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Reflective Note on Contemporary Issues in Business and Management

W. M. Eranga Rukmal (FMF/DBA/2022/11)

Faculty of Management & Finance, University of Colombo

DBA 7205: Workshop I

Professor Tharusha Gooneratne

April 2, 2023
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Reflective Note on Contemporary Issues in Business and Management

This assignment pertains to describing, analyzing, and reflecting on the four presentations carried

out by a distinguished lecture panel who shared their knowledge with the DBA 2022 group as per the

needs of the Workshop I module in the program. Sections are arranged in the order of the presentation

and follow a similar format in content. My perception about the broader topic, exciting and challenging

facts I gathered, learnings and their impact on my thinking, and possible learning applications are

discussed as sub-sections. Further, critical scholarly references related to the topic are included in my

overall view.

Strategic Role of Senior Leadership in Managing a Business Organization in a Crisis Situation

The Darwinian theory explains a three-step biological evolution process. Variation, selection, and

retention steps are incremental, slow, and steady processes, and less adaptive forms of creatures to the

process would diminish over time. But, when a drastic change occurs in the environment, survival will be

decided based on the characteristics to exploit the new environment. Organizational ecologists show

parallels between organizations and creatures regarding incremental adaptation with punctuated

discontinuities. Organizations with adaptive strategies would win while others lose. Moreover,

organizational leadership should align strategy, structure, people, and culture to adapt to drastic

discontinuities rather than incremental changes, which is insufficient to succeed. Innovation,

differentiation, and cost leadership should facilitate organizational evolution in S-Curve to adapt to the

environment. Product innovation followed by process innovation cycles pushes the industry towards

technology-driven development with long-term success. Organizations obtain structural and cultural

inertia when they become larger and older. Inertia hinders adaptability in discontinuities. Organizational

leaders must be equipped with two prominent strategic roles to face crises and drive their organizations

to long-term objectives. First, leaders should align strategy, people, structure, and culture with self-

resilience and strategic adaptability. Second, at the same time, leaders should challenge structural and
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cultural inertia in responding to drastic changes. Disruptive thinking is a core skill that leaders must

cultivate to face these sorts of paradoxical challenges.

I believe leadership is vital in managing organizational evolution and revolution. Biological

evolution provides a metaphorical background to understand organizational challenges and suitable

management methodologies to sustain long-term business growth. Seeing an organization's innovation,

differentiation, and cost leadership phases moving on the S-curve evolution is pretty interesting. Different

organizational configurations in leadership, strategy, people, and culture must be enabled to sustain

through the S-curve. However, it is challenging to have flexible organizational structures in practice due

to various factors related to short-term profit motives, cost management strategies, cultural barriers, and

business models. I did not experience an organization that failed due to inertia. Still, I have seen how

departments of an organization were dismantled due to the problems related to cultural inertia. Product

innovation followed by a series of process innovations was experienced in my previous mobile

telecommunication product development organization. New technological capabilities allow product

managers to add new features to their existing products and create new products from scratch. I was

under the impression that an organization should continuously focus on innovations regardless of the

organization's life cycle stage. Still, this lecture allowed me to think that the evolution of the organization

impacts the strategic intent of the organization. I believe that the disruptive thinking of leaders enables

organizations to face crises and embark on new opportunities, and this presentation double-confirmed it.

As a senior manager of a software services company in Sri Lanka, I can apply knowledge of S-curve and

technology cycles to understand our current business status and create and execute strategies to make a

sustainable competitive advantage. Further, I would build skills related to disruptive thinking to manage

crises balancing 360-degree fits of the organizational modules while embracing the required changes to

those components to face drastic discontinuities.

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Rapid and discontinuous change over most or all domains of organizational activity and

environmental changes, and CEO succession are vital drivers of revolutionary organizational

transformation (Romanelli & Tushman, 1994). Discontinuous changes create dilemmas for managers and

scholars because of the nature of breaking frames in which they have been operating and taken for

granted (Meyer et al., 1990). In this case, managers and leaders depict similar qualities of entrepreneurs

reinventing their organization systems and environments. Discontinuous organizational change,

responding to regulatory, economic, competitive, and technological shifts beyond the efficiency of the

same organization systems and processes, should be initiated and implemented rapidly to survive.

Executive leadership is a critical factor in the organizational change program (Nadler & Tushman, 1990).

In my opinion, organizations must be able to simultaneously pursue incremental improvements to their

current operations and engage in more radical, transformative changes to stay competitive. Such

organizations must create structures and processes for their exploratory and exploitative activities. Also,

it could be noted that the need for strong leadership, a clear strategic vision, and a willingness to take

calculated risks are critical challenges in achieving incremental and rapid change.

