Blog 5: My Vision of Leadership

In this blog, I would explore further my own style of leadership, my vision of leadership, as well as leaders who inspire me throughout my life. I’ll discuss the feedback I’ve received from my peers regarding my leadership style, and how it helps me to develop to become a more effective leader and become closer to the leader I’m inspired to be.

 

What types of leader I am, what types of leader I would like to become

I’ve discussed several management and leadership styles in my third blog (Caddi, 2016: Blog 3) and introduced various leader examples. As I reflect to myself, I realized that the type of leader I want to be the most is Transformational Leader, the leader who can inspire and influence others.

Yukl (2010) stated that transformational leadership is compromised of 4 components:

  1. Idealised influence

Charisma of the leader, and the respect from followers

  1. Inspirational Motivation

Leader’s behavior that challenge the followers to work

  1. Intellectual Stimulation

Leader constantly stimulate new approach and creative solution toward problem

  1. Individualised Consideration

Leaders are concerned about the growth and development of the followers

I am really inspired by current governor of Jakarta, capital city of Indonesia, Basuki Tjahja Purnama or Ahok. As discussed in my third blog (Caddi, 2016: Blog 3), Ahok is not only the first minority – a Christian and Chinese Indonesian – who become the governor of Jakarta in 50 years, but also inspired many Jakarta residents who are majority of Muslim, to independently create organisation and collect 1 million ID to support him in 2017 election as independent candidate (Jakarta Globe, 2016; Jakarta Post, 2016). Basuki is a role model of Transformational Leader. He has shown that despite your background, if you have vision for the city, high integrity, consistency and radical action in solving problem, you can inspire others to follow you.

Figure 1. Basuki Tjahja Purnama, the Governor of Jakarta, Indonesia

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Moreover, my previous working experience in Audit firm make me realized the importance of being an ethical leader, especially in Finance industry in facing pressures and global competition. A leader must be able to integrated ethical principal into Vision, and finally, Virtue to his/her leadership style (Caddi, 2016: Blog 1). I am aspired to be an ethical leader with Deontological principle, to always hold on to righteous principle and behavior (Vitel and Davis 1990; Caddi, 2016: Blog 1).

Globalisation is also become one of the important opportunities and challenges for leaders in establishing goals and communicating vision while addressing diverse and vocal stakeholders (Thompson, 2010). Therefore, it’s important for me to be able to have the skills to manage diverse team effectively, as discussed in my 2nd blog (Caddi 2016: Blog 2). It also leads back to the leadership style to approach subordinates discussed by Mullins in my 3rd blog (Caddi 2016: Blog 3). I believe that my current leadership style is democratic style and prefer the team to work together.

Globalisation inevitably leads to the need of organisation to change, and it’s necessary for a leader to have the skills to manage change effectively. I noticed that this leads back to the ability of the leader to effectively communicate the vision to stakeholder and their agility in handling resistance and removing barriers (Caddi, 2016: Blog 4). I look up to the CEO of Lloyds, António Horta-Osório in how he managed to transform Santander Bank into one of the top bank in UK by creating good strategy and constant communication with stakeholders (Caddi, 2016: Blog 4).

 

How ready am I to lead others? Feedback on My Leadership Style

Forbes (2016) stated that ‘the single most powerful way to grow as a leader: Become truly self-aware’.

This shows how important it is for a leader to receive feedback to improve effectiveness. One of the tools that can be used for feedback is Johari Window Model (Luft, 1961).

