1) Lauren
Kellerman, B. (2005). How Bad Leadership Happens. Leader to Leader, Winter, 4146.https://www.courses.fas.harvard.edu/~soc186/AssignedReadings/Kellerman-bad.pdf
Kellerman, B. (2004). Claiming the Bad Side. In Bad Leadership, 3-14. Harvard Business School Press.
https://www.courses.fas.harvard.edu/~soc186/AssignedReadings/Kellerman-bad2.htm
How Bad Leadership Happens
Barbara Kellerman
State of Nature
Machiavelli, Hobbes, Locke:
 Human beings can’t be trusted
 Should consider organization and orders over human rights/entitlements
Founding Fathers:
 Federalist paper: “of man’s capacity for reason and justice that makes free government possible, of his
capacity for passion and injustice that makes it necessary.”
*Self interest dictates the choice to lead or follow*
 Leadership rewards (rights/resources from power, authority, and influence and greater degree of autonomy)
more obvious
 Follower rewards (individual needs and needs as a group member) are more obscure
Individual level gain:
 *safety--self-preservation is strongest basic need; Hobbes illustrated as a way to maintain public order; also
applies to business exec who wants security for family
 stability (generally trumps need for self-expression); even bad leaders can provide order and protect against
angst
 simplicity—easier just to follow; simplifies cognitive load
Group level gain:
 order maintained
 cohesion
 taking on collective work
 Michel’s “iron law of oligarchy”: always be leaders because we always need to hold some one accountable
for getting the group’s work done
Types of Bad Leadership
 Basic level divides into 2 categories:
1. ineffective—fails to produce desired change, falls short of its intention
2. unethical—cannot make even most basic claim to decency and good conduct
7 Bad Types of Leadership
1. Incompetent—(Bush) lack will and skill to sustain effective action; fail to create positive change (with
regard to at least one important leadership challenge)
2. Rigid—(Mary Meeker, queen of the internet)) stiff and unyielding. Unable or unwilling to adapt to
new ideas, changing times, etc
3. Intemperate—(Marion Barry, Jr., former mayor of DC, elected 4x) lacks self control, aided and abetted
by followers who willing or unable to effectively intervene
4. Callous—(Al Dunlap, “Chain-saw Al”) uncaring or unkind, ignored or discounted are the needs, wants
and wishes of most members of the group or organization, especially subordinates
5. Corrupt—(William Aramony, Head of United Way of America) lie, cheat, and/or steal, to a degree that
exceeds the norm they put their own personal self interest ahead of public interest
6.
7.
Insular—(Bill Clinton, Rwanda) minimize or disregard the health and welfare of “the other”—that is,
of those outside the group or organization for which they are directly responsible
Evil—(Saddam Hussein, Pol Pot, Jim Jones(cult leader), Radovan Karadzic (leader of Bosnian Serbs,
declared criminal) commit atrocities, pain an instrument of power, the harm done to men, women, and
children is severe rather than slight, harm can be physical, psychological, or both
The Web
 The roles that followers and context play are critical
 Leader, followers, and context are inextricably entangled
 To learn to be a good leader, must also learn to be a good follower and have a good understanding of the
underlying context
Stopping or Slowing Bad Leadership
 Leaders cannot do harm without followers who enable them
 Stopping/slowing bad leadership is social responsibility
 Bad leadership is a social disease
What is to be done:
Leaders
 Limit your tenure
 Share power
 Stay in touch with reality
 Compensate for your weaknesses
 Stay balanced
 Be reflective
Follower:
 Empower yourself
 Be loyal to the whole
 Be skeptical
 Be a watchdog
 Take a stand
 Find allies
Week 5: February 27, March 1, 3 From Vision to Goals
2) Lisa
Emrich, C. G., Brower, H. H., Feldman, J. M. & Garland, H. (2001). Images in Words: Presidential Rhetoric,
Charisma, and Greatness. Administrative Science Quarterly, 46 (3), 527-557.
https://www.courses.fas.harvard.edu/~soc186/AssignedReadings/Emrich-ImageUse.pdf
Emrich - Images in Words: Presidential Rhetoric, Charisma, and Greatness
Overview: This paper is a study of what causes followers to consider a leader "great" and attribute to him/her the
quality of "charisma."
Conclusion: Leaders (Presidents) who used "image-based rhetoric" in their inaugural addresses were rated higher in
charisma, and those that engaged in image-based rhetoric in their most significant speeches were rated higher in
charisma and overall greatness.
INTRODUCTION
- Much is known about what charisma is, but little is known about what causes it to be an identifiable characteristic.
Charisma - ability to inspire followers above and beyond the call of duty by appealing to their emotions and
motives
- House and Shamir - study concluded that visionary behavior was a part of all eight theories of charismatic,
visionary, and transformational leadership
- Studies of charisma emphasize the emotional link between leaders and followers.
- Studies in greatness emphasize achievement.
IMAGERY, CHARISMA, AND GREATNESS
Imagery - how quickly a word arouses a sensory experience (mental picture, sound, etc.)
- MLK and Churchill were good at using imagery
- Allowed them to more easily tap into listeners' life experiences
- Appealing to sensory/emotional experiences is more effective than appealing to intellect
- Martindale, Covello, West - created a table of sensory vs. concept -based words (root v. source, rock v.
dependable, sweet v. agreeable, etc.) - more effective.
- Mediating Processes
1. Attention - first challenge of a leader is to attract and sustain attention.
- People can't be influenced if they're not paying attention.
2. Comprehension - it is important to use concrete rather than abstract material.
- People can't be influenced if they don't understand what's going on.
3. Emotion - last challenge of a leader is to appeal to the followers' emotions.
- People may hear and comprehend a speech, but they won't act on anything if it doesn’t resonate with them
somehow.
4. Memory and Elaboration - a leader has to make sure that the follower also remembers and elaborates
upon the points made.
- Images are often remembered more easily than concepts.
HYPOTHESES - When dealing with a president's speech:
1. Higher proportion of image-based rhetoric = higher charisma ratings.
2. Higher proportion of image-based rhetoric = more favorable historians' assessment of his greatness.
3. Lower proportion of concept-based rhetoric = higher charisma ratings.
4. Lower proportion of concept-based rhetoric = more favorable historians' assessment of his greatness.
STUDY 1
1. Analyzed Presidential inaugural addresses from Washington to Reagan
2. Used Martindale's Regressive Imagery Dictionary to tabulate the frequency of image-based words.
3. Used this along with Simonton's measures of public charisma and creativity to create personality sketches for
all presidents.
4. Students evaluated the presidents on 20 charisma items and 15 creativity items - rated each on a scale from 1
(atypical of him) to 7 (typical of him.)
5. FDR was rated highest and Grant was rated lowest.
6. Historians also rated the presidents on greatness. Lincoln was highest and Harding the lowest.
Conclusion: Hypothesis 1 was correct - the greater the proportion of image-based rhetoric in his inaugural address,
the higher his perceived charisma.
