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Unit 4: Business Strategy & Leadership
                Lesson 10: Strategic Leadership
Leadership, defined
        “Process of social influence in which one person can enlist the aid
         and support of others in the accomplishment of a common task.” –
         Wikipedia (The Free Encyclopedia)

        “The only definition of a leader is someone who has followers.” -
         Peter Ducker (Writer, Management Consultant, Self described
         „social ecologist‟)

        “Leadership is influence - nothing more, nothing less.” - John C
         Maxwell (Internationally respected leadership expert, speaker, coach
         and author)

        “Leadership is a function of knowing yourself, having a vision that is
         well communicated, building trust among colleagues, and taking
         effective action to realize your own leadership potential.” – Warren
2        Bennis (American scholar, organizational consultant and author)
TRIUNE GLOBAL | Hardy Alexander                                              May 7, 2012
Strategic Leadership Models


                                                   Contingency &
           Great Man
                                  Trait Theory      Situational
            Theory
                                                      Theory



           Behavioral             Transactional   Transformational
            Theory                   Theory        & Laissez Faire


3
TRIUNE GLOBAL | Hardy Alexander                                May 7, 2012
Strategic Leadership Models
     Great Man Theories

        "Great leaders are born, not made"? This quote sums up the basic tenant of
         the great man theory of leadership, which suggests that the capacity for
         leadership is inborn. According to this theory, you're either a natural born
         leader or you're not.

        The term "Great Man" was used because, at the time, leadership was
         thought of primarily as a male quality, especially in terms of military
         leadership.

        The mythology behind some of the world's most famous leaders such as
         Abraham Lincoln, Julius Caesar, Mahatma Gandhi, and Alexander the Great
         helped contribute to the notion that great leaders are born and not made.

        In many examples, it seems as if the right man for the job seems to emerge
         almost magically to take control of a situation and lead a group of people into
4        safety or success.
TRIUNE GLOBAL | Hardy Alexander                                                     May 7, 2012
Strategic Leadership Models
     Trait Theories

        The trait model of leadership is based on the characteristics of many leaders
         - both successful and unsuccessful - and is used to predict leadership
         effectiveness.

        The resulting lists of traits are then compared to those of potential leaders to
         assess their likelihood of success or failure

        Core traits identified are:
             Achievement drive: High level of effort, high levels of ambition, energy and
              initiative | Leadership motivation: an intense desire to lead others to reach shared
              goals | Honesty and integrity: trustworthy, reliable, and open | Self-confidence:
              Belief in one’s self, ideas, and ability | Cognitive ability: Capable of exercising
              good judgment, strong analytical abilities, and conceptually skilled | Knowledge of
              business: Knowledge of industry and other technical matters | Emotional
              Maturity: well adjusted, does not suffer from severe psychological disorders |
              Others: charisma, creativity and flexibility

        These traits are not responsible solely to identify whether a person will be a
         successful leader or not, but they are essentially seen as preconditions that
5        endow people with leadership potential
TRIUNE GLOBAL | Hardy Alexander                                                               May 7, 2012
Strategic Leadership Models
     Behavioral Theories

        Behavioral theories of leadership do not seek inborn traits or
         capabilities. Rather, they look at what leaders actually do.

        If success can be defined in terms of describable actions, then it
         should be relatively easy for other people to act in the same way.

        Assumption, leaders can be made, rather than are born.
         Successful leadership is based in definable, learnable behavior.




6
TRIUNE GLOBAL | Hardy Alexander                                           May 7, 2012
Strategic Leadership Models
     Situational & Contingency Theories

        Leadership is a process whereby, the situation can influence
         which type of leadership behavior to take.

        Leaders are most effective when they make their behavior
         contingent with the situation, this is also know as the contingency
         approach to leadership. Both internal and external environments
         can have a significant impact on leader effectiveness.

        The overall situational leadership approach suggests that the
         leader must act in a flexible manner. The leader should be able to
         diagnose the leadership style appropriate to the situation, and be
         able to apply the appropriate style.