Family Business Succession

Dr. D. K. Rajapaksha, the emeritus managing director of DSI Samson Group, covered a wealth of

information regarding family businesses in his presentation. Europe has a strong tradition of family

businesses than Sri Lanka, and it could be noted that the death of founders and generational transition

and sustainability were key challenges. Lower agency costs with efficient decision-making family value-

based flat organizations are vital positive features of family businesses. However, lack of professionalism

and governance, potential family conflicts, and limited capital are also some negatives. Founders or older

generation to new generation business transition process has complicated aspects because of the

informal procedures and less governance. Founders must ensure that business-related issues or risks are

managed correctly in the transition to minimize risk shock for successors of the same family. Further, in
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case of a death of a family member without a proper transition would put a lot of pressure and

dependency on the business and successors in business continuation. In addition, previous generations

must ensure that the next generations involved with the business are appropriately groomed to the

culture, strategy, governance, and leadership. DSI Samson group of companies managed to properly uplift

the next generation to roles and responsibilities required to drive the company vision forward. Dr.

Rajapaksha shared seven cardinal rules which govern his family business and helped him and his family to

succeed in the Sri Lankan business landscape to greater heights. Rules are composed of things related to

income for family members, their ability to involve in other businesses, in-law policy, political views,

personal funding requirements, and operational matters such as meetings. Family member disagreements

affect the company, including recruitment, senior loyal staff governance, financial management, etc.

In my experience, family business governance includes setting up appropriate decision-making

structures and mechanisms, defining roles and responsibilities, and establishing clear policies and

procedures for the family and the business. DSI group cardinal rules depicted the practice of such

governance in a piece of exemplary evidence. According to the DSI group-related information shared in

the presentation, my view about succession planning confirmed that it involves identifying and preparing

future leaders for the business and developing a plan for transitioning ownership and control to the next

generation. Even though the presentation did not cover it, from my point of view, effective

communication is essential for managing a family business. Communication includes developing open and

honest communication channels among family members and clear and effective communication with

employees, customers, suppliers, and other stakeholders. I think financial management of family

businesses involves managing the business's finances, including budgeting, forecasting, financial

reporting, and cash flow. Unlike non-family businesses, in my experience, financial management and

control of a family business usually hold solely by the family members, which has mixed implications for

the business's success. Moreover, developing and implementing a strategic plan is essential for a family
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business's long-term success. Strategic planning involves identifying key opportunities and challenges,

setting goals and objectives, and developing strategies to achieve them. Family businesses have

lightweight human resources policies, which affect recruiting, hiring, training, and retaining employees,

developing policies and procedures for employee performance, and ensuring compliance with labor laws

and regulations. In my experience, most of the family businesses' unique HR methodologies stemmed

from founders. I have limited knowledge and involvement in family businesses. Still, I see conflict as typical

in family businesses, and effective conflict resolution is critical for maintaining family harmony and

ensuring the business's success. Continuity planning involves developing plans for managing risks and

responding to emergencies or unexpected events that could impact the business. Still, family businesses

hardly focus on these matters unless the business size is large. Further, family businesses must continually

innovate and adapt to changing market conditions, customer needs, and technological advancements to

remain competitive and thrive long-term. DSI has considered business model innovation, diversification,

and product and process innovation at a considerable level to become a giant in their industry categories.

Challenges of running family businesses mostly emerge from interrelationships between business

concerns and family concerns (Pounder, 2015). However, leadership and organizational culture open for

continuous change can make any family business thrive. Dr. Rajapaksha's presentation clearly showed

that these findings are accurate empirically. Mazzi (2011) suggests that family managers must be careful

to keep the balance between family-business synergy to capitalize on strengths and avoid damages of

weaknesses. Unique family resources and competencies can create sustainable competitive advantage by

mitigating agency problems and stewardship behavior, ultimately creating economic and noneconomic

benefits for the family and the business. I believe Sri Lankan family businesses can learn from

organizations similar to the DSI Samson group regarding operational and strategic behaviors, which could

lead to sustainable competitive advantage.

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In Search of (Transformational) Leadership

Professor Nalin Abeysekara covered an important and timely topic in his presentation concerning

the current macroeconomic conditions in Sri Lanka. Firstly he explained the difference between a Ph.D.

program and a DBA program to provide insight to students to focus on the program. Management is a

process that consists of planning, organizing, leading, and controlling to get something done efficiently

and effectively with the support of other people. Managers have to play different roles based on the

context, level, and time in the management process, defined by Mintzberg as interpersonal,

informational, and decisional categories (Partridge & Mintzberg, 1974). Top managers spend more time

organizing, planning, and leading, while first-level managers usually lead their followers (MAHONEY et al.,

1965). In the early stages, leadership was defined based on identified leaders' traits and styles. But,

eventually, scholars and practitioners considered reciprocal influence processes between leaders and

followers to explain organizational leadership impacts better. Leader-member-exchange theory explains

transactional leadership but could also be used to describe transformational leadership. To succeed as a

leader, the person must have strategic thinking and acting skills derived from transformational leadership.

