interest in pursuit of common goals. 13 Gerras, S.J. (Ed.) (2010). Strategic leadership primer (3rd Ed.). Carlisle, PA: Department of Command, Leadership, and Management; U.S. Army War College. Decision Making Models Rational Model: This approach, also known as “the rational-comprehensive” model, borrows from economic theory and has the goal of maximizing efficiency by picking the best alternative based on specific criteria. It is often described as a six-step process: 1. Define goals 2. Identify alternatives 3. Calculate the consequences 4. Decide the most favorable using a calculated ratio of benefits to costs 5. Monitor implementation 6. Begin again 14 Gerras, S.J. (Ed.) (2010). Strategic leadership primer (3rd Ed.). Carlisle, PA: Department of Command, Leadership, and Management; U.S. Army War College. Don’t Forget the Intuitive Model! 15 Risk: Probability & Consequence Probability Very Likely – occurs often, continuously experienced Likely – occurs several times Questionable – unlikely, but could occur at some time Unlikely – can assume it will never occur Consequence High – critical objectives cannot be achieved Significant – only the most critical objectives can be achieved Moderate – can partially achieve all objectives Low – can fully achieve all objectives Consensus Building and Negotiation * Negotiation Negotiation is a method by which people settle differences. It is a process by which compromise or agreement is reached while avoiding argument. In any disagreement, individuals understandably aim to achieve the best possible outcome for their position (or perhaps an organization they represent). However, the principles of fairness, seeking mutual benefit and maintaining a relationship are the keys to a successful outcome. The point of negotiation is to try to reach agreements without causing future barriers to communications. * Stages of Negotiation The process of negotiation includes the following stages: Preparation Discussion Clarification of goals Negotiate towards a Win-Win outcome Agreement Implementation of a course of action * Preparation When and where will the meeting will take place? Who will attend?  This stage involves ensuring all the pertinent facts of the situation are known in order to clarify your own position.  Undertaking preparation before discussing the disagreement will help to avoid further conflict and unnecessarily wasting time during the meeting. * Discussion During this stage, individuals or members of each side put forward the case as they see it, i.e. their understanding of the situation.  Key skills during this stage are questioning, listening and clarifying.  Sometimes it is helpful to take notes during the discussion stage to record all points put forward in case there is need for further clarification.  It is extremely important to listen, as when disagreement takes place it is easy to make the mistake of saying too much and listening too little.  Each side should have an equal opportunity to present their case. * Clarifying Goals From the discussion, the goals, interests and viewpoints of both sides of the disagreement need to be clarified.  It is helpful to list these in order of priority.  Through this clarification it is often possible to identify or establish common ground. * Negotiate Towards a Win-Win Outcome This stage focuses on what is termed a Win-Win outcome where both sides feel they have gained something positive through the process of negotiation and both sides feel their point of view has been taken into consideration.  A Win-Win outcome, although not always possible, should be the ultimate goal. Suggestions of alternative strategies and compromises need to be considered at this point.  Compromises are often positive alternatives which can often achieve greater benefit for all concerned compared to holding to the original positions. * Agreement Agreement can be achieved once understanding of both sides’ viewpoints and interests have been considered.  It is essential to keep an open mind in order to achieve a solution.  Any agreement needs to be made perfectly clear so that both sides know what has been decided. If the process of negotiation breaks down and agreement cannot be reached, then re-scheduling a further meeting is called for.  This avoids all parties becoming embroiled in heated discussion or argument, which not only wastes time but can also damage future relationships. * Implementing a Course of Action From the agreement, a course of action has to be implemented to carry through the decision. Informal Negotiation There are times when there is a need to negotiate more informally.  At such times, when a difference of opinion arises, it might not be possible or appropriate to go through the stages in a formal manner.  However, remembering the key points in the stages of formal negotiation may be very helpful in a variety of informal situations. * Focusing on Interests Rather Than Positions (Cohen) We are normally prepared for the substance of negotiations, however, the process is unsettling – why? Position-based versus Interest-based negotiation – what’s the difference? Interest-based negotiation techniques can help us focus our energy on the process – how? * Focusing on Interests Rather Than Positions Rules of Negotiation: Separate the people from the problem Distinguish between interests and positions Consider your BATNA (Best Alternative to a Negotiated Agreement) Silence is golden Pursue fairness Only one person can get angry at a time * Focusing on Interests Rather Than Positions Separate the people from the problem View the problem as that which needs resolving rather than the defeat of