MY PERSPECTIVE ON LEADERSHIP

Figure 1

Previous blog posts have extensively analysed and critiqued various leadership and management styles with a focus on the financial services sector. A self-reflective assessment may reveal my desire to be an ethical leader who applies inert virtues and established values to lead a diverse team of distinct capabilities in a democratic fashion. This vision of leadership could best be explained through the leadership tactics of my role model, Mrs. Ngozi Okonjo-Iweala because she has inspired my current vision of effective leadership.

Figure 2

Ngozi is a former Managing Director of the World Bank whose tenure began in 2007 and ended in 2011 (Premium Times 2015). As a Harvard University graduate with a PhD from Massachusetts Institute of Technology, Ngozi was appointed a two-time minister of Finance in Nigeria based on her exceptional leadership skills at World Bank (Premium Times 2015). Little wonder she was listed as the thirty-third of world’s 50 greatest leaders by the US magazine, Fortune (Fortune 2015). This list included the likes of Bill Gates, Mark Zuckerberg of Facebook and Tom Cook of Apple (Fortune 2015).

Ngozi has been described by many as “a fearless promoter of sound economic policies” whose decade long management styles helped triple Nigeria’s Gross Domestic Product (The Economist 2012). This is regardless of Nigeria’s crippling economic condition (Lobel 2012). She inspired a lot of followers within and beyond the finance sector to lead ethically through an examplary lifestyle (The Economist 2012). Thus she was effectively committed to pioneering her subordinates to success through inclusive leadership map as depicted in figure 1. Having grown to admire her sense of leadership, it is a bit worrying to hear allegations of mismanagement of oil savings during her last administration (Vital Voices 2015). One may pause and question if indeed such allegations negates her widely-perceived ethical leadership vision.

Presently, these leadership aspirations may not be so far from being met if additional hardwork and dedication is applied towards my career growth. An insightful starting point could be based on feedback from my leadership team mates as well as personal experiences from leadership seminar activities. Individual feedback confirms my dedicated approach towards achieving the goals of any team activity. However, I may need to be less rigid within the team in order to give my team mates a sense of belonging. Perhaps, this critcism stems from the fact that I believe self-management is not the best management technique for a diverse team. As such, a little bit of beauracracy and rules ought to curtail individual freedom and enhance group focus towards set objectives. I was also made to realize that improved active listening skills may help in understanding the individual strengths, weakness and triggers of my team mates. This could easily be adapted to the financial services industry with respect to building effective customer service skills.

As I progress with my studies, more skill sets excluding those highlighted by my team mates, ought to be developed. From a team leggo building exercise, I realized that the most important is communication skills within a team. In a multi-cultural environment, individual differences in language, culture and lifestyle could pose enormous communication barriers. The ability to integrate effectively within the environment could help in boosting my team communication skills. In addition, the tendency to be rigid may be eliminated if communication barriers are gradually reduced. Having identified ethical and democratic pricnciples as the core of my leadership vision, confidence with public speaking and presentations ought to be strengthened. This will help in communicating with a large audience with less tension.

To develop the above skills, registering for continuous education programs and skills acquisition classes may be a good starting point. Spotlight sessions in the university so far has provided useful insight in activities such as presentations, blogging and research. These sessions have not only tried to improve my public speaking and communication skills, but have also helped in quicker use of sound data bases for research. Memebership of resourceful social groups within the university may also be able to aid in effective collaboration and team building. Such membership opens more avenue for one to identify individuals with shared interests and objectives. In addition, volunteer coaching and student mentoring sessions may be useful with communication.

In conclusion, leadership and management, as two sides to a business coin ought to be applied in the most efficient manner within an organisation to help achieve the overall objectives of a group. No leadership ideal is the most perfect. Howver, based on personal experiences and feedback, it is imperative that my team communication skills within a diverse team is given the most priority in development so as to achieve my vision of leading ethically and democratically.

REFERENCES

Fortune (2015) World’s Greatest Leaders [online] available from <http://fortune.com/worlds-greatest-leaders/&gt; [28 August 2015]

Lobel, M. (2012) Nigeria’s Finance Boss Ngozi Okonjo-Iweala in Profile [online] available from <http://www.bbc.co.uk/news/world-africa-17662481&gt; [28 August 2015]

Premium Times (2015) Okonjo-Iweala Listed Among Fifty Greatest World Leaders [online] available from <http://www.premiumtimesng.com/news/top-news/180832-okonjo-iweala-listed-among-50-greatest-world-leaders.html&gt; [28 August 2015]

