Proposing and
Practicing
Leadership
National Association of State
Budget Officers
21 August 2015
James Bailey, Ph.D.
Hochberg Professor of Leadership Development
School of Business
Proposing Leadership:
Learning Objective
Stimulate thinking about what leadership
is and its impact on others as a
foundation for individual development
Consider…
47 X 47 X 47 = 100,000
(hours per week) X (weeks per year) X (years)
37 X 37 X 37 = 50,000
60 X 50 X 17 = 50,000
Proposition 1
Leadership can be developed, but
it takes time
Consider…
Proposition 2
We want leadership, but we hinder
it
Corollary: Most organizations are
over-managed and under-led
Consider…
Marrisa Mayer
Mitt Romney
Susan Komen
Gina Rinehart
Proposition 3
Leaders are in the spotlight
Consider…
What I want most for Nestle is for everyone to do a
little better, bit by bit, day by day. Peter Brabeck
Proposition 4
Small shifts have a big impact
Consider…
Popular leadership accounts emphasize
individuals
Proposition 5
Leadership means being authentic,
which means being yourself,
skillfully
Authenticity
Of undisputed
origin
Oxford Dictionary
It takes a lot of
money to look
this cheap
Dolly Parton
Consider…
Proposition 6
Good leaders have superb situationsensing skills
Situations and Symbolism
Consider…
Proposition 7
Good leaders aren’t just for the
people or of the people. They are
the people.
Consider…
Proposition 8
Good leaders reveal their
weaknesses
Consider…
Why should anybody WANT to be lead by
you?
Proposition 9
Followers want community,
significance, excitement, and
authenticity
Consider, again…
47 X 47 X 47 = 100,000
37 X 37 X 37 = 50,000
60 X 50 X 17 = 50,000
Proposition 10
Now is the time to consider your
leadership identity and legacy
Practicing Leadership:
Learning Objective
To treat negotiations as a social influence
process that is a critical leadership skill
Discussion
What words come to your
mind when considering the
word “negotiations?”
Free associate.
Barriers to Effective Negotiations
• Fear of failing and the anxiety that such
•
•
fear engenders
Unfounded belief in “universal” strategies
which keeps things simple
Lack of practice comparative to other
cultures, which leads to mediocre skills
and general discomfort
Premises
1.
2.
Conflict is a common
and unavoidable part
of life
Negotiation—
informal or formal—
is the primary
method of resolving
conflict
3.
4.
Conflict &
negotiation more
critical now than
ever before
Conflict has creative
potential that can be
tapped via
negotiations
Negotiation Defined
• Social decision making process
involving parties with non-identical
interests (Conflict)
► Claiming value: Using position and
process to achieve own goal
(Competition)
► Creating value: Partnering and problem
solving for mutual benefit (Collaboration)
Sources of Conflict
1.Resource Scarcity
2.Option Limitation
3.Personality
4.Communication
Conflict Diagnostic Model
Difficult
Manageable
Issue
Principles/values
Divisible
Significance
Major consequences
Minor consequences
Interdependence
Zero-sum
Positive-sum
Continuity
Short term
Long term
Structure
Disorganized
Organized
Third-party
No trusted third
Trusted, powerful third
progress
Unbalanced
Balanced
History
Animosity
None or positive
Determinants of How Conflicts are
Approached
• Situational
►
►
►
►
►
Time pressure
Importance
Personal relevance
Complexity
Etcetera…
• Person
►
►
►
►
►
Functional
background
Transient state
Gender
Personality
Style
Individual Self-Assessment
Thomas-Kilmann Conflict Instrument
Conflict Styles
Assertive: High
concern for own
outcomes
Unassertive: Low
concern for own
outcomes
Cooperative: High
concern for others’
outcomes
Collaborating
Accommodating
Uncooperative: Low
concern for others’
outcomes
Competing
Avoiding
Compromising
is somewhere in the middle
About Styles
You must bake with the flour you have.
-Danish folk saying
Steve Ross, CEO of Time-Warner, and canasta in his
plane
Larry King and Ted Turner of CNN, negotiating salary
Conference Table Thought Experiment
• Does this describe you?
► Situational or dispositional
• Why are you this way?
► Influences from your past or present
• Does your style serve you?
► Adaptive in your current situation
• Do you need to change?
► Other style more effective
X
Role and Effect of Conflict
•
Negative
►
►
►
►
►
►
►
►
►
►
►
Compete v. cooperate
Misperceptions
Emotions
Hindered communications
Blurred issues
Rigidity
Magnifies differences;
minimizes similarities
Escalation
Infection
Distrust
Absorbs time and energy
•
Positive
►
►
►
►
►
►
►
►
Compete to higher level
Sharpens perceptions
Enlists emotions
Builds cohesion/trust
Alters/clarifies issues
Fixes priorities
Points our strengths and
weaknesses
Opportunity for learning
Dyad Exercise
PEMBERTON’S
DILEMMA
Interdependent Relationships:
The Ties that Bind and Liberate
Leave a good name in case you return.
