Transformational Leadership


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Transformational Leadership

  1. 1. CIO Executive Council Transformational Leadership in Information Technology Vince Kellen Senior Consultant, Cutter Consortium vkellen@cutter.comCopyright Vince Kellen, 2008. This work is the intellectual property of the author. Permission is granted for this material to be shared fornon-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given thatthe copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.
  2. 2. Agenda Current context: the whipsaw of change What is transformational leadership? Why do we need transformational leadership needed? What are the implications for IT? How do I develop transformational leaders?Vince Kellen 2
  3. 3. Change The only thing that seems stable is the overused truism that change is permanent What is also not in dispute is that the rate of change has accelerated and is continuing to increase The effects of the increase in the rate of change are being felt in all aspects of life: personal, careers, social structures, governments, environment The increase in the rate of change is without precedent in human history. We are all pioneers 3Vince Kellen
  4. 4. Speed of change today Human adaptation occurs as fast as information can be spread, understood and applied The rate at which information flows is limited by this human cycle of knowledge creation and adaptation • With modern IT-enabled communication, this rate is now minutes and days not years (or millennia) – Diffusion of inventions (Internet versus the television versus farming) – Product development lifecycles – Birth and death of companies (YouTube took a year to get $1.6 billion in value) – Breadth of market declines Human organizations will naturally seek faster rates of change as they attempt to outwit competitors Widespread availability of information (which IT is providing) ought to stabilize markets and ecosystems but • People and firms differ in how fast they can incorporate new information and change their models that guide their actions • There will be big differences in how humans apply information • Synchronized biases may skew changeVince Kellen 4
  5. 5. A tale of two markets 1929* 2008* • Sep 3: the Dow was 381 • Aug 28: the Dow was 11,715 • Nov 13: the Dow was198 • Nov 20: the Dow was 7,552 • Drop: 48% • Drop: 36% • Maximum one-day volume: 16,410,000 • Max 1 day volume: 11,456,230,400 Note: after the 1929 crash, the Dow fell to a low of 41 in July, 1932. The Dow did not return to pre-1929 levels until late 1954, and was lower at its July, 1932 level than it had been for several decades prior to 1929 Implications • This drop is not like 1929 • IT enables 1,000X the amount of volume • Time will tell, but IT may enable much faster adjustments*Source: Yahoo! Finance Vince Kellen 5
  6. 6. Increased rate of change Chaos 1Entropy Time Order 0 You can visualize it this way Rate of change Or This way Time Vince Kellen 6
  7. 7. Implications Organizational stress • Organizations are laying off and decimating their workforces • Employee’s left standing need motivation • Knowledge worker productivity can degrade significantly • Team productivity can also degrade Antidote • Leaders who can motivate and inspire organizations to new levels • Transformational leadership!Vince Kellen 7
  8. 8. What is transformational leadership? Transformational leadership is a leadership style where leaders and followers engage each other and rise to new levels of motivation, morality and performance Transformational leaders offer a purpose that transcends short- term goals and focuses on higher-order intrinsic needs Under transformational leadership, the purpose of leaders and followers, which start out separate, become fused Transformational leaders help followers grow and develop into leaders by responding to their individual needs, empowering them, and aligning individual goals and objectives with the larger organizationSources: Transforming Leadership. James MacGregor Burns. Grove Press. 2003 and Transformational Leadership, Second Edition. Bernard M. Bass & Ronald E. Riggio. Lawrence Erlbaum & Associates, Inc. 2006. Vince Kellen 8
  9. 9. What is transforming? Is it: Patterns of Human Environment thought behavior Or is it: Human Patterns of Environment behavior thoughtVince Kellen 9
  10. 10. Breaking down change Proactive What type of Quadrant 2 Quadrant 1 Planned, self-generated, Planned, self-generated, change are we significant change incremental change seeing today? -Change in core competencies -Continuation of core -Fundamental break from old competencies assumptions -Continued reliance on existing assumptionsDiscontinuous Incremental Quadrant 4 Quadrant 3 Unplanned, imposed, and Unplanned, imposed, significant change incremental change -Market crashes -Competitor product strategy shifts -Dramatic competitor moves -Smaller changes in customer -Significant regulatory or needs environmental change -Regulatory updates/minor changes Reactive Vince Kellen 10
  11. 11. Reacting to disruptive change Why do we get stuck in repeatable patterns of reactive, disruptive change? • Avoidance of what is challenging and stressful • “Turfdom” and other facts of organizational life • Natural human defensiveness to change agents from within • Too lean. It is more efficient in to short run to not spend the time to avoid (or plan) disruptive change • The current workload prevents management from attending to leading change IT has a role to play in helping organizations with changeVince Kellen 11
