Chapter 1 on Leadership

CHAPTER 1:
WHAT DOES IT MEAN
TO BE A LEADER?

TABLE OF CONTENT
 SUMMARY
 WHY WE NEED LEADERSHIP
 THE NEW REALITY FOR LEADERS
 HOW LEADERSHIP DIFFERS FROM
MANAGEMENT
 EVOLVING THEORIES OF LEADERSHIP
 LEADERSHIP CAN BE LEARNED
 MASTERING THE ART AND SCIENCE OF
LEADERSHIP

SUMMARY
 This chapter introduces the concept of leadership and
explains how individuals can grow as leaders.
Leadership is defined as an influence relationship
among leaders and followers who intend real changes
and outcomes that reflect their shared purposes.
 Thus, leadership involves people in a relationship,
influence, change, a shared purpose, and taking
personal responsibility to make things happen. Most of
us are aware of famous leaders, but most leadership
that changes the world starts small and may begin
with personal frustrations about events that prompt
people to initiate change and inspire others to follow
them. Your leadership may be expressed in the
classroom; at work; or in your neighborhood, religious
community, or volunteer organizations.

SUMMARY
 The biggest challenge facing leaders today is the
changing world that wants a new paradigm of
leadership. The new reality involves the shift from
stability to change, from control to empowerment,
from competition to collaboration, from uniformity
to diversity, and from a self-centered focus to a
higher purpose.
 In addition, the concept of leader as hero is giving
way to that of the humble leader who develops
others and shares credit for accomplishments. These
dramatic changes suggest that a philosophy based
on control and personal ambition will probably fail
in the new era. The challenge for leaders is to
evolve to a new mindset that relies on human skills,
integrity, and teamwork.

SUMMARY
 The “soft” skills of leadership complement the “hard”
skills of management, and both are needed to
effectively guide organizations. Although leadership is
often equated with good management, leadership and
management are different processes.
 Management strives to maintain stability and improve
efficiency. Leadership, on the other hand, is about
creating a vision for the future, designing social
architecture that shapes culture and values, inspiring
and motivating followers, developing personal
qualities, and creating change within a culture of
integrity. Leadership can be integrated with
management to achieve the greatest possible
outcomes. Organizations need to be both managed
and led, particularly in today’s turbulent environment.

SUMMARY
 Concepts of leadership have evolved over time.
Major research approaches include Great Man
theories, trait theories, behavior theories,
contingency theories, influence theories, and
relational theories. Elements of all these approaches
are still applicable to the study of leadership.

SUMMARY
 Many managers already have the qualities needed
to be effective leaders, but they may not have gone
through the process needed to bring these qualities
to life. Leadership is an intentional act. It is
important to remember that most people are not
born with natural leadership skills and qualities, but
leadership can be learned and developed through
study and experience.

LEARNING OUTCOME
After studying this chapter, you should be able
to:
Understand the full meaning of leadership and
see the leadership potential in yourself and
others.
Recognize and facilitate the six fundamental
transformations in today’s organizations and
leaders.
Identify the primary reasons for leadership
derailment and the new paradigm skills that can
help you avoid it.
Recognize the traditional functions of
management and the fundamental differences
between leadership and management.

LEARNING OUTCOME
 Appreciate the crucial importance of
providing direction, alignment,
relationships, personal qualities, and
outcomes.
 Explain how leadership has evolved and
how historical approaches apply to the
practice of leadership today.

WHY WE NEED
LEADERSHIP
 This section introduces the concept of leadership
and explains how individuals can grow as leaders.
Leadership is defined as an influence relationship
among leaders and followers who intend real changes
and outcomes that reflect their shared purposes.
 Thus, leadership involves people in a relationship,
influence, change, a shared purpose, and taking
personal responsibility to make things happen. Most of
us are aware of famous leaders, but most leadership
that changes the world starts small and may begin
with personal frustrations about events that prompt
people to initiate change and inspire others to follow
them. Your leadership may be expressed in the
classroom; at work; or in your neighborhood, religious
community, or volunteer organizations.

WHY WE NEED
LEADERSHIP
 People think that they will recognize a good
leader when they see one.
 Sometimes, though, charismatic people
are perceived to be leaders, regardless
of whether leadership skills back up the
charisma.
 Today, people are beginning to expect more
than a charismatic smile and a firm handshake
from leaders.

