grp 1 level 5 leadership

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    Level 5 Leadership

    The Triumph of Humility and FierceResolve

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    The Future of Work

    Characteristic 20th Century Org 21st Century Org

    Focus Internal External

    Style Structured Flexible

    Source of Strength Stability Change

    Structure Self-Sufficiency Interdependencies

    Resources Physical assets Information

    Operations Vertical integration Virtual integration

    Products Mass production Mass customisation

    Reach Domestic Global

    Financials Quarterly Real-timeInventories Months Hours

    Workers Employees Employees and freeagents

    Leadership Dogmatic Inspirational

    Motivation To compete To build

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    James M. Kouzes & Barry Z. Posner.

    1993. Credibility: How leaders gain

    and lose it, why people demand it.

    San Francisco: Jossey-Bass.

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    Ambitious

    Establishes Strong Relationships

    Consistently High Performance

    Team Building and Leadership Skills

    Intelligence

    Willingness to Take Risks

    Able toAdapt Problem-Solver

    *Centre for Creative Leadership

    What Defines Success in an Executive?*What Defines Success in an Executive?*

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    Problems with Interpersonal Relationships

    Failure to meet Business Objectives

    Inability to Build and Lead a Team

    What DefinesFailure in an Executive?*What DefinesFailure in an Executive?*

    *Centre for Creative Leadership

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    Comparison Companies

    Copyright Jim Collins, All Rights Reserved

    Comparison Companies Gallup50

    Copyright Jim Collins, All Rights Reserved

    What does the Research Say?What does the Research Say?

    Good to Great Companies

    1

    2

    3

    4

    6

    7

    8

    T-1

    Transition Point T+1

    Ratio of Cumulative Stock Returns

    to General Market

    Good toGreat

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    Built to Last Companies

    Ratio of Cumulative Stock Returns

    to General Market

    Builtto Last

    S& 500 (less Gallup50)

    Gallup50 vs S& 500

    Avg. Closing Stock rice

    ( 9 = 00)

    Gallup50

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    Good...to Great: Key Drivers

    Hedgehog Concept:

    Simple but

    comprehensive

    understanding

    Culture of

    Discipline:

    Disciplined

    people, thoughts

    and action

    Flywheel:

    Continuous buildup

    Brutal Facts +

    Absolute Faith:

    All the time

    Technology

    Accelerator

    People first,

    Strategy second

    Level 5 leadership

    Good to Great

    companies

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    The Hierarchy

    Level 5:

    Executive

    Level :

    Effective Leader

    Stimulates group,Catalyzes commitment

    Level : Competent manager

    Organizes people and

    resources towards the

    effective pursuit of objectives

    Level : Contributing team memberContributes to the achievement of group

    Objectives. Works effectively in a group setting

    Level : Highly capable individual

    Makes productive contributions through talent,

    knowledge, skills and good work habits

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    Level 5 Leadership

    Myth: Egocentric, larger than life,charismatic leadersmake a companygreat

    Reality: Level 5 leadership = Genuine Personal humility

    + Intense professional will

    Full fledged Level 5: Capabilitiesofall lower levels +Own special characteristics

    Are a study in duality: They are modest and willful,shyand fearless. They act with quiet,calm anddetermination.

    Rely principallyon inspired standards, not inspiringcharisma, to motivate.

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    Level 5 Leadership cont.

    Routinelyselected superb (often Level 5)successors: Left a company that would be greatwithout them

    Can level 5 be developed ? ..............

    A necessary but notsufficientcondition for a good

    togreat transformation

    Few Examples: Darwin Smith, CEO Kimberly ClarkColman Mockler, CEO Gillette

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    Level 5 Leadership cont.

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    Ad

    ifferent Perspective

    Relating LevelsofLeadership

    ToOrganizational Structure

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    Transformational Leadership

    Organizational Structure

    Level one, anunempowered

    environment,positions the leaderabove andseparate from the

    workgroup.

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    Transformational Leadership

    Organizational Structure

    At level two The leader movesfrom

    above the workers to

    the center of the unit,but a clear distinctionstill exists betweenwhat the leader doesand what people in theworkunit do.

    The leader iscentral tomostcommunicationwithin the group andchannelscommunication fromupper management tothe group.

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    Transformational Leadership

    Organizational Structure

    At level three, The leader begins toshift

    decision-making authorityforbasic tasks to membersof thegroup or the workgroup as a

    whole. Some members might begin to

    take on responsibilitiesbelonging traditionally to theleader.

    The leader also encouragescommunication,cooperation,

    and teamwork amonggroupmembers whenever possible.

    However. the leader still iscentral to the group, especiallyas the initiator of the transitionto empowerment.

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    Transformational Leadership

    Organizational Structure

    At level 4 No longer central to decision

    making, the leader becomes apartner togroup members in levelfour.

    The links between group membersmight become even stronger.

    They might depend on eachotheras much ason the leader forinformation,help on decisions,and support.

    Their scope ofempowermenthaswidened.

    Notonly dogroup membersmake decisions abouthow they dotheir jobs, but they also assumemanyof the responsibilities anddecisionsformerlyheld by theleader.

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    Transformational Leadership

    Organizational Structure

    At level five,

    Group members are self-directed.. The leader's

    primary role is tocoach,counsel, and support them.

    Group members takeresponsibilityfor and makedecisions about tasks andjobs, including most

    responsibilities thathad beentheir leader's.

    The leader still providesdirection and acts as aresource,often tacklingissuesoutside the group.

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    First Who.Then What

    This means:

    Level 5+

    Management Team

    (Good to GreatCompanies)

    AGenius with a

    Thousand Helpers

    (ComparisonCompanies)

    Level 5 Leader Level 4 Leader

    First Who

    Get the right peopleon the bus. Build asuperior executive

    team.

    First What

    Set a vision forwhere to drive the

    bus. Develop a road

    map for driving thebus.

    Then What

    Once you have theright people in place,figure out the bestpath to greatness

    Then Who

    Enlist a crew ofhighly capable

    helpers to makethe vision happen

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    The Hedgehog Concept

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    The Hedgehog Concept

    It issimple

    Know the one bigthing and stick to it

    It is an understanding,not a strategy

    Getting a HedgehogConcept is an iterativeprocess

    It took an average offour yearsfor the G2Gcompanies toget aHedgehog Concept

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    What are your three circles?

    What are you thebest in the world

    at? What drivesyour

    economic engine?

    What are youdeeply passionateabout?

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    The Hedgehog Concept

    A Hedge Hogconcept is not agoal to be the best, a strategy tobe the best, an intention to bethe best, a plan to be the best.

    It is an understandingofwhatyoucan be the best at.

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    THE FLYWHEEL AND THE

    DOOM LOOP

    Tremendous powerexists in the fact ofcontinued improvement and the

    delivery ofresults. Point to tangibleaccomplishments people see and feelthe buildup of momentum, they will line

    up with enthusiasm.

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    Thus, the difference made by level 5

    leadership can be seen as follows:

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    What DifferenceEffective Leadership

    Makes

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    Management Leadership

    .. but . both are important !!!

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    *John KotterLeading Change

    Planning and Budgeting

    Organizing and Staffing

    Controlling and ProblemSolving

    Management

    Management isNotLeadership*Management isNotLeadership*

    Establishing Direction

    Aligning People

    Motivating and Inspiring

    LeadershipAND

    Produces Degree of

    Predictability & Order

    Produces Change

    (often to a dramatic degree)

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    Thank You !