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Charismatic Authority System

Leadership of the Future

Transformational Leadership

Managerial LeadershipMGTO 234-9

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Charismatic Authority SystemCharismatic Authority System

Authority stems from the society’s belief in the exemplary characteristics of the leader.

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Common Characteristics of Common Characteristics of Charismatic and Transformational Charismatic and Transformational

LeadershipLeadership

VisionRhetorical skills Image and trust buildingPersonalized leadership

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Follower CharacteristicsFollower Characteristics

Identification with the Leader and the Vision

Heightened Emotional LevelsWilling Subordination to the LeaderFeelings of Empowerment

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Situational CharacteristicsSituational Characteristics

CrisesTask InterdependenceInnovationMore Receptive to ChangeOrganizational Downsizing

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Leadership: The Future

Frances Hesselbein, Marshall Goldsmith, Iain Somerville, Leading Beyond the Walls, Jossey Bass Publishers, San Francisco, CA. (1999). Pgs. Xii & 160.

Marshall Goldsmith, Beverly Kay, Ken Shelton, Learning Journeys (2000), Davies-Black Publishing, Palo Alto, CA.

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“Leading ourselves and our organizations beyond the walls is the first requirement for success in the years to come. It’s a call for engagement; one each of us must answer.”

It’s about boundaries!

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Five key leadership skills that are seen as more important in the future than they

were in past:

1. #1. Thinking Globally – Trend toward globally connected

markets; therefore, – Need to understand economic

implications of globalization (e.g. legal, cultural, political)

– Need to understand new technology and its implications (e.g., export white-collar work around the world)

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2. #2. Appreciating Cultural Diversity – Not just economic and legal differences

but also the social and motivational differences

– “respect for differences in people” one of most important qualities of a successful global leader (Ctr for Creative Leadership)

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3. #3. Demonstrating Technological Savvy – Many future leaders have been raised with

technology and view it as an integrated part of their life

– Technology: how it can help the organization; need a network of technically competent people; positive role models in leading the use of new technology

– Technology is critical variable that will significantly affect the organization’s core business

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4. #4. Building Partnerships – Building partnerships and alliances of all

kinds – Ability to negotiate complex alliances and

manage complex networks of relationships – Changing role of customers, suppliers, and

partners has deep implications – McDonalds and Standard Oil – Starbucks and Dalton Bookstores

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5. #5. Shared Leadership – Being able to effectively share leadership

is a requirement in an alliance structure – Employees will be different (evolution of

knowledge workers) and must be lead differently-ask and share not show and tell

– Empowerment, autonomy, control

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Implications

New times will require new skills Leaders will have to change their

mind-set or their employment status Current leaders generally do not

value the new skills requirements (above)

However, some future leaders of today can be coaches to current senior leaders

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Paul Hersey, Kenneth H. Blanchard, & Dewey E. Johnson, Management of Organizational Behavior: Utilizing Human Resources 7th ed. (1996). Prentice-Hall Publishers, Upper Saddle River, NJ. Pg. 519.

“In all spheres of activity, we have entered a period of rapid, large-scale, and discontinuous change.”

“The whole world has become one business arena, forcing all of us into new and qualitatively different ways of thinking and doing.”

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“Organizational transformations have become the order of the day, and with them has come the potential for crises and chaos-or for new freedoms and better ways of living. The scope and the scale of change require leadership at a level and of a quality never experienced before. How are we as leaders to respond? One important response in the face of these great challenges and threatening periods of uncertainty is transformational leadership.”

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Transformational Leadership

Organizational Transformation is characterized by the following features:

1. Substantial and discontinuous change to the shape, structure, and nature of the organization (e.g., production to customer driven)

2. Need for change driven by forces external to the organization (regulatory changes)

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3. Change is deep and pervasive; impacts all parts of the organization (downsizing, geographic re-location)

4. Requires significantly different, and even entirely new, sets of actions by the members of the organization (norms, core values changed because of acquisition, deregulation, or privatization)

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Notes regarding the table: – Does not alter the basic definition of leadership:

influencing others to achieve a goal – Does highlight the specific actions that a leader

should perform in a transformation

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Seven key leadership actions for organizational transformation:

1. #1. Personal Commitment to the Transformation by the Leadership

– Commitment must be visible to members of organization

– external stakeholders (key players too)

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2. #2. Communication of the Impossibility of Maintaining Status Quo

– Leadership must communicate the failure of the status quo

– Firm statements backed by credible evidence that the status quo is untenable

– Clear indications that the failure of the status quo is final and irreversible

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3. #3. Clear Communication of an Inspiring Vision of What the Organization Can Become

– Leadership must communicate a clear picture of the future state of the organization to all members

– Value-based vision created by an appropriate mix of rational analysis, intuition, and emotional involvement

– “Put a man on the moon within 10 years”

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4. #4. Timely Establishment of a Critical Mass of Support for the Transformation

– Leadership must identify the key players and power holders in the organization and obtain their support for the change

– Acknowledge their power inside/outside the organization

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5. #5. Acknowledge, Honor and Deal with Resistance to the Transformation

– Leadership must acknowledge resistance to the change and deal with it as a necessary stage in the process of abandoning the status quo and embracing the new vision

– People don’t like change unless they feel they are a part of it

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6. #6. Defining and Setting Up an Organization That Can Implement the Vision

– Leadership must design and put into action an organization that will be congruent with the new beliefs and values

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7. #7. Regular Communication of Information About Progress and Giving Recognition and Reward for Achievements

– Leadership must communicate to the organization how the transformation is progressing including:

Announce and celebrate achievements Openly share setbacks Encourage risk-taking behaviours

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So What? Leadership of the future is about

transformation – New Economy – Globalization – Market and customer driven – Massive Emerging markets-China, India

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Necessitates leadership skills that go beyond what is known and practiced today: – Thinking globally– Appreciating Cultural Diversity– Demonstrating Technological Savvy– Building Partnerships– Sharing Leadership