The Essence of Leadership

HASSAN AL BANNA

Defining Leadership
“Leadership is the process of influencing and supporting others to work enthusiastically toward achieving objectives”. - Barnard Keys

HASSAN AL BANNA

Who is a Leader?
“A Leader is a person others opt to follow to a place they would not have gone by themselves”. - Joel Barker

HASSAN AL BANNA

Effective leader
Effective leaders are not born with the gift of knowing how to lead. Rather, they gain experience, they absorb knowledge, they see and listen to the world around them - both inside the organization and beyond. Effective leaders are also capable of assuming the leadership qualities needed for specific situations.

HASSAN AL BANNA

Charismatic leaders
A charismatic leader may seem to be born with a gift to inspire.  Have a clear, fresh, new, and creative vision.  Be completely devoted to their vision.  Make great sacrifices to achieve their vision, taking personal risks Create a sense of urgency among their followers.  Use persuasion rather than forceful commands or democratic appeals to influence their followers.

HASSAN AL BANNA

Transformational

leaders an organization not through the force leaders remold

of their own personality but by appealing to their people, gaining their trust and respect.  Provide a well-defined path to attain the vision.  Act with confidence, optimism, and selfdetermination.  Encourage their people to work as a team rather than as individuals to reach the organization's goals.  Empower people to make good decisions for the benefit of the whole.
HASSAN AL BANNA

Pragmatic leaders
The most apparent characteristic of pragmatic leaders is their focus on the organization rather than on people.  Have a vision that is recognizable as a variation of the status quo.  Listen carefully to their people.  Make realistic decisions for the good of the organization.  Put the right people in the right positions to get the job done.  Delegate responsibilities to people they can trust.

HASSAN AL BANNA

Leaders vs Leaders Managers
Creates a new order Opportunity focused Comfort in ambiguity Opportunity centric Innovative Big picture oriented
HASSAN AL BANNA

Managers Maintains existing order Resource focused Comfort in clarity Constraint centric Adaptive Detail oriented

Leading vs Managing
Which is more important –Creativity or Execution?  The essential difference is the degree to which people initiate, own, anticipate, experiment.  It is the difference between path creation & path dependence.  Greater the complexity of business, higher is the need to blend both the capabilities.

HASSAN AL BANNA

What good leaders do not do  Compete with their own people
Consider that they have a lousy team  Place popularity ahead of effectiveness  Sacrifice the means for the end  Create a future that enables self preservation  Sacrifice the team to prove a point  Say, “I told you so…”  When a new order is ushered, let people say, we did it by ourselves

HASSAN AL BANNA

The Bison Herd Model  The Bird Model

Structural vs Situational Leadership

HASSAN AL BANNA

The Bison Herd Model

Early settlers immobilized bison herds by seeking out and killing the alpha male! Organizations led by leadership base on permanent precedence are vulnerable.
HASSAN AL BANNA

The Bird Model

Migratory birds are a good example of both situational leadership and outstanding followership. As they fly, they keep changing the lead, yet reach their destination.

HASSAN AL BANNA

The Price of Leadership
   

Quite often, it is a lonely trek Anger, disappointment and subversive compliance come with the territory The price is often deeply personal – Gandhi, Moses, Wallace, Christ, Mandela People do not like to see their leaders as human beings. There is a human side, unseen side. We need to accept that fact

Migratory birds are a good example of both situational leadership and outstanding followership. As they fly, they keep changing the lead, yet reach their destination.

HASSAN AL BANNA

Case Details :
Case Code: LDEN036 Period:1995-2005 Organization: Tesco Industry: Retailing Country: UK

HASSAN AL BANNA

TESCO
Jack Cohen founded Tesco in 1919.  Tesco brand first appeared in 1924.  The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex.  Tesco floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited.  The first self service store opened in St Albans in 1951.  The first supermarket in Maldon in 1956.

HASSAN AL BANNA

Abstract:
The case discusses the management style of Terry Leahy under whose visionary leadership Tesco emerged as the largest retail chain in the UK. It discusses how Leahy has changed Tesco's positioning from a store which primarily catered to the low-end customers to a store catering to high-end and value conscious customers.

HASSAN AL BANNA

The case outlines how Leahy transformed Tesco to a customer-centric organization. It also examines the strategies introduced by Leahy like diversifying into high margin non-food and services sectors that helped Tesco become the biggest and most profitable retailer in the UK.

HASSAN AL BANNA

Issues:
» Role played by a leader in changing the fortunes of a company. » Strategies adopted by Terry Leahy to transform Tesco into one of the major players in retail market. » Examine the innovative management practices introduced by successful leaders.

HASSAN AL BANNA

Tesco under Leahy's  Leahy attributed Tesco's Leadership success under his
leadership to four principles. These, principles according to him, were: We have been clear about what we wanted to achieve.  We have listened to what our customers have told us.  We have given responsibility to our managers and staff.  We have kept things simple.

HASSAN AL BANNA

'Steering Wheel' strategy
Leahy named the strategy he wanted to adopt as 'The Tesco Way' which comprised of the company's core purpose, values, principles, goals and the Balanced Scorecard.  Steering Wheel had four quadrants - operations, people, customers and finance.

HASSAN AL BANNA

HASSAN AL BANNA

The Balanced Scorecard system aimed to change organizations from financially driven to mission driven organizations. Through four business perspectives financial performance, internal processes, customer knowledge and learning & growth, the Balanced Scorecard converted strategy into an integrated management system.

Balanced Scorecard system

HASSAN AL BANNA

Bringing price down

HASSAN AL BANNA

Earning Customer Loyalty
Listen carefully to the customers, and try to give them what they want.  Tesco introduced several initiatives like price reduction, improved product availability and well trained staff.  To provide optimal staffing at checkout counters, Tesco introduced automatic labor scheduling.  It also provided customers with a wide variety of information through in-store handouts and on its website www.tesco.com

HASSAN AL BANNA

The Criticism
Though Tesco's financial performance under Leahy had been outstanding, he was criticized on several counts, especially for the company's HR policies. The average wages paid by Tesco were among the lowest in the retailing industry in the UK. The salaries were paid on an hourly basis and the time taken off for tea breaks was not considered while calculating the total working hours. Tesco's staff were not given any sick pay for the first three days they were off.

HASSAN AL BANNA

HASSAN AL BANNA