This effect is often seen in military commanders and wartime political leaders, such as when Prime Minister Thatcher Minister of the UK Government — was able to engender an enhanced feeling of British national identity among the UK population during the Falklands War in In this leadership style, the leader enhances the motivation, morale, and performance of his follower group. According to MacGregor, transformational leadership focuses on values and meaning and has the purpose o transcending short-term goals and focusing on Sounds like this leadership style is ideally suihigher-order needs.
In these situations, I recall a ridiculous situation at one UK comespecially in these difficult times, enthusiasm pany, where the directors were attempting and energy are infectious and inspiring, yet to effect a culture change in favor of greater. There is a time and place way of the mission. I have used it many times myself and very 4 Personal and individual attention - The effectively—and with no regrets.
Transformational leadership applied in a change management context is ideally suited to the holistic and wide-view perspective of a program-based approach to change management and, as such, is a key element of successful strategies for managing change. The art of turnaround management is, among other skills, the art of achieving results fast — very fast.
In a crisis there is no time too lose because troubles need to be shot down immediately, not at some point in the future. For instance, if people do us a favor, whether we requested the favor or whether it was volunteered, we develop empathy for these people. No surprise here. Being able to deliver change fast means being able to win the hearts and minds of people quickly. For years or more , humans have looked to experts to show us the way: spiritual leaders, physicians, gurus, scientists, generals, business captains.
No surprise here, although often this process runs subconsciously. We also want to act consistently with our commitments and values, for reasons as simple as to feel good about ourselves. Surely such a bold claim seems unlikely to be We like people who are like us. No surprise provable. But is it? In his book, Influence: Science and Practice, We look to what others do to guide our beRobert Caldini found that a number of prin- havior. Facebook and Twitter.
Some surprise there.
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How do I apply these interesting findings to a business context? If you want something out of people, start by giving them whatever you can. The law of reciprocation makes them feel obligated to return favors you perform for them. Please accept this as a token of appreciation. You can do so by ensuring that stakeholders know about your expertise and experience, your accomplishments, and where you have been instrumental in the past.
This will make them feel more comfortable and convince them that they are in a safe pair of hands, and it will increase your credibility and your standing. Make being part of a project a limited experience so people want it big time. Because people want to act consistent with their commitments and values. Be a people person. Help others, love others. The more you like them, the more they will like you; the more they like you, the more they will do for you; and the more they do for you, the less they will oppose you.
Apply the rule of social proof: Teenagers want to wear what their peers wear, and grown people want to buy perfume endorsed by Paris Hilton or the Beckhams. Social proof! We want to be like others. So just tell your clients that eight thousand other clients already bought your new product, tell your day-shift staff that the night shift increased productivity by 8 percent last week, tell your southern territory salespeople that the northern territory team is selling 25 percent more than they are, and then watch what happens!
Reciprocation we feel obligated to return favors performed for us 2. Authority we look to experts to show us the way 3. Scarcity the less available the resource, the more we want it 4. Liking the more we like people, the more 6. Social proof we look to what others do to guide our behavior we want to say yes to them. I have always felt that in every human being is the craving and desire to lead and that everyone has the potential to be a leader.
However, some are very successful at thwarting and suppressing their leadership potential through well-crafted excuses. Once you are a leader of a team, you should be acquainted with your priorities. Mixed priorities normally create concoctions whose results go against organizational thrust and direction. Below are the ten priorities leaders should keep close to their hearts. Inspire and motivate your team - Keep them motivated and energized to tackle the tasks at hand. Reward good performance and celebrate the bright sparks in the team to create healthy competition.
You are called a leader because there are people behind you. You In delegating, be clear about the level of authority you are giving your subordinates, but if they have authority to act, you must still take responsibility for the outcomes of their decisions. Over-communicate — Sometimes you may have a team whose view of the vision, goals, expectations, and values is skewed. Where there is no vision, the vision is left to assumption and personal opinion, so communicate a common vision. A leader who has poor communication skills will always achieve less.
