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CEE Handout for Prasarana's 2013 Managers Conference on 'Result-based Leadership' 12 Nov 2013
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CEE Handout for Prasarana's 2013 Managers Conference on 'Result-based Leadership' 12 Nov 2013



For more articles and presentation slides on Leadership Development related themes, please visit our new CEE Global Website at www.cee-global.com & also Visit and “Like” our Facebook Page for ...

For more articles and presentation slides on Leadership Development related themes, please visit our new CEE Global Website at www.cee-global.com & also Visit and “Like” our Facebook Page for Inspirational Quotes and Leadership & Personal Effectiveness Articles: www.facebook.com/ceeglobal .



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CEE Handout for Prasarana's 2013 Managers Conference on 'Result-based Leadership' 12 Nov 2013 CEE Handout for Prasarana's 2013 Managers Conference on 'Result-based Leadership' 12 Nov 2013 Document Transcript

  • 2013 MANAGER’S CONFERENCE “Result-based Leadership for Sustainability during Turbulent Times” Tuesday, 12th November 2013 at 11.40 am Saujana Ballroom Ground Floor, The Saujana Hotel Kuala Lumpur Key Note Speaker: Prof Sattar Bawany CEO & Master Executive Coach Centre for Executive Education (CEE Global) Managing Director, EDA Asia Pacific © 2013 Centre for Executive Education Pte Ltd www.cee-global.co
  • THE NEW BUSINESS REALITIES Business leaders face huge challenges during turbulent times including period of prolonged economic recession. Qualities such as courage, self-confidence and the ability to make tough commercial decisions under pressure all come to the fore. Less widely appreciated and understood is the crucial psychological and emotional role that leaders must play during periods of acute uncertainty if they are to optimize the long-term performance of their business. Leaders must understand the dynamics that lie "below the surface" of their organisations and skilfully address the unspoken needs of their staff. This takes maturity and skill but will maximize the chances of weathering the economic storm and emerging strengthened when times improve. Those businesses that do not achieve this will find their commercial problems compounded by destructive internal dynamics and underperformance. While leaders may have had setbacks during their career, most will not have experienced a global downturn. They face a steep learning curve if they are to succeed in the new business environment. Managers who harness this unprecedented opportunity for growth, development, and collaboration, and build bridges between different generations of employees as well as leveraging on the repertoire of the various effective leadership styles, will thrive in particular in today’s turbulent economic landscape. Many managers mistakenly assume that leadership style is a function of personality rather than strategic choice. Instead of choosing the one style that suits their temperament, they should ask which style best addresses the demands of a particular situation. Daniel Goleman brought the notion of "Emotional Intelligence” (EI) and “Emotional Quotient” (EQ) to prominence as an alternative to more traditional measures of IQ with his 1995 mega-best-seller Emotional Intelligence. According to Goleman, "A leader's singular job is to get results”. But even with all the leadership training programs and "expert" advice available, effective leadership still eludes many people and organisations. One reason, says Goleman, is that such experts offer advice based on inference, experience, and instinct, not on quantitative data. Research has shown that the most successful leaders have strengths in the following emotional intelligence competencies: self-awareness, self-regulation, motivation, empathy, and social skill. There are six basic styles of leadership; each makes use of the key components of emotional intelligence in different combinations. The best leaders don’t know just one style of leadership— they’re skilled at several, and have the flexibility to switch between styles as the circumstances dictate. Each style has a distinct effect on the working atmosphere of a company, division, or team, and, in turn, on its financial performance. The styles, by name and brief description alone, will resonate with anyone who leads, is led, or, as is the case with most of us, does both. Commanding leaders demand immediate compliance. Visionary leaders mobilize people toward a vision. Participative leaders create emotional bonds and harmony. Democratic leaders build consensus through participation. Pacesetting leaders expect excellence and self-direction. And coaching leaders develop people for the future. Managers often fail to appreciate how profoundly the organizational climate can influence financial results. It can account for nearly a third of financial performance. Organizational climate, in turn, is influenced by leadership style—by the way that managers motivate direct reports, gather and use © 2013 Centre for Executive Education Pte Ltd www.cee-global.co Page | 2
