eadership From Neanderthal to Dilbert Not Much Change

Objectives This presentation: Define leadership in it most simple terms within the context of an organization Compare and contrast leadership and management behaviors (Functional Leadership Model) Describe three functions of leadership and two approaches to Leadership Describe four negative reactions to change and four leadership actions to counter them

What is Leadership? Let’s look at a couple of definitions…. © 2016 Vector Group,

Definition of Leadership is an intangible quality with no clear definition. That’s probably a good thing, because if the people being led knew the definition, they would hunt down their leaders and kill them. The Dilbert Principle, 1996 The whole concept of leadership involves getting people to do things they don’t want to do. The trick is to convince employees that they will feel good if they do these things—not in the sense of having adequate food and shelter, but in the sense that their hearts and souls will be nourished. Fortunately, their egos are so beaten down that they’re like goats trying to munch tin cans—willing to digest any ridiculous thing you feed them. Dogbert’s Top Secret Management Handbook, 1996 © 2016 Vector Group, Inc.

Definition of Leadership Dilbert and Dogbert are great inspirations to all of us. ©

OK, Seriously…. What is Leadership? "Decades of academic analysis have given us more than 850 definitions of leadership. Literally thousands of empirical investigations of leaders have been conducted in the last seventy-five years alone, but no clear and unequivocal understanding exists as to what distinguishes leaders from non-leaders, and perhaps more important, what distinguishes effective leaders from ineffective leaders. " Bennis and Nanus Leaders: The Strategies for Taking Charge, 1985 © 2016 Vector Group, Inc.

OK, Seriously…. What is Leadership? The debate continues as to whether leaders are born or made referring to the nature vs. nurture conundrum. Refer to the “Great Man Theory” of th leadership popularized in the 19 century. © 2016 Vector Group, Inc.

Let’s Look At Three Great Leaders What do Genghis Khan, Alexander the Great and Attila the Hun all have in common?

What Do These Three Great Leaders Have in Common? Let’s examine the only three leadership traits or attributes these three “great leaders” have in common: • • • All male All short ü Genghis Khan was 5’ 8” ü Alexander the Great was 5’ 7”(best guess) ü Attila the Hun (Priscus, who visited Attila's camp in 448 AD, described him as being “short and squat with a large head”) All left-handed *The one other thing they had in common was that all died of mysterious causes <could have been sexually transmitted diseases>

Is Height That Important? Take an inventory of the heights of these leaders: • • • • • FDR: 6’ 1” JFK: 6’ Lincoln: 6’ 4” Gandhi: 5’ 3” Hitler: 5’ 9” Teddy Roosevelt: 5’ 10” LBJ: 6’ 3” Obama: 6’ 1½” Castro: 6’ 3” Madeline Albright: 4’ 10” Harry Truman: 5’ 8” Bill Clinton: 6’ 1” Golda Meir: “Tall and austere” from one source “not a very tall woman” in another source and 5’ 0” in yet another source. Stalin: 6’ Hillary Clinton: 5’ 6” Woodrow Wilson: 5’ 11” George Washington: He was 6' 4'' at a time when the average American male was 5' 7''

How About Left-Handedness? *Take an inventory of the “handedness” of these leaders: • Left-handed US Presidents? • Herbert Hoover, 31 st • Harry S. Truman, 33 rd, • Gerald Ford, 38 th • George H. W. Bush, 41 st • Bill Clinton, 42 nd • Barack H. Obama, 44 th • Recent right-handed US Presidents? • Richard M Nixon, 37 th • George W Bush, 43 rd • Reportedly ambidextrous? • Ronald Reagan, 40 th • James A. Garfield, 20 th You can draw your own conclusions at to their leadership. *Wikipedia

Old Thinking versus New Thinking? Old Thinking: Leaders are born and not made. New Thinking: Leaders are made. They are developed. Since it is not Nature, leadership is about nurture (environment) and we now look not at traits but at behaviors. What do leaders DO? We’ve come a long way, haven’t we?