There are so many more ways to communicate today than in times past, so find creative ways to over-communicate without bringing monotony. Training and Leadership Development — A good leader is always developing and mentoring leaders so there are no leadership gaps when the leader leaves. Create a culture of creating a leader in every follower so everyone knows he or she is being set up for leadership success, and when the time comes, no one panics and wonders who will take over: everyone is ready.
Model good character and integrity — Your character, not your words, is what most followers will learn from. If you come to work late all the time, you should not be surprised when the team starts doing the same. They do what they see you do. Mobilize human and financial resources — As the leader, you hire the people with whom you want to work. Although team members must complement each other, avoid duplications. Realize, too, that you are the one that makes sure that your team is financially sound enough to sustain itself and other areas of the department or organization, so you must constantly mobilize financial resources.
Protect those who follow you — A resourceful leader gains the respect of followers, who feel they can depend on you. As leader, you exist to cover your followers from threats. People from outside your team can easily damage your team members if they take it upon themselves to rebuke and correct them, and outsiders never take the liberty to check the extent of the damage from their own utterances, so you must correct your leaders using the relationship you have built.
You will always end up being the nurse over your wounded soldiers, and your time is wasted mending what others did. If you do not protect them, you lose time doing what is not core business. Every human being wants a sen-. Personal Growth and Development — As a leader, you need to grow. You train and develop others, so you must be in a position to pass along what you learn. If you do not stay abreast of trends, you will derail organizational effectiveness and success. Be the hunter of new information, the latest gadgets, and the latest methodologies and tools of the trade.
Plan and Strategize — As leader, you need to sharpen your planning and strategy skills. Regular review of achievements against set strategies and objectives will show you the progress and impact you are making, but where there is no strategy, chaos results. Where there is no plan, there is no excellence. Discipline and Order - Everything must be done well and in order. Follow the system and take no shortcuts.
As a leader, your role is to ensure you have disciplined followers who take responsibility for their. When someone goes against the code of conduct, take appropriate action so others can learn. About the Author: Rabison Shumba is a passionate entrepreneur with diverse interests, ranging from Information Technology to farming and philanthropy. Rabison has a wealth of commercial experience, having worked for CompuServe, an Anglo American plc over a period spanning 10 years.
Strengthening Corporate Health - 18 Principles by Dr. Contrary to common belief, a company is not an inanimate object. In fact, companies are living organisms comprised of communities of people who contribute their distinctive personalities and attitudes. Like us, companies fall sick for various reasons, such as economic slowdown, competition, and incompetent management. However, there are workable, preventive, diagnostic and therapeutic steps to treat and restore the health of sick companies.
Similar to how we manage our health, a company needs to follow three key steps to ensure and sustain its long-term health: prevention, early diagnosis, and proper treatment. Prevention Principle 1: Laughter and fun are the best medicine. Laughter and fun have been recognized for centuries as good medicine. Laughter and fun have been found to be the best tools for giving the corporate identity a human face. Disney World is one of the best success stories in terms of the use of this tool.
The fact is that people like doing business with people who are fun. A fun working environment is also more productive than a routine one. People who enjoy their work create more and better ideas. Fun is contagious. Like people, most companies get into trouble when they neglect their health. To have a happy workforce, you have to do more than pass out bonuses and angpows. You need to make work fun. Science opens the book of nature, while laughter and fun open the fountain of human creativity.
There are eighteen medical principles in corporate health—six associated with each of these three steps. Prevention Principle 2: Rest in order to ment as heavy expenditures since it is possible that staff in which training has been rejuvenate. One of the most effective ways to improve mental and physical health is rest; in the corporate context, this means stability. Here, we are faced with a paradox whereby management needs to change and evolve in order to cope with rapid developments in a fast-changing business landscape, yet in the quest for growth-inducing changes, companies need rest and stability to recharge and repair themselves.
At the same time, they need to remain active in order to achieve optimal body functions and good health. Therefore, turnaround managers have to be masters in the art of preserving stability amid changes and spurring changes in times of stability. Such a policy is equivalent to bulimia—gorging and purging which rips the fabric of corporate cohesion by replacing corporate interest with self-interest as suspicions among staff increase and loyalty to the company wanes.