Hypothesis 2 was inconclusive - they found no evidence to link image-based rhetoric in an inaugural address to
perceived historical greatness.
STUDY 2
1. Analyzed presidents' pivotal speeches from Washington to Reagan.
2. Proceeded as before with the measures of public charisma and creativity and image dictionary. Both image-based
and concept-based words were tabulated.
Conclusion: Hypothesis 3 and 4 are not confirmed - the high frequency use of concept-based words was not an
indicator of lower charisma or less greatness.
3) Emily
Collins, J. C. & Porras, J. I (1997). Built to Last: Successful Habits of Visionary Companies. Chapter 11, pp 219239. New York: Harper-Collins.
http://www.shkaminski.com/Classes/Readings/Collins%20and%20Porras.htm#_ftnref1
“Building the Vision” By James Collins and Jerry Porras
The most important characteristic of successful corporations is the preservation of a cherished core ideology, while
at the same time progressing and changing in every other way.
A vision consists of a) core ideology b) envisioned future
A good vision builds on the interplay between these two complementary forces, the core ideology representing
“what we stand for and why we exist” (never changing) and the envisioned future as “what we aspired to become, to
achieve, to create” (requires constant change and progress).
Core ideology = enduring character of an organization
-Self-identity that remains consistent through time and transcends product/market life cycles, technical
breakthroughs, management fads, and individual leaders.
-Provides the glue that holds an organization together as it grows, decentralizes, diversifies, expands globally, and
attains diversity within.
Examples: principles of Judaism (held the Jews together through centuries of struggles)
Core values = organization’s essential and enduring tenets- a small set of timeless guiding principles that
require no external justification
-Have intrinsic value and importance to those inside the organization.
-The company decides for itself what values it holds to be core, and these values are almost entirely independent of
the current environment, competitive requirements, or management fads.
-Sometimes as “Mars Group,” or small group of five to seven individuals who are most likely to have a gut-level
understanding of your core values, are responsible for articulating a company’s core values- they represent a slice of
the company’s “genetic code.”
Core purpose = organization’s fundamental reason for being
-Most important part of the core ideology, in terms of guiding and inspiring an organization.
-More difficult to identify than core values.
-Reflects the importance people attach to their company’s work, including their idealistic motivations (rather than
just a description of the organization’s output or target customers).
-Captures the soul of the organization.
Examples: Nike- To experience the emotion of competition, winning, and crushing competitors.
Wal-Mart- To give ordinary folk the chance to buy the same things as rich people.
Walt Disney- To make people happy.
-The “five whys” can help a company discover its purpose by starting with a descriptive statement and asking “why”
at least five times to get to the fundamental purpose of the organization. (i.e. “We make X products.” “Why?”)
-Core purposes are NEVER to maximize shareholder wealth.
-You do not create or set core ideology, you discover it.
-It is not the content of the ideology that makes a company visionary, but rather it is the core ideology’s authenticity,
discipline, and consistency with which it is lived.
-Core ideology must be meaningful and inspirational to the people within the company, it does not need to be
exciting to those outside the organization.
-You cannot install new core values or purpose into people- core values cannot be “bought into.”
-The wording of a core ideology does not matter, what is important is that the employees gain a deep understanding
of the organization’s core values and purpose, which can be expressed in a huge number of ways.
-Anything that is NOT core ideology can and should change and progress constantly.
If it’s not core, change it!
Envisioned future = a) 10-30 year “Big Hairy Audacious Goal” b) vivid descriptions of what it will be like
when the organization achieves the BHAG.
- On the one hand, envisioned future conveys a sense of concreteness, something vivid and real. On the other hand,
it portrays a time yet unrealized, a dream, hope, or aspiration.
“Vision level” BHAG = applies to the entire organization and requires 10 to 30 years of effort to complete.
- Not a “sure bet,” a BHAG should only have a 50 to 70% probability of success- but the organization must believe
that “we can do it anyway.”
- Requires extraordinary effort, and a little luck.
Four categories of BHAGs:
1. Target BHAG- can be quantitative or qualitative (i.e. “Become a $125 billion company by the year 2000”
by Wal-Mart)
2. Common-enemy BHAG- involves focusing on beating a common enemy- a David versus Goliath (i.e.
“Crush Adidas” by Nike)
3. Role-model BHAG- are particularly effective for up-and-coming organizations with bright prospects (i.e.
“Become the Harvard of the West” by Stanford University)
4. Internal Transformation BHAG- tend to be effective in old or large organizations in need of internal
transformation (i.e. “Become #1 or 2 in every market we serve and revolutionize this company to have the
strengths of a big company combined with the leanness and agility of a small company” by General
Electric)
Vivid Descriptions = vibrant, engaging, and specific description of what it will be like to achieve the BHAG.
- Translation of the vision from words into pictures, creating an image that people carry around in their heads“painting a picture with your words.”
- Passion, emotion, and conviction are essential parts of the vivid description.
-Purpose is the organization’s fundamental reason for existence, which like a start on the horizon can never be
reached and instead guides and inspires. In contrast, a BHAG is a specific goal with a specific time frame that can
be achieved. (Discovery v. creative process)
-Envisioned futures must produce the “gulp factor,” when it dawns on people the level of commitment it will take to
achieve the goal. It should get the “juices flowing.”
-Organizations must beware of the “we’ve arrived syndrome”- which is the complacent lethargy that arises once an
organization has achieved a BHAG and fails to replace it with another.
-Creating alignment requires two key processes a) developing new alignments to preserve the core and stimulate
progress b) eliminating misalignments that drive the company away from core ideology and envisioned future
Boyatzis, R. E. & Van Oosten, E. (2003). A Leadership Imperative: Building the Emotionally Intelligent
Organization. Ivey Business Journal, January/February.
https://www.courses.fas.harvard.edu/~soc186/AssignedReadings/Boyatzis-EI.pdf
“A Leadership Imperative: Building the Emotionally Intelligent Organization”
By Richard Boyatzis and Ellen Van Oosten
This short article basically tells the story of how a trucking company called “Roadway Express” reinvigorated its
employees through the cultivation of emotional intelligence. Frank Sims, an executive at “Roadway Express,”
exposed employees at ALL levels to training and information sessions that showed them how their efforts fit into the
big picture of the company’s success, giving each employee ownership and purpose to their work.
The top executives crafted a vision statement that expressed, “everyone would be fully engaged in the success of the
company and committed to the success of each other.” They established some goals that included:
1. Increasing leaders’ self-awareness and emotional intelligence
2. Positioning leaders to develop leaders at every level
3. Developing the capabilities of the leadership team to achieve breakthrough performance
4. Broadening the participants’ understanding of issues that are crucial for long-term economic performance
Thousands of studies have shown that effective leaders consistently possess more emotional intelligence
competencies such as self-awareness and self-management.