7
TRIUNE GLOBAL | Hardy Alexander                                          May 7, 2012
Strategic Leadership Models
     Hersey-Blanchard Situational Leadership
     Theory

        The Hersey-Blanchard Situational Leadership Theory was
         created by Dr Paul Hersey, a professor and author of "The
         Situational Leader," and Ken Blanchard, author of the best selling
         "The One-Minute Manager," among others.
        The theory states that instead of using just one style, successful
         leaders should change their leadership styles based on the
         maturity of the people they're leading and the details of the task.
        Using this theory, leaders should be able to place more or less
         emphasis on the task, and more or less emphasis on the
         relationships with the people they're leading, depending on
         what's needed to get the job done successfully.

8
TRIUNE GLOBAL | Hardy Alexander                                           May 7, 2012
Strategic Leadership Models
     Hersey-Blanchard Situational Leadership
     Theory

        The Hersey-Blanchard Situational Leadership Theory was
         created by Dr Paul Hersey, a professor and author of "The
         Situational Leader," and Ken Blanchard, author of the best selling
         "The One-Minute Manager," among others.
        The theory states that instead of using just one style, successful
         leaders should change their leadership styles based on the
         maturity of the people they're leading and the details of the task.
        Using this theory, leaders should be able to place more or less
         emphasis on the task, and more or less emphasis on the
         relationships with the people they're leading, depending on
         what's needed to get the job done successfully.

9
TRIUNE GLOBAL | Hardy Alexander                                           May 7, 2012
Strategic Leadership Models
     Transactional Theory

        This style of leadership starts with the idea that team members
         agree to obey their leader totally when they accept a job.
        The "transaction" is usually the organization paying the team
         members in return for their effort and compliance. The leader has a
         right to "punish" team members if their work doesn't meet the pre-
         determined standard.
        Team members can do little to improve their job satisfaction under
         transactional leadership.
        Transactional leadership is really a type of management, not a true
         leadership style, because the focus is on short-term tasks. It has
         serious limitations for knowledge-based or creative work, however it
         can be effective in other situations.

10
TRIUNE GLOBAL | Hardy Alexander                                            May 7, 2012
Strategic Leadership Models
     Transformational & Laissez Faire Theory

        Transformational Leadership: People with this leadership style
         are true leaders who inspire their teams constantly with a shared
         vision of the future.

        Laissez-Faire: This French phrase means "leave it be," and it's
         used to describe leaders who leave their team members to work
         on their own. It can be effective if the leader monitors what's
         being achieved and communicates this back to the team
         regularly. Most often, laissez-faire leadership is effective when
         individual team members are very experienced and skilled self-
         starters.


11
TRIUNE GLOBAL | Hardy Alexander                                         May 7, 2012
Leadership Styles
        Autocratic Leadership
             This is an extreme form of transactional leadership (this approach
              assumes that work is done only because it is rewarded), where
              leaders have absolute power over their workers or team.
             Staff and team members have little opportunity to make suggest ions,
              even if these would be in the team‟s or the organization‟s best
              interests.
             Autocratic leaders make decisions without consulting their teams.
              This is considered appropriate when decisions genuinely need to be
              taken quickly, when there is no need for inputs from the team, and
              when team agreement isn‟t necessary fro a successful outcome.
             Most people tend to resent being treated like this therefore, autocratic
              leadership often leads to high levels of absenteeism and staff
12            turnover.
TRIUNE GLOBAL | Hardy Alexander                                                    May 7, 2012
Leadership Styles
        Bureaucratic Leadership
             Bureaucratic leaders work “by the book”. They follow rules rigorously,
              and they ensure their staff follows procedures precisely.
             This is a very appropriate style for work involving serious security
              risks (such as working with machinery, with toxic substances, or at
              dangerous heights) or where large sums of money are involved (such
              as handling cash).




13
TRIUNE GLOBAL | Hardy Alexander                                                 May 7, 2012
Leadership Styles
        Charismatic Leadership
             A charismatic leadership style can seem similar to transformational
              leadership (leads to positive changes in those who follow such
              leaders), because these leaders inspire lots of enthusiasm in their
              teams and are very energetic in driving others forward.
             However, charismatic leaders tend to believe more in themselves
              than in their teams, and this creates a risk that a project, or even an
              entire organization, might collapse if the leader leaves.
             In the eyes of the followers, success is directly connected to the
              presence of the charismatic leader.