Prevention Principle 3: Endorphins give a sense of well-being. Endorphins, which are produced by the brain, give a sense of well-being and help bodies cope with stress and other ailments. In a company, training and development generate endorphins that are released when an employee with untapped potential is nurtured in a positive environment. Thus, employees are motivated to contribute more effectively in roles that transcend their job descriptions. Some managers view training and develop-.
However, there is a fallacy in this argument because investing in people pays dividends, whether they are long-term or short-term. Companies really cannot afford not to train their staff; ignorance carries a much higher cost. Prevention Principle 4: Change mental attitudes to build financial health.
When your mental attitude is negative, you may feel chronically depressed and hopeless, which will drive the immune system into a self-destructive mode where viruses can easily establish a foothold. In sick companies, employees tend to wallow in self-pity, lick their wounds, and play the game of shame and blame. They may place blame on everything conceivable: intense competition, demanding customers, incompetent bosses, and so on.
Recognise, commend, and celebrate every success, large and Once people start to achieve success, it can learn from the acumen and instincts of spurs them on to greater efforts. To compete effectively in tudes are contagious. Someone once said that feedback is the breakfast of a champion. In the corporate dietary system, you need vision for breakfast, feedback for lunch, and action for dinner. Vision and feedback without action is dreaming; action without vision and feedback is wasting time; but vision, feedback, and action together, the three meals a day, will keep the corporate doctor away.
Some people believe that information is power, but information is useless if no one acts on it.
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If the doctor has all the right information on how to cure the patient but does not take appropriate and timely action to treat the patient, the outcome for the patient remains unchanged. Conversely, action must be complemented with the correct information because remedies based on the wrong information may be worse than the disease. This is why all three—vision, feedback and action—are necessary. It is the application of correct information that unleashes power. In the context of management theory, it is useful to apply the best blend of eastern and western practices.
Developing Asia can learn much from the more established and intellectual western managerial professionalism in the area of clear vision, proper research and feedback, but the west Prevention Principle 6: Manage oneself with the head; manage others with the heart. It is the head that helps us to analyze and strategize, but it is the heart that fosters the understanding and commitment so critical to long-term corporate success. You can be hard on performance but soft on people.
For centuries corporations have searched for that elusive fountain of corporate youth, using all kinds of different management theories, technologies, and programs. We invest millions of dollars in the quest for corporate excellence, but we forget the basics. Corporate longevity is determined by the people who make the products and the people who buy them. Just like a human being, the corporate body needs strong cells—strong people—to fight corporate ailments.
Often, it is the people that fail, not the business. Similarly, there are usually stand the disease, learn to be the patiample warning signs for a company on the ent. The key is early diagno- a bull. Early Diagnosis Principle 1: An annual these channels, the manager is able to acquire knowledge of the industry and a feel for health check is fundamental. Many companies have annual medical examinations and health screening for their employees but are negligent when it comes to their own check-ups.
However, these warning signals are often ignored or suppressed, and the onset of a crisis then comes as a surprise. This attention to the environment will not only check or halt declining trends in the company, it has the potential to improve them in the near future. This is why the worst place for a manager to be in is his or her air-conditioned office, cut off from the marketplace.
His approach sent an unmistakable message to every employee to It is also tragic that many companies fail, not be hands-on and gave IBM a new image. You must inst-ruct your agents to inquire into these matters in minute detail. In later years, Welch indicated that he would hire people with two energies: those with energy and those with the ability to energize others.
Early Diagnosis Principle 3: Do not block the flow of internal energy or qi. If one is not ill, the free flow of qi will further enhance the sense of wellness and well-being. In the corporate context, qi is the human spirit, drive, passion, and energy. It is the same qi that keeps you awake when you are watching the World Cup or your favorite television program. Qi impelled Walt Disney to risk his reputation by creating Disneyland and Epcot Center without any market data on their viability. It was the passion and drive of his qi that saw Bill Gates give up his Harvard University studies in pursuit of his dream of establishing Microsoft.
