Social Enterprise Leadership

8/13/2019 Social Enterprise Leadership

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Leadership for SocialEnterprises


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What Executives Do

Functions of a manager (HenriFayol, 1916) Plan

Organize Coordinate Control

Is this leadership ormanagement, or both?


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Outline

Basic leadership principles Leadership styles


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A typical pattern

A successful entrepreneur looks tothe future and other ventures

The organization is led by afollower, who is most likely amanager, not a leader

Leadership gap develops Organization becomes far less

entrepreneurial or begins to fail Social entrepreneur must provide or

find leadership for the organization


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Questions

How does leadership differ frommanagement ?

And how do both relate to socialentrepreneurship?

What are the special leadershipchallenges faced by socialentrepreneurs?


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Executives Are Often Reactive

Data say Executives are usually thrown from activity

to activity (putting out fires) Executives often seek interruption from

subordinates (keeping my ear to theground) Executives prefer over written

communication (updating) Most executives ignore scientific

management techniques (going with mygut)

Mintzberg, Henry: "The Managers Job:Folklore & Fact". Harvard BusinessReview , July/Aug 1975: 353-377.


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Executives Are Often More Involved inManagement than Leadership

The difference between managers andleaders

Bennis & Nanus (1997) Leaders : TheStrategies for Taking ChargeKotter, John P. "What Leaders Really Do.Harvard Business Review (1990)

Managers Leaders

Bennis &Nanis

do thingsright

do the rightthings

Kotter cope withcomplexity

cope withchange


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What Do Managers andLeaders Do?

Lessons

In a stable, high-competition environment,good management is paramount In a dynamic, uncertain environment,

leadership is key

Kotter, John P. "What Leaders ReallyDo. Harvard Business Review (1990)

Function Managers Leaders

Deciding what to do Planning andbudgeting

Settingdirection

Creating networks

of people

Organizing and

staffing

Aligning

peopleEnsure that tasksare accomplished

Controlling andproblem-solving

Motivating andinspiring


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Too Much Management, NotEnough Leadership?

A managerial culture maintains andrelies on stasis Leaders know that your only

opportunity to fix something is before

its broken Leadership relies on vision and theability to effect change

Most U.S. corporations today areovermanaged and underled.

Zaleznick, Abraham. Managers andLeaders: Are They Different?. HarvardBusiness Review (1977)


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Preliminary Conclusionsand Trailing Questions

Management and leadership aredifferent

Effective leadership is important

Change is a key concept for effectiveleaders


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Where Are Social EnterpriseLeaders?

Founder ED/President/CEO Super-volunteer

Catalyzing a community

Active trustee Marshalling a large funding jump

Venture philanthropist

Frumkin, Peter. On Being Nonprofit: AConceptual and Policy Primer (HarvardUniversity Press, 2002)


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The Special Challenge of SocialEnterprise Leadership

For-profit leadership literatureassumptions Power

Autonomy Social entrepreneurs must lead

from above, but also from below Persuasion vs. coercion


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Characteristics ofHigh-Performance Leaders

What doemployeesadmire in aleader? Honesty (88%) Forward-looking

(75%)

Inspiring (68%) Competent (63%)

Light, Paul C. Pathways to NonprofitExcellence (Brookings InstitutionPress, 2002)

According tononprofitexecutives, high-performanceleaders are Honest Faithful to

employees

Decisive Trusting Charismatic

Kouzes, J. & Posner, B. (1995).The Leadership Challenge


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What is the Right NonprofitLeadership Model?

Percent of nonprofit executives thatbelieve in each model

Decisive

leader

Reflective

leader

Collaborativeorganization

6% 34%

Leader-centeredorganization

12% 31%

Light, Paul C. Pathways to NonprofitExcellence (Brookings InstitutionPress, 2002)


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Change Is Inevitable

Sources ofchange Society

(audience anddonor wishes) Markets

(competitors) Technology Government

Leaderships roleas a steward ofchange

Empowering newtalent Helping people to

adapt


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Successful Change

Elements Clear goals

New strategies

New modes ofoperation

Impediments Executives tackle

change alone Employees expect

execs to solve allproblems

Where are we going?

Figuring out howto get there

Getting there


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Conclusions

Seek the right balance betweenmanagement and leadership

but dont confuse them

Effective change is the nexus ofmanagement and leadership Effective nonprofit leaders navigate

special waters Focus on key personal qualities:

courage, skill with people, and vision


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Outline

Basic leadership principles Leadership styles


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Leadership Styles

Coercive leadership Authoritative leadership Affiliative leadership Democratic leadership Pacesetting leadership

Coaching leadership

Goleman, Daniel. "Leadership thatGets Results." Harvard BusinessReview (2000)


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Coercive Leadership

Demands immediate compliance Can achieve short-term results

Positive shock to a moribund environment Key in emergencies

Can create long-term damage Defection Creativity and initiative Non-financial rewards

Coercive leadership can loweremployee compensation



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Affiliative Leadership

People come first Strives for happiness and harmony Results in fierce loyalty, workplace

trust, and a revered leader

May lower overall effectiveness Poor performance may be tolerated Tendency to groupthink Rudderlessness occurs when clear

direction is needed This style is best when accompanying

another



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Democratic Leadership

Everybody has a say in the process Opposing viewpoints are protected

and respected

Builds trust, respect, and commitment May be counterproductive

Can lead to endless meetings Inhibits efficient decisionmaking May lead go-getters to defect



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Pacesetting Leadership

Nobody works harder than theED

Pitches in and sets an example Can create moral problems

among less-able employees Organization is in trouble if

pacesetter leaves



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Coaching Leadership

Counsels employees Highly values human capital, and

looks for individual strengths Delegates in order to develop

employees Can be extremely time-

consuming

Goleman, Daniel. "Leadership thatGets Results." Harvard Business

Social Enterprise Leadership

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