Leadership: Our Definition Leadership is nothing more than influencing others to achieve some sort of goals or results. If you are the CEO, you may need to influence and inspire thousands of people but as an informal leader, you may only need to positively influence a handful of people around you. If you are some sort of team leader, that becomes even more important but this would be considered a formal position. © 2016 Vector Group, Inc.

Leadership for 50, 000+ years Taking a look back…… © 2016 Vector Group, Inc.

Leadership for 50, 000+ years Look at it this way. We are a group of Neanderthals back about 50, 000 years ago. The clan leader says, “Uga bindo wengi!” (Translated: “We are headed over to the next valley. ” That’s direction. Then the leader says, “Noogo wawa bani. ” (Translated: “If we don’t go, we’ll starve here because we are out of water and food. I know you can get there. ”) That’s motivation. Finally, the leader says, “Kookoo wa dodo bahwi. ” (Translated: “Follow me. I’ll let you know if you get off the path and get you back on it. ”) That’s guidance. © 2016 Vector Group, Inc.

Functions of Leadership Direction Motivation Guidance © 2016 Vector Group, Inc.

Three Functions of Leadership Direction—people see where they are going Motivation—people see the reasons

Functions of Leadership (details) There are three basic needs common to a group or a team. When one person provides for most of these needs, that person is usually the leader. Thus, the fundamental functions of leadership, and the associated results are: Direction: People know where they are going: they can describe their mission and goals; they spend most of their time on tasks and behavior directly related to achieving those goals. Motivation: People see reasons for going there: they find the work and its goals rewarding; they generally prefer team- and goal-oriented behavior (at least in the work setting) preferable to non-goal oriented behavior. Guidance: People know how they are doing and what to change: they get information about progress and how to improve; they can then act on that information. © 2016 Vector Group, Inc.

Two Approaches to Leadership Transactional- relationship between leader and group is based on interactions. Leader has power to reward or punish group in order to achieve objectives. “You do this for me and I’ll do this for you OR if you don’t do this for me, I’ll certainly do this to you. ” Take what is and make it better. Transformational-relationship between leader and group focuses on motivation and communication to achieve objectives. Highly visible, visionary, big picture. Change for the future. © 2016 Vector Group, Inc.

Leadership vs. Management: Is there a Difference? “Master mechanic” Take what exists and make it work to its fullest capacity. The first is the "master mechanic" approach. Mechanics do not redesign a car; they tune it, clean it, and supply it with the best parts and fuel to make it work to its fullest potential. “Master inventor” Change what exists to make it work better. The second is the "master inventor’s approach. Inventors are more likely to dispense with the existing order and design something new. The second approach is clearly the riskier, but is sometimes well worth the risk. © 2016 Vector Group, Inc.

Leadership vs. Management: Is there a Difference? Both strategies are legitimate, depending on circumstances; and they are not incompatible. For example, in the process of making something work better, people often find ways to change it; and in the process of trying to redesign something, people may find a way to make the original item work better. A leader may operate in either or both of these modes. © 2016 Vector Group, Inc.

Leadership & Management “Leadership and management differ in terms of their primary function. The first can produce useful change; the second can create orderly results that keep something working efficiently. This does not mean that management is never associated with change; in tandem with effective leadership, it can help produce a more effective change process. Nor does this mean that leadership is never associated with order; to the contrary, in tandem with effective management, an effective leadership process can help produce the changes necessary to bring a chaotic situation under control. But leadership by itself never keeps an operation on time and on budget year after year. And management by itself never creates significant useful change. ” John Kotter, A Force for Change: How Leadership Differs From Management, 1992 © 2016 Vector Group, Inc.

Functional Leadership Transactional Transformational Goals / Objectives DIRECTION Vision / Values Recognition / Rewards

Functional Leadership The functional view assumes that leadership is defined by the relationship between the leader and a group—both the leader's behavior and its effect on the group. Leadership is not inherent in the individual; it is neither a set of traits, nor something people are born with. Rather, it is something one provides to a group to meet certain needs. One cannot be a leader without a group that wants and will use what a leader can provide. © 2016 Vector Group, Inc.

