Global Leadership Development

1
Global Leadership Development

• K. Peter Kuchinke
• Professor, Human Resource Development
• University of Illinois at Urbana-Champaign
• Yuan-Ze University, April 2008

2
Agenda

• Leadership and Culture
• Leadership Theories past and present
• Theories of Culture
• Culture Effects on Leadership
• Global Leadership
• Leadership Development
• Strategic Considerations
• Delivery Options and Approaches
• Best Practice and Pitfalls

3
Introduction

• Why study leadership?
• Importance of leaders/leadership behavior
• Role in Business Curriculum
• Role in Corporate Training
• Research and Heuristics/Fads
• Meta-theoretical Issues
• Normal science vs. action science (descriptive
  vs. normative)
• Complexity, equivocality, and equifinality,
  Boninis Paradox
• Academic research and consulting
• Limitations
• Geographic Bias
• Population Bias
• Disciplinary Bias
• Measurement issues, units of analysis, and
  dependent variables

4
Definitions

• Stogdills 300 definitions based on
• Leader characteristics (e.g. Charismatic L.)
• Situational characteristics (e.g. Path-Goal)
• Follower Characteristics (e.g. Situational L.)
• Type of follower (e.g. Team L.)
• Type of L. (e.g. Visionary L.)
• Common theme Process of goal-directed social
  influence by one or more individuals over others
• French and Ravens (1959) bases of power
  legitimate, reward, coercive, expert, referent (
  plus agent persuasiveness, control of
  information)

5
Leadership and Management

• Mgmt
• Plan, control, coordinate, communicate (C.
  Barnard)
• Hierarchical
• Produces order and consistency (J. Kotter)
• Leadership
• Horizontal
• Produces change and movement (Kotter)
• Vision building/strategizing
• Alignment, motivation, inspiration
• Managers do things right, leaders do the right
  thing (Bennis)

6
Typology of L. Theories
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Great Man Theories of L.

• Search for traits/character (Age, Height,
  Attractiveness, Intelligence, Personality. Etc.)
• Example Predicting Presidential Greatness
• (Simonton and McCann) PG .37 IQ .13 years in
  office.30 achievement drive - .30 tidiness .12
  height - .23 attractiveness .16 Machiavellianism
  - 9.31
• BUT no consistent set of traits, nature vs.
  nurture, perception bias, non-predictive, not
  linked to outcomes
• Renewed interest in 1980s Meta-analysis
• Intelligence, Self-confidence, Determination,
  Integrity, Sociability
• Application in consulting MBTI, EIQ, etc/
• Implication for selection?

8
Fiedlers Contingency Theory

• Matching leaders and situations
• Contingency model
• Leader/Member relations Good/poor
• Task structure High/Los
• Position Power Strong/Weak
• Low LPC Task motivated
• Middle LPC Socio-independent
• High LPC Relationship motivated

9
Leadership Grid

• Three schools of L. Behavior
• Iowa (1930s) Autocratic vs. democratic
• Ohio (1950s) Consideration vs. initiating
  structure
• Michigan (1950s) Employee vs. Production
  centered
• Blake and Moutons Leadership Grid
• Concern for People vs. Concern for Results
• Impoverished mgmt (1,1)
• Country club mgmt (1,9)
• Middle of the road mgmt (5,5)
• Authority-Compliance mgmt (9,1)
• Team mgmt, (9,9)

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Path-Goal Theory (House, Evans)

• Relationship between leader style,
  characteristics of subordinates, and work
  settings
• Based on expectancy theory Leaders provide
  elements to increase chance of goal attainment
• Focus on both satisfaction and productivity
• Followers Authoritarianism, locus of control,
  ability
• Situation task structure, formal authority, work
  group
• Leader behaviors directive, supportive,
  participative, achievement-oriented

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Vroom and Yetton Normative L.

• Decision Quality and Acceptance When to take
  charge, when to let the group make decision
• Variables
• Followers Commitment requirement, commitment
  probability, goal congruence, subordinate
  conflict, subordinate information
• Leader Leader information
• Situation quality requirement, problem structur
• Outcomes Autocratic, Consultative, Group

12
Leader-Member Exchange Theory (LMX, Dansereau,
Graen)
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Situational Leadership

• Leaders adapt to followers
• Developmental level of followers (D4, high - D1,
  low) determines most appropriate mix of directive
  and supportive behaviors (Hersey and Blanchard)

S3 Supporting D3
S2 Coaching D2
Supportive Beh.
S1 Directing D1
S4 Delegating D4
Directive Behavior High
14
Leadership Substitutes Theory (Kerr Howell at
al.)

