HBR- On Leadership 1

HARVARD BUSINESS REVIEW ON LEADERSHIP Learning from Research

Leadership Course at PAF-KIET One of the project assigned to students of this course was to give an oral presentation on a research publication on leadership from HBR. This presentation includes some of these presentations. Good effort of students is appreciated.

CONTENTS Managers and Leaders“Are they different ? By Abraham Zaleznik. HBR, Jan.2004 Are Leaders Portable?, By Groysberg, Mclean, Nohria.HBR, May.2006 The Five Messages Leaders must Manage, By John Mann. HBR, May.2006 Narcissistic Leaders, By Michael Maccoby. HBR, Jan.2004 Level 5 Leadership, By Jim Collins. HBR, Jan.2001

Managers and Leaders Are They Different? By: Abraham Zaleznik Presented by: Maria Safdar

Learning Objective To understand differences between managers and leaders along four dimensions and to learn how companies can develop better leaders. Four Dimensions: Managers Vs Leaders Personality Attitudes towards goals Conceptions of work Relationship with others

What Is The Ideal Way To Develop Leadership? Managerial leadership unfortunately doesn’t necessarily ensure imagination, creativity, or ethical behavior in guiding the destinies of corporations. Leadership requires using power to influence the thoughts of other people.

Power & Risk Power in the hands of individuals entails human risk: The risk of equating power with the ability to get immediate results The risk of ignoring the many different ways people can legitimately accumulate power The risk of losing self control in the desire for power The development of collective leadership and managerial ethics can hedge these risks.

The debate continues! An inherent conservatism dominates the culture of large organizations In the second American Revolution, John D. Rocke Feller III describes the conservatism of organization: “ An organization is the system, with the logic of its own, and all the weight of tradition and inertia. The deck is stacked in favor of the tried and proven way of doing things and against the taking of risks and striking out in the new directions.”

Managers Vs. Leaders Personality Managerial culture emphasizes: Rationality and control Energies are directed towards goals, resources, organization, structures, or people Problem solver Manager Asks, what problems have to be solved? What are the best ways to achieve results so that people will continue to contribute to his organization? Requires that many people operate efficiently at different levels of status and responsibility

Managers Vs. Leaders Personality It takes neither genius nor heroism to be a manager, but a tough mindedness, hard work, intelligence, analytical ability, and perhaps most important, tolerance, and goodwill. From this perspective, leadership is simply a practical effort to direct, and to fulfill his/her task Another conception of leadership assumes that only great people are worthy of the drama of power and politics

Three Questions? Is the leadership mystique merely a holdover from our childhood – from a sense of dependency and a longing for good and heroic parents? Is this true, no matter how competent managers are, their leadership stagnates because of their limitations in visualizing purpose and generating value at work? Driven by narrow purpose, without an imaginative capacity and the ability to communicate, do managers then perpetuate group conflicts instead of reforming them into broader desires and goals?

Attitude Towards Goals Managers tend to adopt impersonal, if not passive, attitudes toward goals. Managerial goals arise out of necessities rather than desires and, therefore, are deeply embedded in their organization’s history and culture.

Attitude Towards Goals Leaders are active instead of reactive, shaping ideas instead of responding to them Leaders adopt a personal and active attitude towards goals Exert influence in evoking images and expectation, and in establishing specific desires and objectives determine the business directions The net result of this influence changes the way people think about what is desirable, possible, and necessary.

Conceptions of work Managers tend to view work as an enabling process involving some combination of people and ideas interacting to establish strategies and make decisions Help the process along by calculating the interests in opposition, planning when controversial issues should surface, and reducing tensions In this enabling process, managers’ tactics appear flexible: on one hand, they negotiate and bargain; on the other, they use rewards, punishments, and other forms of coercion.

Conceptions of work To get people to accept solutions to problems, managers continually need to coordinate and balance opposing views. Leaders work in the opposite direction. Where managers act to limit choices, Leaders develop fresh approaches to long-standing problems and open issues to new options. To be effective, leaders must project their ideas onto images that excite people and only then develop choices that give those images substance.

Conceptions of work Leaders work from high-risk positions; Often disposed to seek out risk and danger, especially where the chance of opportunity Reward appears promising.