another person Technique: Alternative Table arrangement Distinguish between interests & positions “Fighting over the orange” Not only consider “what they want” but also “why do they want it”? This also applies to your interests. * Focusing on Interests Rather Than Positions Silence is golden Particularly effective if the other party is highly emotional and demanding Most people are troubled by silence Silence is often viewed as disapproval and may sometimes lead to modifications or concessions An important element in Active Listening Requires you to focus on what is being said, not shaping your response Will show that your are paying attention and are interested in the other party’s interests and opinions * Focusing on Interests Rather Than Positions Pursue fairness If participants view the process of fair, they are more likely to “buy into” the result If parties can agree to standards it can result in “face-saving” How can one make the negotiation process “fair”? Only one person can get angry at a time If it’s not “your turn” you can use your energy to clearly observe the process Yelling at each other in not negotiation, it is confrontation * Focusing on Interests Rather Than Positions Consider your BATNA (Best Alternative to a Negotiated Agreement) Must be based on interests rather than position What’s the best alternative if an agreement is not reached? Knowing your BATNA allows you to “walk away” if needed and accept your BATNA What is the other party’s BATNA? * BATNA Best Alternative To a Negotiated Agreement What you would most prefer to do if you and the other party are not able to reach a deal. Importance of BATNA: Help you make smarter choices because they remove the pressure to reach an agreement. Gives you more bargaining power because they help you quickly identify how a proposed deal stacks up against your alternatives * * BATNA Developing a BATNA Brainstorm possible alternatives to a negotiation. Weigh your underlying interests for each of the alternatives that you propose— cost, time constraints, relationships, etc. Determine which alternative is your best alternative. Speculating About the Other Partys BATNA Consider what the other partys BATNA might be and what value the other party places on it. Dont fall into the trap of deciding how the other party should see it versus how he or she really views it. * * Identify your own BATNA Describe a negotiation you’re facing in the future Ask yourself “What will I do if this agreement cannot be reached?” List Alternatives Outline the interests that the alternatives meet or don’t meet. Consider – ease, process, time pressure, relationships, risks What else could you do to improve your analysis? Are the alternatives practical and actionable? Could they be improved? Which one is best? The highest value alternative is your BATNA * * Speculate on the other Party’s BATNA Speculate what the other party will do if this agreement cannot be reached” List Alternatives Speculate about the interests that the alternatives meet or don’t meet. Consider – ease, process, time pressure, relationships, risks What else could you do to improve your analysis? What can you do to better understand the other’s environment? Bias check – have you fairly imagined the other party’s options? Which one seems best? The highest value alternative is the other party’s BATNA. What questions can you ask during negotiation to uncover the other party’s interests? List them You’re ready to begin your negotiation. Remember – a BATNA is the standard against which any proposed agreement must be measured. * * Examples of BATNA What do you get if you walk away from the deal? Another day at another car dealer Keep the existing job * * Common Negotiation Traps Failing to identify your interests Avoid this trap by clarifying your full range of interests. In addition to price, consider other interests, such as: maintaining a positive working relationship; focusing on the spirit of the deal (how the agreement will work in practice); and ensuring that the negotiation process is perceived as fair and respectful by both sides. Neglecting your BATNA Avoid this trap by developing a BATNA—your best alternative to a negotiated agreement. Determine what you would do if an agreement cannot be reached. Ignoring the other sides problem Avoid this trap by viewing the negotiation from the other partys perspective. Speculate about their underlying interests and BATNA. Compare your interests with those of the other party and look for opportunities for mutual gain. Overlooking differences Avoid this trap by searching for differences in interests that can suggest new options for mutually beneficial deals. * * Common Negotiation Traps Introducing biases Avoid this trap by not letting cognitive biases such as role bias (over committing to your own point of view) and partisan perceptions (painting your side with positive qualities while vilifying your opponent) enter into a negotiation. Confusing the deal and the relationship Avoid this trap by keeping issues surrounding the deal (such as price and service levels) and the relationship (such as mutual understanding and respect) separate. When you and the other side dont feel that you need to trade the quality of the relationship for the terms of the deal, you exchange information more freely and become more creative and collaborative in your discussions. Failing to make appreciative moves Avoid this trap by keeping a constructive dialogue going. When negotiations stall, solicit the other partys ideas and perspectives on an issue and express your appreciation of what the other party brings to the table. Ignoring the spirit of