DEFINITION OF LEADERSHIP
 Leadership
 is an influence relationship
among leaders and
followers who intend real
changes and outcomes that
reflect their shared purposes.

WHAT LEADERSHIP INVOLVES
 Leading and following are
activities that require other
people.
 Effective leaders and
followers require similar skills so
they can switch roles if needed to
accomplish a goal.
 Influence
 Intention
 Personal responsibility and
integrity
 Change
 Shared purpose
 Followers

EVERYDAY LEADERSHIP
 Anyone can be a leader. To become a
leader, you have to look for opportunities
around you.

EVERYDAY LEADERSHIP
Discussion Question
 Of the elements in the leadership definition
as illustrated previously, which is the easiest
for you? Which is hardest?

EVERYDAY LEADERSHIP
Video Time – “Everyday
Leadership”
 We have all changed someone's life --
usually without even realizing it. In this
funny talk, Drew Dudley calls on all of
us to celebrate leadership as the
everyday act of improving each other's
lives.
 Drew Dudley
 Drew Dudley’s interest in developing
people’s leadership began when he
was the Leadership Development
coordinator at the University of
Toronto, Scarborough. In 2010 he
founded Nuance Leadership
Development Services, a company
that creates leadership curricula for
communities, organizations and
individuals -- a subject on which he
also speaks widely.

THE NEW REALITY FOR
LEADERS
 The biggest challenge facing leaders today is the
changing world that wants a new paradigm
of leadership. The new reality involves the
shift from stability to change, from control to
empowerment, from competition to
collaboration, from uniformity to diversity, and
from a self-centered focus to a higher purpose.
 In addition, the concept of leader as hero is
giving way to that of the humble leader who
develops others and shares credit for
accomplishments. These dramatic changes
suggest that a philosophy based on control and
personal ambition will probably fail in the new
era. The challenge for leaders is to evolve to a
new mindset that relies on human skills,
integrity, and teamwork.

THE NEW REALITY FOR
LEADERS
 Changes in the world and the technology we
use to experience it have changed what we
expect from our leaders.
 A paradigm is a shared mindset that
represents a fundamental way of thinking
about, perceiving, and understanding the
world.

THE NEW REALITY FOR
LEADERS
Discussion Question
 What do you consider your own strengths
and weaknesses for leadership?

THE NEW REALITY FOR
LEADERS
NEW Paradigm
Change/crisis
management
OLD Paradigm
Stability
From Stabilizer to Change Manager
Today’s best leaders accept that change is inevitable. They have
learned to adapt quickly to new situations. Adaptability is required
for success.

THE NEW REALITY FOR
LEADERS
NEW Paradigm
Empowerment
OLD Paradigm
Control
From Controller to Facilitator
In the past, things, such as land and machines, were the critical
assets a company could own. Today, information is a
company’s most important asset. This makes employees more
important than the equipment they use. To go with the change
from objects to information as assets, leaders no longer “control.”
Instead, they “facilitate,” making a process, such as the use of
information, easier.

THE NEW REALITY FOR
LEADERS
NEW Paradigm
Collaboration
OLD Paradigm
Competition
From Competitor to Collaborator
In the past, leaders competed with other leaders and groups. Today,
leaders work with, not against, others.

THE NEW REALITY FOR
LEADERS
Discussion Question
 How might the paradigm shift from competition to
collaboration make the job of a leader more
difficult? Could it also make the leader’s job
easier? Discuss.

THE NEW REALITY FOR
LEADERS
Discussion Answer
 Collaboration presents greater leadership
challenges than did the old concept of competition.
It is often more difficult to create an environment of
teamwork and community that fosters collaboration
and mutual support. Yet the call for empowerment,
combined with an understanding of organizations
as fluid, dynamic, interactive systems, makes the use
of intimidation and manipulation obsolete as a
means of motivating people toward goals.
 Collaboration with other organizations could also
make the leader’s job easier because companies
think of themselves as teams that create value
jointly rather than as autonomous entities in
competition with all others.

