Contemporary Issues in Leadership by Robert L. Taylor and William E. Rosenbach (Editors) Westview Press © 2006 290 pages Focus Leadership & Mgt. Strategy Sales & Marketing Finance Human Resources IT, Production & Logistics Career Development Small Business Economics & Politics Industries Regions Concepts & Trends Take-Aways • Great leaders often are naturals who like what they do and, therefore, excel at it. • Leaders help people join forces to bring about positive results. • People follow leaders who make them feel significant, share their beliefs and generate excitement. • To be a leader, be confident, use your power in "pro-social" ways and learn to see the future impact of your actions. • To think like an entrepreneur, listen to people who work directly with customers. • Leaders relate to their followers as a group or individually. • Hierarchical structures are better for reaching technical goals, but a circular organizational structure is best for solving more complex problems. • Corporate leaders still succumb to hubris, which is a sort of narcissism. • The growing academic study of leadership stems from increasing U.S. interest in the military, industry and politics. • As seen in The Wizard of Oz, everyone has feelings, intellect and potential courage. Rating Overall 8 (10 is best) Applicability 8 Innovation Style 6 6 To purchase abstracts, personal subscriptions or corporate solutions, visit our Web site at www.getAbstract.com or call us at our U.S. office (954-359-4070) or Switzerland office (+41-41-367-5151). getAbstract is an Internet-based knowledge rating service and publisher of book abstracts. getAbstract maintains complete editorial responsibility for all parts of this abstract. The respective copyrights of authors and publishers are acknowledged. All rights reserved. No part of this abstract may be reproduced or transmitted in any form or by any means, electronic, photocopying, or otherwise, without prior written permission of getAbstract Ltd (Switzerland). This summary is restricted to the personal use of Jessica Harbour (jessicaharbour@economist.com) Relevance What You Will Learn In this Abstract, you will learn: 1) What makes someone an exceptional leader; 2) How leadership differs from management; and 3) Why it is important to be a good follower. Recommendation This collection of essays from 21 contributors is inspiring reading for those who want to build their leadership talents or improve their companies. It is designed for good leaders, or for people who aspire to that rank and are open to being taught. Interestingly, the book also addresses how people can become better followers. Unlike many other books within this topic range, this anthology makes a distinction between leadership, which it sees as direction setting, and management, which it sees as somewhat more procedural. The essays are interesting, wide-ranging and practical. getAbstract finds that the 21 voices here have a unified mission: to explain why some people are better than others at getting attention, accomplishing specific tasks and providing their followers with a sense of meaning. Abstract “Great leaders are made by great groups and by organizations that create the social architecture of respect and dignity.” The Leadership Puzzle “Leadership is all about getting people to work together to make things happen that might not otherwise occur or to prevent things from happening that would ordinarily take place.” Students of leadership initially tended to concentrate on the leader as a “Great Person.” However, subsequent scientific studies find that leaders are not exceptionally brilliant, splendid speakers or highly energetic. Instead, leaders know how to forge relationships and accomplish tasks. In fact, analysts find that leaders’ ability to accomplish tasks is even more important than their interpersonal skills. Transformational and Transactional Leadership Experts focus on two types of leadership: “transactional” and “transformational.” Transactional leaders forge a trade-off with their followers. Transactional leaders enable their followers to act in their own self-interest, as long as the leaders achieve their goals. Transactional leadership is commonly associated with effective management. “Character…is at the heart of transformational leadership…drives transformational leadership behavior, and…enables such leaders to construct transformational organizational cultures.” Followers closely identify with a transformational leader’s beliefs. That shared sense of purpose motivates followers to act and to achieve the leader’s mission. Transformational leaders encourage their followers to forget self-interest and to move toward fulfilling greater ideals. This builds the followers’ self-esteem. Transformational leaders shape their organizational cultures to reflect the values they share with their followers. The followers’ role is to turn intangible values into concrete action, focus on particular goals, coordinate individual efforts and unify the members of the group. Leadership Personalities Academic studies achieve varied results when they try to isolate the characteristics of effective leaders. In work done in 1948 that is still well-regarded, scholar Ralph Stogdill proposed that leaders have five “clusters” of characteristics that make them good at leading. The five are: “capacity (intelligence, judgment); achievement (knowledge, Contemporary Issues in Leadership © Copyright 2006 getAbstract 2 of 5 “Although effective managers must practice good leadership and effective leaders must possess managerial skills, leadership is not management or some part or principle of it.” “Leadership is a relationship between those