  • information, make decisions, manage change initiatives, and handle crises. There are six basic leadership styles. Each derives from different emotional intelligence competencies, works best in particular situations, and affects the organizational climate in different ways. The Leader need to enhance their understanding of generational characteristics and the impact of their own management practices on each of these groups. They need to leverage on the strengths of each generation. Taking full advantage of the multi-generational workforce will enable employers to effectively attract and retain employees, build teams, deal with change, and increase employee engagement (Bawany, 2013)1. Emotional intelligence can be defined as the ability to assess or capacity to perceive and manage the emotions of one’s self and others around you. The diversity of a multi-generational workforce demands that leaders adapt their communication style and methods for their message to be understood. The ability to empathize, put yourself in someone else’s situation allows leaders to tailor compelling messages that resonate with each unique generational perspective to inspire action. Hour to hour, day to day, week to week, executives must play their leadership styles like a pro— using the right one at just the right time and in the right measure. The payoff is in the results. Figure 1 – Results-Based Leadership Framework Organisational Results • • • Profitability ROI Cost Optimisation Customer Engagement • • Customer Satisfaction/Loyalty Service Value/ Relationship Employee Engagement • • Employee Satisfaction/Loyalty Employee Turnover Rate Organisational Climate • • • Company Culture, Policies Rewards and Flexibility Employee Value Proposition Leadership Effectiveness • • • • EQ/EI Competencies Leadership Styles Ontological Humility Level 5/Servant Leadership 1 Sattar Bawany (2013), “Making Results-based Leadership Work in Singapore” Singapore Business Review, 12 February 2013, http://sbr.com.sg/hr-education/commentary/making-results-based-leadership-work-in-singapore © 2013 Centre for Executive Education Pte Ltd www.cee-global.co Page | 3
  • WHAT HAPPENS TO ORGANISATIONS DURING TURBULENT TIMES? The suddenness and severity of the current economic downturn has inevitably generated a shared sense of shock and foreboding. The media's relentless reporting of the latest bad news fuels this mood. The loss of household names like Woolworths and Wedgewood only adds to of a sense of insecurity and lack of confidence in the future. In 2008, a leading psychologist linked the endless flow of economic bad news to a widespread sense of helplessness, also blaming the recession for an increased risk of injury and stroke (Devlin, 2008). Within organisations, negative feelings are compounded as colleagues interact. Research and experience demonstrate that feelings and states of mind are highly contagious. Daniel Goleman, who developed the concept of emotional intelligence, recounts experiments showing just how quickly a strongly-expressed emotional state is transferred from one person to another (Goleman et al., 2001). In the workplace, all employees can be influenced by a prevailing mood of anxiety, which gradually dominates the organisational "system". Negative thoughts and feelings predominate while more positive views become subtly excluded or difficult to express. This creates an intangible but powerful emotional backdrop that can be termed "systemic anxiety". This negative dynamic is exacerbated by pressure on staff to work longer and harder. Many organisations control costs by cutting resources and jobs but aim to maintain output. Extra demands are placed on the remaining employees who generally feel unable to refuse. Frequently they are also expected to demonstrate new levels of flexibility, covering the work of former colleagues or adapting to new working methods. This fuels longer working hours and associated problems. During a recession, workers are also likely to undergo repeated experiences of loss. This is an inevitable consequence of the cutbacks, project cancellations, job freezes, redundancies and retrenchment businesses engage in to survive. In his book Managing Transitions, Bridges emphasizes that change - even when desired - always involves a loss (Bridges, 2003). This is more significant when change is unwelcome and imposed from outside. Feelings of sadness, anger and guilt prevail. ORGANISATIONAL CONSEQUENCES OF THE 'TOXIC COCKTAIL' Combined, the powerful dynamics described above form a "toxic cocktail" that threatens morale and performance. It generates damaging behavioural and attitudinal changes within organisations. Among other things, this leads to more:        Short-term thinking Presenteeism Absenteeism through sickness, stress and depression Addictive behaviours Rumours Politics Defection of valuable employees © 2013 Centre for Executive Education Pte Ltd www.cee-global.co Page | 4
  • There is likely to be a decrease in the following:        Morale Motivation Clarity around task priorities Work-Life Balance Productivity Innovation and risk-taking Long-term and reflective thinking THE PSYCHOLOGICAL ROLE OF LEADERS DURING TURBULENT TIMES This toxic cocktail means that in times of great uncertainty it is not enough for leaders to address strategic and operational tasks. They must also address the emotional needs of their workforce if they are to improve morale and productivity. There are four key behaviours that leaders must master in order to provide the workforce with the best possible sense of psychological "containment". This set of behaviours takes considerable insight, resourcefulness and maturity on the leaders' part but the stakes are high. If achieved, they will:    Reduce anxiety, fear and anger Build trust, loyalty and commitment Generate resilience and optimism Behaviour 1: Prompt and considered action When an organisation enters turbulent times, the first behaviour its leaders must demonstrate is a prompt and energetic response