Roadway’s leadership program, “Breakthrough Leadership,” established a five-step process to leadership
development.
1. Discovery of the Ideal self- what each of us wants out of life and work, and the nature of our dreams and
aspirations (includes a personal vision statement)
2. Discovery of the Real self- 360 feedback analyzed with help of personal coaches
3. Discovery of a learning plan- combining personal visions with balance sheet of personal strengths and
weaknesses
4. Experimentation and practice
5. Development of trusting relationships- encourage the person at each step throughout the process
Emotional Intelligence competencies related to outstanding leadership:
Personal CompetenceThe self-awareness cluster = emotional self-awareness, accurate self-assessment, self-confidence
The self-management cluster = adaptability, emotional self-control, initiative, achievement orientation,
trustworthiness, optimism
Social CompetenceSocial Awareness cluster = empathy, service orientation, organizational awareness
Relationship Management cluster = inspirational leadership, developing others, change catalyst, conflict
management, influence, teamwork and collaboration
4) Becky
Bennis, W. (2005). Leading Through Vision and Trust. Inspiration.
http://www.ihd-inspiration.com/magazine/bennis-vision.asp
Leading Through Vision and Trust (Warren Bennis)
Four leadership qualities together engender trust:

Vision
Create a vision and then communicate it. A vision is a portrait of the future that grabs.

Empathy
A leader’s ability to understand themselves and their co-workers' needs and wants empowers people to
experience the vision as their own.

Consistency
Trust blossoms when leaders exemplify:
1.
Constancy - they create no surprises. They maintain continuity and security.
2.
3.
4.

Congruity - they walk their talk. Their morality is found in their behavior.
Reliability - they are there when it counts, ready to support their co-workers.
Integrity - they are ethical. They honor their commitments and promises.
Integrity
A leader sets the moral tone by:
1.
2.
3.
4.
Carefully choosing the people with whom she surround herself
Communicating a sense of purpose
Reinforcing appropriate behavior
Articulating moral positions
Bennis, W. (2005). Leadership and Realising the Dream. Inspiration.
http://t-mobile.soul-power.com/magazine/bennis-action.asp
Leadership and Realizing the Dream (Warren Bennis)
Bennis offers the following advice on how to be an effective leader:
Effective action is based on true self-expression. Therefore, self-assessment is vital to becoming an effective leader.
Clarity about your goals, your sources of satisfaction and your values should precede action. Understanding where
personal and organizational goals differ will allow you to make more informed choices. Without commitment and
desire, no action can be effective. Commitment requires focus and attention. When committed to a course of action,
a specific person or a set of goals, we give up the alternatives. Desire should partner commitment. Without passion
and desire, our commitments are dry and unappealing. In dealing with constant change, a well-developed strategy
allows leaders to think of solutions to potential problems. A strategy substitutes creativity and initiative for mere
reaction. Translating visions into reality also depends on power. Empowerment is the collective effect of leadership;
the recipient experiences respect, support and growth. When all these themes exist, organizations are successful and
leaders are fulfilled.
Weeks 6 and 7: March 6, 8, 10, 13, 15
5) James
Hackman, J. R. & Oldham, G. R. (1976). Motivation through the Design of Work: Test of a Theory.
Organizational Behavior and Human Performance, 16, 250-279.
https://www.courses.fas.harvard.edu/~soc186/AssignedReadings/Hackman-Motivation.pdf
Hackman-Oldham 1976
Work Redesign, Job Enrichment
This study proposes a model which makes individuals internally motivated to perform well at their job. It focuses
on three variables:



The psychological state of employees.
The characteristics of jobs that can create these psychological states
The attributes of individuals that determine how positively a person will respond to a complex and
challenging job.
Existing theories of work redesign do not account for the problems encountered in their application.
They give a summary of existing theories then present and test a theory of work redesign which focuses specifically
on how the characteristics of jobs and the characteristics of people interact to determine when an enriched job will
lead to a beneficial outcome and when it will not.
Motivation-Hygiene Theory: Herzberg theory. The primary factors of job satisfaction are intrinsic to the task being
done ex. Recognition, achievement, responsibility. All these are motivators.
Hygiene factors are de-motivate and are extrinsic…company policies, pay plans, work conditions.
Job will enhance satisfaction and motivation to the extent that motivators are designed into the job itself. Hygiene
factors should not lead to motivation.
Problem: Lack of empirical evidence. Also, does not account for individual factors, how different individuals will
react to changes. Also, how measure “motivation factors” of existing jobs?
Activation Theory: Psychological and physiological activation very important in employee satisfaction. Repetitive
jobs = bad.
Problems: How measure activation in jobs and figure out what the optimal activation level for an individual?
Individuals adapt to changing levels of activation.
Socio-Technical Systems Theory: “provides significant insight into the interdependencies between technical aspects
of the work itself and the broader social milieu in which the work is done. Helps create the autonomous work
group: where individuals share the responsibilities of the decision making process.
Problem: Doesn’t provide much understanding for how the work interacts with its surroundings. Doesn’t provide
much concrete guidance for what changes to make under what circumstances.
Jobs and Individual Differences an Interactive Approach:
Cultural background determines how individuals react to task attributes. Urban and Rural workers measured
differently on 6 Requisite Task Attributes (because of their cultural background). Subcultural factors moderate
workers’ responses to the design of their jobs.
Hackman and Lawler gave four core dimensions to which employees should react positively: variety, task-identity,
feedback, autonomy. There is now substantial evidence that differences among people do moderate how they react
to the complexity and challenge of their work.
JOB CHARACTERISTICS MODEL
Five core job dimensions are seen as prompting three psychological states which, in turn, lead to a number of
beneficial personal and work out-comes. The links between the job dimensions and the psychological states, and
between the psychological states and the outcomes, are shown as moderated by individual growth need strength.
3 Psychological States:
-experienced meaningfulness of the work
-experienced responsibility for the outcome of the work
-knowledge of the results of work activities
Five Core Job Dimensions:
-Skill variety
-task identity
-task significance
-autonomy
-feedback
Basically an individual will perform well on task in which he learns, personally does well on and cares about.
Here are the given definitions for the three psychological states:
As shown by the chart above, each of the core dimensions lead to a different psychological state.
Study: 658 participants, 72 different organizations. Different types of jobs both blue and white collar etc.
Used surveys, studied company absence records and met with different members of organizations. Fairly complex
data analyses probably not suitable for summary. Check out the article if you want those details.
Conclusions:
Strong support for the validity of the job characteristics model.
Some weaknesses, such as…the core dimensions are focused on things that provide positive outcomes, also the
study is focused on individual job-related tasks and doesn’t really provide much insight into team-oriented
behaviours.
I would say the main thing to focus on in this article would be the theoretical organization of the Job Characteristics
Model.