the deal Avoid this trap by clarifying expectations about how your negotiation will be implemented. Determine how you and the other party will work together, resolve disputes, communicate, and handle surprises, before the ink has dried on the contract. * * Consensus Building A process: Presentation/Proposal Clarifying Questions Discussion Take general feelings on the proposal Call for Major Objection or Strong Concern A major objection blocks the proposal from passing. If you have a major objection it means that you cannot live with the proposal if it passes. A strong concern does not block the passing of a proposal, but it is a public statement of why you dislike it * * Consensus Building Consensus – Overwhelming agreement. Not unanimity A product of a good-faith effort to meet the interests of all stakeholders Facilitation nonpartisan or neutral helping groups work together in meetings Mediation helping parties deal with strong disagreement * * Power and Politics * The Meaning of Power Power is the capacity of a person, team, or organization to influence others The potential to influence others People have power they don’t use and may not know they possess Power requires one person’s perception of dependence on another person Why does having power matter? With power you can: Intercede favorably on behalf of someone in trouble Get a desirable placement for a talented subordinate Get approval for expenditures beyond the budget Get items on and off agendas Get fast access to decision makers Maintain regular, frequent contact with decision makers Acquire early information about decisions and policy shifts Types of Power Five types of power: Legitimate Reward Coercive Referent Expert * Legitimate Power Basis: Power granted to a person based on his or her position in the organization In organizations that have weak project management structures, the project leader has very little legitimate power Those with legitimate power can help with providing resources, project team legitimacy, and empowering project team leaders – take advantage of interactions with those in power Reward Power Basis: Derives from being in a position to administer rewards that a follower desires Not just money – appreciation, knowledge of how efforts improve the organization, others? Leaders should understand basis of follower’s motivation (intrinsic/extrinsic) and reward accordingly, when possible Coercive Power Basis: The ability of a leader to punish followers for not complying with a directive Most project managers do not have this power, however, this is the least desirable form of power in terms of motivating action Referent Power Basis: The power leaders gain when people identify with them Lead by example – be role models for others to follow Referent power may be destroyed by immoral, unethical or rude actions Expert Power Basis: The leader has important knowledge or expertise about an activity being performed Does not have to be technical expertise – political maneuvering, managing projects, etc. Only accorded to a person if the team values it Information and Power Control over information flow Based on legitimate power Relates to formal communication network Common in centralized structures (wheel pattern) Coping with uncertainty Those who know how to cope with organizational uncertainties gain power Prevention Forecasting Absorption Consequences of Power Reward Power Legitimate Power Coercive Power Expert Power Referent Power Sources of Power Consequences of Power Commitment Resistance Compliance Power and Influence Tactics Power can change over time Personal power can be easily gained or lost Abuse of power will result in loss of power Influence tactics can change based on circumstances Influence includes: Legitimization Consultation Rational Persuasion Ingratiation Exchange Pressure Coalitions Personal Appeal Inspirational Appeal (Lussier & Achua, 2012) Research has identified nine distinct influence tactics. First is legitimacy. Relying on your authority position or saying a request accords with organizational policies or rules. Second is rational persuasion. Presenting logical arguments and factual evidence to demonstrate a request is reasonable. Third is inspirational appeals. Developing emotional commitment by appealing to a target’s values, needs, hopes, and aspirations. Fourth is consultation. Increasing the target’s support by involving him or her in deciding how you will accomplish your plan. Fifth is exchange. Rewarding the target with benefits or favors in exchange for following a request. Sixth is personal appeals. Asking for compliance based on friendship or loyalty. Seventh is ingratiation. Using flattery, praise, or friendly behavior prior to making a request. Eighth is pressure. Using warnings, repeated demands, and threats. And none is coalitions. Enlisting the aid or support of others to persuade the target to agree. * Organizational Politics “Is the process of gaining and using power.” Politics: Is a reality of organizations Is a medium of exchange Directly affects individual and organization success (Lussier & Achua, 2012, P. 161) * Common Political Behaviors Networking: Is the process of developing relationships for the purpose of socializing and politicking Contributes most to successful management advancement Reciprocity: Coalitions: Involves creating obligations and developing alliances, and using them to accomplish objectives Uses the exchange influence tactic Doing something for someone creates a debt to be collected at a future time Use reciprocity and networking Is a political influence tactic (Lussier & Achua, 2012) Types of Organizational Politics Managing