to the difficulties facing it. The workforce needs to know that its leaders recognize the seriousness of the situation and are addressing it. However, the leaders' actions must not be the result of impulse or panic. Leaders should immediately announce that they are making the problems their absolute priority while explaining that they need time to finalize the best course of action. While a proactive response reassures the workforce, a lack of swift and visible action from the top increases anxiety, anger and blame. Leaders who demonstrate this first behaviour will understand this and have the courage and confidence to take responsibility. Failure to act may reflect a paralysing level of anxiety in the leaders themselves. Equally, it may arise from a misguided belief that responding with alacrity to a crisis will create more problems than refusing to engage. This latter policy, often favoured by political leaders, is almost always disastrous. Behaviour 2: Honest and consistent communication Though reassured by seeing their leaders "in action," employees will inevitably be preoccupied with what the downturn means for them. In the absence of reliable information, rumours and speculation flourish. To reduce these and build trust, leaders should provide honest and timely information (within appropriate constraints) about the challenges facing their business and the measures that may need to be taken as a result. Being rigorously honest takes considerable maturity on the leader's part, particularly if they are people-focused and find conflict difficult. Many choose to delay or dilute bad news in order to "avoid © 2013 Centre for Executive Education Pte Ltd www.cee-global.co Page | 5
  • worrying and demotivating" the workforce. This view often reflects (and rationalizes) the leader's own discomfort, anxiety or guilt at being the bearer of negative messages. However, employees read the economic signs and will almost invariably expect some bad news. During a downturn, managers are continually asked about possible redundancies even when there is no intention of cutting jobs. People suffer most from uncertainty and would prefer to know the worst than to imagine it. Leaders of course cannot always be completely open, for example when information is share-price sensitive. Often they will not know the answers to questions such as “are these job cuts the last?" It is best to explain honestly what they do not know or cannot share. This builds trust and reassures the workforce that they will be told as soon as possible. An example of good practice is the CEO who provides a regular weekly update to staff, even when the update consists of stating that there is no new information this week. Simply receiving this message tells the workforce that their leader understands their need for information and will provide it when he or she can. Methods of communication can range from one-to-one conversations, small team meetings, "townhalls" and carefully planned road shows for large groups of staff to intranets and house magazines. There is considerable value in adopting multiple methods as long as the message is consistent. Leaders frequently express surprise that the same questions are asked repeatedly, even when answers have been provided. This is because anxiety significantly reduces the capacity to listen and absorb information. Leaders must prepare themselves to remain calm, resist becoming irritated and patiently repeat their message. Behaviour 3: Emotional connection A speedy response and honest communication are not enough to maximize "containment". Leaders must also maintain an emotional connection with their workforce. They must:    Acknowledge the painful impact of bad news on their workforce and resist moving on too quickly to something more positive out of discomfort, guilt or insensitivity. Find an authentic way of disclosing some of their own sadness, concern or disappointment so employees know they genuinely care. Let staff vent their feelings, listen and empathize - even though they cannot make the bad news go away. An example of excellent practice was the manager of a manufacturing company tasked with telling his staff that popular and longstanding colleagues were being made redundant. He announced this at an off-site meeting the following day, cancelling the entire morning's agenda in order to allow staff to absorb this news, discuss it in small groups, express their feelings and ask questions. He also shared his own sadness that these redundancies were necessary (though without blaming head office or disassociating himself from the decision). He offered particularly affected individuals one-to-one meetings, listening to and acknowledging their feelings. This leader's respect for his staff's need to process bad news, express their emotions and feel heard was deeply appreciated. His actions generated great loyalty and people were able to recover more quickly as a result. The range of meetings and media mentioned above, through which leaders communicate to their workforce, should also be made available for staff to express their thoughts and feelings in response. This presents a major challenge to leaders who have to show great restraint and self-management in © 2013 Centre for Executive Education Pte Ltd www.cee-global.co Page | 6