6) Julia
Eylon, D. (1998). Understanding Empowerment and Resolving Its Paradox: Lessons from Mary Parker Follett.
Journal of Management History, 4 (1), 16-28.
https://www.courses.fas.harvard.edu/~soc186/AssignedReadings/Eylon-Follett.pdf
SEE FIRST SEMESTER READING SUMMARIES!
7) Lindsey
Edmondson, A. (1999). Psychological Safety and Learning Behavior in Work Teams. Adminstrative Science
Quarterly, 44, 350-383.
https://www.courses.fas.harvard.edu/~soc186/AssignedReadings/Edmondson-Safety.pdf
Psychological safety and learning behavior in work teams
Author: Amy Edmondson
Psychological safety is defined as a shared belief held by members of a team that the team is safe for interpersonal
risk taking.
The article describes several studies and concludes that team psychological behavior is associated with learning
behavior.
It is also concluded that team psychological safety promotes positive learning behavior which in turn facilitates
positive team outcomes. Essentially LB serves as a mediator between PS & TO.
Team structure and shared beliefs shape team outcome.
Team effectiveness is enabled by structural features like a well designed task and adequate material resources.
Organizational learning research has emphasized that individuals’ tacit beliefs about interpersonal interaction inhibit
learning behaviors and give rise to ineffectiveness in organizations.
It is hypothesized that team leader coaching helps shape team outcomes.
Examples of learning behavior are: seeking feedback, sharing information, asking for help, talking about errors, and
experimenting.
Members of a team may be reluctant to initiate learning behavior because by admitting an error or asking for help an
individual may be concerned that doing so may alter in a negative way how others perceive him.
People tend to act in ways that inhibit learning when they face the potential for threat or embarrassment.
Research shows that familiarity among group members can reduce the tendency to conform and suppress unusual
information.
Learning is presented in two different ways: 1) as an outcome. 2) as a process—(the author refers to this as “learning
behavior”).
For a team to discover gaps in its plans and make changes accordingly, team members must test assumptions and
discuss differences of opinion openly.
There are some situations where learning behavior may reduce efficiency and detract from performance such as in
an occupational setting which is highly repetitive with little need for task improvement or modification.
Team Psychological safety is essential for individuals if they are to feel secure and capable of changing. Team
psychological safety is not the same as group cohesiveness, as research has shown that cohesiveness can reduce
willingness to disagree and challenge others’ views, implying a lack of interpersonal risk taking.
Trust is defined as the expectation that others’ future actions will be favorable to one’s interests, such that one is
willing to be vulnerable to those actions.
Team efficacy was not affirmed as being directly linked to group performance however it seems that it may be
indirectly linked because efficacy tends to increase confidence which promotes learning behavior.
The article examines the differences between high and low learning teams. A low learning may largely be that way
by design; such as within a work environment that allocates tasks that are highly independent in nature with little or
no reliance on others or interaction with others required for task completion (ex. Working at a help desk).
Data suggests that team psychological safety is something beyond interpersonal trust; it also seems to incorporate
respect for each other’s competence and caring for each other as people.
8) Dane
Judge, T. A., Thoresten, C. J., Bono, J. E. & Patton, G. K. (2001). The Job Satisfaction—Job Performance
Relationship: A Qualitative and Quantitative Review. Psychological Bulletin, 127 (3), 376-407.
https://www.courses.fas.harvard.edu/~soc186/AssignedReadings/Judge-SatPerf.pdf
“The Job Satisfaction-Job Performance Relationship: A Qualitative and Quantitative Review.” By: Judge, Thoresen,
Bono and Patton
1.
2.
There are seven different theorized relationships between job satisfaction (JS) and job performance (JP).
I. JS causes JP – example: me being happy about my job causes me to do a better job – studies do not
show a significant relationship
II. JP causes JS – example: those who do a better job are happier – studies are inconsistent, however
there are several that show this to be a very strong relationship.
III. JS and JP are reciprocally related – a combination of both one and two, a cycle of sorts – these
studies support only a unidirectional relationship such as either one or two
IV. JS and JP are linked through some unknown factor which is greatly influenced by both (a spurious
relationship) – example: increased JS may cause people to show up on time and showing up on time
causes increased JP – studies show that there might be a link using self-esteem
V. JS and JP are more-or-less independent of one another but moderated through similar variables –
example: people getting bonuses for good performance will increase the JS and JP of people who do
well – studies have shown that while benefits in salary have some effect, intrinsic rewards (changes
to the actual job, such as less repetitive work) have a greater effect.
VI. There is no relationship between JS and JP – example: they are completely independent in all
regards – not very good
VII. Alternative relationships – examples include links with positive attitudes, goals setting, motivation,
etc. – weak relationships
Their study is meant to advance these arguments and finds that there is a reciprocal relationship between JP
and JS. They use the performance reports of employees and surveys taken of these employees to show that
the relationship is connected through the use of mediators and moderators.
I. I really do not think this will be on the final. It is far too complicated. Just know that JS and JP are
linking in some interesting ways.
Week 10: April 10, 12 Moral Leadership
9) Olivia S
Cialdini, R. B. (2003). Creating an Ethical Environment. Leader to Leader, 28.
http://www.insideinfluence.com/year03/06/Leader-To-Leader-2003.pdf
Creating an Ethical Environment – Cialdini
- we are subject to the influences of our environment; when high standards are expected and demonstrated, we can
pursue high aspirations and know great achievements; when standards are murky, and the mediocrity tolerated, we
start to question ourselves
- the power of influence is demonstrated by the behavior of American prisoners of war in the Korean war; they were
found to have collaborated with the enemy on several levels like running errands, signing peace petitions, or voicing
support for the communists on public radio
- the captors relied not on physical torture but on consistency. Their strategy was to start small and build (e.g.
prisoners first asked to agree with mild statements, then the requests would progressively get more substantial). This
worked because we try to behave consistently with what we’ve previously said/done, so if the second statement
builds on the first, with which you agreed, you are likely to agree with the second, and so forth, until reaching the
point of becoming a “collaborator”
- ethics can’t be compartmentalized – it has to be applied at all levels and interactions of an organization because of
the power of influence; unethical behavior is contagious. This is because of the principle of social proof, whereby
we look to others like us to determine appropriate behavior
- when unethical behavior is accepted by an organization’s culture, it causes a crisis within the organization – stress,
lack of commitment to company goals, inconsistency – people become more self-oriented
- the power of influence is so strong that leaders need to be ruthless about rooting out dishonesty and deception
- leaders need to pay close attention to recruitment and selection; education, training, and experience are very
important
- research shows that our fundamental values are set at about our early 20s
The 6 principles of influence
PRINCIPLE
Reciprocity
Social Proof
Consistency
Authority
Scarcity
Liking
HOW IT WORKS
People do unto others as others
do unto them
People follow the example of
their peers
People try to behave consistently
with their values and
commitments
People defer to the expertise of
others
People want things that are rare,
exclusive, hard to get
People like those who like them
HOW IT CAN GO WRONG
I’ll bend the rules for you so
you’ll do the same for me
Go along to get along
It’s not as if you’ve never done
anything wrong with you life
Do what you are told; it’s an
order
Don’t make any waves and you’ll
get that promotion
We thought you were one of the
gang
10) Wes
Stone, P. J. (1994). Exit or Voice? Lessons from Companies in South Africa. In Ethics and Economics Affairs,
Lewis, A. & Warneryd, K. E, pp. 17-38. New York: Routledge Press.