Relations with Others Managers prefer to work with people Avoid solitary activity because it makes them anxious. Need to seek out others with whom to work and collaborate Maintain a low level of emotional involvement in those relationships managers may lack empathy, or the capacity to sense intuitively the thoughts and feelings of others Empathy is not simply a matter of paying attention to other people. It is also the capacity to take in emotional signals and make them meaningful in a relationship.

Relations with Others Managers relate to people according to the role they play in a sequence of events or in a decision-making process While leaders, are concerned with ideas, relate in more intuitive and empathetic ways. The distinction is simply between a manager’s attention to how things get done and a leader’s to what the events and decisions mean to participants.

Relations with Others Managers have adopted from game theory the notion that decision-making events can be one of two types: Win-lose situation (or zero-sum game) Win-win situation in which everybody in the action comes out ahead.

Decision Of How To Allocate Capital Resources Manager focuses others’ attention on procedure and not on substance Communicates to subordinates indirectly, using “signals” instead of “messages.” Plays for time

Relations with Others Leaders referred to with adjectives rich in emotional content Attract strong feelings of identity and difference or of love and hate Human relations in leader-dominated structures often appear turbulent, intense, and at times even disorganized Such an atmosphere intensifies individual motivation and often produces unanticipated outcomes

Senses of Self William James Varieties of Religious Experience , describes two basic personality types: Once-born -- adjustments to life have been straightforward Whose lives have been more or less a peaceful flow since birth. Twice-born -- have not had an easy time of it Their lives are marked by a continual struggle to attain some sense of order Cannot take things for granted

Senses of Self For once-born personality, the sense of self as a guide to conduct and attitude derives from a feeling of being at home and in harmony with one’s environment For a twice-born, the sense of self derives from a feeling of profound separateness.

Senses of Self A manager’s sense of self-worth is enhanced by perpetuating and strengthening existing institutions: he or she is performing in a role that harmonizes with ideals of duty and responsibility. Leaders tend to be twice-born personalities, people who feel separate from their environment. May work in organizations, but they never belong to them. Their sense of who they are does not depend on memberships, work roles, or other social indicators of identity.

Development Of Leadership Two different courses of life history: Development through socialization, which prepares the individual to guide institutions and to maintain the existing balance of social relations Development through personal mastery, which impels an individual to struggle for psychological and social change. Society produces its managerial talent through the first line of development; leaders emerge through the second.

Development of Leadership Once-borns, make moderate identifications with parents and find a harmony between what they expect and what they are able to realize from life. But suppose the pains of separation are amplified by a combination of parental demands and individual needs to the degree that a sense of isolation, of being special, or of wariness disrupts the bonds that attach children to parents and other authority figures?

Development of Leadership The person becomes deeply involved in his or her inner world at the expense of interest in the outer world. Self-esteem no longer depends solely on positive attachments & real rewards. A form of self-reliance takes hold along with expectations of performance and achievement, and perhaps even the desire to do great works Such self-perceptions can come to nothing if the individual’s talents are negligible. Even with strong talents, there are no guarantees that achievement will follow, let alone that the end result will be for good rather than evil

Development of Leadership Managerial personalities form moderate and widely distributed attachments. Leaders, on the other hand, establish, and also break off, intensive one-to-one relationships. It is a common observation that people with great talents are often indifferent students One-to-one relationships depends on the availability of teachers, possibly parental surrogates, whose strengths lie in cultivating talent

Can Organizations Develop Leaders? The myth is that people learn best from their peers. The threat of evaluation and even humiliation recedes in peer relations because of the tendency for mutual identification and the social restraints on authoritarian behavior among equals. Peer training in organizations Task forces made up of peers from several interested occupational groups (sales, production, research, and finance) As a result, so the theory goes, people interact more freely, listen more objectively to criticism and other points of view, and, finally, learn from this healthy interchange.

Conclusion! In his, Daniel Goleman research at nearly 200 large, global companies, Goleman found that while the qualities traditionally associated with leadership -- such as intelligence, toughness, determination, and vision -- are required for success, they are insufficient. Truly effective leaders are also distinguished by a high degree of emotional intelligence, which includes: Self-awareness, Self-regulation, Motivation, Empathy, and Social skill.