-Kenyan Folk Saying
• All relationships, personal and professional, are
interdependent
►
►
►
•
Contrient: Interests of parties are contrary (zero-sum)
Promotive: Interests of parties are compatible (nonzero-sum)
Mixed Motive: Interest of parties are simultaneously
contrary and compatible
Game Theory
►
Mutual influence and imperfect information, and thus,
the necessity for speculation
Interdependent Exchange
• Dilemma of Honesty
►
Extent to which you disclose positions and
values
• Dilemma of Trust
►
Extent to which you believe other party will
honor agreements
• Dilemma of Perceptions
►
Determining fairness, equity, inputs, outputs,
etcetera…
Trust
• It takes decades to build trust, but only a
•
•
moment to destroy it
An ounce of trust is worth 1000 pounds of
contracts
Relationships are between PEOPLE, not
firms
Models of Negotiation
Competitive
Contrient
Distributive
Positional
Collaborative
Promotive
Integrative
Principled
Flow of Information
Conceal or use
strategically
Disclose; free and
open
Perspective
No effort to
understand
Attempt to understand
Commonalities v.
Differences
Emphasize departures Emphasize shared
interests & goals
Focus on Solutions
At the expense of
other party
Meets needs of all
parties
The Game of Competitive Negotiations
• Distributive or Positional
►
►
►
►
►
►
Contrient interdependence
Resources fixed
Zero-sum relationship
Object is to claim value
View other party as opponent
Game-playing orientation
Exercise
Peach Computers v. Campus Computer
Store
Critical Concepts
•
Target Point
►
►
►
►
Desired outcome (CL)
Determined by Subjective Utilities
 Importance & priorities (e.g. value attached to
outcomes; cost of difficulty or delay
Sets strategy
Dilemma of Winner’s Curse
Alice: “Would you tell me please, which way I ought to go from here?”
Cheshire Cat: “That depends a good deal on where you want to get to.”
Alice: “I don’t much care where…”
Cheshire Cat: “Then it doesn’t matter which way you go.”
-Alice’s Adventures in
Wonderland, Lewis Carroll
Critical Concepts…
•
Specific and moderately difficult goals lead to better
settlements that more moderate ones
►
•
•
•
If too vague, we tend to settle; If too high promotes failure and
frustration; If too low promotes apathy and helplessness
Articulate: Writing down helps to surface tacit,
unrecognized desires or assumptions
Visualize: Assists in triggering psychological striving
mechanisms
Proclaim: Publicly announcing intentions commits one to
persevere in the face of adversity
Aiko Morita and Sony in 1955
Critical Concepts…
•
•
Resistance Point
► Outer limit or boundary; “Walk away point”
► Needs to be firm to prevent being persuaded
► Sets strategy
BATNA
► Best Alternative to Negotiated Agreement
(Calt)
► Base of power & leverage
► Develop assiduously!!
Strategy
You’ve got know when to hold them, know
when to fold them, know when to walk
away, know when to run…”
-The Gambler, Kenny Rogers
• Assessing the situation, anticipating what
will happen, and acting appropriately
Strategic Intentions
• Know the other party’s Subjective Utilities
•
•
(e.g., homework, interpretation)
Modify the other party’s Subjective Utilities
(e.g., positions, persuasion)
Manage the other party’s impression of
your own Subjective Utilities (e.g., silence,
over-emphasis)
The Art of Collaborative Negotiations
• Integrative or Principled
►
►
►
►
►
►
Promotive Interdependence
Resources fluid and can grow
Positive-sum relationship
Object is to create value
View other party as partner
Problem-solving orientation
Dyad Exercise
SALLY SWANSONG VS. LYRIC OPERA
Necessary Conditions
• Potential for mutual gain
►
Fundamental motivation
• High aspirations
►
Laborious & tedious
• Problem-solving orientation
►
Required to work through issues
• Premised on Relationship
►
Dilemmas of Honesty and Trust
Keys to Win-Win Negotiations
•
Focus on shared goals
►
•
Separate people from problem
►
•
Especially if history of animosity or the people are the
problem
Attend to interests, not positions
►
•
bind or are common to parties
All positions have underlying interests
Be creative
►
Avoid pre-conceived solutions or singular
interpretations of the problem
Stage 1: Define the Problem & Goal
• Define in mutually acceptable terms
►
►
Use consensus
Keep as simple as possible
• Depersonalize
►
Don’t place blame, don’t make it about people
• Separate problem from solution
►
Premature consideration of solutions is
counter-productive
Stage 2: Identify Interests
• Substantive
►
Objective, tangible outcomes
• Process
►
Tone or structure of proceedings
• Relationship
►
Respect, trust, long & short-term
• Principles
►
Values, precedent
Stage 3: Identify Obstacles
• Identify obstacles that stand between you
and your goal
►
►
►
Things that have to be accomplished or
overcome to achieve goal
Quantify and assign responsibility in a
consensual manner
Don’t entertain problems associated with
given solutions
Stage 4: Develop Criteria for Solutions
• Conditions and outcomes of any
acceptable solution
►
►
►
►
►
Costs
Benefits
Reputation
Relationship
Synergy
Stage 5: Generate Alternatives
• Brainstorm
►
Free-flowing and non-evaluative
• Surveys
►
Solicit broad input
• Be prepared to:
►
►
►
►
Expand resources
Log-roll
Cut costs of compliance
Seek bridge solutions
Stage 6: Evaluate and Select Alternatives
•
•
•
•
•
Narrow range of alternatives using criteria
Use quality and acceptability as standards
Justify subjective utilities
Use sub-groups, caucuses and time-outs
Keep decisions tentative and conditional
until final agreement
X