Figure 1. Johari Windows

Known to Self Not Known to Self
Known to Others  

1st Quadrant:

Area of Free Activity

 

2nd Quadrant:

Blind Area

Not Known to Others  

3rd Quadrant:

Avoided or Hidden Area

 

4th Quadrant

Area of Unknown Activity

Source: Luft (1961)

I’ve received feedback from my teammates and peers throughout Leadership course I’ve taken in this term based on team building activities and assignments. Some positive feedback toward me includes me being hardworking, supportive and enthusiastic, which is in 1st quadrant in model since I’m quite aware of this trait. My colleagues also described me as reliable, the trait that fell into 1st and 2nd quadrant as I’m aware of myself but I knew I still need improvement in my leadership skill. The negative feedback I received is I tend to be too democratic and sometimes let the team members take more control. Therefore, I need to develop more autocratic style to balance. This feedback is really helpful for me in order to lead the team more effectively as I’m not aware of this trait I have.

 

The Skills I Aimed to Develop

I acknowledge that I need to keep on improving myself to become a leader I’m envisioned to be. I’m striving to maximize the opportunity I’ve had in the university and through evaluation from Skills Audit and PDP Plan in APS class, I need to improve my leadership skill, communication skill and decision-making skill as my priority.

In his book, Maxwell (1995) stated,

“ If you want to really want to be a successful leader, you must develop other around you. You must establish a team. You must find a way to get your vision seen, implemented, and contributed to by others”

To be able to become a leader that can influence, motivate and develop others, I need to learn to have clear vision and strengthen them. Finally, I need to keep on learning to adapt to changes (Caddi, 2016: Blog 4) and continually measure my development throughout feedback from my peers.

Word Count: 796

References: 

Caddi, O. (2016) Blog 1: Leadership And Ethics [online] available from <https://culccaddio.wordpress.com/2016/02/13/blog-1-leadership-and-ethics/&gt; [26 March 2016]

Caddi, O. (2016) Blog 2: The Challenge of Managing Diverse Team [online] available from <https://culccaddio.wordpress.com/2016/02/26/blog-2-the-challenge-of-managing-diverse-teams/&gt; [26 March 2016] 

Caddi, O. (2016) Blog 3 – The Most Effective Leadership & Management Styles & Approaches [online] available from <https://culccaddio.wordpress.com/2016/03/12/blog-3-the-most-effective-leadership-management-styles-approaches/&gt; [26 March 2016]

Caddi, O. (2016) Blog 4 – Leadership & Change [online] available from <https://culccaddio.wordpress.com/2016/03/17/blog-4-leadership-change/&gt; [26 March 2016]

Forbes (2016) Forbes Welcome [online] available from <http://www.forbes.com/sites/erikaandersen/2012/11/21/are-leaders-born-or-made/#6e4e0a812ba2&gt; [25 March 2016]

Jakarta Globe (2016) Globeasia’S Man Of The Year: Ahok, Indonesia’S Shooting Star | Jakarta Globe [online] available from <http://jakartaglobe.beritasatu.com/business/globeasias-man-year-ahok-indonesias-shooting-star/&gt; [25 March 2016]

Jakarta Post (2016) Ahok Confirms He Will Seek Reelection As Independent Candidate [online] available from <http://www.thejakartapost.com/news/2015/09/30/ahok-confirms-he-will-seek-reelection-independent-candidate.html&gt; [25 March 2016]

Luft, J (1961) The Johari Window: A Graphic Model of Awareness in Interpersonal Relations, Human Relations Training News [online] Available from http://www.convivendo.net/wp-content/uploads/2009/05/johari-window-articolo-originale.pdf [25 March 2016]

Maxwell, J. (1995) Developing The Leaders Around You. Nashville, Tenn.: T. Nelson

Thompson, L (2010) The Global Moral Compass for Business Leaders, Journal of Business Ethics, vol. 93, pp. 15-32. Available from: 10.1007/s10551-010-0624-9. [26 March 2016]

Vitell, S. and Davis, D. (1990) “Ethical Beliefs Of MIS Professionals: The Frequency And Opportunity For Unethical Behavior”. J Bus Ethics 9 (1), 63-70

Yukl, G. (2010). Leadership in organizations (7th edition). Upper Saddle River, NJ: Prentice Hall.