14
TRIUNE GLOBAL | Hardy Alexander                                                    May 7, 2012
Leadership Styles
        Democratic Leadership or Participative Leadership
             Although democratic leaders make the final decisions, they invite
              other members of the team to contribute to the decision-making
              process.
             This not only increases job satisfaction by involving team members,
              but it also helps to develop people‟s skills.
             Team members feel in control of their own destiny, so they are
              motivated to work hard by more than just a financial reward




15
TRIUNE GLOBAL | Hardy Alexander                                                   May 7, 2012
Leadership Styles
        Laissez-faire Leadership
             This French phrase means “leave it be”, and it‟s used to describe
              leaders who leave their team members to work on their own.
             It can be effective if the leader monitors what‟s being achieved and
              communicates this back to the team regularly.
             Most often laissez-faire leadership is effective when individual team
              members are very experienced and skilled self-starters.
             Unfortunately, this type of leadership also occurs when managers
              don‟t apply sufficient control.




16
TRIUNE GLOBAL | Hardy Alexander                                                   May 7, 2012
Leadership Styles
        People-oriented Leadership or Relations-oriented Leadership
             This is the opposite of task-oriented leadership. With people-oriented
              leadership, leaders are totally focused on organizing, supporting and
              developing the people in their teams.
             It‟s a participative style and it tends to encourage good teamwork and
              creative collaboration.

        Servant Leadership
             In many ways, servant leadership is a form of democratic leadership,
              because the whole team tends to be involved in decision-making.



17
TRIUNE GLOBAL | Hardy Alexander                                                  May 7, 2012
Leadership Styles
        Task-oriented Leadership
             Highly task oriented leaders focus only on getting the job done, and
              they can be quite autocratic.
             They actively define the work and the roles required, put structures in
              place, plan, organize and monitor.
             However, because task-oriented leaders don‟t tend to think much
              about the well-being of their teams, this approach can suffer many of
              the flaws of autocratic leadership, with difficulties in motivating and
              retaining staff.




18
TRIUNE GLOBAL | Hardy Alexander                                                   May 7, 2012
Leadership Styles
        Transactional Leadership
             This style of leadership starts with the idea that the team members
              agree to obey their leader totally when they accept a job. The
              “transaction” is usually the organization paying the team members in
              return of their effort and compliance.
             The leader has a right to “punish” team members if their work doesn‟t
              meet the pre-determined standard. Team members can do little to
              improve their job satisfaction under transactional leadership.
             This is really a type of management, not a true leadership style
              because the focus is on short-term tasks.
             It has serious limitations for knowledge-based or creative work,
              however it can be effective in other situations.

19
TRIUNE GLOBAL | Hardy Alexander                                                  May 7, 2012
Leadership Styles
        Transformational Leadership
             People with this style are true leaders who inspire their teams
              constantly with a shared vision of the future.
             While this leader‟s enthusiasm is often passed on to the team, he/she
              need to be supported by “detail people”. That‟s why, in many
              organizations, both transactional and transformational leadership are
              needed.
             The transactional leaders (or managers) ensure that routine work is
              done reliably, while the transformational leaders look after initiatives
              that add new value.



20
TRIUNE GLOBAL | Hardy Alexander                                                     May 7, 2012
Hardy Alexander
Founder & Director | Triune Global
Bangalore – 560077
Contact: +91 96864 48698
Email: halexander@triuneglobal.com
My Blog: dayscore.wordpress.com