http://www.courses.fas.harvard.edu/~psy1756/ReadingsOnWebsite/Stone-ExitVoice.pdf
“Exit or Voice?: Lessons from Companies in South Africa”
This article begins by describing several American companies who went to South Africa to raise the
standards of responsible civil behavior. (ie. They showed farmers how to grow a certain type of rice common in
breakfast cereal, and then paid them at a premium over market price). The article is about how organizations like
this can exercise social influence over the existing, discriminative traditions or policies against race, ethnic groups,
tribes, castes, or women.
Taking these lessons to heart, a theory of social influence based on these strategies must be laid out to
allow them to compare their costs and benefits. Albert Hirschman, an economist, proposed a theory of social
influence based on “exit, voice, and loyalty”:
 Exit is either quietly switching from brand X to brand Y, or noisily “voting with their feet” (ie. Leaving
the country because opposed to apartheid).
 Voice mean making known your dissatisfaction through:
o Petitions
o strikes
o newspaper ads
o other forms of protest
Voice’s effectiveness is greatly diminished once exit is completed.
 Loyalty means remaining steadfastly loyal in the hope that improvement is coming. He likens this to
customers remaining loyal to a company, thus providing them adequate time to make improvements,
rather than just exiting and causing the company to go bankrupt.
11) Josh
Second semester lectures
12) Carol
Reave, L. (2005). Spiritual Values and Practices Related to Leadership Effectiveness. The Leadership Quarterly,
16, 655-687. https://www.courses.fas.harvard.edu/~soc186/AssignedReadings/Reave-ValuesPay.pdf
Reave—Spiritual Values & Practices Related to Leadership Effectiveness
-Review of 150 studies which collectively serve to demonstrate that there is a connection b/w espousing traditional,
“spiritual” values (honor, integrity, humility) and leadership efficacy. Also found that there is a connection b/w
“practices traditionally associated with spiritual life” and leadership effectiveness.
Leaders who espouse traditional spiritual values and practices (across religions) are better able to:
-motivate followers
-create positive ethical climate
-inspire trust
-promote positive work relationships
-achieve organizational goals
-increased productivity
-lower turnover rates
-increased sustainability
-improved employee health
Being “spiritual” does not entail proselytizing/teaching employees, but rather, embodiment of qualities such as
integrity, and increased likelihood to exhibit care and concern for others
This study breaks down measures of leadership success in three categories: followers, groups, leader as individual
Viewing work as a spiritual calling related to:
-follower motivation and satisfaction
-group performance
-leader motivation
Transformational leadership composed of:
-charisma
-inspirational motivation
-intellectual stimulation
-individualized consideration
All religions share common values of:
-charity
-humility
-veracity
-vision
Followers universally seek out leaders with integrity who genuinely care about others
There are a number of spiritual factors that contribute to leader success:
-spiritual motivation (work as a calling)
-spiritual qualities (integrity, honesty, humility, etc)
-spiritual practices (showing concern for others, exercising fair judgment, listening responsively, reflective practice)
Integrity is the most crucial spiritual value in determining leader success
-character and behavior must be integrated, or the leader loses authenticity
-integrity is necessary to build trust
-leader’s integrity affects followers by creating ethical influence
-integrity requires honest communication with oneself and others in order to promote internal and external
consistency with truth
Humility also significant in determining leader success:
-correlates with leader’s ability to accept negative feedback
-despite fascination with charismatic leaders— quiet, humble leaders who remain in the background are
often the most effective
-humbles leaders are not interested in cultivating a personality cult; instead direct people’s attention to
goals/achievements of organization
Treating others with respect is also significant spiritual quality that leads to leader success—naturally leads to justice
and fairness in decisions
Summary: Contrary to popular opinion, there is not a contradiction between the values and practices
endorsed for spiritual success and those required for leadership success. Instead leadership shows a clear
consistency b/w the two areas
Week 11: April 17, 19 The Leader as Teacher
13) Yves-Georges
Loehr, J., Schwartz, T., (2001). The Making of a Corporate Athlete. Harvard Business Review, 120-128.
http://www.courses.fas.harvard.edu/~soc186/AssignedReadings/CorpAthlete.pdf
The Making of a Corporate Athlete
In this text, the authors Jim Loehr and Tony Schwartz are trying to determine the elements that influence
individuals’ ability to sustain high performance over long periods of time under stressful conditions. There
discussion is aimed at finding solutions for corporate executives using athletes and sports as a proxy.
Loehr and Schwartz propose that sustaining high performance over long periods of time and maintaining such
performance through conditions of high stress requires the engagement and health of an individual’s entire person.
They must incorporate their body, emotions, mind, and spirit. In their theory of performance, Loehr and Schwartz
refer to this hierarchy of body, emotions, mind and spirit as the ‘performance pyramid.’
Loehr and Schwartz also introduce a concept that they refer to as the ‘Ideal Performance State’ or ‘IPS’. This is
basically defined as a state that when attained, allows an individual to sustain high performance over time. This is a
distinction from individuals with poor habits (who have not achieved IPS) who are capable of demonstrating high
performance but not sustaining it over time. Individuals who smoke, do not exercise regularly, do not eat healthy,
etc. can perform successfully but they are unable to sustain the high level of performance. So, IPS is a central
component of ‘sustaining’ high performance. According to Loehr and Schwartz, the foundation of IPS is the
capacity to mobilize energy on demand. This has two components. The first is the rhythmic movement between
energy expenditure (stress) and energy renewal (recovery) which they refer to as ‘oscillation’. They argue that the
enemy of high performance is not stress but the absence of recovery. The second component that promotes high
performance is rituals that promote oscillation—rhythmic stress and recovery. By incorporating such rituals into
one’s daily life as routines, an individual can do a great deal towards enabling him/herself to sustain high
performance.
Loehr and Schwartz maintain that rituals should be incorporated in everyone’s routine to target all levels of the
performance pyramid. Rituals should be adopted which address the development of one’s physical capacity. The
obvious ritual here is exercise. Exercise however not only develops mental capacity but also emotional capacity as it
provides an outlet for negative emotions and stress. Rituals should also be adopted to address mental capacity.
