Finalized version for TUE rehearsal.pptx

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999THEHIGHER

AMBITION LEADER

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Chan Kwan Hang Kate Tai Hui Kwan Herbert Ma Hoi Yan Heidi Hung Kai Fai Kelvin Liu Heng Lynette Chan Ryan

Wu Jia Yi Roger

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Outline

Overview

Higher Ambition

leadership (HAL)

How HAL Influences

Management

Food for

Thought

Conclusion

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HIGHER AMBITION LEADER…

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999 Management ’s Next

Higher Ambition Leader

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Wait a minute…

Successful Leader =

Higher Ambition Leader?

Econ value generated?

Corporate Social Responsibilities

???

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Leader & Leadership

Someone who can influence others and who has managerial authority

LeaderThe process of leading a group & influencing that group to achieve its goals

Leader ship

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Leader(Original)

Do Right Things

Promote Idea Generation

Inspire

Pursue & Create

Opportunities

Create Vision

Synergy

Effectiveness

Employee Innovation

Teamwork

Accomplishment

Empowerment

Manager

(Copy)Do things right

Provide Structure

Coordinate

React to Situation

Provide Resources

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Leadership is an Evolution

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FILMTIMELINE

1960s-70s

• Early Leadership theories• Personalities

1970s-90s • Contingency theories

21st century

• Transformational leadership

NOW!

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Transformational Leadership

Idealized influence

Inspirational motivation

Intellectual stimulation

Individualized consideration

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THEHIGHER AMBITION LEADER

Transformational Leadership

2.0

CONCEPT MAP OF TRANSFORMATIONAL AND HAL

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Produce significant benefits for the wider community

1 Build robust social capital within their organization2 Create long-term economic value3

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Background • Founded in Sweden

(1943)• 301 stores operating

in 37 countries• International home

products company• Fortune 100 Best

Companies to Work For

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BackgroundHigher Ambition Leader in Ikea

Anders Dahlvig• Join in 1984• Became CEO in 1999

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BackgroundHigher Ambition Leader in Ikea

• Anders DahlvigUS Foreign Policy Association’s Global Social

Responsibility award in 2006

Oslo Business for Peace Award in 2009

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Background

• Anders Dahlvig in others’ eyes“Ikea and Mr. Dahlvig have an extraordinary influence in the world. He has participated in building a business of a size and character where all stakeholders are winners.”

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Background

Under leadership of Anders Dahlvig:

Growth from 7.3 to 21.5 billion Euros

Reduction in sales prices by 20%

Over 565 million visitors dropping in to one of 296 stores in 36 countries

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Vision

Strategy Culture Personal Leadership

Evolution of leadership

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Vision Transformatio

nal Leadership

Higher Ambition

LeadershipWhat? Mainly company

economic performance

Integration of economic and social values

Whose? Leader, followers Company’s beliefs,

employees, community

ALL stakeholders

Envisioning!

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IKEA’s vision

To create a better everyday life for the many people

Customers

Employees

Communities

Econ. Value

Social Value

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Vision

Customers

Employees

IKEA

Communities

Sustainability

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Strategy Development

Transformational

Leadership

Higher Ambition

Leadership

How? Strategies tied with vision thoroughly

for achievement

(Yukl 1994)

Strategic Identity

BEYOND STRATEGIES!

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Leader developing a challenging

vision

Understanding market

conditions

Incorporating vision into strategies

Transformational Leader


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Transformational Leader

• Market Share• Competitors

Leader developing a challenging vision

Understanding Market conditions

Incorporating into strategies

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Forging sustained

vision

Comprehensive view of

organization’s Competitive Advantages

Strategic identity



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Forging sustained vision

Comprehensive view of organization’s competitive advantages

Strategic identity

Identify competitive advantages with a meaningful purpose that could underpin a successful economic model

Capitalize strengths to create distinct values


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Higher Ambition Leader: IKEA’s Competitive advantages

Unique characters

Family approach

Passions and capabilities of

people

Staff commitment

Organizational capabilities

Customer loyalty

Key Performance Indicators (KPIs)

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Forging sustained visionComprehensive view of

organization’s competitive advantages

Strategic identity

Defines company’s vision and core values

“Who” the company is Beliefs of the leaders, the employees, and the

company's strategy were aligned

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Forging sustained vision Comprehensive view of organization’s competitive

advantagesStrategic identity

Companies capabilities

Marketopportunities

Passion of People

“Who” the

company is

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Forging integrated vision Comprehensive view of organization’s competitive


Anders Dahlvig:

“Company's reason for existence should be to contribute to a better

society."

