Sat version.pptx

8/10/2019 Sat version.pptx

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999 Management s Next

Higher Ambition Leader

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Wait a minute

Successful Leader

=Higher Ambition Leader?

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Outline

Overview

Higher

Ambition

leadership

(HAL)

How HAL

changes

Management

Food

for

Thought

Conclusion

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Leader & Leadership

Someone whocan influence

others and whohas managerialauthority

Leader - Theprocess

of leading agroup

- influencingthat group toachieve its

goals

Leadership

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Leader

(Original)Do Right Things

Promote IdeaGeneration

Inspire

Pursue & CreateOpportunities

Create Vision

Synergy

Effectiveness

EmployeeInnovation

Teamwork

Accomplishment

Empowerment

Do things right

ProvideStructure

Coordinate

React toSituation

ProvideResources

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Management

Administration

Short-range

view

Efficiency

How & When

Controlling &

ProblemSolving

Leadership

Innovation

Long-term

vision

Effectiveness

What & Why

Motivating &

Inspiring 11


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FILM

TIMELINE

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Leadership is an Evolution

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1960s-70s Early Leadership theories Personalities

1970s-90s Contingency theories

21stcentury

Transformationalleadership

NOW!

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CONCEPT MAP OF TRANSFORMATIONAL AND HAL

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Producesignificantbenefitsfor thewider

community

Build robustsocial capital

within theirorganization

Create

long-termeconomic value

What

Why

How


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What

Why

How

Corporatesocial

responsibility

Long-termeconomic

value

Sustainability


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Background

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Founded in Sweden (1943)

301 stores operating in

37 countries

International home

products company

Fortune 100 BestCompanies to Work For


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Background

Higher Ambition Leader in Ikea

Anders Dahlvig Join in 1984

Became CEO in 1999


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Background

Higher Ambition Leader in Ikea

Anders Dahlvig

US Foreign Policy Associations Global Social

Responsibility award in 2006

Oslo Business for Peace Award in 2009


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Background

Anders Dahlvig in others eyes

Ikeaand Mr. Dahlvig have an extraordinary influence in theworld. He has participated in building a business of a size and

character where all stakeholders are winners.


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Background

Under leadership of Anders Dahlvig:

Growthfrom 7.3 to 21.5 billion Euros

Reduction in sales pricesby 20%

Over 565 million visitors dropping into one of 296 stores in 36 countries


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Vision

Strategy Culture

Personal

Leadership

Evolution of leadership

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Vision

Customers

Employee

s

IKEA

Communities

Sustainability

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IKEAs vision

To create a better everyday lifefor the manypeople

Customers Employee

s

Communities

Econ.Value

SocialValue

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Strategy Development

TransformationalLeadership

Higher AmbitionLeadership

How? Strategies tied withvision thoroughlyfor achievement

(Yukl 1994)

Strategic Identity

BEYOND

STRATEGIES!

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Leaderdeveloping achallenging

vision

Understandingmarket

conditions

Incorporatingvision intostrategies

TransformationalLeader


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TransformationalLeader

Market Share

Competitors

Leader developing achallenging vision

Understanding Marketconditions

Refining and incorporatinginto strategies

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Forging

sustained vision

Comprehensiveview of

organizationsCompetitiveAdvantages

Strategicidentity



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Forging sustained visionComprehensive view of

organizations competitiveadvantages

Strategic identity

Identify competitive advantages with ameaningful purpose that could underpin a

successful economic model

Capitalize strengths to create distinct values


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Higher Ambition Leader: IKEAs Competitive advantages

Uniquecharacters

Family approach

Passions andcapabilities of

people

Staffcommitment

Organizationalcapabilities

Customer loyalty

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organizationscompetitive advantages

Strategic identity

Defines companys visionand core values

Who the company is

Beliefs of the leaders, the employees, and thecompany's strategy were aligned

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organizations competitiveadvantages

Strategic identity

Companiescapabilities

Market

opportunities

Passion ofPeople

Whothe

company is

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Forging integrated visionComprehensive view of

organizations competitiveadvantages Strategic identity

Anders Dahlvig:

Company's reason for existence should be

to contribute to a better society."

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Social initiatives:

Environment


organizations competitiveadvantages Strategic identity37


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Social initiatives

Children


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Social initiatives:

Community :


organizations competitiveadvantages Strategic identity


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Potential True

Hollow Aspirational

Internally rooted values

Externally

perceived andappreciated

values

HIGH

HIGH

LOW

LOW

Strategic identity


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Cultural Development

TransformationalLeadership Higher AmbitionLeadership

How? Strong

OrganizationalCulture

Motivating andInspiring employees

BuildingCommunity of

Shared Purpose

Aligning withemployees and

society

BuildingCommunity of

Diversity

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OrganizationalCulture

1. Community

of

Shared Purpose

Transformational

Leadership

Higher Ambition

Leader

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A diverse and highly qualified workforce helps

corporations maintain a competitive edge

Not tangible benefits

Emphasis on altruistic values

Positive and diverse working environment

Communityof

Shared Purpose

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IKEAs Community 131,000 co-workers in 41

countries

Diversity transcendsraces, gender and ethnic

Family approach

Identifying needs andoptimizing ambition andcapabilities

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IKEAs Shared Purpose=

Core Values

Togetherness Cost-consciousness

Simplicity Respect

Creativity Flexibility

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HOW?