  12. 12. Transformational leadership breeding ground What values What values do leaders do followers profess? Gap see in use? The gap between principles (values professed) and practice (values in use) gives rise to tension. Transformational leaders close the gap.Vince Kellen 12
  13. 13. Breaking transformational leadership down Idealized influence (II) • Leaders behave as role models that followers wish to emulate • Leaders are admired, respected, trusted with high moral/ethical conduct, are consistent rather than arbitrary • Followers believe leaders to have persistence, determination, extraordinary abilities • Leaders are willing to take risks Inspirational motivation (IM) • Leaders behave in ways that motivate and inspire those around them • Leaders arouse team spirit • Leaders get followers involved in envisioning attractive future states • Leaders demonstrate commitment to goals Intellectual stimulation (IS) • Leaders stimulate followers efforts to be innovative and creative by questioning assumptions and reframing problems and looking at old situations in new ways • No public criticism of individual member’s mistakes • Leaders solicit new ideas and creative solutions from followers, who are included in the process Individual Consideration (IC) • Leaders pay special attention to each individual follower’s needs for achievement and growth • Leaders act as coaches or mentors • Followers and peers are developed to successively higher levels of potential • Individual consideration is practiced when new learning opportunities are created • Leader’s behavior demonstrates acceptance of individual differences in followersVince Kellen 13
  14. 14. Other leadership styles Contingent reward (CR) • Leader assigns or obtains follower agreement on what needs to be done with promised or actual rewards offered in exchange • Rewards can be transactional (e.g., bonus) or transformational (recognition, praise) Management by exception (MBE) • Can be active (MBE-A) or passive (MBE-P) • In active MBE, leader arranges to monitor potential deviances from standards, mistakes or errors in follower assignments and takes corrective action (e.g., action in anticipation of deviances) • MBE-P implies leaders waiting passively for deviances or errors first and then taking action (e.g., only action after a complaint) Laissez-faire (LF) • LF is the avoidance or absence of leadership • Necessary decisions are not made • Leadership responsibilities are ignored • Authority remains unusedVince Kellen 14
  15. 15. Full range of leadership styles Effective The 4 I’s (II, IM, IS, IC) CR Passive MBE-A Active MBE-P LF IneffectiveVince Kellen 15
  16. 16. Implications for IT We need to leverage transformational leadership practices to increase performance levels • Type 1 improvements: Get IT to find new price/performance levels in its own work • Type 2 improvements: Help the business in configuring and using IT to achieve firm-wide performance improvements We need to help stop the cycle of avoidable, large-scale disruptive change • Planning periodic change, enterprise architecture life-cycle planning • Challenging current architectures and assumptions at proactive and perhaps predefined intervals, even ahead of retirement • Continued assessment of the capabilities and skills of our staffs • Monitor the perceived gap between principles and practice as followers see them • Embracing “irritants of change” We need to avoid impediments • Leadership development takes time. Investments in leadership development need to be sustaining • Examine and address IT organization and firm-wide cultural problems • Senior IT leaders need to be visible and actively supporting/driving leadershipVince Kellen 16
  17. 17. Desired Outcomes Team ++ Expertise Team Expertise =Benefit Superior ++ IC, IS, IM, II Solution ++ Passion/role alignment ++ Team/passion ensemble ++ Team self-assessment Can individuals and teams accept being average? 0 ++ Cost Vince Kellen 17
  18. 18. How do I develop transformational leaders? Develop required skills in staff • Critical evaluation, assessment and problem detection skills • Envisioning the future, brainstorming, creativity skills • Communication (speaking, writing, interpersonal) skills for conveying a vision • How and when to empower others • Impression management (getting others to see demonstrated the leadership behaviors) • Motivational speaking skills, empathy skills Offer leadership development programs to staff • In-house and via third parties (SIM, CIO Executive Council, other organizations) Critically examine your own and others leadership skills • Use mentors/coaches to provide brutal feedback • Survey instruments can be useful • Assess your strengths (e.g., Gallup’s Strengths Finder) • Reflect on your own successes and failures Remember leadership development is a long-term proposition • It is an investment in the future • You will develop additional leadership capacity over time • You will achieve improved outcomesVince Kellen 18
  19. 19. Summary Current conditions will continue to stress IT leaders Focusing on applying transformational leadership concepts can improve IT performance and motivate IT workers Long-term, transformational leadership within IT can provide benefits to the whole organization, especially in IT-related process improvements, or IT intensive organizational restructuring Organizations need transformational leadership everywhere!Vince Kellen 19
  20. 20. Questions and hopefully answers Questions? I am available for questions and follow up at: • Email: • Phone: +1 (630) 715-6017Vince Kellen 20