Are leader portable Author of the article Groysberg B McLean AN , Nohria N Presented by Maqsood Ali Hafiz Murtaza

BORIS GROYSBERG Assistant Professor of Business Administration Harvard business school NITIN NOHRIA is the Richard P. Chapman Professor of Business Administration at Harvard Business School. BIOGRAPHY OF ARTICLE AUTHORS

Learning Objective: To appreciate the conditions under which the assets an executive has acquired at a previous company can generate value in another organization that hires him or her.

What is management talent ? All management skills an executive has acquired,such as strategic skills industry knowledge, relation ship skills general management skills company-specific skills

Types of human capitals general management human capital the skills to gather, cultivate, and deploy financial, technical, and human resources; strategic human capital individuals' expertise in cost cutting, growth, or cyclical markets industry human capital meaning the technical and regulatory knowledge unique to an industry relationship human capital the extent to which a manager's effectiveness can be attributed to his or her experience working with colleagues or as part of a team company-specific human capital the knowledge about routines and procedures, corporate culture and informal structures, and systems and processes that are unique to a company.

Are leader portable ? Does management talent transfer from one company to another? When a company hires a new executive it gets a bundle of abilities and experiences. Some general management skills such as setting a vision Motivating employees organizing budgeting And monitoring performance But question arises . . Do all human capita translate well to the new settings ??????? Will GE executives replicate GE’s success in new org? ? ? ? ? Not always . . . . Why ? ? ? ? ? ? ? Conventional wisdom holds that a skills those specific to a given company, such as knowledge of idiosyncratic processes and management system don’t transfer as well to the new settings

Now what do you think ? Should stock prices spike when company hires new CEO from renowned company experiencing the drastic growth ? The market certainly seems to think so. Stock prices spike when companies announce new CEOs from a talent generator like General Electric. But how do these executives perform over the long run? ? ? ?? The authors studied the careers of 20 former GE executives who went on to lead other major organizations, with strikingly uneven results

Overview of the new CEO’S performance in a new org HIRING COMPANY CEO’S NAME Return of company after hiring new CEO GE Own Company Jeffrey immelt $ 1.1billion profit 3M James Mcnerney $6.5 billion profit Home depot Robert Nardelli $ 10 billion profit PRIMEDIA Tom Rogers -30.2% Intuit Steve Bennett 60.9% Stanley Works John Trani -10%

Portability of human capital NO SKILLS TYPE SKILLS PORTABILITY 1 General management human capital The skills to gather, cultivate, and deploy financial, technical, and human resources The most portable 2 Strategic human capital Individuals’ expertise in cost cutting, growth, or cyclical markets; Highly Portable 3 Industry human capital Technical and regulatory knowledge unique to an industry Portable 4 Relationship human capital The extent to which a manager's effectiveness can be attributed to his or her experience working with colleagues or as part of a team Less Portable 5 Company specific human capital The knowledge about routines and procedures, corporate culture and informal structures, and systems and processes that are unique to a company Least Portable

Impact of fit The GE executives' performance as CEOs depended on whether their new organizations were able to leverage each type of skill. Even gifted executives with with the best and most admired management training don’t necessarily make stare CEO. The authors' findings challenge the conventional wisdom on human capital, which holds that there are two types of skill: general management , which is readily transferable, and company specific , which is not. In fact, they argue, other types of management capabilities can contribute significantly to performance, and company-specific skills can be an asset in a new job The type and likely portability of of an executive's skills are better indicators of a good match

IMPACT OF JOB FIT We will see how the new individual's skills has impact over the performance of the new org Company experience +ve growth if employees skills match with the org and vise versa

Strategic Human Capital and its portability These skills include Individuals’ expertise in cost cutting, growth, or cyclical markets Such skills are usually portable type of humane capital other than general management skills Remember . . . ! · The strategic skill required to control cost s in the face of fierce price competition are not the same as those required to improve the top line in a rapidly growing business or balance investment against cash flow to survive in a highly cyclical business · They won’t offer an advantage if the strategic needs of the company don’t match the manager’s skills Nine of the 20 executives under studied matches strategic skills. In case of match new organization experience abnormal return of 14.1% while in case of mismatch returns were –39.8%

Impact of mismatch strategic skills Example#1 Consider the experience of Paolo Fresco, whose success spearheading GE's growth into Europe did not follow him when he became chairman of Fiat in 1998. Fiat (org) was not cost competitive, and yet Fresco's attention was diverted by investments in technology and Web presence, as well as by acquisitions meant to diversify the company's portfolio. After the carmaker slid into a protracted liquidity crisis, Fresco and his board supported a politically explosive plan to divest Fiat's core automobile business; when that was rejected by creditors and shareholders, he resigned in 2003.