impressions Attacking and blaming Creating obligations Cultivating networks Types of Organizational Politics Controlling information Forming coalitions Conditions Supporting Organizational Politics Scarce Resources Complex and Ambiguous Decisions Personal Characteristics Tolerance of Politics Conditions for Organizational Politics Power, Politics, and Leadership Politics are inherently neither “good” or “bad” Remember definitions: Politics: “Is the process of gaining and using power.” Power: “The leader’s potential influence over followers.” Influencing: ”Is the process of affecting others’ attitudes and behavior in order to achieve an objective.” Leadership: The influencing process of leaders and followers to achieve organizational objectives through change.” (Lussier & Achua, 2012) * Developing Political Skills Learn the organizational culture and power players Develop good working relationships, especially with your manager Be a loyal, honest team player Gain recognition (Lussier & Achua, 2012) Controlling Political Behavior Peer Pressure Against Politics Remove Political Norms Free Flowing Information Manage Change Effectively Provide Sufficient Resources Introduce Clear Rules Hire Low-Politics Employees Increase Opportunities for Dialogue Politics, Power, and Ethical Behavior It is difficult to differentiate ethical from unethical politics What is the utility of engaging in political behavior? Is it worth the risk? Does the political activity conform to standards of equity and justice? Will others be harmed in the process? Use of power Helps to meet organizational objectives when used ethically Is only unethical when used to promote your self-interest at the expense of others With strong power base—recognize the ability of power to corrupt Easier for the powerless to act ethically (Lussier & Achua, 2012) Although there are no clear-cut ways to differentiate ethical from unethical politicking, there are some questions you should consider. For example, what is the utility of engaging in politicking? Sometimes we engage in political behavior for little good reason. Major league baseball player Al Martin claimed he played football at USC when in fact he never did. As a baseball player, he had little to gain by pretending to have played football. Outright lies like this may be a rather extreme example of impression management, but many of us have distorted information to make a favorable impression. One thing to keep in mind is whether it’s really worth the risk. Another question to ask is this, “How does the utility of engaging in the political behavior balance out any harm (or potential harm) it will do to others?” Complimenting a supervisor on his or her appearance in order to curry favor is probably much less harmful than grabbing credit for a project that others deserve. Finally, does the political activity conform to standards of equity and justice? Sometimes it is difficult to weigh the costs and benefits of a political action, but its ethicality is clear. The department head who inflates the performance evaluation of a favored employee and deflates the evaluation of a disfavored employee—and then uses these evaluations to justify giving the former a big raise and nothing to the latter—has treated the disfavored employee unfairly. Unfortunately, powerful people can become very good at explaining self-serving behaviors in terms of the organization’s best interests. They can persuasively argue that unfair actions are really fair and just. Our point is that immoral people can justify almost any behavior. Those who are powerful, articulate, and persuasive are most vulnerable to ethical lapses because they are likely to be able to get away with unethical practices successfully. * Strategic Planning – An Overview * (Ref: Waters, D.E., Understanding Strategic Thinking and Developing Strategic Thinkers) Strategic Thinking Framework * WHAT IS STRATEGIC PLANNING? * * Strategic planning is clarifying the overall purpose and desired results of an organization, and how to achieve those results. Considerations: The life cycle or stage of development of the organization The culture of people in the organization Types of issues the organization is currently facing The rate of change in the external environment of the organization. Typically, strategic planning is vision-based or goals-based, in which an organization identifies the results they want to achieve in the future.  They develop a vision of what the organization and its customers or clients will look like at some point in the future, and then articulate what they have to do to achieve that vision.  They work from the future to the present. Carter McNamara, MBA, PhD – Authenticity Consulting, LLC; From the Free Management Library Strategic Planning * “A disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it.” “Strategic planning comprises a set of concepts, procedures, and tools.” “Strategic planning is no substitute for leadership.” Ref: Dr. John M. Bryson, “Strategic Planning for Public and Nonprofit Organizations” (2004) Strategic Planning * WHY STRATEGIC PLANNING? * * Why Strategic Planning? Competition Increase value/capabilities A requirement/mandate Changing internal and or external environments Ensure/facilitate continuity Identify/mitigate risk Prioritize resources Build consensus Improve internal, external relationships Develop ownership Build community support Control your future Survival Other? * Benefits of Strategic Planning Provides orderly growth and competitive survival Stimulates the organization to be more responsive to the needs of customers Simulates the future Forces the setting of