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Leadership’s Impact and Primary Colours®
Dr David Pendleton June 2012 Associate Fellow Saїd Business School and Green-Templeton College Oxford Chair Edgecumbe Group, Bristol
The Primary Colours® of Leadership
• The evidence base for Leadership
• The Primary Colours ®
model of Leadership
• Leadership tasks
How are UK corporate leaders perceived currently in the financial
crisis?
Outline of my session with you today…
The effect of leadership is INDIRECT
Leadership
Culture (what we do)
Climate (how it feels)
Discretionary Effort
Productivity, Creativity etc.
(Results)
The argument in a nutshell…
Leadership Traits Intelligence Emotional Stability Extraversion Openness to Experience Agreeableness Conscientiousness
DeRue, Nahrgang, Wellman and Humphrey, (2011) Trait and Behavioral Theories of Leadership, Personnel Psychology,
Leadership Behaviours Task oriented Relationship oriented Change oriented (Passive leadership)
Leadership Effectiveness Leader effectiveness (58%)* Group performance (31%)* Follower job satisfaction (56%)* Satisfaction with leader (92%)*
* Proportion of each measure of leadership effectiveness explained by a combination of leadership traits and leadership behaviours
Combining who they are with what they do…
Relationship between Employee Satisfaction, Employee Engagement and Business Outcomes
A meta-analysis of 198,514 employees in 7,939
Business Units, found:
• Employee engagement was directly linked to
profitability, customer satisfaction, loyalty, sales,
employee retention, productivity and safety.
• Employee satisfaction and engagement were mainly
determined by satisfaction with immediate
supervisor
Hunter, Schmidt and Hayes, Journal of Applied Psychology, 2002
Leadership
Culture (what we do) Climate (how it feels) Discretionary
effort
Employee retention
Employee Engagement
Intention to stay
Productivity Whole-person Creativity (Results)
Rational Commitment
Emotional Commitment
…and we can measure and/or estimate the size of the effects. EG moving from disengagement to strong engagement decreases the probability of leaving by 87%
Source: Corporate Leadership Council 2004
The argument in a nutshell moves on ….and on
Conclusions from the evidence…
• Leadership makes a difference to performance
• It makes more of a difference in tougher times when opportunities are scarce (like now!)
• The effect is indirect and mediated largely through the effect on people
• The impact is largely to do with the power of engagement and the effect on discretionary effort
• The effect is a mixture of who we are and what we do. We will explore both
What do leaders need to do to bring this about? A new theory of Leadership
• Leadership is creating the conditions for people and organisations to
succeed and achieve significant goals
• Four Propositions
…and Coping with Pressure
Ref: Pendleton and Furnham 2012
Leadership Proposition 1: The Primary Colours® of Leadership
Delivering Results
Planning & Organising
Setting Strategic Direction
Creating Alignment
Building & Sustaining
Relationships Team
Working
Leading
Strategic Domain
Operational Domain
Interpersonal Domain
Think of this as body parts and capabilities
Thought/Figuring out which way to go
Feeling/Emotional Intelligence
Action/Getting things done
So what is LEADING?
The Nervous System
• Sensing
• Connecting
• Balancing
• Co-ordinating
Delivering Results
Planning & Organising
Setting Strategic Direction
Creating Alignment
Building & Sustaining
Relationships Team Working
Leading
Strategic Domain
Operational
Domain
Interpersonal
Domain
Leading
Leadership Proposition 2: Incomplete individuals, complete teams…
• It’s hard to be world class in all areas
• There are sound psychological reasons why this may be so and
empirical evidence to support it
• Rather than trying to be good in all areas, it may be better to be great
in one or two and work with others who are great in other areas
Gallup (2008)
“While the best leaders are not well-rounded, the best teams are.”
“Effective leaders surround themselves with the right people and build on each person’s strengths.”
Summarising data from many years and thousands of leaders…
In praise of the incomplete leader…
“Rarely will a single person be skilled in all …. areas. That's why it's critical that leaders find others who can offset their limitations and complement their
strengths. Those who don't will not only bear the burden of leadership alone but will find themselves at the helm of an unbalanced ship.”
Deborah Ancona and colleagues HBR 2007
Leadership Proposition 3: Work with, work on and work around…
Resistant limitation Fragile strength PERSONALITY
HINDERS
Potential strength
Natural strength PERSONALITY
HELPS
LIMITATION STRENGTH
Work ON
Work ON Work WITH
Work AROUND
Resistant
Limitations
STRENGTH LIMITATION
PERSONALITY HELPS
PERSONALITY
HINDERS
Fragile
Strengths
Potential
Strengths
Natural
Strengths
Fragile
Strengths
Potential
Strengths
Natural
Strengths
Resistant
Limitations
Leadership Proposition 4: Complementary Contributions
Delivering Results
Planning & Organising
Setting Strategic Direction
Creating Alignment
Building & Sustaining
Relationships Team
Working
Leading
Strategic Domain
Operational
Domain
Interpersonal
Domain
Ref: Pendleton and Furnham 2012
The Primary Colours® of Leadership: the Leadership home page?
• positive about future prospects for their organisation 40%
• feel their business is in safe hands 36%
• improving quality of leadership would make a difference to their organisation’s prospects 74%
1: Current Levels of Confidence
45%
• said leaders more task focused
9%
• said leaders more relationship focused
61%
• said leaders more short-term oriented
4%
• said leaders more long-term oriented
2: UK leaders’ response to current economic climate
52%
53%
56%
46%
43%
40%
40%
35%
27%
22%
14%
24%
25%
25%
20%
21%
21%
25%
30%
30%
32%
35%
40%
44%
Set strategic direction
Plan and organise work
Deliver results
Lead
Work in teams
Cope with pressure
Build & sustain relationships
Create alignment between people
%positive %neutral %negativeBase: All (201)
3: UK Leaders’ Strengths & Weaknesses
74% - improving quality of leadership will make a difference to organisation’s prospects
BUT
4% feel improving quality of leadership is a top priority for their organisation
17% confident that their organisation’s current activities to improve leadership
will deliver
4: What are leaders doing about this?