C

H
A
P
T LEADERSHIP
E
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3
INTRODUCTION: A LEADER

• Decides strategy, wields power, aligns

people and sets examples
• Sees what needs to be done, gets it
done and gets it done in the right way
• Understands the changing requirements
of customers and employees
• Gets people to identify with him
 Mindset

Business
Goal
leadership

LEADERS
AND
MANAGERS
Developing
Work
leaders

Sense of self Relationship

 MINDSET

MANAGER LEADER

Is in complete control
Is primarily a
of himself and is out
problem solver
to control others

Ensures that
employees operate Makes employees
efficiently at different focus on the larger
levels of status and organizational goal
responsibility
 GOALS

MANAGER LEADER

Adopts an
Adopts a personal
impersonal and
and active attitude
passive attitude
towards goals
towards goals

Changes the way

Managerial goals
people think about
deeply embedded in
what is desirable,
company’s history
possible and
and culture
necessary
 WORK

MANAGER LEADER

Develops a structural
solution that appears Develops a fresh
to give everyone approach to a long
something standing problem
substantial

Uses combinations
of people and ideas Creates excitement
to establish in the work that
strategies and make people do
decisions
 RELATIONSHIPS

MANAGER LEADER

Is focused on the
meaning that he
Is focused on how to
wants people to hold
get things done
of events and
decisions

Has the capacity to

Lacks the capacity to
take in emotional
intuitively sense the
signals and make
thoughts and
them meaningful in
feelings of people
a relationship
 SENSE OF SELF

MANAGER LEADER

Is in harmony with his Feels separate from

environment his environment

Seeks out
His sense of self-
opportunities to bring
worth is enhanced by
in change because he
perpetuating existing
does not feel rooted to
institutions
anything
 DEVELOPING LEADERS

MANAGER LEADER

Makes moderate
identifications with parents A sense of being special
and forms moderate and disrupts the bond that
widely distributed attaches children to parents
attachments

Can get out of

Finds harmony between
preoccupation and self-
what he expects from life
observation by forming a
and what he is able to
deep attachment to a person
realize from it
who understands him
 BUSINESS LEADERSHIP

MANAGER LEADER

It is believed that people Senior executive and the

learn best from their potential leader work in
peers a one-to-one relationship

Is a formal and
Peer arrangements recognized difference in
perpetuate the their powers and there is
managerial orientation greater tolerance for
emotional interchange
PSYCHOLOGICAL
PROFILE
OF A The healthy Emotional
leader intelligence
LEADER

Hyperactivity Background

Narcissism Culture

Irrationality
Emotional intelligence

Background
• Knows how to • Male leaders have
single out a person strong, supporting
and declare that he mothers and
is special remote, absent
• Is able to both act fathers
and reflect • Some women
leaders have
powerful,
supportive mothers
but others have
powerful fathers
Culture

Irrationality
• Different national • Leaders are extremely
cultures have different driven people and
expectations of their drives spring
leaders from childhood
• A leadership style that patterns and
would be effective in experiences
one national culture • Leaders try to
might be compensate for the
dysfunctional in blows to their self-
another esteem that were
inflicted by the
parents who were
either too distant or
too indulgent
Narcissism

Hyperactivity
• Leader needs a • When leader
healthy dose of cannot make sense
narcissism of what is
• Cannot get honest happening around
feedback and him, his first
criticism impulse is to get
• Needs followers into action
with a healthy • Aware that some
disrespect for him of his dreams may
just pass by him
The healthy leader
• Does not deny
any particular
emotion
• Able to take
personal
responsibility
• Can play and his
life is in balance
L
E
A
D Inaction can
Should give
sometimes be the
E priority to group
wisest form of
R needs
action
S
H
I
P
Leadership not
No
just about
T communication if
mobilizing those
R receiver does not
below, is also
respond
A appropriately
about marshalling
I the people above
T
S
 Humility

HUMBLE
AND
Making a Professional
leader RESOLUTE will
LEADER

Attributes success to
luck
Humility Professional
will

• Does not talk • Sets high

about himself standards and
• Is eloquent does not
about the tolerate
company and mediocrity
role of other • Imposes his
managers will for the
greatness of
the company
Attributes Making a leader
success to luck

• Refuses to take • With self-

credit for success reflection, a
• Takes total mentor, loving
responsibility for parents, or a
failure significant life
experience,
hidden humility
and fierce
resolve of people
can start
showing
 HOLISTIC THINKING