who aspire to lead and those who choose to follow.” “Vision is not a passing fad; it is an increasingly important part of an organization’s struggle to be fast, flexible and comprehensive.” “The term vision may actually lead in frequency of usage in the mahogany halls of senior management, ahead of total quality, reengineering, strategic intent and competitive advantage.” scholarship); responsibility (dependability, aggressiveness, self control, desire to excel); participation (activity, sociability, cooperation, adaptability)” and “status (position, popularity).” In 1990, subsequent research identified five more factors that leaders have in common: they are reliable, agreeable, extroverted, emotionally stable and open to new experiences. Current theory proposes that anyone can become a leader to some degree if he or she can: • Be confident about taking action, and controlling his or her life. • Use power in “pro-social” ways that extend beyond personal gain or narcissism. • Develop personal vision by seeing the future impact of today’s actions. Leaders must have vision, a future view of events. Good leaders have the ability to convey their visions and make the future unfold as they hope it will. This generally begins with writing a vision statement, a process that often goes badly. Commonly, vision statements are confusing. They tend to cite goals that are really associated with strategies and objectives, not vision. To craft an effective vision statement, write a brief, memorable declaration. Then share your vision; make it more tangible by telling stories and using metaphors. Good leaders consistently align their actions with their verbal messages. They see their followers in a positive light, and care about their well being. Strong leaders provide the proper support to help their followers accept new challenges. Leaders assist others in finding meaning in their work and in their lives. Emotional Intelligence Leaders forge relationships with groups or individuals. The individual relationships tend to be more intellectual but, in both cases, good leaders exhibit highly developed “emotional” or “social intelligence.” They are self-aware, socially skilled, disciplined and able to deal capably with other people. People with emotional intelligence think before they act, focus on their goals, understand other people’s emotions and have the skill to establish common grounds for discussion. In this instance, scholars concluded that even the most talented executive cannot succeed without emotional intelligence. Some major corporations that wanted to encourage future leaders in their ranks hired psychologists to sort out leadership characteristics. The psychologists found that leaders are smart and have solid, long-term vision, but that their emotional intelligence is twice as important as either intellect or vision. One study shows that companies where the employees have high emotional intelligence earn higher profits. The reverse is also demonstrably true. A workforce marked by a lack of emotional intelligence can mean lower profits. Leaders can learn emotional intelligence. People who know their limitations can plan to avoid stressful situations or to work around events that tug at their weaknesses. Oneon-one training is the best way to learn how to improve your emotional intelligence. Such training focuses on correcting undesirable social habits, such as acting impulsively or being a bad listener. Because this process requires people to correct brain-based emotional drives, it is time-consuming. Natural Leaders: Confidence But Not Hubris The current academic emphasis on studying leadership qualities stems from America’s increasing interest in the military, industry and politics. Academics have tried to pin down Contemporary Issues in Leadership © Copyright 2006 getAbstract 3 of 5 “The most effective leaders are alike in one crucial way: They all have a high degree of what has come to be known as emotional intelligence.” “Leadership is not hierarchical, topdown, or based on positional power and authority.” “The dangers of top-down leadership, vivid examples of colossal folly and disaster, are so numerous that one doesn’t know where to begin.” the complex chemistry that makes people great leaders, in hopes of then replicating these traits by training qualified leadership candidates. The very concept that it is possible to create leaders in a 30-day course emerges from America’s do-it-yourself mentality. In truth, great leaders are often naturals. Could anyone learn to be Lee Iacocca, for example? The former Chrysler CEO became a leadership legend after his triumph over Japanese carmakers. He restored some of America’s prestige in auto manufacturing. But Iacocca is a unique leader, as are – for instance – Colin Powell and Norman Schwarzkopf, two generals who excelled. They became great leaders for the same reason that leadership is hard to teach: they are naturally talented at it and they like it. They breathe leadership and instinctively understand how it works. They are confident, but not too confident. Overconfidence is a great leadership pitfall. Even good leaders can stumble when they become cocky, and disregard their advisers and the norms of their societies. Napoleon’s 1812 defeat in Russia is a classic case of leadership hubris. Leading 500,000 men – the world’s largest army to date – Napoleon predicted a quick victory. But severe winter weather, poor planning and bad luck reduced his troops to a straggling band of 20,000 men in full retreat. Corporate leaders continue to fall victim to hubris. In 1994, Novell, a software company, bought WordPerfect for $1.4 billion, hoping to create an empire to rival