 

Word Count: 781

Blog 4: Leadership & Change

Change Management - Aspects of Leadership - squished (1)

Change is nothing new and a simple fact of life. Some people actively thrive on new challenges and constant change, while others prefer the comfort of the status quo and strongly resist any change. It is all down to the personality of the individual and there is little management can do about resistance to change” 

(Mullins 2010: 753)

This blog will discuss about Mullin’s arguments on leadership and change, resistance that’ll come with the change, and the role of managers in overcoming resistance. Moreover, this blog will discuss about Kottler’s management models that is recommended for managers and Lloyds’s CEO as example from finance industry.

Mullin’s Arguments

All organisations has common primary goal, which is to remain relevant to society and stakeholders in order to have power and relational significance. In order to do so, organization must be able to adapt itself constantly with changing conditions in both of its external and internal environment (Beerel, 2009; Pathak, 2010).

Mullin argues that some people actively thrive for change while others strongly resist them due to the personality of the individual, in which management could not do much about the resistance to change.

Beerel (2009) stated that in general, people dislike change and favor status quo because change creates value tension, which challenge one’s sense of self, value system and create the need to change priority and behaviors. Moreover, it requires high adaptive capacity, which related with one’s alertness, agility, and energy in identifying and responding change. Pathak (2010) summarised factors affecting individual’s resistance toward change as follow:

Figure 1. Factors of Individual Resistance to Change

Screen Shot 2016-03-16 at 18.08.33

Source: Pathak (2010)

It is seen that the most influential factors in individual resistance are human characteristics and personal reason that highlight the fear of unknown.

Nevertheless, change in organisational life is inevitable in a progressive culture (Alimo & Alban, 2005). Despite Mullin’s arguments, there are several things that management can do to overcome resistance of change, by understanding the source of resistance and implement strategies to introduce change (Pathak, 2010).

Burnes (2009) summarized how people react to change into stages as follow:

Figure 2. The Changing Curve

Screen Shot 2016-04-02 at 00.58.03

Source: Burnes (2009)

Understanding the stages of changes will help manager to understand and support employees in adapting to changes.

 

The role of Managers in Managing Change

 

The video from Kotter (2015) above described the roles and differences between change management and change leadership within the organisation.

Change management is needed to ensure:

  1. Stakeholder agrees the change
  2. The change process is under control
  3. The project keeps on budget

Whereas change leadership is about:

  1. Articulate a vision of future
  2. Mobilise resources needed
  3. Put engine on whole change process

While both functions are needed within the organisation, it is clear that a strong leader is needed to be able to manage change in competitive world. This is also supported by Mehta, et al (2014) whom stated that in order to make a change in an organisation to be successful, the presence of transformational leader is essential. The characteristic of transformational leader was discussed in blog 3 (Caddi 2016: Blog 3). Moreover, a leader must be able to lead from the front and encourage change and growth, manage the change effort by ensuring the gap between present situation and future vision is enough to challenge the organisation but not to demoralise the change effort, and ensure that employees find the goals compelling and know how to contribute toward the change (Maxwell, 1996; Jackson, 1997; Hamel and Prahalad, 1994)

One of the models that management can use in leading change is Kotter’s 8-Step Change Process as follow:

Figure 3. Kotter’s 8-Steps of Change

Screen Shot 2016-03-17 at 21.50.26

Source: Kotter (2016)

Kotter explained in order to be successful in transforming organisation, strong leadership and support from key people within organisation is essential to continually talk about the vision, and actively build the change and remove barriers.