Impact of mismatch strategic skills Example#2 Consider, too, John Trani, who in 1997 left a long career at GE Plastics for toolmaker and hardware manufacturer Stanley Works. Trani had held GE Plastics through a long period of extraordinary growth. When he joined Stanley Works, the company had emerged from a period of expansion and, with sales flattening, had to shift its focus to cost control, a type of expertise Trani lacked. Three years into his tenure, he delivered a -10 percent annualized abnormal return.

Impact of match strategic skills Example#3 However, knowing how and where to cut was clearly a plus for Carlos Ghosn, who is not a GE alumnus but is one of the cases we teach on a new CEO widely known for transforming the nearly bankrupt Japanese auto manufacturer Nissan into one of the world's most successful car manufacturers. Having previously turned around Michelin operations in Brazil and overseen the integration of the Goodrich-Uniroyal acquisition, Ghosn earned the nickname " le cost killer" for his role in the Renault turnaround.

Relationship human capital Relationship human capital , is the extent to which a manager's effectiveness can be attributed to his or her experience working with colleagues or as part of a team. Such skills overlap with company specific skills in that key relationships often come from a company experience This study looked at the effect of bringing along a team of former colleagues on subsequent performance . We found that GE executive fared better when they could bring in other GE alumni Company that hired team of three or more GE executives showed annualized abnormal returns of 15.7%, while those that hired just one achieved annualized abnormal returns of -16.6%

Relationship human capital Example #1 when lee Iacocca joined Chrysler in 1978,he was able to hand pick a staff that could help him carry out a high-risk turnaround of a nearly bankrupt company. in first four years, to help him tackle Chrysler's financial, organizational.

Relationship human capital Example#2 Intuit’s Bennett brought several former GE colleagues to his new employer. If he had been unable to fill positions with highly capable people known to him, retirement of long time and stock-wealthy departing intuit employees could have proved operationally divesting

Industry human capital Most managers operate under constraints that are particular to an industry, such as regulatory supervision in the food, drug, and utility business or the deeply competitive nature of the consumer goods business. So we ere not surprised to find that relevant industry experience had a positive impact on perform in a new job, but that these skill didn’t transfer to a new industry. In cases where a GE executive moved into an industry similar to the one that had formed the core of his experience at GE, his new company generated annualized abnormal returns of 8.8%, when the executive moved into a very different industry relative to his experience, his company generated annualized abnormal returns of –29.1%

Industry human capital Industry expertise also includes relationships with customers, supplier, regulators, and even competitors that can confer and advantage. In 1989 general dynamics, one of GE”s major customers, announced the hiring of William enders, former general manager of GE aircraft equipment as vice chairman and subsequently chairman and CEO. At the time the F-22 program then an estimated $67 billion project to develop the successor for General Dynamics' highly profitable F-16 was facing ill favor in congress over costs. Entering a new industry, by contrast, often entails a steep learning curve a factor companies in crisis should keep in mind in the hiring process.

Company specific human capital The knowledge about routines and procedures, corporate culture and informal structures, and systems and processes those are unique to a company. In this regard the analyst also carried out the research about 20 companies in which 10 executives , which match the above, mention

Company specific human capital When star executives switch companies, they leave an environment in which their skill sets allow them to be effective. The more closely the new environment matches the old, the greater the likelihood of success in the new position. Qualities and characteristics but there annualized abnormal returns of 17.5% while the other ten, those with a lesser degree of fit (match), showed annualized abnormal returns of –37.7%.