Functional Leadership Practices TRANSACTIONAL leadership emphasizes these types of behavior: TRANSFORMATIONAL leadership emphasizes these types of behavior: • Clear, measurable objectives • Communicating high expectations • Meeting performance standards • Living up to potential Establishing procedures and systems to guide and support doing the work • Deal with existing systems in a practical, realistic way • • Getting the work done Making use of knowledge based on experience • • Taking action © 2016 Vector Group, Inc. Establishing principles to guide priorities and decision making • Looking for opportunities to do things better • • Getting ready for the future • Taking new and different perspectives • Communicating a picture of the future

Implications / Challenges for Us Each organization is unique Each manager / leader is unique Common approaches / language Pragmatic vs. esoteric Leadership within an organizational context Modeling leadership behavior ourselves © 2016 Vector Group, Inc.

THE LEADER AS A MODEL The term "leader" has two common definitions: An exemplary performer, an outstanding performer in a particular field of endeavor (e. g. , a leader in the field of science or a leading tennis player). One who directs, motivates, and guides the actions of others (e. g. , a political leader or a football manager). © 2016 Vector Group, Inc.

Leader As Model A leader is one who directs, motivates and guides the actions of others (team). The leader should also model the kinds of behaviors he or she expects of team members. © 2016 Vector Group, Inc.

Leader As Model “Your actions speak so loudly, I cannot hear what you say.

Leader As Model (Checklist) q q q Face reality as it is, not as you wish it were—or how it used to be. Give honest and straightforward opinions on controversial and contentious issues; have the courage of your own convictions. Make sure others feel you listen to their ideas and suggestions with an open mind. Try to persuade others through reason rather than through the authority of your position or through coercion. “Walk the Talk” making sure your words and your actions match. © 2016 Vector Group, Inc.

Leader As Model (Checklist) q q q Always give others a fair share; try to ensure every deal results in something of value for all parties. Make necessary changes before you are forced to do so. Present yourself not as a victim of circumstances but as someone who can influence a situation for the better. Persist in the face of opposition but know when it is time to make a tactical retreat. Meet openness and cooperation with like behavior; avoid taking advantage of others’ willingness to cooperate and be open. © 2016 Vector Group, Inc.

Leader As a Non-Role Model q q q Maintain your authority by cancelling meetings because higher ups called you. This can be even better if you do it at the last minute or don’t bother to tell people at all. Always keep people waiting for performance reviews or other important meetings. It helps maintain your status and serves to remind employees that you are very busy. Assign a project stressing how valuable it is and how important the deadlines are. When the employee crawls in after putting in 16 -hour days and weekends, toss it aside and promise to read the results soon. Be sure and never read the report again. Save time by reading your mail while an employee talks to you. When someone really screws up, be sure not only to tell him or her but everyone else within earshot. This shows you are both sharp and willing to face tough problems. Whenever someone doesn’t get it quite right, don’t bother praising them for really trying since results are all that matter. © 2016 Vector Group, Inc.

Leader As a Non-Role Model q q q Don’t show your real emotions to people. By being truly unemotional, you can get them very confused about what you truly believe or are feeling. Don’t take time to bounce your ideas off people working on similar things in other departments. They may steal them. Never take your people to lunch. © Claude S. Lineberry, Senior Partner, Vector Group, ©Vector Group, Inc. , 1999, 2009 © 2016 Vector Group, Inc.

Leader As Model: Responsibilities q To self q To others (subordinates, peers, customers, boss)

Leader As Model: Responsibilities q To q self Self-awareness qbehavior / influence qskills qknowledge

Leader As Model: Responsibilities q To others (subordinates, peers, customers, boss) q Influence q

Leader As Model: Responsibilities q To the organization q Functional leadership q Cross-functional leadership

Leadership and Change Let’s take a look at this aspect of leadership. . .