  • order to listen to their employees' expressions of distress and anger without becoming defensive, irritable, impatient or overwhelmed. For many, this critical aspect of staying emotionally connected with their people is also the most difficult as they must absorb a great deal of negative emotion without necessarily being able to make things better. However, it is also the most important as the "simple" process of listening and empathizing is tremendously powerful and will in due course create real appreciation and loyalty. Behaviour 4: Inspiration The most impressive leaders go one step further. While remaining realistic about tough conditions, they find a way to motivate and inspire their followers to perform. To achieve this, they must draw on deep reservoirs of leadership energy, fuelled by a powerful combination of self-confidence, personal humility, passion and belief in the future. This fourth behaviour must be founded upon the three previous leadership behaviours action, honesty and empathy. It is only when a leader has demonstrated these that their "call to arms" will be experienced as truly authentic and compelling. A female CEO in the banking sector recently delivered just such a message to her top 100 executives. It was honest and bracing in its acknowledgement of the tough economic times to come and she made clear how much she was expecting from her top team. She also shared, with real passion, her belief that the organisation she led had the capability and will - through relentlessly focusing on the needs of its customers - to weather this challenging period with results and reputation intact and to emerge as "one of the winners". The palpable buzz and enthusiasm that infused the room illuminated what can happen when a leader gets this fourth behaviour right. THE ROLE OF HR IN TURBULENT TIMES Few leaders find that these four behaviours come naturally. For most, they must be learned and practiced. This can be particularly challenging during tough times, as leaders themselves are not immune to the toxic cocktail of negative organisational dynamics and many feel anxious, burdened and exposed. HR partners who enjoy their leaders' trust can play a central role here. HR should remember that leaders risk reverting to earlier, less skilful versions of themselves under pressure. The task-focused leader who has learnt the importance of maintaining good relationships may revert to "tell" mode under pressure and become impervious to the feelings of others. The people-focused leader who has learnt to confront difficult interpersonal situations may revert to avoiding tough conversations. Some may find their working hours spiralling out of control in the maelstrom of task demands and be unable to switch off. This in turn erodes their capacity to mobilize the emotional intelligence necessary to deliver the leadership that turbulent times demand (Loehr and Schwarz, 2001). © 2013 Centre for Executive Education Pte Ltd www.cee-global.co Page | 7
  • Specific ways in which HR professionals can help include:      Presenting leaders with an analysis of the psychological, emotional and behavioural impact of the downturn on their organisation. Emphasizing the leaders' role in helping staff feel contained in the midst of the toxic cocktail of negative dynamics. Identifying, coaching and supporting those leaders best able to demonstrate the four key behaviours. Identifying those who are struggling and, where possible, coaching them to gain insight and behave more effectively, and Providing an emotional outlet for leaders to offload their own negative emotions, whether distress, anxiety, anger or guilt. One organisation has addressed these needs by having a dedicated, senior HR professional supporting and coaching the board around these issues. This was achieved through other, less strategically-critical HR projects being put on hold. Another executive team has asked a trusted coach for specific, focused consultancy in this area. Both approaches appear to be paying dividends in terms of leadership performance and the morale and productivity of the workforce. Looking after the needs of HR HR professionals usually have to juggle powerful competing demands on their time and attention and this is even truer in turbulent times. As well as supporting leadership behaviour, they have a central role in planning and implementing cutbacks, redundancies or closures with all the emotional strain and sheer hard work this involves. If the organisation cracks down on poor performance, HR is expected to help with the difficult conversations as well as dealing with the human aftermath. The HR team members are expected to be emotional "sponges" on the one hand and policy and procedure experts on the other, providing everything from a shoulder to cry on to legal advice. If HR professionals are to remain effective in the face of these demands, they must attend to their own needs. While colleagues use them to unload concerns and frustrations, the impact on HR partners themselves can easily go unnoticed. However seasoned and competent, they too are subject to the toxic cocktail. They must find ways to resource themselves and each other so that they can recover quickly from the negative experiences that tough times inevitably bring. This will enable them to model the balanced, insightful and containing leadership in their own sphere that the leaders of their business need to demonstrate in theirs. Looking to the future Together, the leadership behaviours described will provide a sense of psychological safety and emotional containment in organisations undergoing great uncertainty, instability and often painful change. Leaders cannot avoid or prevent painful events affecting their people. However, with the support of HR, they can take charge of threatening situations with alacrity and resolve. They can deal honestly with their people, convey genuine empathy and create a powerful sense of hope in the future. Leaders who achieve this will help staff deal more effectively with difficult experiences and inspire tremendous loyalty and trust. They will also succeed in focusing the energy of the workforce on the job in hand, helping their organisations to emerge successfully from recession when the conditions for economic growth return. © 2013 Centre for Executive Education Pte Ltd www.cee-global.co Page | 8