Managing Change in Finance Industry: An Example

The model above is reflected throughout the success of former Santander UK CEO, and current Llyods Banking group CEO, António Horta-Osório in managing change in his company. In 2008, Santander must make revolution in company to break down their engrained processes and transform them into a formidable retail bank. As the CEO, Antonio worked to ensure that stakeholders understand the value and the reason for the change, ensure forceful and careful management were integrated in the system, process and people in organisation, as well as ensure that all related risks and issues were discussed and mitigated. In order to decrease opportunity of cultural misunderstandings through change programme, those who are directly impacted were fully briefed and prepared for variety of customer responses through transition. As the result, by 2013 Santander UK has become one of UK’s leading retail bank

Ant-nio-Horta-Os-rio-012

Picture: Mr. António Horta-Osório

Another success story is the radical transformation of Semco Company by its CEO, Ricardo Semler. Before 1980, Semco appeared to be highly organised and disciplined, where most of managers are using classic authoritarian solution with rigid control and long working hours. However, employees were complaining, ineffective and stressed out. Ricardo decided to transform the company and change his leadership style into laissez faire, in which he let the employees to self-manage, starting from flexible working hour and job, setting own salary, and evaluating their bosses. The organisation become highly democratic. Ricardo worked to solve the resistance and problems throughout the organisational change by continuous communication of his vision, and as the result, Semco annual profit increased dramatically from USD 35 million in 1994 to USD 212 million in 2003 with annual growth of 40% (Semler, 2007; INSEAD, 2014).

Conclusions

Based on discussion throughout the blog and examples from CEO of Llyods and Semco, it’s clear that the key of successful change management depends on manager’s clear vision toward the future and how to ensure organisation members embrace and participate in the change.

Word Count: 823

Reference:

Anon. (2015) Change Management VS Change Leadership: What’s The Difference?. Kotter International

Alimo-Metcalfe, B, & Alban-Metcalfe, J (2005), ‘THE CRUCIAL ROLE OF LEADERSHIP IN MEETING THE CHALLENGES OF CHANGE’, Vision (09722629), 9, 2, pp. 27-39, Business Source Complete, EBSCOhost, [16 March 2016]

Beerel, A. (2009) Leadership And Change Management. London: SAGE

Burnes, B., (2009) Management Change: A Strategic Approach to Organisational Dynamics. Prentice Hall-Financial Times.

Caddi, O. (2016) Blog 3 – The Most Effective Leadership & Management Styles & Approaches [online] available from <https://culccaddio.wordpress.com/2016/03/12/blog-3-the-most-effective-leadership-management-styles-approaches/&gt; [26 March 2016]

CMI. (2016) The 5 Greatest Examples Of Change Management In Business History – CMI [online] available from <http://www.managers.org.uk/insights/news/2015/july/the-5-greatest-examples-of-change-management-in-business-history&gt; [17 March 2016]

Hamel, G., & Prahalad, C. K. (1994). Competing for the Future. Harvard Business Review, July- August, 122 – 128.

INSEAD (2014) Ricardo Semler: A Revolutionary Model of Leadership. North America: Case Center

Jackson, D. (1997). Dynamic Organisations: The Challenge of Change, Macmillan Business, London.

Kotter (2016) The 8-Step Process For Leading Change – Kotter International [online] available from <http://www.kotterinternational.com/the-8-step-process-for-leading-change/&gt; [17 March 2016]

Maxwell, J. A. (1996). Qualitative research design: An interactive approach. Thousand Oaks, CA: Sage publications.

Mehta, S, Maheshwari, GC, & Sharma, SK (2014) Role of Leadership in Leading Successful Change: an Empirical Study, Journal of Contemporary Management Research, vol. 8, no. 2, pp. 1-22. Business Source Complete, EBSCOhost, [16 March 2016]

Pathak, H. (2010) Organisational Change. [S.I.]: Pearson

Semler, R (2007) Out of this world: Doing things the Semco way, Global Business & Organizational Excellence, vol. 26, no. 5, pp. 13-21. Available from: 10.1002/joe.20161. [26 March 2016].