goals and objectives Increases efficiency Applies a systems approach to reviewing projections and consequences Creates a basis for performance measures and accountability Facilitates personnel management because the process establishes relevant and practical performance benchmarks Provides a decision making framework Mitigates crisis management and crisis-driven decision making Anticipates effects of change and influences of external forces Improves employee morale because of clarity of focus, direction, communication, and inclusion Fosters Strategic Communications Others? * ORGANIZATIONAL PHILOSOPHY * * Organizational Philosophy Organizational Philosophy is a term that has its roots in the teachings and theories of an educational discipline known as Organizational Effectiveness. It is comprised of 4 elements: Mission, Vision, Values, and Core Competencies. Understanding one’s Organizational Philosophy guides the way the organization and its members go about conducting business and making decisions as well as helping to define its relationship with employees, customers, stakeholders, suppliers, intra and inter governmental partners, and the community as a whole. * * Mission Why does your organization exist? What is your organization attempting to accomplish? Example: Google’s mission is to “organize the world’s information and make it universally accessible and useful.” * * Values Organizational Values are the guiding principles and/or behaviors that embody your organization and how its people are expected to behave. They are a code of morals or ethics that define what a organization stands for, believes in, and considers acceptable in its quest to achieve its vision. Specify a code of acceptable beliefs and behaviors Are consistent with the organizations real operating practices Are linked to hiring, promotions, and performance appraisals Are clearly understood by all employees Are not subject to change as years pass or as strategy changes Source: NGBPEC Strategic Management Course * * Vision The desired future state of your organization. The vision describes where the organization is headed, what it intends to be, or how it wishes to be perceived in the future. Clear (simple words and wording) Concise (the fewer words the better) Catchy (snappy without using slang) Memorable (easy to recall; easy to explain) Built on the foundation of your mission and assessment of environment Focused on the future Source: NGBPEC Strategic Management Course * * Core Competencies Core Competencies refer to an organization’s areas of greatest expertise. They are those strategically important capabilities that are central to fulfilling your mission. They are challenging for competitors to imitate and provide a sustainable competitive advantage. Source: Army Performance Improvement Criteria * * CUSTOMER FOCUS * * Customer Focus Customer Focus is a broad term used to describe how an organization comprehends and seeks to engage with internal and external entities. Building strong relationships is of primary concern. Key questions to ask, answer, and understand: Who are our Stakeholders? Who are our Customers? What are our Products? What are our Services? What are our Stakeholders’ expectations? What are our Customers’ expectations? * * Stakeholders The term stakeholder refers to all groups that are or might be affected by an organization’s actions, successes, and failures. Examples: Employees Partners Suppliers Citizens Others? Note: Some organizations substitute the term “Partner” for Stakeholder. * DEFINING THE STRATEGIC ENVIRONMENT * * Environmental Scan Mission, vision, values Understanding of leadership priorities Leadership guidance Organizational structure Customers needs Technology Health and well being of employees Demographic trends Relationships with stakeholders Business and volunteer community Other regions/partners New mandates Past strategic plans Newly passed legislation Current literature Interviews with stakeholders Questionnaires/surveys Focus groups Public consultation/meetings Economic tendencies Others? Consider economic, political, social, and technological trends that could impact the ability to accomplish your mission. Below are some components of an environmental scan that may be considered by strategic planners. The environmental scan is critical to your strategic planning success! * Environmental Scan - SWOT INTERNAL ANALYSIS Strengths: What are we doing well? Why? Weaknesses: Where must we improve? Why are we not doing well? -- How do we determine our strengths and weaknesses? Are there “blind spots” in our assessment? If so, how will we uncover hidden strengths and weaknesses? EXTERNAL ANALYSIS Opportunities: What opportunities exist outside of your organization? Should we exploit these opportunities? Why/Why not? Threats: What are the potential threats to achieving our vision, mission, goals, and objectives? Are we effectively addressing these threats? If so, how? If not, why not? -- What criteria do we use to determine opportunities and threats? Are we biased in determining our criteria. What are our “blind spots”? ** A SWOT ANALYSIS WILL ENABLE AN ORGANIZATION TO FOCUS PLANNING EFFORTS ON THOSE STRATEGIC ‘CENTERS OF GRAVITY’ THAT WILL RESULT IN ACCOMPLISHMENT OF THE VISION, MISSION, GOALS, AND OBJECTIVES. * SWOT Benefits Can be used very effectively with senior leadership planning teams that are taking a step back to examine their external and internal environments. Can lead the team to some necessary and substantive discussions that would not come up in the normal course of an organization struggling with short term issues. Helps the organization