THE NEW REALITY FOR
LEADERS
NEW Paradigm
Diversity
OLD Paradigm
Uniformity
From Diversity Avoider to Diversity Promoter
Diversity in the workplace is a natural result of diversity in our
world. Working with people who act and think differently than us
can be challenging. A good leader seeks diversity so the
group has a wide range of talents that can help the group meet its
goals.

THE NEW REALITY FOR
LEADERS
NEW Paradigm
Humble
OLD Paradigm
Hero
From Hero to Humble
The shift from hero to humble is similar to the shift from controlling
to collaborating. A hero controls others and takes credit for the
group’s successes. A leader who collaborates works with the group
and shares the credit.

THE NEW REALITY FOR LEADERS
Action Plan: What should i do as a leader in
my organization?
 As a leader, you can respond to the reality of
change and crisis, the need for
empowerment, collaboration, and diversity,
and the importance of a higher purpose.
 You can channel your ambition toward
achieving larger organizational goals rather
than feeding your own ego.

THE NEW REALITY FOR
LEADERS
Discussion Question
 Discuss some recent events and societal
changes that might have contributed to a
shift “from hero to humble.” Do you agree
or disagree that humility is important for
good leadership?

THE NEW REALITY FOR
LEADERS
Discussion Question
 The events of September 11, 2001, showed
the world how the firefighters of New York
were humble leaders, dedicated to the greater
good rather than personal advancement.
 They ran into the twin towers to save others.
Humility is important for good leadership
because it places the focus on getting the job
done rather than self-aggrandizement.

THE NEW REALITY FOR LEADERS
Video Time – “Are you a giver or a taker?”
 In every workplace, there are three basic
kinds of people: givers, takers and
matchers. Organizational psychologist
Adam Grant breaks down these
personalities and offers simple strategies to
promote a culture of generosity and keep
self-serving employees from taking more
than their share.
 Adam Grant
 In his groundbreaking book Give and
Take, top-rated Wharton professor
Adam Grant upended decades of
conventional motivational thinking with
the thesis that giving unselfishly to
colleagues or clients can lead to one’s
own long-term success. Grant’s research
has led hundreds of advice seekers (and
HR departments) to his doorstep, and
it’s changing the way leaders view their
workforces.

HOW LEADERSHIP
DIFFERS FROM
MANAGEMENT

HOW LEADERSHIP DIFFERS
FROM MANAGEMENT
 The “soft” skills of leadership complement
the “hard” skills of management, and both are
needed to effectively guide organizations. Although
leadership is often equated with good
management, leadership and management are
different processes.
 Management strives to maintain stability and
improve efficiency. Leadership, on the other hand,
is about creating a vision for the future, designing
social architecture that shapes culture and values,
inspiring and motivating followers, developing
personal qualities, and creating change within a
culture of integrity. Leadership can be integrated
with management to achieve the greatest possible
outcomes. Organizations need to be both managed
and led, particularly in today’s turbulent
environment.

FROM MANAGEMENT
 Management is the attainment of
organizational goals in an effective and
efficient manner through planning,
organizing, staffing, directing, and controlling
organizational resources.
 The next slide compares management to
leadership in five areas
 providing direction
 aligning followers
 building relationships
 developing personal qualities
 creating leader outcomes.

COMPARING MANAGEMENT AND
LEADERSHIP
Management Leadership
Direction Planning and budgeting
Keeping eye on bottom line
Creating vision and strategy
Keeping eye on horizon
Alignment Organizing and staffing
Directing and controlling
Creating boundaries
Creating shared culture and values
Helping others grow
Influencing others behaviors
Reducing boundaries
Relationships Focusing on objects –
producing/selling goods and
services
Based on position power
Acting as boss
Focusing on people – inspiring and
motivating followers
Based on personal power
Acting as coach, facilitator, servant

COMPARING MANAGEMENT AND
LEADERSHIP
Personal Qualities Emotional distance
Expert mind
Talking
Conformity
Insight into organization
Emotional connections (Heart)
Open mind (Mindfulness)
Listening (Communication)
Nonconformity (Courage)
Insight into self (Character)
Outcomes Maintains stability; creates culture
of efficiency
Creates change and a culture of
integrity

Direction Planning and budgeting
Keeping eye on bottom line
Creating vision and strategy
Keeping eye on horizon
HOW LEADERSHIP DIFFERS FROM MANAGEMENT
Providing Direction
 Management focuses on managing schedules and resources.
Leadership focuses on a vision of the future. A vision is a
picture of an ambitious, desirable future for the organization or team.