                                  Thank you
TRIUNE GLOBAL | Hardy Alexander        21     May 7, 2012

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Strategic Leadership

  • 1. Unit 4: Business Strategy & Leadership Lesson 10: Strategic Leadership
  • 2. Leadership, defined  “Process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task.” – Wikipedia (The Free Encyclopedia)  “The only definition of a leader is someone who has followers.” - Peter Ducker (Writer, Management Consultant, Self described „social ecologist‟)  “Leadership is influence - nothing more, nothing less.” - John C Maxwell (Internationally respected leadership expert, speaker, coach and author)  “Leadership is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realize your own leadership potential.” – Warren 2 Bennis (American scholar, organizational consultant and author) TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 3. Strategic Leadership Models Contingency & Great Man Trait Theory Situational Theory Theory Behavioral Transactional Transformational Theory Theory & Laissez Faire 3 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 4. Strategic Leadership Models Great Man Theories  "Great leaders are born, not made"? This quote sums up the basic tenant of the great man theory of leadership, which suggests that the capacity for leadership is inborn. According to this theory, you're either a natural born leader or you're not.  The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership.  The mythology behind some of the world's most famous leaders such as Abraham Lincoln, Julius Caesar, Mahatma Gandhi, and Alexander the Great helped contribute to the notion that great leaders are born and not made.  In many examples, it seems as if the right man for the job seems to emerge almost magically to take control of a situation and lead a group of people into 4 safety or success. TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 5. Strategic Leadership Models Trait Theories  The trait model of leadership is based on the characteristics of many leaders - both successful and unsuccessful - and is used to predict leadership effectiveness.  The resulting lists of traits are then compared to those of potential leaders to assess their likelihood of success or failure  Core traits identified are:  Achievement drive: High level of effort, high levels of ambition, energy and initiative | Leadership motivation: an intense desire to lead others to reach shared goals | Honesty and integrity: trustworthy, reliable, and open | Self-confidence: Belief in one’s self, ideas, and ability | Cognitive ability: Capable of exercising good judgment, strong analytical abilities, and conceptually skilled | Knowledge of business: Knowledge of industry and other technical matters | Emotional Maturity: well adjusted, does not suffer from severe psychological disorders | Others: charisma, creativity and flexibility  These traits are not responsible solely to identify whether a person will be a successful leader or not, but they are essentially seen as preconditions that 5 endow people with leadership potential TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 6. Strategic Leadership Models Behavioral Theories  Behavioral theories of leadership do not seek inborn traits or capabilities. Rather, they look at what leaders actually do.  If success can be defined in terms of describable actions, then it should be relatively easy for other people to act in the same way.  Assumption, leaders can be made, rather than are born. Successful leadership is based in definable, learnable behavior. 6 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 7. Strategic Leadership Models Situational & Contingency Theories  Leadership is a process whereby, the situation can influence which type of leadership behavior to take.  Leaders are most effective when they make their behavior contingent with the situation, this is also know as the contingency approach to leadership. Both internal and external environments can have a significant impact on leader effectiveness.  The overall situational leadership approach suggests that the leader must act in a flexible manner. The leader should be able to diagnose the leadership style appropriate to the situation, and be able to apply the appropriate style. 7 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 8. Strategic Leadership Models Hersey-Blanchard Situational Leadership Theory  The Hersey-Blanchard Situational Leadership Theory was created by Dr Paul Hersey, a professor and author of "The Situational Leader," and Ken Blanchard, author of the best selling "The One-Minute Manager," among others.  The theory states that instead of using just one style, successful leaders should change their leadership styles based on the maturity of the people they're leading and the details of the task.  Using this theory, leaders should be able to place more or less emphasis on the task, and more or less emphasis on the relationships with the people they're leading, depending on what's needed to get the job done successfully. 8 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 9. Strategic Leadership Models Hersey-Blanchard Situational Leadership Theory  The Hersey-Blanchard Situational Leadership Theory was created by Dr Paul Hersey, a professor and author of "The Situational Leader," and Ken Blanchard, author of the best selling "The One-Minute Manager," among others.  The theory states that instead of using just one style, successful leaders should change their leadership styles based on the maturity of the people they're leading and the details of the task.  Using this theory, leaders should be able to place more or less emphasis on the task, and more or less emphasis on the relationships with the people they're leading, depending on what's needed to get the job done successfully. 9 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 10. Strategic Leadership Models Transactional Theory  This style of leadership starts with the idea that team members agree to obey their leader totally when they accept a job.  The "transaction" is usually the organization paying the team members in return for their effort and compliance. The leader has a right to "punish" team members if their work doesn't meet the pre- determined standard.  Team members can do little to improve their job satisfaction under transactional leadership.  Transactional leadership is really a type of management, not a true leadership style, because the focus is on short-term tasks. It has serious limitations for knowledge-based or creative work, however it can be effective in other situations. 