This document provides a summary of key topics and materials covered in a seminar on management and leadership. It includes summaries of videos on leading through structural change and challenges of decision making. Concepts from course readings on leadership judgment, transformational leadership, and challenges of decision making are also summarized. An assignment is provided asking students to analyze a case study on transformational leadership applying concepts from the course.

1. Management & Leadership
MGMT 704 - Centennial College
Suzanne Peters Seminar No. 9

2. Let’s start with a video
IBM THINK Forum | A Conversation on Leading in Times
of Deep Structural Change
https://www.youtube.com/watch?v=uvap38caLic
25:20
A conversation with:
• Jamie Dimon, Chairman and Chief Executive Officer, JP Morgan Chase & Co.
• Dr. Victor K. Fung, Li & Fung Limited
• Jim McNerney, Chairman, President and CEO, The Boeing Company
Moderated by Dr. Fareed Zakaria, CNN Host, Fareed Zakaria GPS, Editor-at-Large,
TIME, Columnist, The Washington Post, and Author.
2

3. How Winning Leaders Make Great Calls…
Chapter 2: Framework for Leadership Judgement
by Noel M. Tichy and Warren G. Bennis
“Fingerspitzengefühl”
3
Review

4. The Judgment Calls Matrix
Judgment: The essence of effective leadership
It is a contextually informed decision-making process encompassing
three domains: people, strategy and crisis.
Within each domain, leadership judgment follows a three-phase
process: preparation, the call and execution.
Good leadership judgment is supported by knowledge of one’s
self, social network, organization, and stakeholders.
4

5. Leadership Judgment Process
5
Preparation Phase Call Phase Execution Phase
Sense /
Identify
Frame /
Name
Mobilize /
Align
Call
Make It
Happen
Learn /
Adjust
Redo Redo Redo

6. Also of note…
Two processes are required by the leader:
Cognitive – The ability to distinguish the important
signals from the unimportant
Emotional – Having the guts to face that something is
indeed a crisis… including the ability to make really tough
calls.
6

7. Assignment 4: Due Monday, March 23
You are the head of a division (e.g. sales, distribution, marketing) in one of the world’s
leading video game companies. One month prior to the release of the best product
your company has ever produced, a major crisis threatens the launch.
• Define your role in the organization and in this particular situation
• Define the crisis and potential outcomes ranging from worst- to best-case scenario
• Apply the judgment calls matrix to address the issue, including reference to:
• 3 domains: people, strategy and crisis
• 3-phase process: preparation, the call and execution
• Knowledge of one’s self, social network, organization, and stakeholders
Submit a clear and insightful paper referencing course material and any other suitable
resources. Maximum 1,200 words in total. Include all references.
7

8. Why Good Leaders Make Bad Decisions
by Andrew Campbell, Jo Whitehead and Sydney Finkelstein in Harvard
Business Reivew, February 2009
Neuroscience reveals what distorts a leader’s judgment…
Using a database of 83 flawed decisions, it was concluded
that flawed decisions start with errors in judgment.
8
Review

9. Unconscious processes
Our brains do not naturally follow
the classic textbook model:
• Lay out the options
• Define the objectives
• Assess each option
against each objective
…our brains leap to conclusions and are reluctant to consider
alternatives and we are particularly bad at revisiting our initial
assessment of a situation – our initial frame.
9
Instead, we analyze a
situation using pattern
recognition and arrive at
a decision to act or not by
using emotional tags.

10. Concept: Red Flag Conditions
1. The presence of inappropriate self-interest
2. The presence of distorting attachments
3. The presence of misleading memories
How do you safeguard against your biases?
10

11. Identifying Red Flags
1. Lay out the range of options
2. List the main decision makers
3. Choose one decision maker to focus on
4. Check for inappropriate self-interest or distorting
attachments
5. Check for misleading memories
6. Repeat the analysis with the next most influential
person
7. Review the list of red flags you have identified
11

12. Safeguarding Against Biases
• Inject fresh experience or analysis
• Introduce further debate and challenge
• Impose stronger governance
12