• Substitutes and Neutralizers reduce importance of
  formal leaders
• Follower characteristics (e.g. ability,
  knowledge, training, need for independence,
  professional orientation)
• Task characteristics (e.g. clarity, routine,
  built-in feedback, intrinsic satisfaction)
• Organizational characteristics formalization,
  inflexibility, workgroup cohesiveness, reward
  structure, distance between leader and follower

15
Disenchantment and Paradigm Shifts

• Existing theories with major shortcomings
• Effect on dependent V. only 10 - 12
• Calls for abandoning research on L.
• Emergence of culture perspective
  (Peters/Waterman, Athos, Ouchi)
• Refocus on outstanding L (charismatic, visionary,
  transformational)
• Affective consequences (identification w/goals,
  commitment, self-esteem and confidence, values)

16
Integrative Framework (Manz)
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Leadership Roles in Innovation Management (Van de
Ven)

• Sponsor and Mentor
• Institutional Leader
• Critic
• Innovation Manager/Entrepreneur

18
Charismatic Leadership (House, Conger, Kanungo)

• Weber Influence based not on tradition or
  legal-rational authority systems but on gift of
  divine inspiration and supernatural qualities
• Process of influencing major changes in attitudes
  and assumptions of organization members and
  building commitment to orgs objectives
• Locus of Charismatic L situation, individual,
  interaction?
• Characterisitics
• Visionary - Superior Communication Skills
• Ability to inspire trust - High risk
  orientation
• High energy and action orientation -
  Empowering others
• Relational power base
• Minimum of internal conflict - Self-promoting
  personality

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Transformational L. (Bass/Avolio)

• Transformational Styles
• Charisma
• Inspirational motivation
• Individual consideration
• Intellectual stimulation
• Transactional Styles
• Contingent Reward
• Management by Exception
• Laissez-Faire
• Augmentation Effect

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Transformational Leadership (Alimo-Metcalf)

• Genuine concern for others well-being and
  development
• Political/Stakeholder sensitivity and skills
• Inspirational networker and visionary promoter
• Empowers, delegates, develops leadership
  potential
• Integrity, consistency, honesty, openness
• Accessibility, approachability, sensitivity
• Decisive, determine, self-confident, resilient
• Clarifies boundaries, involves others in
  decision-making
• Encourages critical and strategic thinking
• Intellectual versatility
• Manages change sensitively and skillfully
• Risk-taker, entrepreneur

21
Leadership Theories

• Minor (major) voices
• Constitutive leadership (non-essentialist
  contextual and individual variables) (K. Grint)
• Followership (Raelin, Grint)
• Leadership mystique (Kets de Vries)
• Distributed Leadership (Deming)

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Trends/Issues in Leadership Research

• From simple to complex models
• From universal to contingency models
• Leadership and rank
• Increasing sophistication of measurement
• Some indications of universal characteristics
• Cross-level problems with determining impact
• Leadership and other design factors
• Leadership and stage of org. development/culture
• Leadership and international business
• How to develop leaders?

23
Culture and Organizations

• Emergence of culture perspective 1980
• In search of Excellence, Theory Z, Art of Jap.
  Mgmt
• lt 1980 Org. climate (since Hawthorne)
• Lewin (1930s) attitudes/feelings in social
  groups
• Group-level construct A set of measurable
  properties of the work environment, perceived
  directly or indirectly by the people who live and
  work in this environment, and assumed to
  influence their motivation and behavior (Litwin
  Stringer, 1968)
• E.g. High performance work climate ( customer
  orientation, quality emphasis, empowerment,
  training, etc)
• Outcomes Business performance, employee results,
  customer results
• Design component in org. development, strategic
  choice

24
Culture

• Anthropological concept, social construction
  (Geertz)
• that complex whole which includes knowledge,
  beliefs, art, morals, law, customs and any other
  capabilities and habits acquired by man sic as
  a member of society" (Tylor, 1871)
• Subjective (shared cognition) and objective
  (institutions, customs)

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We can think of Culture as

• Both subjective and objective (Schein)
• Both normative and descriptive (Martin)
• Both constraining and enabling action (Scott)
• Both shaping and being shaped by behavior
  (Giddens)
• Dynamic, evolving
• Existing on multiple interconnected levels
• Global, national, professional, organizational,
  religious, peer, ethnic, gender, family, age
  group.
• Made up of dimensions
• Reductionist leap of faith

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The Cross-Cultural Psychology Project