10 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 11. Strategic Leadership Models Transformational & Laissez Faire Theory  Transformational Leadership: People with this leadership style are true leaders who inspire their teams constantly with a shared vision of the future.  Laissez-Faire: This French phrase means "leave it be," and it's used to describe leaders who leave their team members to work on their own. It can be effective if the leader monitors what's being achieved and communicates this back to the team regularly. Most often, laissez-faire leadership is effective when individual team members are very experienced and skilled self- starters. 11 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 12. Leadership Styles  Autocratic Leadership  This is an extreme form of transactional leadership (this approach assumes that work is done only because it is rewarded), where leaders have absolute power over their workers or team.  Staff and team members have little opportunity to make suggest ions, even if these would be in the team‟s or the organization‟s best interests.  Autocratic leaders make decisions without consulting their teams. This is considered appropriate when decisions genuinely need to be taken quickly, when there is no need for inputs from the team, and when team agreement isn‟t necessary fro a successful outcome.  Most people tend to resent being treated like this therefore, autocratic leadership often leads to high levels of absenteeism and staff 12 turnover. TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 13. Leadership Styles  Bureaucratic Leadership  Bureaucratic leaders work “by the book”. They follow rules rigorously, and they ensure their staff follows procedures precisely.  This is a very appropriate style for work involving serious security risks (such as working with machinery, with toxic substances, or at dangerous heights) or where large sums of money are involved (such as handling cash). 13 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 14. Leadership Styles  Charismatic Leadership  A charismatic leadership style can seem similar to transformational leadership (leads to positive changes in those who follow such leaders), because these leaders inspire lots of enthusiasm in their teams and are very energetic in driving others forward.  However, charismatic leaders tend to believe more in themselves than in their teams, and this creates a risk that a project, or even an entire organization, might collapse if the leader leaves.  In the eyes of the followers, success is directly connected to the presence of the charismatic leader. 14 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 15. Leadership Styles  Democratic Leadership or Participative Leadership  Although democratic leaders make the final decisions, they invite other members of the team to contribute to the decision-making process.  This not only increases job satisfaction by involving team members, but it also helps to develop people‟s skills.  Team members feel in control of their own destiny, so they are motivated to work hard by more than just a financial reward 15 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 16. Leadership Styles  Laissez-faire Leadership  This French phrase means “leave it be”, and it‟s used to describe leaders who leave their team members to work on their own.  It can be effective if the leader monitors what‟s being achieved and communicates this back to the team regularly.  Most often laissez-faire leadership is effective when individual team members are very experienced and skilled self-starters.  Unfortunately, this type of leadership also occurs when managers don‟t apply sufficient control. 16 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 17. Leadership Styles  People-oriented Leadership or Relations-oriented Leadership  This is the opposite of task-oriented leadership. With people-oriented leadership, leaders are totally focused on organizing, supporting and developing the people in their teams.  It‟s a participative style and it tends to encourage good teamwork and creative collaboration.  Servant Leadership  In many ways, servant leadership is a form of democratic leadership, because the whole team tends to be involved in decision-making. 17 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 18. Leadership Styles  Task-oriented Leadership  Highly task oriented leaders focus only on getting the job done, and they can be quite autocratic.  They actively define the work and the roles required, put structures in place, plan, organize and monitor.  However, because task-oriented leaders don‟t tend to think much about the well-being of their teams, this approach can suffer many of the flaws of autocratic leadership, with difficulties in motivating and retaining staff. 18 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 19. Leadership Styles  Transactional Leadership  This style of leadership starts with the idea that the team members agree to obey their leader totally when they accept a job. The “transaction” is usually the organization paying the team members in return of their effort and compliance.  The leader has a right to “punish” team members if their work doesn‟t meet the pre-determined standard. Team members can do little to improve their job satisfaction under transactional leadership.  This is really a type of management, not a true leadership style because the focus is on short-term tasks.  It has serious limitations for knowledge-based or creative work, however it can be effective in other situations. 19 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 20. Leadership Styles  Transformational Leadership  People with this style are true leaders who inspire their teams constantly with a shared vision of the future.  While this leader‟s enthusiasm is often passed on to the team, he/she need to be supported by “detail people”. That‟s why, in many organizations, both transactional and transformational leadership are needed.  The transactional leaders (or managers) ensure that routine work is done reliably, while the transformational leaders look after initiatives that add new value. 20 TRIUNE GLOBAL | Hardy Alexander May 7, 2012
  • 21. Hardy Alexander Founder & Director | Triune Global Bangalore – 560077 Contact: +91 96864 48698 Email: halexander@triuneglobal.com My Blog: dayscore.wordpress.com Thank you TRIUNE GLOBAL | Hardy Alexander 21 May 7, 2012