The Ecomomist (2012) Has Off to Ngozi: A Golden Opportunity For the rest of the World to show Barack Obama the meaning of Meritocracy [online] available from <http://www.economist.com/node/21551490&gt; [28 August 2015]

Vital Voices (2015) Dr. Ngozi Okonjo-Iweala, Global Development Leader and Advocate [online] available from <http://www.vitalvoices.org/blog/2012/04/dr-ngozi-okonjo-iweala-global-development-leader-and-advocate&gt; [28 August 2015]

SUSCEPTIBILITY TO CHANGE: CHALLENGES FOR ORGANISATIONAL MANAGEMENT

There are strong reasons to align with the claim that every facet of our economy today in one way or the other is impacted by the modern socio-economic, technological, and cultural revolution (Mullins 2013). This global trend is actively felt in our businesses where management, leadership and strategy help shape adaptation to the ever-changing world. Managers can effectively contribute their quota in achieving this goal depending on how well they handle change and its resistance in their organisations, thus the importance of change management (Chapman 2015). The above video summarises the whole essence of change management.

Several reasons have been proffered on why some employees may be comfortable with changing work dimensions as against those non-susceptible to a change. A clear misunderstanding of the reason for changing a previously functional system my pose a barrier, especially employees they are unable to assess the risk factors involved (Rick 2011). Perhaps, they may feel satisfied within their comfort zones. Moving a step forward may indicate taking up additional responsibilities, which may not suit their normal routines. More so, employees may not trust that the organisation is capable of effectively managing any change in status quo, or they may feel they lack the necessary competence to embrace change and its consequences (Rick 2011).

Despite these, some employees may have an optimistic view on change initiatives, willing to adjust especially if well communicated and understood (Grover 1995). These reasons vary according to the personalities and openness of individuals to challenges (Mullins 2013). Therefore, in such trying situations, managers ought to be proactive by expecting resistance to change as well as making adequate preparations for its management. Managers should expect going through different stages of change resistance as shown in figure 1 below (Grover 1995).

Figure 1

How can organisational change be implemented? Change ought not to be enforced on employees (Sirkin 2005). It should take thoughtful planning, consultation, involvement and sensitive implementation on the individuals affected, else problems may arise (Sirkin 2005). When issues arise, management may be able to do little or nothing about it (Mullins 2013). Applying John Kotter’s steps to a successful change, in terms of changing individual personalities, managers should ensure that such changes are realistic, measurable and achievable (Kotter 2012). Setting very high targets may be met with individual displeasure. The figure above summarises the general steps of adapting to change.

To effectively manage resistance to change, managers could commence by understanding any form of resistance from an objective and non-judgemental standpoint (Kotter 2012). They could also organise workshops to achieve better understanding, positively respond to employees concerns and proffer alternative ways of safeguarding employees’ interests regardless of the change (Leucke 2003). This should be done in a subtle form, employing paternalistic or democratic leadership styles. Employees may also feel a sense of belonging, and subsequently desist from resistance where the managers introduce anonymous surveys requesting for their opinion on how such change may be introduced (Guy 2005). Such form of empathy and tolerance could further improve employees’ trust on the expected benefit of the change (Guy 2005). This may add value to an organisation’s employee management system because it gives more insight on the strengths, weaknesses and peculiarities of each individual. Such revelations may then be adapted into the change process to ensure every individual’s needs or concerns are not overlooked.

Figure 2: Lewin’s 3-step Model

Different change management models have been propounded to resolve organisational challenges to introducing changes. Kurt Lewin’s ‘Unfreeze-Change-Refreeze’ theory shown in figure 2 above proposes a foremost understanding of the major motivation for change and the reason for the discontinuance of existing systems [unfreeze] (Burnes 2004). ‘Change’ commences when people are given cause to believe and accept the new system while ‘unfreeze’ occurs when the changes are taking place with employees already embracing the new system (Burnes 2004). The ADKAR model (Awareness, Desire, Knowledge, Ability and Reinforcement suggests that effective organisational management of change begins with a single individual (Hiat 2006). Prosci’s theory combines individual changes with that of an organisation for a sustainable business result (Hiat 2006). To successful lead change, adopting Prosci’s methodology may be most suited for all organisations. This theory adopts a holistic approach involving awareness of change, communication and training (Bourda 2013). It ensures that fears, uncertainty and doubts are best overcome with trainings with less interruption of on-going business (Bourda 2013). By so doing, individual and organisational management are given equal focus.