identify its priority issues which may evolve into strategic goals. * * SWOT Limitations Difficult to conduct a long term assessment in an unstable environment. Looks at a point in time and circumstances can change rapidly. Output is often either trivial or so broad to be relative meaningless when making decisions. Sometimes too broad based, not granular enough – Doesn’t provide a specific answer for strategy – May yield few clear cut recommendations. Gives an impression of detached assessment of strengths and weaknesses; may be unreliable, being bound up with aspirations, biases and hopes. Not quantitative – Subjective – Difficult to measure – Assumes all factors have equal weight. * * GOALS * * Goals The term “Goals” refers to a future condition that an organization intends to attain. Goals can be both short-term (6 – 18 months) or long-term (18 to 36 months). Goals are the “ends’ that guide the “ways” and “means”. Goals are directly related to the organization’s Strategic Situation and support the mission and vision. “People often complain about the lack of time when the lack of direction is the real problem!” Zig Ziglar * * Goal Guidelines Goals are developed by the “leaders” of the organization. Keep Goals big. Don’t mix Goals and Objectives. Goals are general, Objectives are more specific. Goals support Mission, Vision, and should be derived from the analysis of your Strategic Environment. Once developed, leaders assign the goal to an Office of Primary Responsibility. * * EXECUTING THE STRATEGIC PLAN * * Execution Strategy The Strategic Plan must be deployed to all levels in your organization. The Strategic Plan effects everyone. Everyone must be aware of and work toward the goals. Lower levels of the organization now build their plans. The Plan must be cascaded to the lowest levels. * Executing the Plan Methods to Execute your Strategic Plan: Leaders Briefing Posters Laminated Organizational Philosophy cards Postings on Websites Use of Social Media Leadership Buy-in and Emphasis is Critical: Leader Strategic Plan talking points for visits Have strategic level leaders provide presentations at Strategic Planning events. Each strategic level leader develops his/her own Strategic Plan. Walk the Talk Follow-up / through: Town halls Performance Appraisals * Executing the Plan – A Mid-Level Leadership Responsibility Environmental Scanning – Assessing Opportunities and Threats A strategic plan is a living document – update based on environmental changes Who is responsible for environmental scanning (SWOT) in your organization? Supporting Goals & Objectives – Fixing Responsibility Who has primary responsibility? Who is supporting? Detailed Action Planning – Where the “Rubber Meets the Road” Each objective should have an Action Plan Specify tasks necessary to achieve the supported Objective Measurements – Understanding Progress Measure specific tasks to understand progress Measures are a standard to evaluate and communicate performance Leadership Emphasis – A Strategic Planning Imperative! * OBJECTIVES * * Objectives They are statements of what must be done to achieve a goal. Typically, two or more objectives are required to reach the goal Developed by the group/organization the goal has been assigned to. Typically, they have a one-year time frame. Objectives are Specific, Measurable, Achievable, Realistic, and Timely (SMART). Part of the performance appraisal * * Objectives Example GOAL 3: “By the end of 2016, the National Guard will add an emergency, fixed-wing aircraft capability to its force structure.” Objective 3.1: By end of March 2016, identify aircraft, facilities, and support structure for future emergency response requirements. Objective 3.2: By June 2016, identify States with similar force structure. Objective 3.3: By September 2016, provide a briefing to the Congressional delegation on future structure needs. * * ACTION PLANS * * Action Plans The term “Action Plans” refers to specific actions/steps that are necessary to achieve the objective. Action Plan development represents the critical link in strategic planning. Action Planning is where the rubber meets the road and ultimately determines success or failure. Action Plans establish authority, responsibility, and accountability. * * Action Plan Guidelines Usually are developed and written by the individual responsible for the specific action (not senior leadership) Include the supported Goal and Objective List: Who, What, When, Where, How, and Why Reviewed and approved by first line supervisor Include resources needed to accomplish the action Are not expected to be included in the published Strategic Plan Formats vary * * Action Plan Examples * * Other Examples * * Other Examples * * MEASURES AND TRACKING * * Measures And Tracking The term “Measures and Tracking” refers to one of the most critical elements of the strategic planning process. We measure things in order to communicate (Track) and understand our progress against an expected results. Knowing where your organization is at all times is paramount to its success (or failure). Knowing where you are allows the leadership to make the necessary adjustment to the “ends, ways, and means” required to attain the mission. * * Measures And Tracking These are the conclusive pieces of the Strategic Plan. Methods and formats vary from very simple to very complex. Designed to give leaders a current view of the progress of the plan Promotes Fact-based decision making. The hardest aspect of Strategic Planning – requires real work! * * Measures And Tracking Item InProg Complete(\%) Not started Comment Goal #3 Y 30\% OBJ 3.1 N 100\% Complete AP 3.1.1 N 100\% Complete AP 3.1.2 N 100\% Complete OBJ 3.2 Y 70\% AP 3.2.1 Y 50\% AP 3.2.2 N 0\% X TDY AP 3.2.3 Y 90\% OBJ 3.3 N 0\% X Priority AP 3.3.1 N 0\% X AP 3.3.2 N 0\% X * * Strategic Planning – An Overview “IT IS NOT NECESSARY TO CHANGE … SURVIVAL IS NOT MANDATORY!” W. Edwards Deming * * Conflict Management Styles 1 Managing Conflict (Lussier & Achua) Conflict Exists whenever people are in disagreement and opposition Is inevitable Why is managing conflict important? An organization’s success is based on how well it deals with conflicts. So how can conflict impact an organization? 