Job Enrichment

Job Rotation

Job Sharing

Understand of ALL employees

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Examples:

Life Balance

Employees Benefits


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Most Importantly, Consistent focused attention

on generating shared values

Strong emotionalattachment

High level of mutual trustand respect

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2. Communityof

Diversity

Barriers

Law

Culture

Values

Language

To build

community of shared purpose:

People must feel comfortableworking directly with others

They need to be able toappreciate colleagues fromdifferent background

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Outcome:

Staff turnoverhas decreased (76%36%)

Substantially lowered the company costs

in recruiting and training replacements

Totally revenue in the US increased from

1.2 billion to 1.4 billion

IKEAs Motto: Dare to be YOU!

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P l D l


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Personal Development

TransformationalLeadership

Higher AmbitionLeadership

How? Leading withIdealized influence

(Charisma) &

Inspiration

Leading with Sisu Finnish as guts

CollectiveLeadership

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P l D l t


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Leading with Inspiration Leading with Sisu

Anders Dahlvig:

Charisma is not anecessary character trait for

effective leadership

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P l D l t


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Leading with Sisu

Guts and courage

Doing things differently to gain real competitive edges Move into Russia during Russian Crisis

Political and economic turmoil

Persistence to prevail in this type of environment

IKEA: Dare to be different55

P l D l t


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Leading with Sisu

Higher Ambition Leader needs:

Keep price low while not damaging stakeholders

interests

To maintain aconstant focus

UK experience is not what we would like it to be"

Admits the need to scale back the expansion planin 2009

To admit mistakes

Encourage sharing on open forum

To directly engagewith people atdifferent levels

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Hi h A biti L d


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Ability to build strong corporate cultureCulture

Strong analytical ability

Far-sightedStrategy

Active engagement with all levels

Attention to feedbackCommunication

Ability to nurture mutual trust and cohesiveness withinthe teamGroups and teams

SimplificationOrganizationalstructure

Ability to motivate people by self-actualizationMotivation

Higher Ambition Leaders abilities and qualities:

Ability to build strong corporate


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Characteristics of strong culture: A community of shared purpose Leaders values deeply and widely held

Benefits of strong culture: Strong staff commitment Higher working incentive Distinctive company image

Ability to build strong corporatecultureCulture

Ability to build strong corporate


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The value of some companies is just

to make money and you cannot talk

about broader issuesthere becauseyou would come across as odd.

Anders Dahlvig

Ability to build strong corporatecultureCulture

Strong analytical abilitySt t


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Assess company and industrial situation

Set long-term and sustainable strategies

Strategic identity


Far-sightedStrategy



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... spend more time in the boardroomlooking at long-term issues and

build a sustainable business with a goodreputation.

We would do a better job for shareholders

if we were concentrating more on thelong term.

Anders Dahlvig


Far-sightedStrategy



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Different communication networks:

Chain

Wheel

Organic

Direct and efficient

Reduction of noise



Medium

Receiver

Decoding

Message

Feedback

Sender

Encoding

Message

NOISE



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We encourage people to

move around and interact,walls segregate peopleand keep them apart.

Nick ODonnell



Ability to nurture mutual trust and cohesivenessGroups and


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Ability to nurture mutual trust and cohesivenesswithin the team

Groups andteams

Do not focus on the professional knowledge,but collaboration skills

Family-like

Mutual trust and respect

Cohesiveness

Ability to nurture mutual trust and cohesivenessGroups and


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Ability to nurture mutual trust and cohesivenesswithin the team

Groups andteams

I'd say energy and being able to work withother people were the most important. You

can learn everything else.

Organizational


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Different types of structure:

Functional

Geographical

Market Matrix

Depends on companys nature and

objectives So far as communication is facilitated

SimplificationOrganizational

structure

i ifi iOrganizational


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SimplificationOrganizational

structure

Highly functional with a global market strategy

Maintain centralized control

Motivate people according toM ti ti


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Motivate people according totheir needsMotivation


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Food for thought


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Is successful

leaderequals

higher ambitionleader?

Wh t O S i t Thi k


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Short termEconomicSuccess

Successful

Leader

What Our Society Thinks:


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ase xamp e:I di


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pIndia

ase xamp e:I di


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pIndia

C E l IKEA I di


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Case Example: IKEA India

Keep 100%Ownership

Strategic Identity

Aim for long termand sustainable

return

Not Ready todevelop reliablesupply chains &

customers relations

Consider social valuewith expansion in

India

High ambitious leader


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Can


exist in

every company?

WHY CANT EXIST IN EVERY


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COMPANY

Companys business& product

NegativeImpact on

society

Never alignwith a

positivesocial value

Wh t i t i


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Some company products and business make it a destinythat a high ambitious leader can never exist.

Why cant exist in every company


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Why are there

so few of thesehigher ambition leaders?

Why are there so few of these


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higher ambition leaders?

Focus on

short term

economic value

Focus onshareholders

value

instead of otherstakeholders

Boards andbusiness schoolfocus on how to

earn high profit


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Conclusion

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Hi h A biti L d ?


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Higher Ambition Leader?

Focus on Short term economic value

Not focus on social valueSUSTAINABILITY

Vision

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Hi h A biti L d ?


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Charity Talk at Hospital

Hi h A biti L d ?


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88NOT CONSISTENT

Hi h A biti L d ?


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MTRs Caring for life's journeys 89



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90NOT CONSISTENT

A Higher Ambition Leader


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Society

Employees

Vision

A Higher Ambition Leader

91Sustainab le & Consis ten t


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Management Lesson No. 1Manage yourself first!

Be Visionary!93


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Focus on Long Term.Be Sustainable.

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StudyProject Meeting Intern

Lesson


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Who Can Be Higher Ambition Leader?

YOU

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