PayPal is an example of a company within the finance industry that was able to effectively manage change after it changed its business line while retaining resourceful employees (Newcombe 2013). PayPal was not initially founded as online payment service but a cryptography company (Newcombe 2013). Its transition was difficult because they faced competency issues. After much persistence, they went public and were subsequently bought out by e-bay with most of its employees retained (Newcombe 2013). In Nigeria, a branch of mortgage bank was able to effectively manage change when cost-cutting in all branches was introduced by the head management (Root 2013). Rather than subscribe to a swift laying off of staff due to subletting of office space, the bank resorted to asking employees to temporary share office desks before thy move to a permanent site (Root 2013). Therefore, while trying to embrace cost-cutting as an effective change management for the company, the bank was able to protect individual fears of salary reduction or layoffs.

As managers, how can we effectively apply our knowledge of change management theories in practice? It is recommended that managers endeavour to eliminate any ultra-autocratic tendencies and first understand any hidden rationale behind subordinate’s resistance to change. Commencing with teams, individual feedback exercise on leadership highlights and low lights can help leaders and followers understand areas of improvement with respect to communication, tolerance and understanding peculiar sensitivities. Thus any change in team tactics may be effectively managed in the face of conflict or resistance.

REFERENCES

Bourda, F. (2013) Change Management Theories and Methodologies. Tate Consultancy Services, 1-7

Burnes, B. (2004) Kurt Lewin and the Planned Approach to Change: A Reappraisal. California: Wiley

Chapman, A. (2015) Change Management [online] available from <http://www.businessballs.com/changemanagement.htm&gt; [26 August 2015]

Grover, W. K. (1995) Special section: Toward a Theory of Business Process Change Management Journal of Management Information Systems, 9-30

Guy, G. (2005) Effecting Change in Business Enterprises: Current Trends in Change Management. California: Conference Board

Hiat, J. (2006) ADKAR: A Model for Change in Business, Government, and Our Community. Colorado: Prosci Research

Kotter, J. (2012) Leading Change. USA: Harvard Business School

Leucke, R. (2003) Managing Change and Transition. USA: Havard Business School

Mullins, L. J. (2013) Management of Organisational Behaviour. Harlow: Pearson

Newcombe, T. (2013) Change management tops the agenda for HR departments in the financial sector [online] available from <http://www.hrmagazine.co.uk/hro/news/1077912/change-management-tops-agenda-hr-departments-financial-sector&gt; [26 August 2015]

Rick, T. (2011) Top Twelve Reasons Why People Resist Change [online] available from <http://www.torbenrick.eu/blog/change-management/12-reasons-why-people-resist-change/&gt; [26 August 2015]

Root, G. (2013) Examples of Organisation Change [online] available from <http://smallbusiness.chron.com/examples-organization-change-11694.html&gt; [26 August 2015]

Sirkin, H. (2005) The Hard Side of Change Management. Harvard Business Review, (10)83, 108

LEADERSHIP AND MANAGEMENT: TWO SIDES TO A BUSINESS COIN

Moving ordinary teams to extraordinary heights in any organisation involves acknowledging the disparity between leadership and management. Peter Drucker notes that management entails doing the right things while leadership involves doing things right (Drucker 2007). Both concepts involve different role components, though often used interchangeably. A manger’s leadership traits evolves based on his title while leaders strengths are independent of any conferment (Kotterman 2006). According to Mullins, management entails completing tasks through the efforts of subordinates (Mullins 2013). This could be achieved through applying the most efficient use of physical, human and financial resources (Mullins 2013). Leadership on the other hand involves exerting influence on subordinates in order to facilate mutual attainment of shared objectives (Yukl 2010). Effective leadership styles ought to be applied by every manager (Mullins 2013). Management styles on the other hand, effectively propels leaders into effectively creating objectives for the organisation, providing expertise information and shaping the overall culture of the business (Kotterman, 2006).

Figure 1

As shown in the video above, leadership styles could be autocratic, paternalistic, charismatic, laissez-faire, democratic (participative), transformational and transactional leadership styles may exhibited by leaders (Stacey 2012). The first blog already explains transformational and transactional leadership styles. Autocratic style basically involves exerting control through commands on subordinates (Eagly and Engen 2003). This could be relevant in situations where urgent decision making is required or where a large number of employees are unskilled (Eagly and Engen 2003). However, due to lack of communication, subordinates may become limited in thoughts and expression (Eagly and Engen 2003). Paternalistic leadership style may sometimes appear autocratic; however, decisions are made in the best interst of employees (Aronson 2001). Democratic leadership on the other hand involves an inclusive leadership style based on majority decision making (Aronson 2001). Notwithstanding that it may not suit urgent situations, the ability to effectively create a two-way communication with employees creates a better working relationship based on cordiality (Aronson 2001). Laissez-faire gives major decision making to the employees (Eagly and Engen 2003). Despite this freedom, it may lead to limited cohesion when the leader withdraws gradually from employees (Eagly and Engen 2003).