2 The Psychological Contract (Lussier & Achua) Is the unwritten implicit expectations of each party in a relationship Is broken for two primary reasons: We fail to make explicit our own expectations and fail to inquire into the expectations of the other parties We further assume that the other party(ies) has the same expectations that we hold Is the source of conflict when it is broken 3 Dysfunctional Conflict versus Functional Conflict (Lussier & Achua) Dysfunctional Conflict Is when conflict prevents the achievement of organizational objectives Functional Conflict Is when disagreement and opposition supports the achievement of organizational objectives What are some examples of conflict in your organization? Are these conflicts Dysfunctional or Functional? 4 What Conflict Management Style Do You Prefer? Thomas-Kilmann Conflict Mode Instrument (TKI) 5 5 Thomas-Kilmann Conflict Mode Instrument (TKI) ASSERTIVE UNASSERTIVE ASSERTIVE UNCOOPERATIVE COOPERATIVE COOPERATIVE COMPETING COLLABORATING COMPROMISING AVOIDING ACCOMMODATING 6 Competing/Forcing Competing/Forcing is assertive and uncooperative, a power-oriented mode. Competing might mean standing up for your rights, defending a position you believe is correct, or simply trying to win. Attempting to resolve the conflict by using aggressive behavior to get your own way. Is uncooperative and aggressive. Creates a win-lose situation. 7 Competing/Forcing (Lussier & Achua) Advantages Decisions may be better, if the forcer is right Disadvantages Overuse leads to hostility and resentment toward its user Forcers tend to have poor human relations Appropriately used when: Unpopular action must be taken on important issues Commitment by others is not critical Maintaining relationships is not critical The conflict resolution is urgent 8 Accommodating/Smoothing/ Withdrawing Accommodating/Smoothing/Withdrawing is unassertive and cooperative—the opposite of competing. Accommodating might take the form of selfless generosity or charity, obeying another person’s order when you would prefer not to, or yielding to another’s point of view. Attempts to resolve the conflict by passively giving in to the other party. Creates a win-lose situation. 9 Accommodating/Smoothing/ Withdrawing (Lussier & Achua) Advantages May maintain relationships that a conflict might damage by going along with the other party Disadvantages May be counterproductive Accommodators are taken advantage of Appropriately used when: The person enjoys being a follower Maintaining the relationship outweighs all other considerations The changes agreed to are not important to the accommodator, but are to the other party The time to resolve the conflict is limited 10 Collaborating/Problem Solving Collaborating/Problem Solving is both assertive and cooperative. Collaborating between two persons might take the form of exploring a disagreement to learn from each other’s insights, resolving some condition that would otherwise have them competing for resources, or confronting and trying to find a creative solution to an interpersonal problem. Attempts to jointly resolve the conflict with the best solution agreeable to all parties. Creates a win-win situation. 11 Collaborating /Problem Solving (Lussier & Achua) Advantages Tends to lead to the best solution Disadvantages The skill, effort, and time needed are usually greater and longer than the other styles Appropriately used when: Dealing with issues requiring optimum solutions Compromise will result in sub-optimization Achieving group goals must come before self-interest Maintaining relationships is important Time is available It is a peer conflict 12 Compromising/Sharing/Negotiating Compromising/Sharing/Negotiating is intermediate in both assertiveness and cooperativeness. It falls on a middle ground between competing and accommodating, giving up more than competing but less than accommodating. Likewise, it addresses an issue more directly than avoiding but doesn’t explore it in as much depth as collaborating. Compromising might mean splitting the difference, exchanging concessions, or seeking a quick middle-ground position. Attempts to resolve the conflict through assertive, give-and-take concessions. Creates an “I win some, you win some” situation through compromise. 13 Compromising/Sharing/Negotiating (Lussier & Achua) Advantages Resolved relatively quickly Working relationships are maintained Disadvantages Can lead to counterproductive results Can lead to suboptimum decisions Overuse leads to high demands from the parties to use to bargain for more reasonable demands Appropriately used when: The issues are complex and critical There is no simple and clear solution Parties have about equal power and want different solutions A solution will be only temporary Time is short 14 Avoiding Avoiding is unassertive and uncooperative. Avoiding might take the form of diplomatically sidestepping an issue, postponing an issue until a better time, or simply withdrawing from a threatening situation. Attempts to passively ignore the conflict rather than resolve it. Creates a lose-lose situation. 