Alignment Organizing and staffing
Directing and controlling
Creating boundaries
Creating shared culture and
values
Helping others grow
Influencing others behaviors
Reducing boundaries
Aligning Followers
 Managers tell others what to do. Leaders inspire others to take
action.

Relationships Focusing on objects –
producing/selling goods and
services
Based on position power
Acting as boss
Focusing on people – inspiring
and motivating followers
Based on personal power
Acting as coach, facilitator,
servant
Building Relationships
 People follow and report to managers based on the manager’s job in
the organization. People follow leaders based on the leader’s
influence.

Personal
Qualities
Emotional distance
Expert mind
Talking
Conformity
Insight into organization
Emotional connections (Heart)
Open mind (Mindfulness)
Listening (Communication)
Nonconformity (Courage)
Insight into self (Character)
Developing Personal Leadership Qualities
 Leaders must know who they are, know what they stand for, and have
the courage to act. Leadership skills can be learned.

FROM MANAGEMENT
 As a leader, you can awaken your leadership
qualities of enthusiasm, integrity, courage,
and moral commitment. You can make
emotional connections with followers to
increase your leadership effectiveness.

Outcomes Maintains stability; creates
culture of efficiency
Creates change and a culture of
integrity
Creating Outcomes
 Managers maintain stability. Leaders create change. The
differences between management and leadership create two different
outcomes.

FROM MANAGEMENT
Discussion Question
 Why do you think there are so few people
who succeed at both management and
leadership? Is it reasonable to believe
someone can be good at both? Discuss.

FROM MANAGEMENT
Discussion Answer
 Management and leadership are both important, but it is
often difficult for CEOs to focus on both dimensions of
their job. Traditional management is needed to meet
current obligations to customers, stockholders, employees,
and others. The problem is that too many people manage,
too few lead, and fewer still integrate the skills and
qualities needed for meeting both leadership and
management challenges.
 Organizations need leaders to visualize the future, motivate
and inspire employees, and adapt to changing needs. Jack
Welch, the chairman and CEO of General Electric between
1981 and 2001, is an example of a business executive who
combines good management and effective leadership. He
understands and practices good management such as cost
control but is a master leader, actively promoting change
and communicating a vision.

Video Time – “The Perils of Confusing Management
and Leadership”
 In this video, John Kotter points out that in
today's business world there is too much
management and not enough leadership.
Both are important, but in a world that's
changing faster and faster, great leadership
is especially important. And if
organizations don't recognize that, they
risk falling into a complacent mentality and
achieving only incremental improvements
at best.
 John Kotter
 John Paul Kotter is the Konosuke
Matsushita Professor of Leadership,
Emeritus, at the Harvard Business
School, a New York Times best-selling
author, and the founder of Kotter
International (a management consulting
firm based in Seattle and Boston). He is
a well-known thought leader in the
fields of business, leadership, and
change.

EVOLVING
THEORIES OF
LEADERSHIP

THEORIES OF LEADERSHIP
 Concepts of leadership have evolved over
time. Major research approaches include
 Great Man Theories,
 Trait Theories,
 Behavior Theories,
 Contingency Theories,
 Influence Theories, And
 Relational Theories.
 Elements of all these approaches are still
applicable to the study of leadership.

THEORIES OF LEADERSHIP
 Our understanding of leadership has changed
over time because our understanding of the
world has changed.

HISTORICAL OVERVIEW OF
MAJOR APPROACHES
 Leadership theories include six
basic approaches:

MAJOR APPROACHES
Great Man Theories
This theory is based on a
concept that leadership was
conceptualized as a single
“Great Man” who put
everything together and
influenced others to follow
along based on the strength
of inherited traits, qualities,
and abilities.

MAJOR APPROACHES
Trait Theories
• The Trait Model of
Leadership is based on the
characteristics of many
leaders - both successful
and unsuccessful - and is
used to predict leadership
effectiveness.
• The resulting lists of traits
are then compared to those
of potential leaders to
assess their likelihood of
success or failure.

MAJOR APPROACHES
Behavior Theories
 Behavioral Leadership
Theories are developed
scientifically by behavior-
focused studies of a
leader's behavior in a
conditioned situation that
one can have a specific
response to specific
stimuli.