The human We are not

mind also needs bound to choose
The human
the certainty of between one of
mind can hold
choosing the alternatives
two conflicting
between two and should wait
ideas in
alternatives and for a new
dialectic tension
make an early alternative to
decision emerge
 • The leader actively seeks out less obvious, but potentially
Takes factors relevant factors
into account

• Questions the validity of obvious relationships and

Analyzes
relationship
considers multidirectional and non linear relationships
between factors

• Does not break down a problem into independent

elements, and does not work on them separately and in a
Focuses on
the decision certain sequence

• Creates delays, examines issues more deeply, generates

new options at the eleventh hour, and refuses trade-offs
Takes the
decision and conventional options
 The
person

Destroys CHARISMA The trap

value

The
reality
 The The
There is no
person Has an
trap conclusive
exaggerated sense evidence linking
of self-importance leadership to
organizational
performance

Offers a vision of The factors

radically different affecting
future corporate
performance are
highly complex
and beyond the
power of even the
Uses dialogue to most charismatic
inspire people leader to influence
single handedly.
 The Destroys
reality value
Charisma is more Creates a system
of a social product of authority based
than an individual on the power of an
trait individual

Directors choose Stands in

the bold outsider, oposition to the
ignoring better past and to
candidates in the tradition
process

Outsider CEO has Induces blind

clear mandate to obedience in his
change the followers
organization
 INTERNALLY-DRIVEN AND
OTHER-FOCUSED LEADER

Leader has to move from being comfort-centered to

result-centered
• Just want to keep doing the things we are comfortable with
• Leader has to prepare himself to do things he has not done yet, and
which he may not like to do

Leader has to move from being externally directed to

being internally directed
• Clarifies his core values and increases his integrity, confidence, and
authenticity
• Stops complying with others’ expectations and conforming to the
current culture
Leader becomes less self-focused and more focused on
others

• Puts the needs of the organization above his own

• When he becomes committed to the collective good, others see a
value in associating with him

Leader is more open to outside signals

• Becomes aware of what is unfolding and generates new images

• Reaches within himself to find out real solutions to problems and
initiates activities which he knows are the right ones
 AUTHENTIC LEADER

Knowledge
Perception of self and The origin Conformance
others
 • Ensures that his words are consistent
with his deeds
Perception • Finds common ground with his
employees

• His selection of goals promote self

Knowledge disclosure and educates him about his
various selves
of self and • Empowers trusted colleagues to show
others him the mirror when he starts taking
himself too seriously
 • Uses personal history to establish
common grounds with his employees
The origin • Is not threatened by people with other
origins and welcomes such differences

• Acknowledges organizational values

to illustrate that he belongs to the
place
Conformance • Strikes a balance between his
distinctiveness and the culture in
which he operates
 INTENSE EXPERIENCE
A leader goes through
intense, traumatic,
unplanned experiences that
become the source of their
Can conquer adversity
distinctive leadership
abilities

Can find meaning in Crates a narrative around

negative experience his negative experience
 Prejudice

Shared Intense Isolation

and
skills
experience suppression

Meeting
expectations
• Gets a clear vision • Illuminates a
of who he is, the hidden and
role he plays and suppressed area of
his place in the the soul
world

Isolation and
Prejudice
suppression

Meeting
Shared skills
expectations

• Ability to grasp • They are positive,

context challenging
• Hardiness experiences
 •Revealing
weaknesses
•Sensing
VULNERABLE
signals
AND
•Practicing
EMPATHETIC
tough
LEADER
empathy
•Being
different
Revealing Sensing signals
weaknesses • Reads subtle cues
• Shows leaders’ • Detects
authenticity information that
• Establishes trust is not aimed at
him
Practicing tough Being different
empathy • Signals his
• Gives people what separateness even as
they need, not what he draws people
they want close to him
• Stands up for them • Uses separateness to
but evaluates their motivate others
work rigorously
CONFESSIONS AND APOLOGY

People are
Act of
apologizing
apology
more

Refuse to
Downside
apologize
People are apologizing more

Act of apology
• Strong reason • A good apology
for leader to is timely,
apologize acknowledges
• Publicly the mistakes,
apologizes when accepts
his silence responsibility,
threatens the expresses regret,
relationship and promises
between him and that mistake will
key stakeholders not be repeated
Refusing to apologize