Figure 2

To effectively control the acts of his subordinates, a leader could commence by having a first-hand knowledge and a perfect understanding of the business (Lubit 2004). By so doing, he becomes a source of clarification in the event of confusion within his team. Applying Douglas Mcgregor’s leadership theories of X and Y, a leader could also be self-motivated as this may help shape his subordinates’ drive for focus (Dininni 2011). Ability to command respect and authority through creative thinking and problem solving skills may also help manage subordinates (Lubit 20014). With respect to Peter Drucker’s management theories, subordinates may be controlled when aggreeable tasks are mutually identified and evaluated (Drucker 2007). However, the manager should avaoid setting targets that appear unachievable (Drucker 2007).

One may question the most effective leadership style for subordinates. I reckon democratic leadership style may be the most effective style of managing subordinates. This is because it encourages higher productivity and better contributions from group members. For instance, Bill Gates, the CEO of Microsoft may attribute part of his finacial success and business growth to his Democratic leadership style (Rogers 2012). He is known to operate an inclusive decision making strategy with his employees. Direct relationship with customers and subordinates through meetings and regular e-mail responses ensures that he is fully aware of business events within his company (Rogers 2012). On the other hand, the major issues facing the financial service company, Royal Bank of Scotland has been attributed to poor decision making (The Guardian 2014). It is reported that errors on judgement and execution by the company’s executive management weakened the bank’s global capital position (The Guardian 2014). This may indirectly relate to the demerits of autocratic leadership and management styles by RBS’ executives. The overall consequence is the laying off of subordinates and resourceful staff.

Regardless, is it really appropriate to conclude that one leadership style is the most preferred or does it depend on individual peculiarities or circumstances? I may agree with the Chartered Management Institute that there is no perfect single ideal (CMI 2013). The best managers consistently create room for the emergence of strong leaders based on their strengths and ability to coach. Leadership ought to be situational, according to the objectives and needs of an organisation (Graeff 1997). This transforms a leader into a balanced manager as shown in figure 2 above. Sometimes, it may be ideal to be much focused, a bit laid back, or controlling depending on the vision and style of the organisation. Thus great leaders ought to select their leadership style with a firm grip of the current situation and end goal. For instance, to resuscitate a firm going into liquidation, a democratic leadership style may not be suitable as such decision may require paternalistic leadership style.

In conclusion, as a member of a team, it may be ideal for managers to first grapple with the situation at hand before deciding which leadership or management styles to adopt. Commencing with understanding individual peculiarities, strengths and weaknesses could help a manger understand and motivate his subordinates towards achieving the overall goal of the organisation.

REFERENCES

Aronson, E. (2001) Integrating Leadership Styles and Ethical Perspectives. Canadian Journal of Administrative Sciences, (18)4, 244

CMI (2013) Understanding Management Styles Checklist 236,  Chartered Management Institute: London

Dininni, J. (2011). Management Theory of Douglas McGregor [online] available from <http://www.business.com/management/management-theory-of-douglas-mcgregor/&gt; [25 August 2015]

Drucker, P. (2007) The Practice of Management (M. Belbin, Ed.) Elviser

Eagly, A. and Engen, E. (2003) Transformational, Transactional, and Laissez-Faire Leadership Styles: A Meta-Analysis Comparing Women and Men. Psychological Bulletin (129) 4, 561-591

Graeff, C. (1997) Evolution of Situational Leadership Theory: A Critical Review. Leadership Quarterly, 153-170

Guardian (2014) RBS failure caused by ‘multiple poor decisions’ [online] available from <http://www.theguardian.com/global/2011/dec/12/royal-bank-of-scotland-fsa-report&gt; [21 August 2015]

Kotterman, J. (2006) Leadership Versus Management: What’s the Difference. Journal of Quality Participation, (29)2, 13-17

Lubit, R. (2004) Coping with Toxic Managers, Subordinates- and Other Difficult People. New Jersey: Pearson

Mullins, L. J. (2013) Management and Organisational Behaviour. Harlow: Pearson

Rogers, P. (2012). Bad Decisions In History: Cautionary Tales [online] available from <http://www.bain.com/publications/articles/bad-decisions-in-history-cautionary-tales.aspx&gt; [25 August 2015]

Stacey, R. (2012) Tools and Techniques of Leadership and Management: Meeting the Challenge of Complexity. Routledge: Newyork

Yukl, G. (2010). Leadership in organisations. Prentice Hall