Microsoft. But Novell alienated WordPerfect’s employees, who defected. By 1996, Novell had to sell WordPerfect for $124 million, 90% less than its purchase price. Similarly, Quaker Oats bought Snapple, believing that its superior management could multiply its profits. The effort failed, forcing Quaker Oats to sell Snapple at a $1.4 billion loss. The right organizational structure can prevent hubris, while improving morale and productivity. Organizations that lack the proper structure cannot implement change or control leaders’ overconfidence, because they do not establish effective relationships between leaders and their followers. Studies show that while hierarchical structures are better suited to achieving technical goals, organizations with complicated “adaptive” problems need a circular organizational structure. In complex situations, a circular structure lets people share expertise, information and power. But, according to one expert, a “top-down” hierarchical structure becomes “dysfunctional” and “maladaptive” in such situations. Acting Like a Leader To be a contemporary leader, you must be able to do four key things: “Hubris derives from an overbearing sense of grandiosity, need for admiration and self-absorption – in a word, narcissism.” 1. Appreciate and nurture talent – Leaders must not be afraid to hire people who are smarter or more talented than they are. Often, leaders are not the most talented people in their organizations. The head of Disney animation could not draw. The head of the research center where the PC was invented was not a computer engineer. 2. Focus on what is important – When an organization loses sight of its main goals, it becomes a slogging bureaucracy. Physicist Richard Feynman worked on the WWII Manhattan Project to develop the atomic bomb. To maintain security, the U.S. Army initially refused to tell the scientists what their calculations would be used to do; Feynman objected. He persuaded the generals to tell the physicists what they were working on and what role it would serve in ending WWII. Once the physicists knew the importance of the work, they improved the process and worked faster. Contemporary Issues in Leadership © Copyright 2006 getAbstract 4 of 5 3. Build trust – Trust unites a group with motivation and integrity. 4. Develop a close tie between leaders and followers – Bond with your followers to create an emotional link that pulls everyone in the organization to a higher level. Follow the Leader People will follow you if you meet three of their pivotal emotional needs: “Helping people learn by allowing them to make mistakes takes true courage and results in organizational learning.” “Freedom to uncover new ideas and create an environment that encourages followers to share their best thinking with their leaders is essential to innovation and change.” 1. Significance – Make the participants in your organization feel like they matter. People need to be valued and recognized. When a leader tells someone that his or her contribution is significant, that praise adds meaning to the work, rewards the worker and creates the basis for a relationship. 2. Shared beliefs – A common purpose builds a sense of community and mutuality. 3. Excitement – When people gather in large groups with a common cause, they share an emotional connection that generates enthusiasm and energy. Remember that people who are in frontline positions, though not necessarily in leadership jobs, frequently arrive at the best solutions to problems, because they have hands-on knowledge. Listening to the people in the trenches is pivotal to thinking like an entrepreneur. Yet, while leaders must forge strong relationships with their followers, not all followers should have equal access to their leaders. Followers should be educated about the organization’s purpose and goals, but they should also be screened to determine their level of access. Followers generally fall into four types: • Subordinates take orders and execute their responsibilities competently. A person can also become a subordinate if he or she does not fully endorse the organization’s work, or regards his or her responsibilities as ‘just a job.’ • Politicians excel at managing relationships, not performing tasks. They are usually strong “people persons” who can motivate others and unravel personnel problems. • Contributors work hard and they are valuable, but they may not know or understand the organization’s strategic direction, or have the interpersonal skills needed to become leaders. They can learn those skills, but do not have them as contributors. • Partners have high energy, build strong relationships and have strategic insight. To participate in the global marketplace, develop partnerships as a source of new leaders. To identify and classify followers, look at each person’s level of initiative, energy and activity. Ask how well they work with others, how self-reliant they are when they must solve problems and how well they cope with change. Wizards Good leaders display a variety of characteristics, but actor Ray Bolger, who played the Scarecrow in the film The Wizard of Oz, may have provided the best description of a leader when someone asked him what people should take with them from the film. He explained that the classic movie shows that everyone has feelings, intellect and the potential for courage. About The Authors William E. Rosenbach is a professor in the Eisenhower Leadership Studies program and teaches management at Gettysburg College. Robert L. Taylor is a professor of management and dean emeritus of the College of Business at the University of Louisville. Contemporary Issues in Leadership © Copyright 2006 getAbstract 5 of 5