Downside
• Admission of a • Strengthens
transgression can negative
damage the association
company between the
• An apology can company and the
implicate other problem
employees of the • Makes
company stakeholders
suspicious that the
company's
behavior is illegal
or inappropriate
 STRUCTURAL TRUST

A leader needs He needs to He cannot easily

disinterested consult a broad find people who
advise from range of advises can be candid
people committed with him
to his success
 An always Third-opinion
Understanding
trusting external
trust
behavior advises
 An always Third-opinion
Understanding
trusting external
trust
behavior advises

Personal trust is based on Leaders continue to rely

faith in a person’s on advisers who have
integrity Leaders must learn to
outgrown their
test for bias and solicit
objectivity or whose
multiple perspectives
practical knowledge has
become irrelevant
Expertise trust is the
reliance on an advisor’s
competence in a specific
subject area

A leader should
External third opinion
distinguish between
Advises in position of advises reveal the
agenda laden
Structural trust are from weaknesses and blind
perspectives and true
outside the organization spots of the leader
third opinions
to prevent self-interest
and self-serving agendas
 Desire to
contribute

Understanding
Synchronization
people

LEADERSHIP
Tact Leadership rules
TASKS

Development
Perception
goals

Subordinate
 Desire to Understanding
contribute people
• Employee must • Leader knows each
understand his role employee’s unique
and its relation to the needs
group goal • Employees’ unique
• A leader should make needs should be
each employee want served while he is
to do his role performing his job
 Leadership rules Perception

• Leader must seem to • Leader fails because

be in a position to of oversimplified
satisfy people’s goals misperceptions of his
• He must seem to be employees, and his
consistent and clear in inability to recognize
his decisions the context within
which his words and
actions are understood
 Subordinate Development goals

• Leader maintains a • Leader watches the

psychological long term growth of
distance that permits his subordinates
subordinates to accept • Subordinates believe
his authority that he is most
• The subordinate has interested and helpful
an area within which in their development
he is free to operate
 Tact Synchronization

• Leaders’ interest in • Employees

his subordinates individually achieve a
should be impersonal sense of
and unsentimental accomplishment
• He criticizes them • Employees believe
without making them that they could not
feel that they are have achieved their
being personally goals without the
demeaned leader
 Coercive Democratic

Authoritative
Pace-
setting

Affiliative Coaching
COERCIVE

AUTHORITATIVE
• Creates a reign • Standards for
of terror, success and
bullying and rewards are
demeaning his clear to all
subordinates • Gives people
• Expects his the freedom to
employees to innovate, and
follow his take calculated
diktats risks
AFFILIATIVE

DEMOCRATIC
• Values people • Lets people have
and their a say in
emotions more decisions that
than tasks and affect their goals
goals and how they do
• Provides their work
positive • Keeps morale
feedback for high by listening
work well done to employees’
concerns
PACE-SETTING
SETTING

COACHING
• Sets extremely • Helps employees
high standards identify their
• Identifies poor unique strengths
performers and and weaknesses
demands and ties them to
improvement their personal and
career goals
• Delegates
extensively and
gives challenging
assignments
 FIRST STAGE
To lead seems mysterious and
New leader recruits a mentor
frightening

SECOND STAGE
Intense attention paid to his first His most talented and seasoned
words and deeds employees help him carry out tasks

THIRD STAGE
Is thwarted by an unconscious Finds out who he should listen to and
conspiracy to preserve status quo who he should trust
 FOURTH STAGE
Employees are listening and watching Has to nurture the employees who
and he cannot be casual in words and
actions are smarter than him

FIFTH STAGE
Is unwilling to hear unpleasant truths Starts believing that his way is the
and stifles differences of opinion only possible way

SIXTH STAGE
Is not distracted by his ambitions and Keen to pass on his wisdom in the
is able to focus on task at hand interest of the company
 SEVENTH STAGE

Develops next generation of

Mentors young executives
leaders
LEADERSHIP IN A PROFESSIONAL
ORGANIZATION

The
The work of
professional
a leader
organization

Culture
 Culture
The professional organization

The work of a leader

• The • Much of the • Professional
profession culture is workers do
itself provides already built not require
structure and in the system direction and
coordination • The leader supervision
• Standard defines the • The leader has
operating uniqueness of to manage the
routines his boundary
apply, and organization conditions of
experts work and its spirit the
on their own in comparison organization
with other • Leader has to
organizations play two roles
– external
linking and
internal
leading
 THE INTIMIDATOR