Transactional leadership is a passive engagement with followers where management-by-exception

becomes the norm and goal attainment-based rewards drive the leadership process. However, with

considerations related to followers (e.g., motivation), transformational leadership became popular, and

trust, admiration, and loyalty towards the leader became transformational leadership factors.

Organizations started to see the benefits of transformational leadership more than other types of

leadership because it motivates followers to deliver more than initially expected. The following leadership

level is spiritual leadership, characterized by inspirational, visionary, and capabilities of transcending pre-

existing limitations. Transformational leadership has four main components: idealized

influence/charisma, inspirational motivation, intellectual stimulation, and individualized consideration

(Bass & Avolio, 1990).

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Further descriptions are provided about the relationship between transformational leadership

and relationship marketing. Relationship marketing is defined as using trust and commitment, where the

former is an antecedent of the latter. Similarly, transformational leadership is also related to follower

trust and commitment. Prof. Nalin used social exchange theoretical lenses to understand relationship

marketing and transformational leadership. He extended his investigation using cause and effect

relationships in Buddhist teachings to social exchange, relationship marketing, and transformational

leadership.

Based on my experience as a manager for the last decade, transformational leadership is a

leadership style that inspires and motivates followers to achieve their full potential and surpass their

personal goals. I have seen that this leadership style is based on the leader's ability to create a compelling

vision and communicate it effectively to their followers while providing individualized support and

encouragement. If I take a few global-level leaders, the late Steve Jobs is a prime example of a

transformational leader. His visionary leadership and relentless pursuit of excellence inspired his team at

Apple to create innovative products that have revolutionized the tech industry. Elon Musk is a

transformational leader changing the world through creative ideas and products. His vision for sustainable

energy and space exploration has inspired a generation of engineers and entrepreneurs to pursue their

dreams and tackle some of the world's biggest challenges. In my opinion, transformational leaders are not

limited to businesses only.

Martin Luther King Jr. is known for his inspiring leadership during the Civil Rights Movement. His

speeches and actions galvanized people nationwide to fight for justice and equality, and his legacy

continues to inspire people today. I have discussed in this paper just a few examples of transformational

leaders who have inspired and motivated others to achieve greatness. I think the key to transformational

leadership is to create a compelling vision, communicate it effectively, and provide individualized support

and encouragement to help followers achieve their full potential. Per my understanding, relationship
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marketing is a strategy that focuses on building long-term relationships with customers and other

stakeholders. It involves understanding the needs and preferences of customers and tailoring marketing

efforts to create personalized experiences that foster customer loyalty. I understand that relationship

marketing and transformational leadership can create a powerful synergy that helps organizations achieve

their goals when applied together. Customer focus, empowerment, and innovation are some ways in

which they can work together. Based on the discussion in the lecture, I understood that social exchange

theory is a theoretical framework that explains the exchange of benefits and costs in social relationships.

According to this theory, individuals engage in social relationships based on the perceived benefits and

costs of that relationship. When applied to relationship marketing and transformational leadership, social

exchange theory suggests that customers are more likely to engage in long-term relationships with

organizations that offer them benefits, such as personalized experiences and excellent customer service,

and minimize business costs.

Corporate Branding and Corporate Sustainability: It's Linkages and Importance in a Competitive

Environment

Dr. Rohan Fernando explained the importance of corporate branding and sustainability regarding

global impacts and initiatives. Corporate branding is vital to create differentiation and sustainable

competitive advantage. If an organization fails to manage the corporate brand appropriately, it could fail

in the long term. Further, great corporate brands could attract investments and experience less friction in

entering new markets. A well-managed corporate brand could perform better than its competitors in

talent acquisition and retention. But, many times, brands fail to sustain their recognition, trust, and loyalty

in the long term due to bad practices.

On the other hand, the corporate sustainability strategy of an organization focuses on multiple

key areas. Best practices in corporate governance promote the environment and society with people,

profit, and planet focus using a sustainable business model. Importantly, there is a demand from
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customers and consumers for products and services from sustainable businesses. Adverse outcomes could

occur if a particular organization ignores the importance of branding and sustainability. They could get

prone to acquisitions and mergers, negative brand image with less awareness and association, diminishing

market share and declining share price and internal and external stakeholders could lose confidence in

the organization. Hence it is vital to get branding and sustainability as critical strategic pillars of the

organization. Consumers, employees, shareholders, competitors, media, NGOs, and activists are crucial

stakeholders impacted by branding and sustainability. Dr. Rohan explained leveraging branding and

sustainability using a KPI-driven action plan. Firstly, stakeholder perceptions about the brand and

sustainability are evaluated and quantified. Secondly, specific action plans for each stakeholder segment

should be operationalized by identifying crucial and effective communication channels. (e.g., social and

mass media for consumers and internal channels for employees). Brands have their challenges in being

consistent and relevant. Understanding the brand life, purpose and values, brand strategy, and culture

(especially in recruitment) are some approaches to facing the challenge. This kind of approach is called an

integrated strategy for branding and sustainability.

