The CEO was eventually fired ! New Paradigms of Leadership
New Leadership Paradigms! The Way forward
- Why are the Leadership gaps widening, In spite of so much more Investment on Training ,Leadership Development Program , Assessment Centers etc.
- Why companies are not able to prepare you for future roles ?
We live in volatile times. The sheer number of conversations, articles and seminars on disruption, disruptive technologies and innovation are proof that times are indeed, changing and changing at a rapid pace. Constant change is the new normal. The quantum and rapidity of this change and the consequent demands on business leaders is tremendous?
With this rapid change the future leadership needs are clearly about :
- Continuous Development
- Increased Competition
- Evolving Customer Expectations &
- Attitude open to unlearning & relearning new approaches
Over the next decade,leaders will have to groom future leaders for complex environment where there are no constants
Ask any group of group of business professionals “What do effective leaders do?” and you will hear the most common answers - Leaders set strategy ; they motivate people ; they create vision and they build culture. Then ask the same group “What should leaders do?” If the group is experienced enough , you’ll hear one response : Get Results , BUT HOW ? The mystery of what leaders can and ought to do in order to spark the best performance from their people is age old. All business leaders or “leadership experts” are in pursuit of creating more leaders who can turn make difference in achieving bold objectives – be they strategic , financial , organisational or all three – into reality, So Which precise leadership behaviors bring positive results? Leadership experts tender advice based on inference , experience , and instinct . Sometimes that advice is right on target; sometimes it’s not. As per Daniel Goleman research the following 2 factors create effective leadership
- 6 distinct leadership styles, each different from each other appear to have direct and unique impact on Working Atmosphere of the company , division , or team, and on its financial performance.
- Most importantly , Leaders with the best result do not rely on only one leadership style.They use most of them but in different measures at different times
Imagine the leadership styles as the arrays of clubs in the golf player bag. Over the course of the game, the player picks and chooses the club based on the demands of the shot. Sometimes he has to ponder his selection, but usually it is automatic. The player senses the challenge ahead, swiftly pulls out the right tool , and elegantly puts into work. That’s how effective leaders operate, too .
To understand the 6 main leadership styles and identify which ones align best with your own behaviour, there are many articles written about leadership style and even more people offering leadership coaching but a widely accepted view on leadership styles comes from Daniel Goleman.
In addition to his work on emotional intelligence Goleman also wrote Leadership That Gets Results, a landmark 2000 Harvard Business Review study. Goleman spent 3 years studying more than 3,000 executives to try and understand which leadership styles existed and what effect they had on a business and its profitability.
How these Leadership Styles Affect Performance & Results
Research findings of leading Companies suggest the following :
- Leaders who have exhibited the 6 leadership traits maximum , got the maximum salary bonuses based on their business performance
- Their respective divisions average out-performed yearly revenue targets by 15% to 20% While those who lacked these skills got Avg. / Below Avg. Ratings in their annual reviews and their respective divisions under-performed by an average Of 20%
What is CLIMATE or CULTURE in an Organization?
CLIMATE refers to 6 Key Factors that influence an organization’s work environment set out by a leader : Its FLEXIBILITY - that is how free employees feel to innovate their sense of RESPONSIBILITY to the organization and being accountable the level of STANDARDS that people set , the sense of accuracy about performance
feedback and aptness of rewards; the clarity people have about mission and values ; and finally, the level of commitment to a common purpose . All six leadership styles have a measurable effect on each aspect of climate with respect to financial results – Such as return on sales , revenue growth , efficiency , and profitability.
Leaders who used styles that positively affected the CLIMATE had decidedly better financial results than those who did not . Though there are other factors that drive performance like economic conditions and competitive dynamics matter enormously , but overall analysis suggest that how a leader sets up the culture in an organization decides the work environment for all employees.
THE COERCIVE STYLE
The pharma company was in crisis , Sales & Profits were falling , its stock was also loosing value at a very fast pace and shareholders were uproar.
- The board brought a new CEO with a reputation of bringing turnaround
- He set to work chopping jobs, selling off products, and taking tough decisions that should have been executed before . The coy was saved atleast in the short-term
How the CEO Worked
- From the start the CEO created reign of Terror , bullying and demeaning of executives – By catching them doing wrong things
- Most of the top heads were either removed or they left on their own.
- The CEOs direct reports, frightened by his tendency to blame the bearer of bad news, stopped bringing him any news at all
- Morale was all time low – which reflected in further downturn of the company after short term recovery
" THE CEO WAS EVENTUALLY FIRED"
Coercive Style – Where it Works
There are occasions where , When COERCIVE Style works perfect!
- Change the direction of the company when its loosing market share
- Always appropriate in cases of emergencies / urgencies
- With problem employees with whom everything all else has failed
Prolonged use or solely this style can be lethal to the morale and feelings of those he leads
These were some really powerful points I noted after going through few interesting articles.The reason I'm sharing this is because I'm not perfect, but I'm working on myself everyday and I would like to pass on this information without any inhibitions
You can start using some of the key messages to improvise your leadership style , by way of implementing this in your work schedule
Do you connect with this message? If yes, share your thoughts below.