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Social initiatives:

Environment

Forging integrated vision Comprehensive view of organization’s competitive


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Social initiatives

Children

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Social initiatives:

Extending CSR to Supply Chain :

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Potential True

Hollow Aspirational

Internally rooted values

Externally perceived

and appreciated

values

HIGH

HIGH

LOW

LOW

Strategic identity

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Outcome:

Strategic Identity

Long-term beneficial relationships and commitment

Among ALL stakeholders!

True &

Authentic Brand image

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Cultural Development

Transformational

Leadership

Higher Ambition

Leadership

How? Strong Organizational

Culture

• Motivating and Inspiring

employees

Building Community of

Shared Purpose

• Aligning with employees and

society

• Building Community of

Diversity

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Organizational

Culture

Transformational

Leadership 1. Community of

Shared Purpose


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A diverse and highly qualified workforce helps corporations maintain a competitive edge

Reasons of community of shared purpose

Community of

Shared Purpose

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IKEA’s Shared Purpose

Core ValuesTogetherness Cost-

consciousness

Simplicity Creativity

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HOW?Job Enrichment

Job Rotation

Job Sharing

Understand of ALL employees to the company as a WHOLE

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Examples: Life Balance Employees Benefits

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Key of Success: Consistent focused

attention on generating shared values

Strong emotional attachment

High level of mutual trust and respect

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Barriers

Law

Culture

Values

Language To build community of shared purpose: People must feel comfortable

working directly with others They need to be able to

appreciate colleagues from different background

Why Diversity?

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IKEA’s Diverse Community• 131,000 co-workers in

41 countries

• Diversity transcends races, gender and ethnic

IKEA’s Motto: Dare to be YOU!

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IKEA’s Diverse Community

• Family approach

• Identifying people’s needs

• Optimizing people’s ambition and capabilities

HOW?

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A full press diversity drive program (2000)

Yearly evaluation ethnic composition of work forces

Substantially increased the no. of women and minorities in management

47 % of the company’s 75 top earners are female

Examples:IKEA’s Diverse Community

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Outcome:

• Staff turnover has decreased (76%36%)

• Substantially lowered the company costs in recruiting and training replacements

• Totally revenue in the US increased from 1.2 billion to 1.4 billion

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Personal DevelopmentTransformationa

l Leadership

Higher Ambition

Leadership

How?Leading with

Idealized influence

(Charisma) &Inspiration

Leading with Sisu

• Finnish as “guts”

• Collective Leadership “Charisma is not a necessary character trait for effective

leadership.” Anders Dahlvig

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Personal Development

Leading with Sisu

Guts and

Courage

Doing things

differently to gain

real competitiv

e edges

Move into Russia during Russian

Crisis

Political and economic turmoil

Persistence to prevail in this

type of environmentIKEA: Dare to be

different

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Leading with Sisu

Collective Leadershi

p

Welcome input and

feedback from all levels

Promote employee

empowerment

Encourage open discussions and

questioning

Encourage staff to rate

managers on different issues

IKEA

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Leading with SisuHigher Ambition Leader needs:

• Keep price low while not damaging stakeholders’ interests

To maintain a constant focus

• “UK experience is not what we would like it to be"

• Admits the need to scale back the expansion plan in 2009

To admit mistakes

• Encourage sharing on open forum• Communication via the Intranet

To directly engage with people at different levels

IKEA

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How influences ManagementA trip back to everything……

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• Ability to build strong corporate cultureCulture

• Strong analytical ability• Far-sightedStrategy

• Active engagement with all levels• Attention to feedbackCommunication

• Ability to nurture mutual trust and cohesiveness within the teamGroups and teams