Telegraph (2010) Lloyds Banking Group Appoints Santander UK Head Antonio Horta-Osorio As New Chief [online] available from <http://www.telegraph.co.uk/finance/newsbysector/epic/lloy/8106973/Lloyds-Banking-Group-appoints-Santander-UK-head-Antonio-Horta-Osorio-as-new-chief.html&gt; [17 March 2016]

Picture Source: www.bluesteps.com

 

 

 

 

Blog 3: The Most Effective Leadership & Management Styles & Approaches

Which personal style should managers adopt to ensure success? What is the most effective approach to managing the work of subordinates? These questions have been extensively researched and debated over the last century, and while the general consensus has moved away from ‘command and control’ to management and leadership towards more consultative and participative approaches, there is no single ideal, as the best approach may vary according to circumstances and individual characteristics”

(CMI 2013).

This blog will discuss and address CMI’s point of view above by answering the questions, comparing management and leadership as well as looking into examples from finance industry.

Management VS Leadership

Management and Leadership are distinct concepts, with natural overlap in the skills they require.

Cited by Ratcliffe (2013), Management is a set of process that keeps the organization functioning, through planning, budgeting, staffing, and others.

Drucker, cited by Mullins (2013), divided the job of manager into 5 basic tasks:

  1. Set Objectives – Determine goals for each objective and the action needed to achieve them
  2. Organizes – Analyse activities, decision and create structure
  3. Motivates and Communicates – Create team out of people from various jobs
  4. Measures – Establish targets and performance measurement for team and organisation
  5. Develops People – Direct, encourage and train employees

Leadership, on the other hand, is about aligning people to the vision, engage communication, as well as become motivation and inspiration (Ratcliffe, 2013). This statement is also strengthen by Yukl (2010:26) which stated that Leadership is a process of influencing others to understand and agree the shared objectives.

Zalesnik (1992) summarized the difference between Managers and Leaders in below table:

Table 1. The Differences Between Managers and Leaders

  Managers Leaders
Attitude Toward Goals Impersonal, Passive outlook

Goals derived from necessities

Personal, Active Look

Set company’s direction

Conception of Work Negotiate and Coerce

Compromise, limit choices

Avoid risk

Fresh approach toward problem

Increase option and ideas

Embrace risk with promising opportunities

Relations With Others Minimal emotional involvement, lack of empathy

Focus on process

Directly related to others, emphatically

Focus on substance of events and decision

Sense of Self Perpetuating and strengthening existing institutions

 

Feel part of organisation

Struggle to profoundly alter human and economic relationship

Feel separate from organisation

Source: Zalesnik (1992)

However, in the new economy in which value derived from knowledge of people, management and leadership are not easily separated (wsj.com, 2016). In recent arising financial companies scandal such as banking sector in UK, Enron Scandal in 2001, Worldcom scandal in 2002 and Lehman Brother Scandal in 2008, the need for leadership and management interchangeably and make the company run effectively has increased (Ratcliffe, 2013).

 

Which personal style should managers adopt to ensure success?

The increase in competition has resulted in the distinction of how leaders transform organization. Mullin (2013) suggested two fundamental forms, Transactional Leadership which is based on legitimate authority within organization structure and Transformational Leadership which is based on the ability to empower motivation and commitment among followers and transfer vision, ideas and values. An example of transactional business leader is Lord Alan Sugar who prefers not to intervene his business unless the situation demands and make gradual changes instead of radical one (Michael, 2007). Basuki Tjahja Purnama, former successful businessman and current governor of Jakarta, capital city of Indonesia, is a great example of transformational leader. In his early business career, he became the director of PT Nurindra Ekapersada in Belitong. Through the company, he became the initiator on how the company could contribute to local community, enhance skillful human resources and take care of shareholders. By 2014, he became the first Chinese and Non-Muslim governor in Jakarta. His character, values and persistence in fighting corruption has become inspiration to Jakarta residents, whom formed independent organization, create movement and asked him to run again in future election as governor candidate independently without any political party backings in 2017 (ahok.org, 2016).