When James McNerney left GE for 3M, he took advantage of a high cultural match between the two companies to institute certain GE practices that were new to 3M- including growth through acquisition, rigorous cost control, a leadership development institute, and a performance-based pay structure. A great degree of similarity exists between the systems and culture of the new executives former setting and those of your company Company specific : knowledge of idiosyncratic processes and management systems Intuit’s Bennett brought several former GE colleagues to his new employer. If he had been unable to fill positions with highly capable people known to him, retirement of long time and stock-wealthy departing intuit employees could have proved operationally divesting You can bring one or more of the new executive’s former teammates on board as well Relationship: Productivity deriving from participation in teams As vice president of IBM’s Microelectronics semiconductor Products ‘Christine kind established the division as a dominant manufacturer of applicatio0n specific integrated circuits. When AMI semiconductor lured her away in 2001; the company specifically cited her outstanding relationship with customers as tremendous assets for AMIS. Your company need strategic relationships with other industry players or familiarity with industry customers Industry: technical and regulatory knowledge unique to an industry Entrepreneurial, laid-back software maker intuit wanted to improve margins and top-line growth. It hired Steven Bennett, who had launched new business at GE Bennett refocused intuit on creating new products scoring double digit revenue growth in his first year. Your company’s strategic needs match the new executive’s skills Strategic: expertise in cost cutting growth, or cyclical markets Example Transferable when Skill type

THE FIVE MESSAGES, LEADERS MUST MANAGE (By: John Hamm) Presented by: Burhan Minhaj Reg.No # 2042

John Hamm General partner at VSP capital in San Francisco. The author of “ why entrepreneurs Don’t Scale in Dec-2002. Led a CEO in Bay area for four years.

Introduction Real job of a leader is to inspire, support the organizations collective responsibilities and to take responsibility for creating a better future. To believe in effective communication is a leader’s single most critical management tool for making this happens Leaders job is to deliver the messages to the team members and don’t make things unclear for the employees. When a leader defines what he/she really means and sets a clear direction according to that direction, relationship and feedback improve, action is more efficient and on-strategy and improved performance follows.

JOB OF LEADER If team members do not speak with each other that makes many things hidden and as a result the effective results would not be more there because without clear definitions and directions from top. Different CEO’s have different approaches for management. In this article leader are compared with a skilled full train driver. Exp : organization compared with train. Most managers loose their grip from the lever and train runs away.

THE MESSAGE According to the article, five messages have been defined by explaining them with the moving train compared with organization that if all the levers (messages) is well aligned then train will smoothly move forward and will be joy for both driver and passengers.

THE MESSAGE Talent wins games, but teamwork and intelligence wins championships." --Michael Jordan

FIVE MESSAGES Organizational structure and hierarchy Financial Results The leader’s Sense of His/her Job Time Management Corporate Culture

Organizational structure and Hierarchy

STRUCTURE The organization chart because it represents the individual power and influence and it is an emotionally charged framework even during a company’s most stable times. But when the corporate structure is changing, the organization chart truly become fearsome, particularly in companies where because of the political structure, employees worry about risk to their personal status. A leader who quickly takes charge of the communication around reorganization can prevent the discourse from engendering fear.

STRUCTURE Leader will have to always prevent political fears from taking hold for the organization up to the point, rather than viewing the organizational structure as a source of anxiety. Example: Carly Fironia decided that HP needed a top-to-bottom reshuffling and communicated her idea to the senior managers only. Drawbacks: Employees were kept in dark. Motivation factor plummet. Work slows down and contracts gone by full quarter of a year hence lost the revenues. If she had communicated her plan effectively to members then HP would had gained better understanding of the process.

A VIEW POINT What Cary Florina Did? What Cary Florina should Do? Reorganized for improvement Reorganized for improvement and enhancing employees empowerment Discuss the issue with senior mangers Discuss the issue with all employees (don’t kept anything in dark) Made her decisions at its own Made decisions by involving the employees’ suggestions.

FALLACY OF RESULTS Results is another powerful concept that left unmanaged. Top managers always focused on the promised results. Do whatever to meet the results. Focusing on the results, leaders miss out the opportunities to learn. Myth: meet short term results by any mean. Focusing on results demotivates the employees working for that project.

FALLACY OF RESULTS Achieving results will be a joy for short term only. Effective leaders ;look short term results as an opportunity of long term improvement, i.e. by using results as a diagnostic tool for future execution by asking employees to participate. When firm misses the short term results then management lists the entire pitfall for that. That results in quality control for that. Communication channel will be more frank and employees will give more possible feedbacks.