15 Advantages May maintain relationships that conflict resolution could damage Disadvantages Conflicts do not get resolved Internal conflict in individuals Avoiders are walked all over\ Appropriately used when: The conflict is trivial Your stake in the issue is not high Relationships could be damaged You don’t have time to resolve the conflict Emotions are high Avoiding (Lussier & Achua) 16 MGMT 560 – Organizational Leadership Ethics and Professional Codes of Conduct * Dilbert Ethics a system of moral principles: the ethics of a culture the rules of conduct recognized in respect to a particular class of human actions or a particular group, culture, etc.: medical ethics; Christian ethics that branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions Formal vs Informal Formal Ethics Code of Conduct Oath Board of Ethics Informal Ethics No formal governing body No accountability, other than from client No formal repercussions Making an Ethical Decision Recognize the ethical dilemma Ask yourself, is this the start of a slippery slope One slip allows the next slip to happen more easily Would you want your decision to the problem broadcast to the world? Ethical Situations Maintaining the integrity of company databases in the face of requests to use the data inappropriately Providing truthful information on the status of projects, budgets and profits even when there are problems – being accountable for success and failure Standing firm on a decision despite its unpopularity Reporting suspected unethical behavior of others despite personal discomfort Not developing personal relationships with vendors/ customers/outside agencies – potential conflict of interest issues Principles for Creating Ethical Cultures Principle 1: The only way to sustain Compliance is through Culture – Employees want to be part of organizations whose values mirror their own – Organizations need to reduce fear, encourage accountability and live by a common set of values that build trust Principles for Creating Ethical Cultures Principle 2: Corporate culture reflects the values of the leaders If Leaders do not embody the ethical standards, then no one else will Principles for Creating Ethical Cultures Principle 3: Measurement matters – if you can’t measure it, you can’t manage it Leadership needs to measure integrity risk and monitor progress in managing it Culture must become a metric Web of Needs Needs encountered in IT practice: User needs Personal needs Organizational needs Needs of society Others? Framework for Ethical Analysis Identify web of needs for project Identify strands of web where conflict is likely to occur Resolve conflict issues with concerned parties Agreed needs set recorded and input into requirements analysis ref. Taylor, M.J. & Moynihan E., Analysing IT Ethics Ref. D. Gebler, Creating an Ethical Culture * Level 1 – Financial Stability: Organizations that are consumed with surviving Leaders may exercise excessive control – an environment of fear Unethical or illegal conduct can be rationalized Leaders must know and stand within clear ethical boundaries Level 2 – Communication: Critical issue is to create a sense of loyalty and belonging among employees and caring and connection between the organization and customers Most critical link is between employees and direct supervisors Fears about belonging and lack of respect lead to fragmentation, dissension, and disloyalty When leaders fail to communicate employees suspect the worst – cliques form and gossip becomes rife * Level 3 – Systems & Processes: Organization is focused adoption of best practices, quality, productivity, and efficiency Succeed in implementing strong internal controls and clear standards of conduct Being efficient may lead to bureaucracy and inconsistent application of rules – loss of respect for the system May lead to shortcuts – “doing what it takes to succeed” Level 4 – Accountability: Leaders and employees begin to take responsibility for their actions They want to be held accountable, not micromanaged For an ethics program to be successful, all employees must feel that they have a personal responsibility for the integrity of the organization – leaders must invite employee participation * Level 5 – Alignment: Critical issue is developing a shared vision and a set of values – vision provides unified purpose and direction; values provide guidance for making decisions Values and behaviors are reflected in processes and systems with appropriate consequences for those who aren’t willing to walk the talk A precondition for success is building a climate of trust Level 6 – Social Responsibility: The organization is able to use relationships with stakeholders to sustain through crisis and challenge Employees and customers see the organization making a difference in the world Organization goes the extra mile to make sure they are being responsible citizens * Level 7 – Sustainability: Organization embraces the highest ethical standards in all interactions with employees, suppliers, customers, shareholders, and the community Always consider long-term impact of decisions and actions Other Considerations: Employee values are distributed across all seven levels Organizations don’t operate from any one level – they tend to cluster around three or four levels (most are clustered on the first three) Successful organizations operate across the full spectrum with focus on the upper levels Lower level organizations – have controls and procedures but may lack accountability and commitment Higher level organizations – visionary leaders and social responsibility but may lack core systems and processes *