Furthermore, Mullins (2013) defined 3 style of managerial leadership toward their subordinate, in which the Authoritarian (or Autocratic) style will have focus of the power in manager, whereas the Democratic Style focus the power in the group as whole. In Laissez-Faire (genuine) style, Manager observe the group performance, makes decision but allow member to have freedom of action. Warren Buffet is an example of successful Laissez-Faire leader in which he gives certain freedom to subsidiaries to operate on their own without supervising and monitoring them and some degrees (berkshirehattaway.com, 2010).

 

What is the most effective approach to managing the work of subordinates?

There are several approach that can be used by manager in dealing with subordinates, which is described by French and Raven as follow:

  1. Legitimate Power

The power based on authority, in which the Leader has influence because of their role or position in organisation

  1. Referent Power

The power based on personal characteristic, reputation and charisma

  1. Coercive Power

The power based on Leader’s ability to execute punishment toward subordinates

  1. Reward Power

The power based on leader’s ability to give reward based on subordinates’ compliance

  1. Expert Power

The power based on Leader’s competencies, knowledge and expertise in certain area

 

French and Raven Organisational and Personal Power

Screen Shot 2016-03-12 at 15.21.59

Source: Adapted by Shafritz et al. 2015

CMI (2013) stated, “There is no single ideal, as the best approach may vary according to circumstances and individual characteristics”.

Based on French and Raven power discussed above, I personally believe that a good leader a leader can exercise each power at the right time and at the right situation to the right people. Based on my previous working experience in Audit firm, I realised how my manager and senior use their power differently toward each subordinates in the same client engagement. A more capable subordinate are given more freedom, whereas the senior will exercise more directive style with coercive power for the less experienced subordinate.

 

Reflection on Self: Led or Being Led?

I am a person that can lead and be lead by others. My personal leadership style would be democratic style, with supportive and participative behaviour. I would like to approach my subordinates with referent power and reward power. However, depend on my subordinates level of motivation, ability and skills, I could become a more Directive and Autocratic Style.

I prefer to be led by a leader with transformational values,  which give inspiration such as John C Bogle, the founder and former CEO of Vanguard Group whom through his value and vision changed Index Mutual Fund industry as well as brought his company to become the largest mutual fund company in the world, with more than $3.4 trillion in global assets. I also prefer leader with Laissez-Faire style, which allow subordinates to grow such as Warren Buffet.

Word Count: 836

Reference: 

Ahok.org. (2016) Siapa Ahok? | Ahok.Org [online] available from <http://ahok.org/tentang-ahok/siapa-ahok/&gt; [12 March 2016]

berkshirehathaway.com. (2010) Berkshire Hathaway Inc. Annual Report 2010 [online]. available from <http://www.berkshirehathaway.com/2010ar/2010ar.pdf&gt; [12 March 2016]

Shafritz, J., Ott, J. and Jang, Y. (2015) Classics Of Organization Theory. 8th edn. Cengage Learning

Michael, A. (2007) Leadership [online]. Topic Gateway Series No 30. available from <http://www.cimaglobal.com/Documents/ImportedDocuments/30_Leadership.pdf&gt; [12 March 2016]

Mullins, L., (2013) Management and Organisational Behaviour, 10th Edn. Harlow: Pearson

Ratcliffe, R. (2013) What’s The Difference Between Leadership And Management? [online] available from <http://www.theguardian.com/careers/difference-between-leadership-management&gt; [9 March 2016]

wsj.com. (2016) What Is The Difference Between Management And Leadership? – Management – WSJ.Com [online] available from <http://guides.wsj.com/management/developing-a-leadership-style/what-is-the-difference-between-management-and-leadership/&gt; [9 March 2016]

Zaleznik, A. (1992) “Managers And Leaders: Are They Different?”. Harvard Business Review [online] available from <http://www.portaldaskalos.net/DasBlog/content/binary/managersandleaders.pdf&gt;