The Leader’s Sense of His/her Job Effective leaders by contrast understand that their role is to bring out the answers in others. They do this by very clearly and explicitly seeking contributions, challenges and collaboration of people who report to them by using their positional power not to dominate but rather to drive the decision making process. The more collaboration and political the process will be, the less isolated the leader and the greater likelihood that business strategy would be and greater the likelihood that business strategy will grounded in reality

FALLACY OF TIME MANAGEMENT Every executive feels that time is in short supply. Obsessed with deadlines, manager’s struggle against constraints by trying to squeeze, manipulate and control limited hours in the day. A leader who harps on time constraints and breathes down mangers necks, trying to get them to do too much in the located time frame Leaders who communicate when time are tight, it’s better to do the fewer things but do them properly.

COVEY’S MODEL That ultimately results in effective output and gives confidence to the mangers that whatever they have achieved within allotted time frame is their best practices output. If time is short then leaders would have to make decisions on objects and to accomplish that task that is of high importance with effective results. Time short-prioritize objects. Never go to do all Objects accomplishment. Exp: Mark King. Time constraints, can’t ask for more time, remains in the allotted time, manage objects, so it is better to change the goals of a project and prioritize the tasks.

DELEGATE 84 great things Seven direct reports and three important task for each reports makes 84 total for the four quarters. (7 x 3 =21 x 4 = 84) Work on theses 84 reports and tries to do the 85 th one also. To keep people track, leaders must communicate with its members and set goals for the objects priority.

Corporate Culture Culture is not created, but derives from expectations, beliefs, actions of its members. Culture that encourages performances, if you hire right people and implement process that will allow the company to win in the marketplace. CEO fails to define success and communicate that vision to employees the results would be meaningless.

GOOD CULTURE A healthy culture is created and maintained by focusing on right goals and creating the experience of wining in marketplace. Spirit of the company is the valuable commitment of its employees for success. Companies with healthy culture employees aren’t kept in dark but are supported with a belief that they are the valuable part of the firm. A good culture reflects that every individual knows their tasks to contribute in future.

ROOM FOR COO? Example: CEO fed culture to employees with the help of Chief Cultural Officer with an aim of employee high morale, attitude, and teamwork and empowering them, although results might not achieved but employees’ determination will be more towards the firm.

FOOD FOR THOUGHT MESSAGE CONVENTIONAL MENTAL MODEL TRY THIS Organizational structure and hierarchy Make the org chart a proxy for politics Optimize human resources Financial results Penalize misses, Blame someone Perform a diagnostic to determine the root cause of any shortfalls The leader’s sense of his or her job The boss has answers Everyone has answers – ask questions. Time management Time is scarce so scramble against constraints Time is fixed, so choose wisely within constraints Corporate culture Hand the responsibility to HR Create an environment in which everyone can help the team win.

CONCLUSION Power of clear communication is really a game of leverage. A CEO who communicate with his employees all the time have a drastic results in the sense of employees commitment and energy in clear, well understood, shared vision of the company’s real goals, priorities and opportunities then the results will automatically be achieved effectively and efficiently. Leader must mange these 5 Messages in the firm in order to be best of all competitors.

Introduction of author What are narcissistic leaders? Characteristics of narcissistic leaders Types of narcissism Sigmund Freud’s three main personality types Strengths & weaknesses of narcissistic leaders Working for narcissist conclusion

Michael Maccoby is an anthropologist &a psychoanalyst. He is also the founder and president of maccoby group, a management consultancy in Washington DC, &was formerly director of program on technology, public policy & human development at Harvard university’s Kennedy school of government in Cambridge, Massachusetts. This article was the basis for the book the productive narcissist: the promise & peril of visionary leadership.

Skilled orators Creative strategists Have vision Ability to: attract Inspire

Independent Not easily impressed Innovators Makers & shapers of public agendas Visionary Charismatic

Narcissism can be extraordinarily useful even necessary. According to Freud “we all are somewhat narcissists” Productive Risk takers Have broader vision Extremely sensitive to criticism Gifted and creative strategists charmers

Unproductive Lack of self knowledge Over confidence in owns plan Unrealistic dreamers Emotionally isolated Highly distrustful

Freud recognize that there are three main types of personalities: Erotic Obsessive Narcissistic Most of us have elements of all three.