  • REFERENCES 1. Bawany, S. (2013), “Making Results-based Leadership Work in Singapore” Singapore Business Review, 12 February 2013, http://sbr.com.sg/hr-education/commentary/makingresults-based-leadership-work-in-singapore 2. Bawany, S. (2010), ‘Leadership That Gets Results’, Human Capital, Vol. 10, Issue 4. E-copy of the Chapter is available as a download from: http://www.ipma.com.sg/publications.php 3. Bridges, W. (2003), Managing Transitions: Making the Most of Change, 2nd ed., Basic Books, New York, NY. 4. Cavallo, K. & Brienza, D. (2002). Emotional competence and leadership excellence at Johnson & Johnson: The emotional intelligence and leadership study. Paper downloaded on May 2, 2002, from http://www.eiconsortium.org/ 5. Devlin, K. (2008), "Economic climate can increase the risk of a stroke", quoting views of Dr A. Sigman, associate fellow of the British Psychological Society, Daily Telegraph, 26 November. 6. Goleman, D. (1988) ‘What Makes a Leader’. Harvard Business Review. November– December. 7. Goleman, D. (2000) ‘Leadership That Gets Results’ Harvard Business Review. March–April. 8. Goleman, D., Boyatzis, R. and McKee, A. (2001), "Primal leadership: the hidden driver of great performance", Harvard Business Review. December. 9. Goleman, D. (1998) ‘Working with Emotional Intelligence’, Bantam Books, New York. 10. Loehr, J. and Schwarz, T. (2001), "The making of a corporate athlete", Harvard Business Review. January 11. Sandler, C. (2009), “The psychological role of the leader in turbulent times”, Strategic HR Review, May © 2013 Centre for Executive Education Pte Ltd www.cee-global.co Page | 9
  • APPENDIX – SPEAKER’S PROFILE – PROF SATTAR BAWANY Professor Sattar Bawany is the Senior Advisor to Eduquest International Institute and Chief Executive Officer of the Centre for Executive Education (CEE). He is also the Managing Director as well as Master Executive Coach & Facilitator with EDA Asia Pacific. EDA is a global leader in executive development including executive coaching solutions to Fortune 500 organisations. Prof Bawany is also concurrently the Strategic Advisor & Member of International Professional Managers Association (IPMA) Board of Trustees and Governing Council. Prof Bawany is also the immediate past Co-Chair of the Human Capital Committee of the American Chamber of Commerce in Singapore (AmCham Singapore). He is also a member of Frontier Strategy Group’s Expert Advisory Network (EAN) for Human Capital and Talent Management issues in Asia Pacific advising CEOs and CHROs of global and regional organisations. Prof Bawany has assumed various senior management roles including Managing Director/Country Head and Talent Development/Coaching Practice Leader for DBM Asia Pacific as well as Business Leader, Organisational Effectiveness/Leadership Development Consultant and Executive Coach with Mercer HR Consulting, The Hay Group, The Forum Corporation and Mercuri International. Prof Bawany is an astute advisor to executives who need to know how they are perceived and want to focus on what is most important in their professional and personal lives. He has coached a range of leaders, from CEOs, to senior vice presidents, and high potential managers. Prof Bawany’s passion for people and culture is about creating an environment where employees are valued and emotionally engaged in the business. He has successfully worked with extensive number of public and private organisations regionally and internationally specialising in people and culture through transformational change, starting with the ‘end’ in mind! He is an experienced facilitator and has spent many years developing leadership capability through the delivery of structured talent management, leadership development programs including executive coaching. He is a Graduate of Corporate Coach U and a Licensed Coaching Clinic Facilitator. He is certified in the administration and application of various psychometric instruments including the Extended DISC®, Myers-Briggs Type Indicator™ (MBTI), Bar-On EQ 360™ and EQ-i™. He is also certified in the administration and application of the MRG’s suite of instruments including “Leadership Effectiveness Analysis™” (LEA 360 Assessment tool) and “Strategic Leadership Development”. He is also accredited in the administration and application of the Benchmarks® and Skillscope® Profiling Instruments. He holds an Executive MBA and a Bachelor in Business Administration (Marketing). He is currently pursuing his PhD in Business Administration and his Doctoral Research is on ‘The Impact of Executive Coaching on the Personal & Professional Development of Leaders”. Prof Bawany is a Fellow of International Professional Managers Association (IPMA) and The Chartered Institute of Marketing (CIM). He is a Professional Member of the Society of Human Resource Management (SHRM) and the Chartered Institute of Personnel and Development (CIPD). He is also a Practicing Member of the International Coaching Federation (ICF) and International Association of Coaching (IAC). © 2013 Centre for Executive Education Pte Ltd www.cee-global.co Page | 10