• Politically • Confrontation • Unflappable attitude

intelligent leader • Anger • Long hours of work
• Socially intelligent • Keeps people • Displaying
leader guessing toughness
• Know-it-all attitude • Keeping perspective

Political Intimidating Working for

intelligence tactics an intimidator
 Political intelligence

Uses intimidation and

hard power
Politically intelligent
leader
Exploits people's
anxieties and
Political intelligence insecurities

Uses interpersonal
Socially intelligent skills such as empathy
leader and ability to
influence others
 Intimidating tactics
• Planned and • Calculated loss of
rehearsed temper
• Throw victims off • Does not want
balance reputation of nice
person

Confrontation Anger

Know-it-all Keeps people

attitude guessing

• Gives impression • Keeps deliberate

that he is thorough distance
with his facts even • Silent demeanor
though may not
actually be
 Working for an intimidator
• Places • Subordinate will
unreasonable get his attention
demands if he matches his
energy and drive

Unflappable Long hours

attitude of work

Keeping Displaying
perspective toughness

• Will try to keep • Looks for people

subordinates on whose
the edge determination
matches his own
LEADERSHIP IN CRISIS

Helping to
live
Compassion
 Helping to
Compassion
Creates an live
Stays close to
environment in
emerging needs of
which people can
victims’ families
freely discuss the
and his employees
way they feel

Has to balance his

Leader is present,
responsibilities to
physically and
people and to
emotionally
business
LEADERSHIP’S COMMUNICATION AGENDA

Reorganization

Corporate
Results
culture

Time Enabling
constraints answers
 • Lays out the master plan
Reorganization • Makes decisions quickly

• Uses results as diagnostic and learning

Results tool
• Asks rigorous questions of managers

• Seeks contributions, challenges and

Enabling collaboration
answers • Listens to everyone’s ideas before
offering his own
 • Time must be strategically utilized
rather than squeezed for all its
Time worth
constraints • Leader shifts his choices within
time constraint

• Leader defines success and

communicates his expectations
Corporate
• Focuses on the right goals and
culture creates the experience of winning in
the marketplace
 Types of
leaders

Government
Role of labor
regulation

CONTEXTUAL
SENSITIVITY

Technology Global events

Social mores Demographics

 Government regulation
Types of leaders

• Entrepreneurs are • Determines the

skilled at sensing degree of
opportunities autonomy that
• Managers can executives have in
expand the scale running the
and scope of an business and the
existing business level of resources it
• Leaders can needs to cope with
confront change government
and identify latent regulations
potential in
businesses
Global events

Demographics
• Companies in • Opportunities to
closed economies add new product
are happy in lines
comfort of • Employees are
isolation forgoing early
• Other companies retirement to
look for pursue a second
opportunities to career
expand their
business overseas
Social mores

Role of labor
Technology
• Business • Leaders • Leaders
opportunities should build
emerge to always be companies
fulfill new keen to that have
needs and explore if a huge impact
desires when new on the way
social mores technology people live
become more can improve but they are
liberal the way his much less
company concerned
operates about the
way the
employees
work and
live
FINDING A LEADER
 Team
player

Similarity
and Coaching
familiarity

Common
mistakes

Operational
Ambition
proficiency

Public
speaking
 Leaders feel little
Team player need to work in a
group

Leaders select
strong people and
Coaching delegate fully to
them

Proficient
Operational executives rely too
heavily on systems,
proficiency policies and
procedures
 Leaders should have the
Public ability to engage, convince
and inspire people in large
speaking groups and individuals

A high degree of humility

Ambition is more evident among
leaders than raw ambition

Similarity Managers favor those with

backgrounds and
and experiences similar to their
familiarity own
 Candidate’s
integrity

How he
How he runs Getting communicates
information
his work team
it right and
expectations

How he
reasons and
analyzes
issues
 How he
Candidate’s communicates
integrity information and
expectations

Does he tailor his

Does he give
messages to the
credit to others
needs of his
when appropriate
audience

Does he command
Does he stand firm the respect and
in his opinion attention of senior
managers
 How he reasons How he runs his
and analyzes issues work team

How well and how

Is he threatened by
quickly can he
people who are more
assemble and integrate
experienced, smarter
a diversity of
or technically better
information