Meditation is the proposed ritual in this regard. Finally, spiritual capacity should be developed through rituals. They
define spiritual capacity as the energy that is unleashed by tapping into one’s deepest values and defining a strong
sense of purpose. Rituals promoting reflection such as meditation, journal writing, prayer, or service to others are
recommended by Loehr and Schwartz to promote development of one’s spiritual capacity.
In sum, people should develop their ‘performance pyramid’ (physical, emotion, mental, and spiritual capacities)
though the incorporation of rituals into their daily routines in order to achieve the Ideal Performance State, enabling
themselves to sustain high performance over long periods of time.
14) Fred
Tichy, N. M. (2001). No Ordinary Boot Camp. Harvard Business Review, April, 5-11.
http://www.trilogy.com/campus/Harvard.pdf
Tichy, N. M. (Fall 1997. The Mark of a Winner, Leader to Leader, No. 6, Thought Leaders Forum:
Leaders of winning organizations use ideas, values, emotional energy, and edge to help develop future
leaders throughout the enterprise. Winning leaders combine a teachable point of view with a special focus and
personal role in the development of others.
Winning organizations share certain financial attributes. Companies among top quartile of the S&P 500
have annual revenue growth of 12 percent, and a 16 percent operating return on assets. These Companies are led by
men and women who personally and methodically nurture the development of other leaders, at all levels of the
organization. Effective leaders recognize that the ultimate test of leadership is sustained success, which demands the
constant cultivation of future leaders.
Three Keys for Leading
1. A teachable point of view: Leader must be able to articulate a defining position for organization. Must have
emotional energy and edge. Generate positive emotional energy in others
2. A story for your organization: There are three kinds of stories that leaders can tell. There's the "who I am" story
in which leaders describe themselves. There's the "who we are" story, in which you articulate for your
constituents what their identity is. The most important leadership tale is the "where we are going" story.
Dramatic storytelling is the way people learn from one another.
3. Well-defined methodology for teaching and coaching. Most effective teachers -- and leaders -- will tell you that
they grow as much as those they teach and lead. Be methodical but not mechanical in your approach to
teaching. Must have the self-confidence to be vulnerable to others; need to share mistakes and doubts as well as
accomplishments. Must be genuine.
Developing leadership talent is the job of leaders themselves. Outside consultants are the last people who can
develop long-term leadership talent in an organization. Teachers must be recognized leaders, with a proven record of
success, who work with their colleagues every day. What's missing is the leaders themselves teaching colleagues,
not leaving the teaching to others or talking about somebody else's values
To compete in the 21st century, leaders need to build not just a learning organization but a teaching
organization -- one with the capacity to build leaders -- into the fabric of the organization. They need to create an
environment where leaders are teaching leaders. Leaders are both born and made
Losing
organizations
make
the
mistake
of
handicapping
their
field
of
potential
leaders
and
investing
their
training
and
development
resources
only
in
those
they think will go furthest. Winning organizations, however, look at broad leadership skills, not just success with
particular
projects.
They
continue
to
invest
in
the
development
of
everyone
else,
including
those
they
don't
expect
to
rise
to
the
top.
Tichy, N. M. (1997). The Mark of a Winner. Leader to Leader, Fall, 6.
http://leadertoleader.org/leaderbooks/L2L/fall97/tichy.html
Tichy, N. M. (2001). No Ordinary Boot
http://www.trilogy.com/campus/Harvard.pdf
Camp.
Harvard
Business
Review,
April,
5-11.
Corporate orientation programs are common practice among the nation’s largest and most successful
companies. These programs are modeled after the Marine Corps basic training are designed to push recruits. The
two goals of these programs are: preparedness and bonding. Trilogy University, however, is different.
Trilogy University (TU) has used an unconventional approach and has had phenomenal results. TU is the
orientation program of Austin, Texas-based Trilogy, designed to turn the company’s raw recruits into highly
productive contributors. TU is unique in that is serves as the company’s primary R&D engine and as its way of
developing its next generation of leadership. Top leadership is on the scene and deeply engaged in it.
Company has a pressing need for new-employee orientation because its growth has been extremely rapid.
Its employee base has grown 35% annually. The program develops recruits skills, relationships, teaches them the
values and vision of the firm and then makes them apply these things in an intense R&D project.
Trilogy University also uses its proprietary software, Leadership.com, which is a multimedia platform for
sharing, responding to, and holding discussions about ideas. People get feedback and exchange ideas. People are
numerically evaluated on presentations for both delivery and content. As a result, people at all levels of the company
engage with each other on strategy etc. Liemandt, the founder and CEO, even gets feedback via the sight.
Three High-Pressure Months
Month One: Divided into sections that represent cross section of organization resulting in horizontal network of
people throughout company. Technical challenges mimic the real job, but time frames are compressed. Goal is for
the students to develop bonds with each other, prioritize and make smart decisions and to leave energized. Section
leaders are the best employees Trilogy has to offer – and that they dedicate themselves 100% to TU for three
months at a time. This is an extraordinary investment. It’s also considered an honor to be asked to instruct.
Month Two: Take on responsibility of inventing the company’s future. Must come up with new business idea.
When each team presents its innovation, most senior exeucitves as well as the CEO is there. 15% get funded.
Month Three. People leave TU on a rolling basis as they find sponsors out in the company who are willing to take
them on. The graduation process is a meeting between the graduate, manager, and the section leader. Each has to
evaluate the student. Student also has written lists of objectives and their thoughts on how they want their careers to
unfold. Typically, manager will set three to five yearlong goals.
TU has become the company’s primary research and development engine – it is the company’s new-product
pipeline. Second, it has become the setting for Trilogy’s leadership development. Third, it provides a great context
and impetus for management to revisit and communicate strategic direction. And fourth, it serves as a constant
source of organizational renewal and transformation.
So Why Doesn’t Everyone Do This?
Trilogy was a very small company when it started doing this. The program remains the best use of senior
management’s time. Other companies argue its too expensive and a waist because its takes the best people off the
line. However, TU is the action at Trilogy. There are reasons why TU can’t be replicated everywhere (such as low
growth industry) But other companies can and should do this.
15) Ally
Ben-Shahar, T. D. (2001). The Leader as Teacher: Change that Lasts. Unpublished Note.
http://reflaction.org/services/leaderteacher.html
The Leader as Teacher: Change that Lasts Tal Ben-Shahar
--Many companies fail to attain meaningful organizational change --Right now the problem is implementing the new
idea in an organization --Challenge is to get an organization to assimilate a new idea and make it its own -Consultant must help create a self contained community of learning in which people who are responsible for the
teaching are the managers themselves --Two stage intervention: first is to teach the content of the intervention
program to the managers; the second is to teach the managers how to teach --Four benefits to this two stage model:
enhanced learning, deeper assimilation of material, a rise in the quantity and a drop in the cost of training, and
enhanced satisfaction and motivation throughout the organization
Week 12: April 24, 26, 28 Systems Thinking
16) DJ
Hackman, J. R. (2003). Learning More by Crossing Levels: Evidence from Airplanes, Hospitals, and Orchestras.