MAJOR APPROACHES
Contingency Theories
 Leaders can analyze their
situation and tailor their
behavior to improve
leadership effectiveness.
 Also known as situational
theories. Leadership
cannot be understood in a
vacuum separate from
various elements of the
group or organizational
situation.

MAJOR APPROACHES
Influence Theories
 Examine the influence
processes between leaders
and followers
 Charismatic leadership—
Influence based on the
qualities and charismatic
personality of the leader

MAJOR APPROACHES
Relational Theories
 Focus on how leaders and
followers interact and
influence one another
 Transformational
leadership and servant
leadership are two
important relational
theories

A MODEL OF LEADERSHIP
EVOLUTION
 Leadership is one of the most complex and
multifaceted phenomena to which
organisational and psychological research has
been applied.
 An evolutionary developmental perspective is
used to create an evolutionary tree of
leadership theory and reveal the path along
which it has evolved.
 Four evolutionary eras are identified.
These eras provide a broad framework for
researchers and practising managers to
categorise existing, and evaluate future,
theories.

EVOLUTION
 Evolution is divided into four eras. Each era
reflects the stability of the world, the business
environment, and the role of leaders at the
time.
 For example, written letters gave way to
telephones, which gave way to e-mail, which
is giving way to social media. Each advance
comes faster and leads to changes in what we
expect from the world and our leaders.
 We are currently in Era 4, which represents
agile leadership.

EVOLUTION

AGILE LEADERSHIP
 Agile leadership is giving up control in the
traditional sense and encouraging the growth
and development of others to ensure
organizational flexibility and responsiveness.

EVOLUTION
Discussion Question
 “Leadership is more concerned with
people than is management.” Do you
agree? Discuss.

EVOLUTION
Discussion Answer
 Leadership means being emotionally
connected to others. Where there is
leadership, people become part of a
community and feel that they are contributing
to something worthwhile. Unfortunately,
attempts to achieve collaboration,
empowerment, and diversity may fail because
leaders and employees have beliefs and
thought processes stuck in the old paradigm
that values control, stability, and homogeneity
—rather than people.

A MODEL OF LEADERSHIP EVOLUTION
Read an Article
 Agile Leaders are inclusive,
democratic leaders who exhibit a
greater openness to ideas and
innovations. With a passion for
learning, a focus on developing
people, and a strong ability to
define and communicate a
desired vision, they possess all of
the tools necessary to successfully
inspire others and become an
agent for change within any
organization.
 Read an article entitled
"What does it mean to be an agile leader?
”

LEADERSHIP CAN BE
LEARNED
 Many managers already have the qualities
needed to be effective leaders, but they may
not have gone through the process needed to
bring these qualities to life. Leadership is
an intentional act. It is important to
remember that most people are not born with
natural leadership skills and qualities, but
leadership can be learned and developed
through study and experience.

LEADERSHIP CAN BE
LEARNED
 Many organizations and their leaders have
not made changes to succeed in today’s
world. Organizations can evolve and leaders
can learn new skills to succeed.

LEADERSHIP CAN BE LEARNED
Read an Article
 People are often promoted to
positions of leadership and
management in the workplace
without having any formal training in
either. While some rise to the occasion
and function well in their new
positions, others flounder.
 The question is: what can those who
do not have natural leadership and
management skills do to avoid failing
in their new roles or to recover if
they're already struggling?
 Read an article entitled
"Can Leadership Be Learned or Are You Born with It?"

LEADER FATAL FLAWS
 Derailment is a phenomenon in which a
manager with an impressive track record
reaches a certain level but goes off track and
can’t advance because of a mismatch
between job needs and personal skills and
qualities.
 The next slide identifies five flaws that can
cause derailment for leaders.

Derailment
Five Fatal Flaws that Cause
Derailment
Source: Based on Yi Zhang, Jean Brittain Leslie, and Kelly M.
Hannum, ‘‘Trouble Ahead: Derailment Is Alive and Well,’’
Thunderbird International Business Review 55, no. 1 (January–
February 2013), pp. 95–102.

Derailment
 Failing to meet business
objectives because of too
much time promoting
themselves and playing
politics, a failure to fulfill
promises, or a lack of
attention to priorities.

