2. Strategic Leadership Chapter 11 Built by Stambaugh/2009 Lead, follow, or get out of the way … Thomas Paine Jeff Stambaugh Dillard College of Business/Rm 257A jeff.stambaugh@mwsu.edu http://faculty.mwsu.edu/business/jeff.stambaugh

3. Objectives Built by Stambaugh/2009 ■ Understand the basic independent activities of strategic leadership ■ Know why change is hard and how leaders can do something about it ■ Learning and ethical organizations Lead, follow, or get out of the way … Thomas Paine

4. The Triad of Leadership Built by Stambaugh/2009 Leadership is the process of transforming organizations from what they are to what the leader wants them to become Determining a direction Designing the organization Nurturing a culture dedicated to excellence and ethical behavior Adapted from Exhibit 11.1 Three Interdependent Activities of Leadership Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Lead, follow, or get out of the way … Thomas Paine

5. Why is Change so Hard? Built by Stambaugh/2009 ■ The current way “works” for lots of people and they don’t want it to change ■ The bureaucracy is designed not to change ■ People don’t see (or agree with) your big picture ■ You don’t have enough time / energy ■ Political barriers / power struggles Lead, follow, or get out of the way … Thomas Paine

6. Basic Components of Change Built by Stambaugh/2009 ■ Five Components for Change ■ Burning Platform ■ Vision ■ Leadership ■ Strategy for Change ■ Political Plan Lead, follow, or get out of the way … Thomas Paine

7. Burning Platform Built by Stambaugh/2009 ■ People have to realize they can’t stay where they currently are … or they have to be dissatisfied with where they are Lead, follow, or get out of the way … Thomas Paine

8. Vision Built by Stambaugh/2009 ■ Where are we going to go if we can’t (or don’t want to) stay here? ■ BHAG! ■ Four key properties ■ Possible ■ Desirable ■ Do-able ■ Communicable Lead, follow, or get out of the way … Thomas Paine

9. Leadership Built by Stambaugh/2009 ■ Who will lead us there? ■ Passion ■ Confidence ■ Intellect and technical skills ■ Visible and engaged Lead, follow, or get out of the way … Thomas Paine

10. Have and Execute a Plan Built by Stambaugh/2009 ■ This is the guts of this course ■ Develop a clear plan to move from here to there ■ Be ready for the plan to change ■ Measure your progress (How we doin’) ■ Celebrate the successes without settling for half a loaf Lead, follow, or get out of the way … Thomas Paine

11. Have a Political Plan Built by Stambaugh/2009 ■ There WILL be opponents out there! ■ Who’s support do I have to have? ■ How do I secure their support / buy-in (how do I sell the plan)? ■ Can I win over the opponents? ■ If not, how do I neutralize the opponents? Lead, follow, or get out of the way … Thomas Paine

12. Power Built by Stambaugh/2009 Exhibit 11.2 A Leader’s Bases of Power Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Lead, follow, or get out of the way … Thomas Paine

13. Emotional Intelligence Built by Stambaugh/2009 ■ Self-awareness ■ Self-regulation ■ Motivation ■ Empathy ■ Social Skill Lead, follow, or get out of the way … Thomas Paine

14. Learning Organization Built by Stambaugh/2009 ■ Inspire with a purpose ■ Empower ■ Build / Share internal /external knowledge ■ Keep the organization on its toes Lead, follow, or get out of the way … Thomas Paine

15. Empowerment Built by Stambaugh/2009 ■ Set goals at top ■ Clarify mission, tasks, rewards ■ Delegate ■ Hold people accountable Lead, follow, or get out of the way … Thomas Paine ■ Understand employee needs ■ Teach employees to manage themselves ■ Teamwork ■ Intelligent risk taking ■ Trust people

16. Building an Ethical Organization Built by Stambaugh/2009 ComplianceIntegrity ObjectiveStay out of jailBe responsible LeadershipLawyers-drivenLeader-driven MethodsEducation, rules, fear, penalties Education, accountability, leadership AssumptionsEconomic beings guided by self interest Social beings with more than self interest at stake Lead, follow, or get out of the way … Thomas Paine

17. The Story of Darlene Druyun and Michael Sears Built by Stambaugh/2009 ■ Sears – CFO of Boeing ■ Darlene Druyun – joined Boeing as ■ VP / Dep GM of Missile Defense ■ Systems in late 2002 after retiring ■ from AF civil service as the top acquisitions officer ■ Both fired in Nov. 2003 after allegations Sears and Druyun conducted job negotiations before Druyun recused herself from contracts involving Boeing Lead, follow, or get out of the way … Thomas Paine

18. The Story of Darlene Druyun and Michael Sears Built by Stambaugh/2009 ■ Rest of the Story—Darlene Druyun ■ 32+ year career ■ Known as tough, demanding, and ■ results oriented manager ■ Made lots of enemies but her competence ■ saved her more than once ■ VERY tough on government contractors … her nickname was the “Dragon Lady,” but she won great value for AF Lead, follow, or get out of the way … Thomas Paine

19. The Story of Darlene Druyun and Michael Sears ■ Plea Bargain ■ What she said at sentencing: ■ Fallout: 615 million reasons to be ethical ■ Just lost one of the major defense contracts of the next 20 years to a European firm Built by Stambaugh/2009 Lead, follow, or get out of the way … Thomas Paine

20. Why and How to Stop Breaches Built by Stambaugh/2009 ■ Balancing act—the controls to stop unethical behavior have their own corrosive effects ■ Ethics as an explicit culture ■ Walk the talk--fix the one and only person you have 100% control over … yourself ■ Ethical breaches now signal “danger ahead” ■ Build your fire walls NOW, before it gets hot! ■ Beware the reward systems ■ Question: Should Boeing take the tax write-off from the fine? Lead, follow, or get out of the way … Thomas Paine

21. Summary Built by Stambaugh/2009 ■ The Triad of Strategic Leadership ■ Change is tough, so leaders have to be tough too ■ Integrity … never give it away, and don’t tolerate ethical lapses in others Lead, follow, or get out of the way … Thomas Paine