Journal of Organizational Behavior, 29, 905-922.
http://www.courses.fas.harvard.edu/~soc186/AssignedReadings/Hackman-Levels.pdf
Learning More by Crossing Levels: Evidence from Airplanes, Hospitals, and Orchestras.
Journal of Organizational Behavior, 29, 905-922. Written by J.R. Hackman
Summary
 In this article J.R. Hackman attempts to explain that explanatory reductionism is an insufficient means for
explaining the understandings of both the physical and social sciences. Instead, he suggests a system that he
coined “bracketing,” which includes in our conceptual and empirical analysis constructs that exist one level
lower, as well as one level higher, than those that are the main subject of study (this should become clearer as
you read on).
 Reductionism: The concept that regardless of the level of analysis at which we begin, we always have the
impulse to move to the next lower level in our explanation – one of the pillars of all scientific research.
Example: Psychologists may seek to explain within-group conflict, which is a collective phenomenon, in
terms of the evoked identities of the individual members.
 Grand Reductionism: A theory from physicist Steven Weinberg (1995) which holds that all nature is the
way that it is because of simple universal laws, to which all other scientific laws may in some way be
reduced.
 Explanatory Reductionism: A theory from evolutionary biologist Ernst Mayr (1988) which hold that
things operate the way that they do entirely because of the properties of their constituent parts, and that the
operation of even highly complex systems could, in theory, be explained if one had enough knowledge of
their components – Hackman refers to this theory as a “slippery slope that will take us places we do not
want to go.”
 Hackman argues that this “bracketing” should not cause any discomfort because moving down a level is what
we generally do in explanation, and moving up a level is what we commonly do in search of explanations. He
believes that moving up one level of analysis can add at least as much explanatory power, and sometimes more,
as moving down a level.
 Hackman suggest four benefits and examples of each that can accrue from bracketing phenomenon (he
generally completed his research on the group level, so examples involve moving down to the individual level
or up to the level of the system context within which a group operates):
 Enrich understanding of one’s focal phenomena: Hackman’s empirical example looked at the
leadership and mobility process of 78 professional orchestras – specifically, the influence of women
joining traditionally all-male ensembles. When viewed solely at the orchestra level of analysis, the
research findings invite considerable pessimism: the greater the number of women who arrive in these
traditionally male organizations, the worse things get for everyone. Bracketing this finding with analyses
conducted one level down (i.e., at the individual level) and one level up (i.e., at the contextual level)
generates some insights into the reasons for the main-effect findings that otherwise would have escaped
notice – also proved useful in identifying some possible points of leverage for easing the inherent stress of
gender re-composition both within orchestras and in their external contexts.
 Help one discover non-obvious forces that drive those phenomena: Hackman’s empirical example
looked at 300 airline crews and attempted to identify the conditions that help crews develop into selfcorrecting units. In this example (because of bracketing) he determined that the variance was controlled by
institutional or contextual factors (going up a level) such as cockpit technology, the regulatory
environment, and the general culture of flying. Thus, he determined that the structural factors that were
studied varied very little across carriers, countries, and aircraft type because the standard model of the
airline crew is rooted so deeply institutionally that it is immune to any initiatives that seek to change it. In
a contrasting example, in order to look at an occasion where bracketing was effective by going down a
level, Hackman explored the causes of medication errors in hospitals by focusing on eight patient care
teams at two hospitals. He determined that the real variance that caused error was located at the individual
level (going down a level) of analysis – specifically, in the personal leadership exhibited by the nurse
managers. The significance of these studies is that just because one is especially interested in phenomena
at a particular level of analysis – which in both the airline and the hospital research was the level of taskperforming groups – provides no guarantee that the variables that most powerfully shape those phenomena
will be found at the same level.
 Surface unanticipated interactions that shape an outcome of special interest: In order to explore this
benefit of bracketing, Hackman again looked at orchestras, but instead examined why some of the world’s
most well-renowned orchestras did not perform well together whereas some less well-known orchestras

develop into remarkable ensembles. Clearly, the ensemble performance of a professional symphony
orchestra is unquestionably a group-level phenomenon. However, Hackman determined that any robust
explanation of orchestral performance, and any intervention likely to be helpful in improving it, requires
attention to factors at both higher and lower levels of analysis – namely, the orchestra’s community at the
contextual level and the behavior of its music director at the individual level.
 Inform the choice of constructs in the development of actionable theory: In this fourth section
Hackman proposes his coaching model for putting theory into action. The conceptual core of his model is
that teamwork effectiveness is a joint function of three performance processes: a) the amount of effort
members apply to their collective work, b) the appropriateness to the task and situation of the performance
strategies members employ in carrying out the work, c) the level of knowledge and skill that members
apply to their work. There is a pretty nice table on page 916 of the article that simplifies the model and
make it visually very easy to remember… check it out. Hackman believes that bracketing team-level
analysis of coaching with concepts from contextual and individual levels of analysis can increase the
conceptual robustness of coaching models as well as direct practitioners’ attention to the places where
interventions can make the most constructive difference.
In conclusion Hackman provides three issues prominent to his reflections on the study of bracketing: 1. The
Number of Levels: he thinks that three levels is sufficient and still challenging – the level of the study, one
level above, and one level below. Anything more may become too complex. 2. Choice of constructs: Hackman
suggests not importing constructs intact from adjacent fields of study, but rather using a method he refers to as
informed induction. This involves drawing upon all of the knowledge that one can acquire (qualitative and
quantitative) and identifying the structures and processes located at adjacent levels that are most likely to shape
or be shaped by the focal phenomenon. 3. Boundaries of Levels: Hackman stresses that the explanatory power
of bracketing lies in crossing levels of analysis and not blurring them – be sure to have distinct boundaries for
each of the levels analysis in order to fully understand their impact on the phenomenon.
17) John Henry
Kofman, F. & Senge, P (1993). Communities of Commitment: The Heart of Learning Organizations.
Organizational Dynamics, 22 (2), 4-23. http://www.courses.fas.harvard.edu/~soc186/AssignedReadings/SengeSystems.pdf
Kofman, F. & Senge, P (1993). Communities of Commitment: The Heart of Learning Organizations.
Organizational Dynamics, 22 (2), 4-23. http://www.courses.fas.harvard.edu/~soc186/AssignedReadings/SengeSystems.pdf




This paper explores the basic shifts in the guiding ideas of contemporary management
o Argues that main dysfunctions in our institutions-fragmentation, competition, and reactiveness, are
actually byproducts of our success over thousands of years in conquering the physical world and
developing our scientific, industrial culture.
o Fragmentation, competition, and reactiveness are not problems to be solved-they are frozen patters
of thought to be dissolved
The “solvent” they propose is a new way of thinking, feeling, and being
o Make fragmentary thinking systematic
 By recovering the memory of the whole
o Make competition cooperation
 By discovering the community nature of the self
o Make reactiveness creating
 By seeing the generative power of language
These changes together represent a “Galilean Shift”
o Because rather than seeing ourselves as the center, we look at ourselves as a place in a broader
pattern
o From self to community
A core leadership paradox:
o Action is critical, but the action we need can spring only from a reflective territory that includes
not only cognition but body, emotions, and spirit as well.