You do not create Disneyland or build personal computers because the outside environment demands it. These drives arise out of an inner urge for progress: the drive to go further, to do better, to create new possibilities, without external justification. Jack Welch, the former chairman of General Electric US, recognized the power of energy in his later years. Subsequently, it was a case of ma Early Diagnosis Principle 4: Knowing the type of virus is half the cure. A troubled company is usually attacked by two types of problems: internal and external viruses. The onslaught of this form of viral attack can lead to bad or untimely business decisions, poor financial control, and other related problems.
The entire industry or marketplace or even the whole country may be stricken by the same type of external virus. The attacks can be silent and swift and may appear non-threatening at the beginning. Examples of external viruses are economic recession, changes in consumer behavior, natural disasters, political turmoil, and terrorist attacks. Such external viruses are harder to eliminate and predict than internal viruses are. Sometimes, even having a strong management team is inadequate to cope with external viruses because the corporate culture is not able to manage change. The remedy is to foster a strong and healthy corporate culture, which is the immune system of the company.
The immune system produces antibodies to get rid of viruses, which is even better than taking drugs—bringing in outside remedies—as drugs sometimes create negative side effects. Similarly, a strong and healthy corporate culture can help the company respond quickly to changes and shocks in the marketplace.
Today, the world does not beat down the door of the developer of a better mousetrap. The collapse of the high-tech stocks on the Nasdaq in the early part of shows that technology is not foolproof. The thrust in the new millennium is competition, which intensifies with the emergence of a wider range of products that often have The best prescription is to know the viruses superior quality and even more attractive priin order to predict and eradicate them before cing.
In such a scenario, many products bethey attack your system. However, killer competition is also a highly The management mantra in the s and s was product quality, and activities involving Quality Control QC! Back then, consumers were willing to spend enormous sums for quality products. However, overall product quality has improved, and today having a good quality product is a mandatory requirement for any company to participate effectively and survive in the marketplace. Subsequently, the management slogan in the s and s embraced technology as the cure-all. Companies then tried to distinguish themselves from their competitors through the use of technology that allowed them to offer better and more sophisticated features through the use of the in-ternet and other communication systems.
When a company is faced with increasing competition, it may survive and even prosper, but it cannot be business as usual. Early Diagnosis Principle 6: Past business assumptions may be the anesthetic that dulls business sense. It is likely that some of these sacred cows, which are often based on erroneous perceptions and assumptions, got the company into trouble in the first place; that is, the traditions and past business assumptions that underlie the old ways of doing business, especially those that have become irrelevant and obsolete, may be the root cause of the disease that afflicts the ailing company.
In times of rapid change, a strategic failure is We console ourselves by telling ourselves that we have gone through the present problem before or assume, perhaps incorrectly, that this change is temporary or that the impact will be limited and can be ignored. Many of these obsolete assumptions happen in large, well-known companies whose traditional cash-cow businesses have become sacred cows that end up as sacrificial cows or mad cows when market forces overwhelm them. To ensure the effective and successful implementation of its business assumptions, a troubled company must critically re-examine and re-visit every single one.
Step 3: Proper Treatment Do you know why companies die after they fall sick? There are panaceas that can turn a critically ill organizations into a healthy one and proper treatment is necessary as the remedies can sometimes be worse than the disease? Proper Treatment Principle 1: To treat the symptoms, know your competitors and customers; to eliminate the root cause, know the market.
Sun Tzu, the strategist in The Art of War, said, Knowing only the competitor is equivalent to a person driving a car and so focused on looking out for the car at his side that he fails to look at the road ahead. If they value cheaper prices and you lower your prices, they want even lower ones. If they value convenience or speed at the time of purchase and you give them that, they want it even easier or faster.
To ensure vibrant business and continued long-term growth, companies must strive to drive the market. Other great innovations of our time, including the personal computer, the jetliner, and the Inter-. During a Proper Treatment Principle 2: A sick restructuring exercise, remember the 4Cs: company needs surgery, resuscitation, communication, concentration, cost control, and cash flow.