13. Time for a video…
Challenges of Decision Making and Change
https://www.youtube.com/watch?v=eLjVEmXV-
_Y&index=4&list=PL6C161A90DADCAAEE
1:13-3:55, 5:00-6:02
Sam Palmisano, Former Chairman, President and CEO, IBM
Opening remarks: IBM's THINK Forum, September 2011
13

14. Chapter 9: Transformational Leadership
In Leadership: Theory and Practice by Peter Northouse
14
New Material…

15. “Transformational leadership is a process that changes and transforms
people. It is concerned with emotions, values, ethics, standards, and
long-term goals and includes assessing followers’ motives, satisfying
their needs, and treating them as full human beings.
Transformational leadership involves an exceptional form of influence
that moves followers to accomplish more than what is
usually expected of them. It is a process that often incorporates
charismatic and visionary leadership.”
15
Transformational Leadership

16. Time for a video…
https://www.youtube.com/watch?v=1nlgmKJEcS8
Louis V. Gerstner, Jr.
Former Chairman & CEO, IBM
16

17. Charismatic leadership
Synonymous with transformational leadership?
17
Personality
Characteristics
• Dominant
• Desire to
influence
• Confident
• Strong values
Behaviours
• Sets strong role model
• Shows competence
• Articulates goals
• Communicates high
expectations
• Expresses confidence
• Arouses motives
Effects on Followers
• Trust in leader’s ideology
• Belief similarity between leader
and follower
• Unquestioning acceptance
• Affection toward leader
• Obedience
• Identification with leader
• Emotional involvement
• Heightened goals
• Increased confidence

18. Bass Model
Leadership Continuum
18
Transformational
Leadership
Transactional
Leadership
Laissez-Faire
Leadership

19. Leadership Factors
19
Transformational
Leadership
1. Idealized influence /
Charisma
2. Inspirational motivation
3. Intellectual stimulation
4. Individualized consideration
Transactional
Leadership
5. Contingent reward
/ Constructive transactions
6. Management-by-
Exception -- active and
passive, corrective
transactions
Laissez-Faire
Leadership
7. Laissez-Faire,
Non-transactional

20. Full Range of Leadership Model
20
Effective
Ineffective
Active
Passive
LF
MBE
CR
IC
IS
IM
II
Abbreviation Leadership Component
II Idealized Influence
IM Inspirational Motivation
IS Intellectual Stimulation
IC Individualized
Consideration
CR Contingent Reward
MBE Management-by-Exception
LF Laissez-Faire
Source: From Bass, B.M., & Avolio, B.J., 1994. Improving Organizational Effectiveness Through Transformational Leadership. Sage Publications Inc.

21. Additive Effect of Transformational Leadership
21

22. Bennis and Nanus
Four common strategies used by leaders in transforming
organizations:
1. Clear vision of the future state of their organizations
2. “Social architects” for the organization
3. Created trust by making their own positions clearly known and then
standing by them
4. Used “creative deployment of self through positive self-regard”
22

23. Kouzes and Posner
Five fundamental practices that enable leaders to get extraordinary
things accomplished:
1. Model the way
2. Inspire a shared vision
3. Challenge the process
4. Enable others to act
5. Encourage the heart
23

24. Time for a video…
People are your Competitive Advantage
https://www.youtube.com/watch?v=Fw6_LpI0BDQ
Herb Kelleher, Founder
Southwest Airlines
24

25. Assignment 5: Due Monday, March 30
Read the case study provided from Peter Northouse’s Leadership: Theory and Practice and
answer the four questions below.
1. If you were consulting with the board of directors at HTE, what would you advise them
regarding Mr. Barelli’s leadership from a transformational perspective?
2. Did Mr. Barelli have a clear vision for HTE? Was he able to implement it?
3. How effective was Mr. Barelli as a change agent and social architect for HTE?
4. What would you tell Mr. Barelli to do differently if he had the chance to return as president of
HTE?
Submit a clear and insightful paper referencing course material and any other suitable resources.
Maximum 1,200 words in total. Include all references.
25