• Assumptions
• Culture can be reduced to dimensions
• Number of dimensions is finite
• Number of dimensions is small
• Dimensions are universal
• A culture free theory of culture makes sense
• Countries can be described in terms of modal
  individual-level cognitive, value related
  dimensions
• Nations as units of analysis
• Clustering of similar countries
• Cultural distance approach

27
Major Frameworks

• Hofstede Software of the mind
• Individualism/Collectivism
• Power Distance
• Masculinity/Feminity
• Uncertainty Avoidance
• Long-term Orientation
• Triandis Individualism matters the most
• Horizontal and vertical individualism and
  collectivism

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Major Frameworks

• Trompenaars Ideographic approach
• Universalistic vs. particularistic rules for
  relationships
• Individualistic vs. collectivistic views of
  persons
• Neutral vs. emotional ways of expressing feelings
• Achievement vs. ascription based status
• Specific vs. diffused roles in social
  relationships
• Linear vs. synchronous notions of time
• Control over vs. harmony with nature

29
Major Frameworks

• Schwarz Values as solutions to basic social
  problems
• Conservatism vs. autonomy (role of individual)
• Hierachy vs. egalitarianism (role of social
  relships)
• Master vs. harmony (related to social/natural
  world)
• Smith, Dugan, Trompenaars Integration of
  frameworks
• Conservatism vs. egalitarianism
• Utilitarian vs. loyal involvement

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Culture as Institutions (Kostova)

• Country Institutional Profiles
• Regulatory (Laws, rules)
• Cognitive (mental maps, frameworks)
• Normative (values, norms)
• Institutional distance affects success of
  transnational transfer of org. practices

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Issues

• Lack of comprehensive theory of culture
• Existing frameworks are inductive
• Emphasis on cognition and values
• Exclusion of institutional environments
• Sampling bias
• Nation as unit of analysis
• Within and between country variation

32
Cross-Cultural Studies on Leadership

• Examples
• GLOBE
• Kuchinke and Ardichvili, 2002 2005
• Hamlin, 2004 - 2007

33
Importance of Leadership Development

• Insufficient Numbers of ready-now managers in
  organizations leadership pipelines (Conger
  Fulmer, 2003)
• 1997 US Fortune 500 survey (Black, Morrison,
  Gregerson, 1999)
• 85 of organizations lacked quality and quantity
  of leadership talent,
• 67 lacked sufficient leadership capabilities
  given strategic directions, esp. global
  strategies
• US Conference Board (1997) Development of
  leaders a key challenge
• UK Government Report (2000) Improved leadership
  key to effective economic performance

34
Leadership Pipeline

• The Economist (2003)
• 20 external turnover among senior positions
• High levels of internal turnover and transfer
• Estimated 40 failure rate among newly appointed
  leaders
• Professional Fields
• Higher Education
• Medicine
• Engineering

35
Example Global High Tech Inc.

• Four distinct pipelines
• Corporate officers (48)
• General managers (110)
• Division VPs (190)
• Next Generation (1500)
• 2/3 of Corporate Officers and DVPs have been in
  current job less than 3 years
• 84 of DVPs with less than 3-year tenure
• Avg. 25 turnover among DVPs over past six years
• More than 20 of top 350 jobs have no ready now
  candidates
• Growth, retirement and internal advancement will
  generate 150 - 200 openings in senior jobs over
  next five years

36
Leadership Development

• 86 of US organizations provide LD (Training,
  2003)
• Second most frequently provided type of training
  (after computer skills)
• Little systematic research
• Examples
• Higher Education (Undergraduates, Professional
  Schools)
• Corporate HRD
• External Executive Programs (Consultancy or
  University-Based)

37
Theoretical Frameworks

• Strategic HRM Architecture (Lepak Snell, 1999)
  Value and Uniqueness
• Resource-Based View of the Firm (Barney, 1991
  Colbert, 2004)
• Firms compete by developing a set of resources
  that are scarce, in demand, difficult to copy,
  and can be appropriated.
• Example MBA Graduates and the Finance College

38
Leadership Competencies

• Example High Tech Inc.
• Set vision and strategy
• Build the organization and inspire people
• Drive for results
• Know the business
• Encourage an open exchange of information and
  knowledge sharing
• Make difficult decisions

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Leadership Competencies

• Example 3M Company
• Fundamental
• Ethics and integrity
• Intellectual capacity
• Maturity and judgment
• Essential
• Customer orientation
• Developing people
• Inspiring others
• Business health and results
• Visionary
• Global perspective
• Vision and strategy
• Nurturing innovation
• Building alliances
• Organizational agility

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Limitations of Competency Models

• Criteria for Robustness (Morrison, 2000)
• Mutually exclusivity,
• Convergent and divergent construct validity,
• Stability, and
• Precision in labeling
• Ideal-type behavior
• Universal/prescriptive
• Ignores role of situation/followers/position/power
  
• Conger/Benjamin Dont take competency lists too
  serious!