Many companies fall sick from corporate diseases like global economic recession, rapid changes brought about by globalization, terror attacks, and incompetent management. When a company falls sick, it must undergo the three phases of corporate turnaround:. Communication: The manager must personally communicate with the staff.
Just as a doctor does not delegate to a nurse the task of briefing the patient about his ailment and treatment, you need to communicate the restructuring plans truthfully and directly to the staff. People are not against bad news per se, but they want to know what is going on. Phase 1: Surgery - to restructure the troubled organisation to face the harsh new reality and Concentration: The surgeon operates on only improve its cash flow. Similarly, the sick company must concentrate on its core compePhase 2: Resuscitation - to revitalise the busitency—in bad times even more, as resources ness in order to increase its sales revenue and are scarce.
A company may even sell away all profits. Phase 3: Nursing - to rehabilitate a strong and Cost control: Cut costs to the bone without inhealthy corporate immune system or culjuring the muscles and organs. If circumstanture in order to sustain long-term growth. Restructuring alone is not good enough; even if the Cash flow improvement: Cash flow is your surgery is good, the patient can die without lifeblood. Slipping into losses may give you the resuscitation and nursing phases.
Buila headache, but a sudden shortfall in cash ding a strong and healthy company takes a flow will cause an immediate and massive milong time; it is not a one-time inoculation but graine. During the turnaround phase, when the com-. Just as a surgeon focuses on only one operative field during surgery, an ailing company must concentrate only on its core competency and try to rid itself of businesses that do not help the bottom line or immediately improve its cash flow. In critical situations, you can often succeed at a far lower cost by ensuring that you do a better job with the businesses and skills you already have.
In order to release resources for its core business, the ailing company has to divest itself of any unprofitable or low-profit business. Quite often, in their bid to bolster sales performance, troubled companies clinch lots of sales contracts that have poor profit margins. It is better to amputate all loss-making ventures and unprofitable sales whenever possible. Do not advance relying on sheer numbers.
Proper Treatment Principle 5: Cost control is essential in desperate situations. Unnecessary cost is always your number-one enemy. You must attack it and justify and challenge every expense that you incur. Whether your company is in trouble or not, costs will kill you, even if you come up with better Any first-year business student knows how to cut costs; the key is how the costs can be cut to restore financial health in the short term without hurting the ailing company in the long term.
The turnaround manager solicit advice from department managers to improve the chances for full co-operation and to ensure that any valuable suggestions that can save time, money, or both are aired. Remember, this is not the time to create unnecessary stress by finger-pointing. Sometimes cost reduction can be achieved through streamlining procedures and operations, paring down duplication and inefficient methodologies to a minimum.
Peoplerelated expenses can be reduced remarkably through cross-fertilization of multi-disciplinary skills, and productivity can be improved by deploying staff to perform high-valueadded duties. Remember, every cent of cost saved goes right into the bottom line. Proper Treatment Principle 6: Downsizing has side effects. Downsizing is like an amputation; it removes an unhealthy part of the body but creates side effects, such as low staff morale and dama-. Removing the corporate fat in the form of excessive redundancy or removing dysfunctional personnel from the company is not so much a problem as is the one-size-fits-all downsizing in which good people are also lost in the process.
While downsizing is sometimes inevitable, one has to manage the aftermath carefully,. After a downsizing exercise, you must try to win over the trust of the existing staff. In this case, silence is not golden. Communicate to the staff the reasons for the exercise and the plans to resuscitate and turn the company around.
Be humane in how you treat the people to be let go and follow the golden rule. After all, when the company recovers, you may want some of these experienced employees back. Teng is widely recognized by the Asian news media as a turnaround CEO. He has 27 years of experience in the Asia Pacific region, including 17 years as the Chief Executive Officer of multi-national, local and publicly listed companies. He has led the successful turnaround of several troubled companies and is currently the Managing Director of a business advisory firm, Corporate Turnaround Centre Pte, Ltd.