The three fundamental problems with our current paradigm:
o Fragmentation:
 We fragment problems into pieces; yet the challenges we face are increasingly systematic
 We assign fragments to specialists, but this results in communication barriers
 Need to arrange more horizontal business structures so these barriers don’t exist.
 The barriers represent mental walls
o Competition:
 We’ve become too dependent on it, such that it is our only method of change and
learning
 We need to find a balance between competition and cooperation
o Reactiveness:
 We have become accustomed to changing only in reaction to outside forces, yet the
wellspring of real learning is aspiration, imagination, and experimentation
 People in organizations become accustomed to “waiting for the next crisis,” managers’
belief in the apathy of troops is reinforced, and they become more predisposed to
generate the next crisis.
Roots of our cultural crisis:
o The very same skills of separation, analysis, and control that gave us the power to shape our
environment are producing ecological and social crises in our outer world, and psychological and
spiritual crises in our inner world
o Throughout our history as a species, we have been prepared for short-term threats (like a tiger or
lion), but today our threats are slow, gradual processes (like global warming, global arms race).
 Our system is not prepared to respond to this
A Galilean shift:
o The Primacy of the whole
 the analytic perspective involves a three part process:
 break the system into its component parts
 study each part in isolation
 assemble an understanding of the whole from an understanding of the parts
o The community nature of the self
 The community supports certain ways of being and constrains the expressions of
individuality to certain patterns of behavior
o Language as Generative Practice
 What if observation itself is the beginning of fragmentation?
 We fragment by saying us and them
Conclusion
o Building learning organizations is not an individual task
 Demands a shift that goes all the way to the core of our culture
Week 13: May 1, 3 Final Words
18) Greg
Hesselbein, F. (2005). The Leaders We Need. Leader to Leader, 35, 4-5.
http://www3.interscience.wiley.com.ezp1.harvard.edu/cgi-bin/fulltext/109857173/PDFSTART
Article: “The Leaders We Need” (The article is only 2 pages long)
 Says that the country is currently divided and that this is a testing time for leaders
o Our country’s leaders need a new kind of courage, the courage to lead in times of divisiveness
 The leader should be a healer and a unifier
 There should be leaders at ever level of an enterprise so that we’re not depending on one particular leader
but rather on leaders dispersed through the organization








It is the quality and character of the leader that determine performance
We need leaders who believe that the people are the organization’s greatest assets
The leader should make sure to get across the message of why the organization does what it does as well as
the organization’s purpose and reason for being
The leaders should make sure to listen to others
“Think first, speak last”
The leader should try to find work-life balance and want to help other people realize a good work-life
balance
The leader should share success widely while accepting responsibility for failure
We need leaders who bring hope and unity to an organization
Lecture May 1st '06 [ hi / lo ]
Lecture: May 1st (Conversation between Tal and Seth Klarman)
 Background: Seth runs an investment firm
o He does not think a whole lot about being a leader most of the time
o The goal of the company is to be excellent, not necessarily to be the best
 His leadership style:
o Do unto others
o Try to step into other people’s shoes and see things from their perspective
o Think about how to get the most out of people while making them feel great doing it
 Concern for other people’s well-being
o Believes in leading by example
 Seth does philanthropic work
o He feels an obligation to give back
o He believes all of us have an obligation to leave places better than when we got there
 General points made during the conversation
o Want the employees to be willing to go the extra mile for the firm
o Create an environment where people are committed to excellence
o Can learn as much from what people aren’t doing as what they are doing (e.g. Martin Luther King
Jr. didn’t use violence)
o A good leader does not take credit, he gives credit
 The more credit you give, the more you get back
o Turnover in a company has high costs
 You should the people you have happy
 Do the humane thing when dealing with people
o A lot of times it is the luck of the draw in terms of what challenges you will face
o A good leader finds ways to avoid problems to begin with
o You need to recharge your batteries and get a safe distance from what you’re doing every now and
then
 People want a whole person as a leader, not a workaholic drone
 Need a balance and multiple interests
 Develop all of yourself (e.g. family life) to avoid burning out and to set an example
o The goal, out of college, should not be to work 100 hrs/week
 Q: Can you develop empathy?
o A: absolutely yes
 Q: How do you continue developing as a leader?
o A: you gain credibility as a leader by being right and accumulating knowledge
 Time goes into this
o moral values are incredibly important
 culture and values come from the leader at the top
 leadership and espousing values are one and the same







Q: How does a leader build trust?
o A: it takes time to build
 One betrayal of trust can set you back an enormous amount of time
 Seth likes to keep people up to speed on what the company is doing and why
Q: What are Seth’s strengths as a leader?
o A: empathy
o Being right is very important in the investment business
o Trust is important
o Sometimes you have to be willing to deliver bad news
On the topic of making tough decisions such as firing people…
o While dealing with a problem may be tough, addressing the problem can have such huge benefits
that the personal anxiety of having to deliver bad news is more than overcome by the benefit and
relief it is to everyone else in the organization
o If a person is not carrying his end, it’s not fair to the organization to let that person continue
o Small problems become bigger if they’re not dealt with
Q: What is Seth looking for in hiring a young person out of college?
o A: intelligence; facility with numbers; a team player; intellectual honesty; good sense of humor;
good personality; ethical
Q: What is a mistake you’ve made?
o A: tolerated a difficult person for too long simply because he was a brilliant investor
 The guy wasn’t morally sound
Q: Is it possible to find commonalities between successful, lasting leaders?
o A: they try to do the right thing even if it is difficult
 They have a hierarchy of values
 Charisma can be used for good or bad
 They have a strong moral compass
Q: How can a person without charisma be successful as a leader?
o A: There are a lot of different ways to gain leadership credibility
 You don’t need charisma to be a leader
19) Olivia L
February 1st '06 [ hi / lo]
February 6th '06 [ hi / lo ]
20) Steve
Lecture February 8th '06 [ hi / lo ]
Lecture February 10th '06 [ hi / lo ]
21) Jon
Lectures February 13th '06 [ hi / lo ]
Lectures February 15th '06 [ hi / lo ]
22) Gordon
Lectures February 22nd '06 [ hi / lo ]
Lectures February 27th '06 [ hi / lo ]
23) Kate
Lectures March 1st '06 [ hi / lo ]
Lectures March 8th '06 [ hi / lo ]
24) Josh D
Lectures March 10th '06 [ hi / lo ]
Lectures March 13th '06 [ hi / lo ]