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Alternatives to Competency Models

• Cognitive Development/Liberal Education
• Jim March Don Quixotes Lessons for Leadership
• Imagination, Commitment, Joy
• Mintzbergs Mindsets
• Reflection
• Analytic
• Global
• Collaboration
• Action
• Aspen Institute
• Reading
• Renewal
• Reflection
• Action Learning (Ex. Raelin, Marquardt)

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LD Delivery Options

• Decision points
• Program -- Process
• Periodic -- Ongoing
• Isolated -- Integrated
• Visible -- Private
• Short-term -- Long-term focus
• Tactical -- Strategic
• Function-specific -- Comprehensive/systemic

43
LD Approaches/Goals

• Individual Development
• Socialization/Acculturation
• Strategic Initiatives
• Action Learning
• Conger/Benjamin, 1999

44
Best Practices

• Single Leadership Model
• Participant Selection
• Critical Mass
• Pre-course Preparation
• Post-course Integration
• Multi-rater Feedback
• Multiple Learning Methods
• Conceptual Awareness
• Feedback
• Skill Building
• Personal Growth

45
Best Practices (contd)

• Extended Learning Periods
• Transfer, Application, Feedback, Rewards
• Needs Assessment and Evaluation
• Leaders as Instructors/Mentors/Coaches
• Translate Theories into Attributes and Behaviors
• Systems Approach for Integration and Support
• Evaluation and Accountability for Learning and
  Results
• Design for Dialogue and Reflection
• Learning Cascades across Levels

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Pitfalls

• Failure to Build Critical Mass
• Wrong/lacking Selection
• Insufficient Time
• No Follow-up
• No Link to Job Assignment
• Limitations of Competency Models
• Lack of External/Market Focus
• LD too Generic/too Parochial
• Lack of Executive Ownership/Involvement
• Lack of Modeling and walk the talk

47
Case Example High Tech Inc.

• Program Governance
• Executive Sponsor Team
• Periodic review and revision
• High Visibility and track record
• Improvement Opps
• Appropriate representation
• Link to changing business needs
• Limitations to growth

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Case Example High Tech Inc.

• Participant selection
• Nomination process
• Well-defined criteria
• HR Review and Decision
• Improvement Opps
• Inclusiveness
• Accountability for career development
• Attendance optional

49
Case Example High Tech Inc.

• Curriculum
• 2 week format
• Leader-led
• Business cases
• Skill building
• Improvement Opp
• Event orientation
• Pre- and Post assignments
• Action Research
• Differentiation by level of competence
• Mixing internal and external instructors and
  materials
• Networking at foreign locations
• Link to other programs

50
Case Example High Tech Inc.

• Transfer of learning
• Promotion/new assignment
• Improvement Opps
• Onboarding
• Palette of additional learning opportunities
• Accountability for skill achievement
• Networking
• Mentoring

51
Case Example International Masters Program in
Practicing Management

• Five Modules/Mindsets
• Reflection (Lancaster U., UK)
• Analysis (McGill U., Montreal, Canada)
• Global (Bangalore, India)
• Collaborative (Japan)
• Action (France)
• Company groups, customized projects
• Intermodular activities
• Venture/Change Capstone Project

52
Case Example Illinois Leadership

• Cross-departmental initiative for undergrads
• Leadership Center
• I-Programs (Insight, Intersect, Ignite, Imprint)
• Leadership certificate, minor

53
Initial Ideas for Constructivist Leadership
Curriculum

• 1) Reflection on Self as Leader
• Leadership and Identity
• Self as unity
• o self in social relations
• o existential self
• o postmodern self
• o self as project (kopenhagen b school)
• Leadership and Personal Development
• Personal Meaning of Leadership
• Leadership Success and Sustainable Performance
• 2) Reflection on Self and Others
• Understanding others
• Leading others
• Motivating and managing others
• Developing others

54
Initial Ideas for Constructivist Leadership
Curriculum

• 3) Reflection on Self and Organization
• Leading, managing, and controlling organizations
• Leading through turbulence, complexity, and chaos
• Opportunities and limitations of leadership in
  organizations
• 4) Reflection on Self and Society
• Leading organizations and responsibilities to
  society
• Cross-cultural differences in organization/society
  relationships

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Conclusion

• Recap
• Need/Rationale/Scope for LD
• What is leadership?
• Teaching/developing leadership
• LD Program/Process Components
• March Video
• Your insights and comments