Teng is the former President of the Marketing Institute of Singapore , a national body representing individual and corporate marketing professionals in Singapore. He became the first supply chain consultant when he suggested that, on their way back, merchant ships drop goods at certain ports, where they would be picked up by clients, rather than bringing the merchandise all the way back to the home country, where it would be taxed and then wholesaled and transported back to foreign export markets. Eugene Rembor owned the business until his death in His son, Hugo Conrad, continued the family business and became wealthy by consulting food giant Jacobs, later known as KraftJacobs-Suchard.
In in London and internationalized the business. What makes your company unique? What are your specialties? I have been an interim for over thirty years, and I have never done anything other than turnaround, so I think that, in all modesty, I may claim to be battle-hardened old fox. Our specialty is turnaround management of private and public sector organizations and within that, we specialize in medium and large ones and, ideally, cross-border operations. Typically, we help a German organization in Anglo-Saxon countries and vice versa.
I think what makes us unique is our vast cross-border and cross-cultural experience. I have lived and worked in some 25 different countries, learned to speak six languages, and forgot four of them, but I accumulated a lot of experience that is priceless. How did you get started in the industry? Growing up in a What is it that you like about turnarounds? I am a sportsperson. A victory to be enjoyed is a victory one worked for very hard.
Turnaround cases are really rewarding, and there is a feeling of achievement and satisfaction that compares to nothing else when you have pulled together a team, led it to greatness, and managed what seemed impossible. It makes you proud when you have saved jobs and the future of staff and their families, made shareholders happy, and reduced huge debts. What makes an ideal turnaround manager in your eyes?
If you work very hard, and have very high work ethics, common sense, and bags of experience, you have what it takes. But let us be clear about it: Nobody can do it all on their own. Without a supportive team, management, and your clients, you are nothing.
We are not gods - we cannot walk over water but we can work hard and smart, and we add a degree of humbleness. This, then, makes a truly great turnaround manager. Tell us about one of your turnarounds. It is vastly in debt, inefficient, complacent, not competitive, not service-oriented every problem you have ever heard exists in the NHS exists big time.
The challenge is not only crisis management and, hence, undertaking drastic and rapid measures, but also a vast cultural change. You have to turn public clerk mentalities into shrewd business people. I think this job will keep us turnarounds busy for the next twenty years laughing. What were your first steps? I think the first steps are as simple as they are uncommon. Tell people the truth. I cannot believe the number of times you walk into an organization that is in a big heap of you-know-what, and the management is still telling people that everything is okay.
If you leave them in the dark, they have to make assumptions, and we all know how dangerous that is.
Break it down to achievable, manageable, and understandable chunks. Relentless and consistent communication is key, as is leadership by example and visibility. How did you put the plan into action? First ask those who know best. It never ceases to astonish me how frequently companies ignore suggestions that come from staff, but when the same suggestions come from expensive consultants, all of a sudden they seem to be attractive.
Face it: the people who have worked in the organization for decades have forgotten more about the business than you will ever learn. Ask them; they are your intellectual assets.
Which difficulties come up over and over again? Ego and greed. In that order. I have seen a great many superb organizations go down the toilet because of ego and greed. I have seen it over and over again that, rather than being happy with 40 percent of something, people want percent of nothing, meaning that they insist on the impossible or they cannot reduce their ego and desire for things such as status.
The number of direct reports or the sheer size of business kills common sense. They were ignoring them because they thought it made them look bad and would rather play make believe. But reality will catch up sooner or later, and they will be up for a hard landing. Do you see a change or development in the This leads to the solution of the next chal- industry? Most turnarounds fail, not because of a lack of ideas, but because of a lack It is thankfully becoming more professional of implementation.
Organizations are losing and more recognized. In the days of my father staff commitment, confidence, or both. Thank God these days are over and costs. I can bring all your costs down to nil nowadays the corporate world appreciates and still have not solved your problem. If you what turnaround managers can do for them. If I could, I would change the mindsets of What are major difficulties you encountered companies in trouble. Managers should no Quality beats price every time.
What is your secret to a successful turna- How do you get important stakeholders to round? George A.
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