Derailment
 Being insensitive,
manipulative, critical, and
not trustworthy in
relationships with peers,
direct reports, customers,
and others

Derailment
 Not learning from feedback
and mistakes to change old
behaviors; defensive,
unable to handle pressure,
unable to change
management style to meet
new demands.

Derailment
 Poor management of direct
reports, inability to get
work done through others,
not identifying and hiring
the right people.

Derailment
 Inability to work effectively
or collaborate outside their
current function; failing to
see big picture when
moved into general
management position over
several functions.

LEADER FATAL FLAWS
 The causes of derailment shown
are related to skills in dealing with
other people (soft skills), not
technical skills dealing with
the product or service the
organization sells.

LEADER GOOD
BEHAVIORS
 Interest in other people and the ability to
communicate effectively can inspire others to
perform well. Soft skills are emphasized
more than technical skills.

Video Time – “Role of a Leader”
 Jack Welch is a celebrated, legendary CEO.
In his two decades at the helm of General
Electric, he grew revenues to $130 billion
from $25 billion and profit to $15 billion
from $1.5 billion. Market capitalization
ballooned to $400 billion, growing by a
multiple of 30. Here he shares the roles of
a leader.
 Jack Welch
 John Francis "Jack" Welch Jr. (born
November 19, 1935) is an American
business executive, author, and chemical
engineer. He was chairman and CEO of
General Electric between 1981 and
2001.

MASTERING THE
ART AND SCIENCE
OF LEADERSHIP

MASTERING THE ART AND
SCIENCE OF LEADERSHIP
 The science of good leadership can be learned from a textbook. The art
of good leadership requires experience.
 The next slide describes how you can learn to be a good leader. It
includes both learning and practicing skills.

MASTERING THE ART AND
SCIENCE OF LEADERSHIP
LEARNING TO BE A LEADER
Source: Based on ‘‘Guidelines for the Apprentice Leader,’’ in
Robert J. Allio, ‘‘Masterclass: Leaders and Leadership—Many
Theories, But What Advice Is Reliable?’’ Strategy & Leadership
41, no. 1 (2013), pp. 4–14.

MASTERING THE ART
AND SCIENCE OF
LEADERSHIP
Discussion Question
 Why is leadership considered both an art and
a science?

MASTERING THE ART
AND SCIENCE OF
LEADERSHIP
Discussion Answer
 Leadership is an art because many
leadership skills and qualities cannot be
learned from a textbook. Leadership takes
practice and hands-on experience. Learning
about leadership research helps people
analyze situations from a variety of
perspectives and learn how to be effective as
leaders.
 Leadership is a science because a
growing body of knowledge and objective
facts describe the leadership process and how
to use leadership skills to attain organizational
goals.

MASTERING THE ART AND SCIENCE OF
LEADERSHIP
Video Time - "What it takes to be a great leader"
 The world is full of leadership programs,
but the best way to learn how to lead
might be right under your nose. In this
clear, candid talk, Roselinde Torres
describes 25 years observing truly great
leaders at work, and shares the three
simple but crucial questions would-be
company chiefs need to ask to thrive in the
future.
 Roselinde Torres
 Roselinde Torres is a senior partner and
managing director at the consulting
firm, BCG. A senior leader in the firm’s
"people and organization" practice area,
she is also the company's resident
expert on leadership, a topic she has
studied her entire career.

KEY TERMS AND CONCEPTS
 Leadership: an influence relationship
among leaders and followers who
intend real changes and outcomes that
reflect their shared purposes.
 Paradigm: a shared mindset that
represents a fundamental way of
thinking about, perceiving, and
understanding the world.
 Management: the attainment of
organizational goals in an effective and
efficient manner through planning,
organizing, staffing, directing, and
controlling organizational resources.
 Vision: a picture of an ambitious,
desirable future for the organization or
team.
 Agile leadership: giving up control in
the traditional sense and encouraging
the growth and development of others
to ensure organizational flexibility and
responsiveness.
 Derailment: a phenomenon in which a
manager with an impressive track record
reaches a certain level but goes off track
and can’t advance because of a
mismatch between job needs and
personal skills and qualities.

Chapter 1 on Leadership

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Chapter 1 on Leadership