Leadership_Nov 26_v2.ppt
Prof. Dr. Björn BlochingBudapest, November 26th, 2008
Responsible leadership
2Leadership_Nov 26_v2.ppt
The importance of Leadership has undoubtedly increased over the last years
> Globalization:
> Information/Communication:
> Speed:
> Individualization:
and
> The current crisis:
The global landscape changes dramatically, both on a political and economical level
The amount of accessible information is overwhelming
The pace in the economies has significantly increased over the last years. Example: automobile life cycles
Most global societies show a clear trend towards the individual – the collective loses importance
Nobody knows what we have to expect
COMPLEXITY AND UNCERTAINTY CALL FOR LEADERSHIP
3Leadership_Nov 26_v2.ppt
Unfortunately, trust in today's leaders is at an all-time-low
Only 15% of the Germans trust the heads of large corporations – and the level of trust towards politicians is even lower
4Leadership_Nov 26_v2.ppt
But what is leadership? Leaders have always had a variety of thoughts on how their role can actually be defined
"Leadership is the art of getting someone else to do something you want done because he wants to do it."(Dwight Eisenhower, former US President)
"A leader is a dealer in hope."(Napoleon Bonaparte)
"The art of leadership is saying no, not yes. It is very easy to say yes."(Tony Blair, British politician)
"It is better to lead from behind and to put others in front, especially when you celebrate victory when nice things occur. You take the front line when there is danger. Then people will appreciate your leadership."(Nelson Mandela, former South African President)
Source: World Economic Forum, Roland Berger Strategy Consultants
5Leadership_Nov 26_v2.ppt
Leadership is obviously a pretty complex topic,…
Key aspects of leadership
LEADERSHIP
QUALITIES STYLES
THEORIESDRIVERS
Create vision
Reconsider vision
Implement visionVision
CommunicationResponsibility
Work styleConfidence/
determination
PassionRole-modeling
Self-sacrifice
Leadership difference
PowerChange
ManagementHeroism
Young vs. establishedGeographic regions
Men vs. womenStakeholder groups
Direct
Indirect
For followersFor environment
For community
Democratic
Laissez faire
Paternalistic
Autocratic
Quiet
Servant
Charismatic
Transformational
Behavioral
Great man
Trait-related
Transactional
Conversational
Contingency, situational
Source: World Economic Forum, Roland Berger Strategy Consultants
6Leadership_Nov 26_v2.ppt
…which at first sight seems to differ across the globe,…
> Proud and patriotic> Passionate> Hierarchical > Autocratic
> Seniority important> Proud of tradition
> Action oriented, pragmatic
> Direct, aggressive> Less hierarchical
> Non-confrontational /indirect
> Respect of authority> Still collectivism
> Consensual> Need long to make decisions> High individualism> Strong belief in social values
Source: World Economic Forum, Roland Berger Strategy Consultants
7Leadership_Nov 26_v2.ppt
…and is often mixed up with management due to their partly overlapping characteristics
LEADERSHIP
> Inspiration> Transformation> Direction> Trust> Empowerment> Creativity> Innovation> Motivation
COMMON
> Communication> Development> Decision-making> Integrity> Teamwork and teambuilding> Professional competence> Role model> Negotiation> Knowledge> Setting standards> Flexibility & focus
MANAGEMENT
> Delegation> Performance> Planning> Accountability> Finance> Monitoring & evaluating> Formal suspension> Control
Source: World Economic Forum, Roland Berger Strategy Consultants
8Leadership_Nov 26_v2.ppt
However, leadership can – and has to – be made quite clear
YES, WE CAN
9Leadership_Nov 26_v2.ppt
Political leaders are more action, corporate leaders are more result oriented – Power is the key motivator for both
CORPORATE LEADERSHIP POLITICAL LEADERSHIP
> The ability to think, act, and influence in ways that promote the sustainable competitive advantage
> The power exercised by individuals to direct members of the nation towards positive actions
ESSENCE
TYPICALGOALS
> Represent a constituency / interest group > Find answers to pressing problems of the people> Distribute power and money> Establish support for political goals (build coalitions)> Remain in power
> Improve business results > Develop products & services and markets> Inspire and accomplish a shared vision> Enable others to act professionally> Attract and retain talent
KEYQUALITIES
> Clear ideas and beliefs> Strong willpower > Has pertinacity (determination to see cause through)> Communicates and represents well> Has political intuition
> Look beyond daily business and make strategic decisions > Takes responsibility for employees> Is knowledgeable and competent in the industry> Communicates professionally> Sets goals and monitors progress
APPROACH > Tactical and strategic, operational responsibilitiesusually fulfilled by bureaucrats
> Primarily strategic, merit-based organization fortactical and operational responsibilities
FOCUS > More action, less result oriented> Result oriented
DRIVE > Mainly power and legacy> Mainly power and money
Source: World Economic Forum, Roland Berger Strategy Consultants
10Leadership_Nov 26_v2.ppt
In today's crisis the key responsibility of public governance is to set the framework for economies
Corporate leader
Politicalleader
EXECUTE VALUES-BASED MANAGEMENT
Show responsibility of a welfare state combining economic, social and political aspects
ENSURE EFFICIENCY
Go for the best options in public administration and decision making - Reaction time can be crucial
RELY ON COOPERATION
Create value by elaborating on win-win situations in front of corporate leaders
SET THE FRAMEWORK FOR STABLE ENVIRONMENT
Incorporate measures in order to build a transparent system of regulations
Source: Roland Berger
11Leadership_Nov 26_v2.ppt
On the corporate side leaders should focus on responsible, sustainable business models
GENERATING BUSINESS
ENHANCING BUSINESS
MANAGING RISK
AREAS OF CORPORATE RESPONSIBILITY (CR)
Corporate Responsibility (CR) as one cornerstone of the corporate strategy
MEASURING CR
Internal values/ employer branding
Corporate citizenship
Diversity&inclusion
Corporate education
Work and family
Occupational health mgmt.
Mastering demographics
Compliance, transparency, sourcing, …
Sustainable products and services (e.g. Greentech)
Source: Roland Berger
12Leadership_Nov 26_v2.pptHAM-97007-428-04-01-G.ppt
12
An example: Clear internal leadership values and a strong employer brand pay off
Benefit
> 60-80% of customer satisfaction can be related to a high level of identification with the company values
> Average attrition rate of Top-100 employers in the USA is 13 percent below general average (12,6% vs. 26%)
> Companies with strong employee commitment achieved in a 3-year period in comparison to other companies
– 36% higher Shareholder returns (112% vs. 76% )– an increase of earnings Ø 3,74% (other companies had a
decrease of Ø 2,06%)
Source: Roland Berger, several empirical studies
Values
> Clear positioning of employer towards (potential) employees
> Consistent implementation of value proposition in company
13Leadership_Nov 26_v2.ppt
No matter in which sphere you are working, some basic rules apply
A cool head
A warm heart
Working hands
Complexity needs analytic skills
Change needs motivation, trust and empathy
Success needs cooperation and good examples
The elements of successful leadership
Source: Martin Hilb
14Leadership_Nov 26_v2.ppt
Am Sandtorkai 41D-20457 Hamburg
Phone: +49-40-376314-446
Prof. Dr. Björn BlochingHEAD OF THE GLOBAL COMPETENCE CENTER
MARKETING & SALES