Striving for. . “Effective organizations are those which produce excellent results by any measure of costs, quality or efficiency while simultaneously enhancing the energy and commitment of organizational members to the success of the enterprise. ” William A. Pasmore ©© 2016 Vector Group, Inc.

LEADERSHIP: PROVIDING A VISION A vision without a task is but a dream, A task without a vision is drudgery, A vision and a task Is the hope of the world. From a church in Sussex, England C. 1731 © 2016 Vector Group, LLC

Managing Change and Transition “THE GOAL OF CHANGE MANAGEMENT IS TO DUPE SLOW-WITTED EMPLOYEES INTO THINKING CHANGE IS GOOD FOR THEM BY APPEALING TO THEIR SENSE OF ADVENTURE AND LOVE OF CHALLENGE. THIS IS LIKE CONVINCING A TROUT TO LEAP OUT OF A STREAM TO EXPERIENCE THE ADVENTURE OF GETTING DE-BONED. (TROUT ARE NOT TEAM PLAYERS) THE DILBERT PRINCIPLE, 1996

Managing Change and Transition “There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success that to take the lead in the introduction of a new order of things because the innovator has for enemies all those who have done well under the old conditions and lukewarm defenders in those who may do well in the new. ” Niccolo Machiavelli (1469 -1527) © 2016 Vector Group, Inc.

Managing Change and Transition “If you want to truly understand something, try to change

A Very Short Quiz About Change Q: People invariably resist change. A: True or

Two Kinds of Change Participative (What? ) (How? ) Declarative © 2016 Vector Group,

Models of Change Planning Managing Stabilizing / Monitoring Endings Transitions © 2016 Vector Group,

Leading Change Establishing a Sense of Urgency Creating the Guiding Coalition Developing a Vision and Strategy Communicating the Change Vision Empowering Broad-Based Action Generating Short-Term Wins Consolidating and Producing More Change Anchoring New Approaches in the Culture © 2016 Vector Group, Inc. John Kotter, Leading Change (1996)

REACTIONS TO CHANGE Withdrawal— loss of interest, decreased participation, lower energy, etc. (the person retires to his or her office or cubicle never to be heard from again) Loss of Identity—confusion, feeling like a number, nostalgia for the “good old days, ” focus on past achievements, etc. (the water cooler or break room conversations about how wonderful things were before—reality check? ) Disorientation—anger or frustration, confusion, questions about individual assignment and fit in the organization (that deer in the headlights look—just not sure where to go or what to do) Disenchantment—cynicism, hostile resignation, disappointment and anger with the organization (easiest to recognize—the anger is clearly coming from a place of “the company broke its contract with me. ”) Adapted from Woodward & Bucholtz, 1987 © 2016 Vector Group, Inc.

LEADING CHANGE Four Actions Leader Should Take: Enhance Benefit—Make sure everyone understands the benefits -- personal, team, unit and company-- that will result from the change; that they share the vision/mission. Enhance Clarity—Make sure everyone understands why change is needed, what will change, what will not change, and how and when the change will occur. Diminish Uncertainty—Make sure everyone understands how the change affects them, where they fit in the new system, and what their role and responsibilities will be. Diminish Level of Effort—Make sure everyone has the least amount of additional effort related to the change, and that it is evenly distributed. Adapted from Vector Group, 2002 © 2016 Vector Group, Inc.

Conclusions Leadership is a conscious act Leadership is an art and a science Leadership has an organizational context Leadership does not take the place of management but works in tandem with it Leadership is found at every level of the organization Leadership considers all constituencies in decision-making Leadership is about values and integrity

Developing Your Own Leadership As you digest the content of this presentation, you can look at how you can contribute to your organization’s success. You must define your own leadership. No, you may not be in a titled leadership role or have a management position of some sort but you can and do influence others around you to get objectives met. Informal leadership within an organizational is very important in achieving success for your organization. © 2016 Vector Group, Inc.