In my experience, corporate branding and sustainability are two crucial concepts closely related

to today's business environment. As I understood in the session, corporate branding refers to creating a

unique image and reputation for a company that sets it apart from its competitors. This can involve various

activities such as designing logos, developing marketing campaigns, and establishing a brand identity that

resonates with consumers. On the other hand, sustainability refers to operating a business in a way that

minimizes its negative impact on the environment and society while promoting economic growth and

social well-being. In terms of my experience with Sri Lankan organizations, this can involve a range of

activities such as reducing greenhouse gas emissions, conserving natural resources, promoting ethical

labor practices, and investing in local communities. However, I understood that the relationship between

corporate branding and sustainability is complex.

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On the one hand, companies that prioritize sustainability can use it as a critical component of their

brand identity and leverage it to attract environmentally and socially conscious consumers. This can help

companies differentiate themselves from their competitors and build a loyal customer base that values

sustainability. But also, I think that companies may use sustainability as a form of "greenwashing," where

they promote their sustainability efforts to the public without making substantive changes to their

business practices. From my point of view, in these cases, sustainability becomes more of a marketing

tool than a genuine commitment to environmental and social responsibility. Overall, I think the

relationship between corporate branding and sustainability is essential for companies to consider as they

develop their business strategies. By prioritizing sustainability as a core value and integrating it into their

branding efforts, companies can create a positive image that resonates with consumers and make a

meaningful contribution to society's and the planet's well-being.

Kumar and Christodoulopoulou (2014) suggest that organizations can use their brands to

promote sustainability to their customers and other stakeholders. This can be achieved by branding

activities that emphasize the organization's sustainability practices and their impact on stakeholders.

Consumers question an organization's products, production process, and linkage to sustainability

challenges humankind faces. Thus, embedding sustainability into brand knowledge and value to

differentiate the brand in a competitive market is viable (Gupta et al., 2013). I believe sustainability-based

branding creates business differentiation opportunities and better prospects for the environment and

social ecosystems.

Conclusion

In this paper, a few contemporary topics in business and management are discussed. First,

evolutionary and revolutionary organizational changes facilitated by disruptive thinking leaders were

discussed with practical examples. Next, challenges and best practices related to modern family

businesses were discussed, referring to the DSI Samson group as a case study. Next, transformational
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leadership, relationship marketing, and social exchange theory were discussed in an integrated approach.

Finally, corporate branding and social responsibility relationship and implications towards the competitive

advantage were discussed. In summary, I understood exciting and challenging areas of the

abovementioned contemporary business topics and broadened my knowledge by analyzing and reflecting

on the content with my own experience.

References

Bass, B. M., & Avolio, B. J. (1990). Developing Transformational Leadership: 1992 and Beyond. Journal of

European Industrial Training, 14(5). https://doi.org/10.1108/03090599010135122

Gupta, S., Czinkota, M., & Melewar, T. C. (2013). Embedding knowledge and value of a brand into

sustainability for differentiation. Journal of World Business, 48(3), 287–296.

https://doi.org/https://doi.org/10.1016/j.jwb.2012.07.013

Kumar, V., & Christodoulopoulou, A. (2014). Sustainability and branding: An integrated perspective.

Industrial Marketing Management, 43(1), 6–15.

https://doi.org/https://doi.org/10.1016/j.indmarman.2013.06.008

MAHONEY, T. A., JERDEE, T. H., & CARROLL, S. J. (1965). The Job(s) of management. Industrial Relations,

4(2). https://doi.org/10.1111/j.1468-232x.1965.tb00922.x

Mazzi, C. (2011). Family business and financial performance: Current state of knowledge and future

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https://doi.org/https://doi.org/10.1016/j.jfbs.2011.07.001

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http://www.jstor.org/stable/2486672

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Change. California Management Review, 32(2), 77–97. https://doi.org/10.2307/41166606

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Partridge, B. E., & Mintzberg, H. (1974). The Nature of Managerial Work. Operational Research Quarterly

(1970-1977), 25(3). https://doi.org/10.2307/3007945

Pounder, P. (2015). Family business insights: an overview of the literature. Journal of Family Business

Management, 5(1), 116–127. https://doi.org/10.1108/JFBM-10-2014-0023

Romanelli, E., & Tushman, M. L. (1994). Organizational Transformation as Punctuated Equilibrium: An

Empirical Test. The Academy of Management Journal, 37(5), 1141–1166.

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