responsible leadership

Leadership_Nov 26_v2.ppt

Prof. Dr. Björn BlochingBudapest, November 26th, 2008

Responsible leadership

2Leadership_Nov 26_v2.ppt

The importance of Leadership has undoubtedly increased over the last years

> Globalization:

> Information/Communication:

> Speed:

> Individualization:

and

> The current crisis:

The global landscape changes dramatically, both on a political and economical level

The amount of accessible information is overwhelming

The pace in the economies has significantly increased over the last years. Example: automobile life cycles

Most global societies show a clear trend towards the individual – the collective loses importance

Nobody knows what we have to expect

COMPLEXITY AND UNCERTAINTY CALL FOR LEADERSHIP


Unfortunately, trust in today's leaders is at an all-time-low

Only 15% of the Germans trust the heads of large corporations – and the level of trust towards politicians is even lower


But what is leadership? Leaders have always had a variety of thoughts on how their role can actually be defined

"Leadership is the art of getting someone else to do something you want done because he wants to do it."(Dwight Eisenhower, former US President)

"A leader is a dealer in hope."(Napoleon Bonaparte)

"The art of leadership is saying no, not yes. It is very easy to say yes."(Tony Blair, British politician)

"It is better to lead from behind and to put others in front, especially when you celebrate victory when nice things occur. You take the front line when there is danger. Then people will appreciate your leadership."(Nelson Mandela, former South African President)

Source: World Economic Forum, Roland Berger Strategy Consultants


Leadership is obviously a pretty complex topic,…

Key aspects of leadership

LEADERSHIP

QUALITIES STYLES

THEORIESDRIVERS

Create vision

Reconsider vision

Implement visionVision

CommunicationResponsibility

Work styleConfidence/

determination

PassionRole-modeling

Self-sacrifice

Leadership difference

PowerChange

ManagementHeroism

Young vs. establishedGeographic regions

Men vs. womenStakeholder groups

Direct

Indirect

For followersFor environment

For community

Democratic

Laissez faire

Paternalistic

Autocratic

Quiet

Servant

Charismatic

Transformational

Behavioral

Great man

Trait-related

Transactional

Conversational

Contingency, situational



…which at first sight seems to differ across the globe,…

> Proud and patriotic> Passionate> Hierarchical > Autocratic

> Seniority important> Proud of tradition

> Action oriented, pragmatic

> Direct, aggressive> Less hierarchical

> Non-confrontational /indirect

> Respect of authority> Still collectivism

> Consensual> Need long to make decisions> High individualism> Strong belief in social values



…and is often mixed up with management due to their partly overlapping characteristics

LEADERSHIP

> Inspiration> Transformation> Direction> Trust> Empowerment> Creativity> Innovation> Motivation

COMMON

> Communication> Development> Decision-making> Integrity> Teamwork and teambuilding> Professional competence> Role model> Negotiation> Knowledge> Setting standards> Flexibility & focus

MANAGEMENT

> Delegation> Performance> Planning> Accountability> Finance> Monitoring & evaluating> Formal suspension> Control



However, leadership can – and has to – be made quite clear

YES, WE CAN


Political leaders are more action, corporate leaders are more result oriented – Power is the key motivator for both

CORPORATE LEADERSHIP POLITICAL LEADERSHIP

> The ability to think, act, and influence in ways that promote the sustainable competitive advantage

> The power exercised by individuals to direct members of the nation towards positive actions

ESSENCE

TYPICALGOALS

> Represent a constituency / interest group > Find answers to pressing problems of the people> Distribute power and money> Establish support for political goals (build coalitions)> Remain in power

> Improve business results > Develop products & services and markets> Inspire and accomplish a shared vision> Enable others to act professionally> Attract and retain talent

KEYQUALITIES

> Clear ideas and beliefs> Strong willpower > Has pertinacity (determination to see cause through)> Communicates and represents well> Has political intuition

> Look beyond daily business and make strategic decisions > Takes responsibility for employees> Is knowledgeable and competent in the industry> Communicates professionally> Sets goals and monitors progress

APPROACH > Tactical and strategic, operational responsibilitiesusually fulfilled by bureaucrats

> Primarily strategic, merit-based organization fortactical and operational responsibilities

FOCUS > More action, less result oriented> Result oriented

DRIVE > Mainly power and legacy> Mainly power and money



In today's crisis the key responsibility of public governance is to set the framework for economies

Corporate leader

Politicalleader

EXECUTE VALUES-BASED MANAGEMENT

Show responsibility of a welfare state combining economic, social and political aspects

ENSURE EFFICIENCY

Go for the best options in public administration and decision making - Reaction time can be crucial

RELY ON COOPERATION

Create value by elaborating on win-win situations in front of corporate leaders

SET THE FRAMEWORK FOR STABLE ENVIRONMENT

Incorporate measures in order to build a transparent system of regulations

Source: Roland Berger


On the corporate side leaders should focus on responsible, sustainable business models

GENERATING BUSINESS

ENHANCING BUSINESS

MANAGING RISK

AREAS OF CORPORATE RESPONSIBILITY (CR)

Corporate Responsibility (CR) as one cornerstone of the corporate strategy

MEASURING CR

Internal values/ employer branding

Corporate citizenship

Diversity&inclusion

Corporate education

Work and family

Occupational health mgmt.

Mastering demographics

Compliance, transparency, sourcing, …

Sustainable products and services (e.g. Greentech)

Source: Roland Berger

12Leadership_Nov 26_v2.pptHAM-97007-428-04-01-G.ppt

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An example: Clear internal leadership values and a strong employer brand pay off

Benefit

> 60-80% of customer satisfaction can be related to a high level of identification with the company values

> Average attrition rate of Top-100 employers in the USA is 13 percent below general average (12,6% vs. 26%)

> Companies with strong employee commitment achieved in a 3-year period in comparison to other companies

– 36% higher Shareholder returns (112% vs. 76% )– an increase of earnings Ø 3,74% (other companies had a

decrease of Ø 2,06%)

Source: Roland Berger, several empirical studies

Values

> Clear positioning of employer towards (potential) employees

> Consistent implementation of value proposition in company


No matter in which sphere you are working, some basic rules apply

A cool head

A warm heart

Working hands

Complexity needs analytic skills

Change needs motivation, trust and empathy

Success needs cooperation and good examples

The elements of successful leadership

Source: Martin Hilb


[email protected]

Am Sandtorkai 41D-20457 Hamburg

Phone: +49-40-376314-446

Prof. Dr. Björn BlochingHEAD OF THE GLOBAL COMPETENCE CENTER

MARKETING & SALES

responsible leadership

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