Does he surround
Does he procrastinate himself with people
when confronted with who will tell him what
an ambiguous he needs to know,
situation instead of what he
wants to hear
 Industry Relationship
human human
capital capital

Company-
Strategic
specific
human
human
capital
capital
TRANSFERRABLE
LEADERSHIP
SKILLS
Strategic human capital

Industry human capital

• Strategic skills • Relevant
required to industry
manage cost experience has
are different positive impact
from those on performance
required to but they are not
increase transferrable to
revenue a different
industry
Relationship human capital

Company-specific
human capital
• Executives • Executives
perform better perform better
when they when they
bring in a team build or

Company
of three or takeover a
more management
colleagues to system that
the new they are
company comfortable
with
LEADERSHIP DEVELOPMENT PROGRAM

Workaholic Reluctant
leader leader

Unknown Arrogant
leader leader
Reluctant leader Arrogant leader

• Needs help to • Needs hands-

change his on practice in
assumptions empathetic
about his listening and
abilities teamwork
• Needs • Needs harsh
training in feedback and
decision even threats
making and of dismissal
conflict
management
Unknown leader Workaholic leader

• Requires a • Employees
360-degree respond to
feedback well-rounded
• Is made to managers with
believe that outside
networking is interests
useful because such
• Is forced to managers
meet new respect the
people employees’
personal lives
 LEADERS-IN-WAITING

Real life exposure to a variety

of jobs and bosses

Lateral moves across functions

and business units

Company identifies positions

that require extensive general
management capabilities
Company identifies employees
who show the potential to occupy
these positions

Company provides subtle hints to

employees on the fast track that
they are ahead of others

Company ensures that high

potential employees have enough
positions that they can occupy
 Transference
in action

Using Paternal
transference transference

Sibling Maternal
transference transference
 • Followers transfer experiences and
emotions from past relationships on to the
Transference present
in action • Employees in the grip of positive
transference see their leader in a better light
than how he really is

• The employee experiences unconditional

love for the leader as a wise, understanding
Paternal and productive father
• The ideal paternal boss is the father figure
transference who provides small doses of
encouragement, approval, or constructive
criticism
 • Women leaders stir up extreme reactions
Maternal of hate and love
• Generate greater expectations of empathy
transference and tenderness from the boss than what
can be realistically met

• Employees who are brought up in non-

traditional families feel comfortable in
Sibling horizontal organizations like cross
functional project teams
transference • Employees are becoming critical of their
bosses due to rise in sibling transference
 • Boss takes lot of trouble to make sure
that all his employees know him well
Using • Makes them understand that their
transference rewards depend on their own
performance, not on their relationship
with him
F
O Good
Isolate
follower
L
L
O Die-hard By-stander

W
E
Activist Participant
R
S
Isolate By-stander

Does his jobs Deliberately stands

marginally well and aside and disengages
with zero himself from his
enthusiasm surroundings

Is important to Intrinsic and

understand the extrinsic rewards
reasons for his may increase his
alienation level of engagement
Participant Activist

Feels strongly one

Driven by his own
way or another about
passion
his leader

Some leaders
A leader needs to pay
encourage their
close attention to
activist followers to
whether he is for or
take matters into their
against him
own hands
 Good
Die-hard
followers

Actively support an
Is deeply devoted to effective and ethical
his leader, or dead leader, and actively
against him oppose an ineffective
and unethical one

Is willing to risk his

Bad followers do
own health and
nothing to contribute
welfare in service of
to the organization
his cause
 The
Invisible
majority
power
view

Flattery
MAJORITY VIEW

Leader depends on others’ advise

because most decisions are urgent,
complex and ambiguous

He endorses the majority view

because he worries about
undermining his employees’
commitment

Should insist that a subordinate

consider all aspects of an issue
before arriving at a decision
FLATTERY

Leader who already thinks

highly of himself is most likely
to be charmed by flattery

Leader who allows subordinates

to flatter him is insulated from
bad news that he needs to know

Should assess if he is sidelining

subordinates whose views differ
from his own
INVISIBLE POWER

Leader relies on his subordinates

for full, accurate, and unbiased
input to the decisions that he
makes

Competent but unscrupulous

subordinates find ways of pushing
their leader in unethical directions

Manipulative subordinates create

a false sense of urgency to rush
the leader into uninformed
decisions