According to Freud erotic's are: outer-directed people caring Supportive Avoid conflicts Helpers at works Many erotic's are teachers, nurses, and social workers.

According to Freud obsessive's are: Inner directed Self reliant Conscientious Good listeners Find win-win opportunities Resolve conflicts

It’s the third personality type. Independent Not easily impressed Innovators Wanted to gain power & glory Wanted to learn everything about everything Wanted to be admired

Great vision: George Bernard Shaw says, some people see things, and they say “why?”, narcissistic dream things that they never were and say, “why not?” Scores of followers They are skillful orators which make them charismatic. they need affirmation from their followers.

They are not comfortable with their own emotions. Sensitive to criticism: Extraordinary sensitive Poor listeners Lack of empathy

Here are few tips on how to survive with a narcissistic boss Always empathizes with your boss’s feeling, but do not expect any empathy back. Give your boss ideas but always let him take the credit for them. Narcissistic leaders feel free to call you at any time of the day or night make yourself available.

More and more large corporations are getting into bed with narcissistic they are finding that there is no substitute for narcissistic leaders in an age off innovation.

LEVEL 5 LEADERSHIP The Triumph Of Humility And Fierce Resolve by Jim Collins Presented by: Sadia Aslam Soomro Asha chandwani

Introduction to Author: Jim Collins is a student and teacher of enduring great companies –how they grow, how they attain superior performance, and how good companies can become great companies. Having invested over a decade of research into the topic, Jim has authored or co-authored four books, including the classic BUILT TO LAST , a fixture on the Business Week best seller list for more than six years, and has been translated into 29 languages. Jim’s most recent book, GOOD TO GREAT : Why Some Companies Make the Leap … And Others Don’t attained long-running positions on the New York Times, Wall Street Journal and Business Week best seller lists, has sold 3 million hardcover copies since publication and has been translated into 35 languages . Jim began his research and teaching career on the faculty at Stanford Graduate School of Business, where he received the Distinguished Teaching Award in 1992. In 1995, he founded a management laboratory in Boulder, Colorado, where he now conducts research and teaches executives from the corporate and social sectors. Jim holds degrees in business administration and mathematical sciences from Stanford University, and honorary doctoral degrees from the University of Colorado and the Peter F. Drucker Graduate School of Management at Claremont Graduate University.

"The first responsibility of a leader is to define reality. The last is to say thank you. In between, the leader is a servant." - Max De Pree , "Leadership Is an Art" THE LEVEL FIVE HIERARCHY

ONE QUESTION,FIVE YEARS,ELEVEN COMPANIES The level 5 discovery derives from a research project that began in 1996. To answer one question: can a good company become a great company and if so. how? Jim Collin with his 22research associates worked in group of four to six at a time from 1996 to 2000, that research involved wide range of both qualitative and quantitative analyses. Research began with 1,435 companies that appeared on the fortune 500 from 1965 to 1995 & found 11 good-to-great examples, That's not the sample: that’s the total number that jumped all hurdles and passed into study.

On the qualitative front nearly 6000 articles were collected, 87 interviews conducted with key executives, analyzed companies’ internal strategy documents. On the quantitative front, ran financial metrics, examined executive compensation, compared patterns of management turnover and quantified company layoff’s and restructuring. For each good-to-great example best direct companies were selected, based on the similarity of business, size, age, customers, and performance leading up to transition. When they synthesized the result to identify the drivers of good-to-great transformation, one was Level 5 leadership but its not the only one.

GOOD-TO-GREAT transformations don’t happen without level 5 leaders at the helm. Darwin E smith named CEO of Kimberly-Clark company in 1971. Smith created a stunning transformation at Kimberly-Clark, turning it into the leading consumer paper product company in the world. Smith’s turnaround of Kimberly-Clark is one of the best examples in twentieth century of a leader taking a company from merely good to truly great.