• SimplificationOrganizational structure

• Ability to motivate people by self-actualizationMotivation

Higher Ambition Leader’s abilities and qualities:

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Strongculture

WeakCulture

Characteristics of Strong Culture:• A community of shared purpose• Leader’s values deeply and widely held

Benefits of Strong Culture:• Strong staff commitment• Higher working incentive• Distinctive company image


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“The value of some companies is just

to make money and you cannot talk about broader issues there because you would come across

as odd.” Anders Dahlvig


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• Set long-term and sustainable strategies• Strategic identity


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“... spend more time in the boardroom looking at long-term issues and

build a sustainable business with a good reputation.

We would do a better job for shareholders if we were concentrating

more on the long term.”

Anders Dahlvig


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• Different communication networks: Chain Wheel Organic

• Direct and efficient Reduction of noise

• Active engagement with all levels• Attention to feedback

Communication

Medium

Receiver

Decoding

Message

Feedback

Sender

Encoding

Message

NOISE

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“We encourage people to move around and

interact, walls segregate people and keep them

apart.”Nick O’Donnell

IKEA Project director

• Active engagement with all levels• Attention to feedback

Communication

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• Ability to nurture mutual trust and cohesiveness within the team

Groups and teams

• Do not focus on the professional knowledge, but collaboration skills

• Family approach• Mutual trust and respect• Cohesiveness

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• Ability to nurture mutual trust and cohesiveness within the team

Groups and teams

“I'd say energy and being able to work with other people were the

most important. You can learn everything else.”

Anders Dahlvig

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• Different types of structure: Functional Geographical Market Matrix

• Depends on company’s nature and objectives

• So far as communication is facilitated


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• Highly functional with a global market strategy Maintain centralized control

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• Motivate people according to their needsMotivation

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“IKEA pays in the mid-range of salaries because we want people to

come to IKEA for other reasons than money.

You want a decent salary but beyond a certain level it does not

matter any more.

Anders Dahlvig

• Ability to motivate people according to their needsMotivation

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Culture

Strategy

Groups and Teams

Communication

Organizational structure

Motivation

How influences Management

Leadership

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Food for thought

Food for thought1. Is successful leader equals Higher Ambition Leader?

2. Can Higher Ambition Leaders exist in every company?

3. Why are there so few Higher Ambition Leaders?

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Is successful leader equals

higher ambition leader?

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Short term

Economic Success

Successful Leader

What Our Society Thinks:

77Case Example: IKEA India

Fast-growing country of 1.2 billion people 51% restriction on foreign direct investment in 2010

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Case Example: IKEA India


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Keep 100% Ownership

Strategic Identity

Aim for long term and sustainable

return

Not Ready to develop reliable supply chains &

customers relations

Consider social value with

expansion in India

High ambitious leader

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Can Higher Ambition Leader

exist in every company?

Why can’t exist in every company

Never align with a

positive social value

Negative Impact on

society

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Some company products and business make it a destiny that a high ambitious leader can never

exist.

Why can’t exist in every company

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Why are there so few of these

higher ambition leaders?

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Why are there so few of these higher ambition leaders?

Focus on short term economic

value

Focus on shareholder’s

value instead of

other stakeholders

Boards and business

school focus on how to earn high profit

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Conclusion

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• Focus on Short term economic value

• Not focus on social value

SUSTAINABILITY?

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Charity Talk at Hospital

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MTR’s Caring for life's journeys

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NOT CONSISTENT

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NOT CONSISTENT

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Society

Employees

Vision

A Higher Ambition Leader

Sustainable & Consistent

A Higher Ambition Leader

StrategyDevelopme

nt

• Strategic Identity

Cultural Developme

nt• Building a community of shared purpose

Personal Developme

nt

• Leading with Sisu

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Management Lesson No. 1 “Manage yourself first!” Be

Visionary! 95

Focus on Long Term. Be

Sustainable. 96

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Who Can Be Higher Ambition Leader?

YOU

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Q & A Session

Documents

Finalized version for TUE rehearsal.pptx