HUMILTIY + WILL= LEVEL 5 Level five leaders are a study in duality: modest and willful, Shy and fearless. Colman M. Mockler, CEO of Gillette from 1975 to 1991. Mockler, who faced down three takeover attempts, was a reserved, gracious man with a gentle, almost patrician manner. At the height of the crisis, he maintained a calm business-as-usual demeanor, dispensing first with ongoing business before turning to the takeover. He chose to fight for the future greatness of Gillette even though he could have pocketed millions by flipping his stock. If Mockler had given up the fight, it’s likely that none of gentlemen would be shaving with Sensor, or the Mach 3 and hundreds of millions of people would have a more painful battle with daily stubble.

AN UNWAVERING RESOLVE Besides extreme humility, Level 5 leaders also display tremendous professional will. When George Cain became CEO of Abbott Laboratories it was drowsy family controlled business. Cain was a typical level 5 leader in his lack of pretense; he didn’t have the kind of inspiring personality that would galvanize the company. But had something much powerful: inspired standards. Among Cain's first tasks was to destroy one of the root causes of Abbott's middling performance: nepotism. By systematically rebuilding both the board and the executive team with the best people he could find. Cain made his statement : family ties no longer mattered. If you couldn’t become the best executive in the industry, within your spa of responsibility, you would lose your paycheck.

NOT BY LEVEL 5 ALONE FIRST WHO : good-to-great leaders would start with the vision & strategy. They got the right people o the bus, moved the wrong people off. STOCKDALE PARADOX : named after Admiral James Stockdale, winner of the medal of Honor. BUILDUP-BREAKTHROUGH FLYWHEEL : good-to-great transformation do not happen overnight or in one big leap, rather the process resembles pushing a giant, heavy flywheel in one direction. TECHNOLOGY ACCELERATORS : The good-to-great companies had paradoxical relationship with technology.

THE HEDGEHOG CONCEPT: In a famous essay, philosopher and scholar Isaiah Berlin described two approaches to thought and life using a simple parable: The Fox knows a little about many things, but the hedgehog knows only one big thing very well. Three intersecting circles: A CULTURE OF DISCIPLINE: When you look across the good-to-great transformations, they consistently display three forms of discipline: Disciplined peoples Disciplined thoughts Disciplined actions How its economics works What best ignites the passion of its people What a company can be best in world

A COMPELLING MODESTY The Mockler story illustrates the modesty typical of level 5 leaders. They would go on and on about the company and the contributions of other executives, but they would instinctively deflect discussion about their own role. By contrast, consider the courtship of personal celebrity by the comparison CEOs. Scott Paper, the comparison company to Kimberly- Clark, hired Al-Dunlap as CEO. A man who would tell anyone who would listen( and many who would have preferred not to) about his accomplishments. After selling off the company and pocketing his quick millions, Dunlap wrote an autobiography in which he boastfully dubbed himself “Rambo in pinstripes”.

It’s hard to imagine Darwin Smith thinking “ hey that Rambo character reminds me of me”. Lee Iacocca, for example, saved Chrysler from brink of catastrophe, performing one of the most celebrated turnarounds in U.S business history. But then Iacocca diverted his attention to transforming himself. He appeared regularly on talk shows like Today Show and Larry King Live, starred in more than 80 commercials. Promoted his autobiography, which sold 7million copies worldwide. Iacocca's personal stock soared but Chrysler’s stock fell 31% below the market in the second half of his tenure.

THE WINDOW AND THE MIRROR -level 5 leaders are inherently humble, look out the window to assign credit-even undue credit, they give credit good luck. -they look in the mirror to assign responsibility, never cited bad luck or external factors.

BORN OR BRED Author hypothesis is that there are two categories of people; those who don’t have the level 5 seed within them and those who do. The great irony is that the animus and personal ambition that often drives people to become level4 leader stands with humility requires to rise to level 5. The second category consists of people who evolve to level 5 ,the capability resides within them.

One final yet compelling note on findings about level 5: because level 5 leaders have ambition not for themselves but for their companies, they routinely select superb successors. Level 5 leaders wants to see their companies even more successful in the next generation, comfortable with the idea that most people won’t even know that the roots of that success trace back to them. In short level 5 is a very satisfying idea, a truthful idea, a powerful idea, and to make the move from good to great.

HBR- On Leadership 1

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HBR- On Leadership 1