Legacy & Legacy Open Lecture

Unleashing the New African Corporate

Leader

Prof Pikay Richardson, Visiting Senior Fellow

Manchester Business School

Prof Pikay Richardson

* Degrees in Engineering and Management. * 17 years: Snr. Fellow, Manchester Business School

(now Visiting Senior Fellow). * 2 years: Professor and Academic Director, NJIT,

Newark, NJ, USA. * Teaching Expertise: Economics; Strategy; OB;

Leadership; Marketing; Int. Business * International experience: UK, US, France, Germany,

China, India, Bangladesh, Hong Kong, Malaysia, Singapore, Dubai, Jamaica, Barbados, South Africa, Botswana, Namibia, Kenya, Nigeria and Ghana

Thesis for Today For the 21st Century, Good Management is

No Longer Enough. And those who have no Leadership Skills,

or have no desire for same, have no business aiming to run companies – they will fail!

…notice that there was an Old Order…

the Old Order – the post-war period to 1975 characterised by

- environmental stability - steady economic growth - little competition – mutual co-existence - high demand Good Management al la mode.

…but then as “In Search of Excellence”

• 1984: 43

• 1994: 8

• Today: 6

Corporate Failures or Insignificance • Hoover • Compaq • Woolworths • Pan Am • IBM PC • Xerox • Eastman Kodak

…due to Fast Pace of Change..

• Policy Reforms, Deregulation/Liberalisation • Globalisation - TRIAD • Technological developments • Industry collision • New entrants • Customer sophistication

…the Old Order giveth way to a New…

the New Order – post 1975/80 of fast Change

- many corporate failures - impermanence of success - failure of success - inappropriate business models Right Things rather than Things Right

What has Fast Change led to??

The relative importance of Management and Leadership changed

And the crucial need for Effective Leadership – a leadership that is capable of

anticipating Change, and Leading and Navigating these companies through a fast-changing global environment.

The 21st Century Way to Success Today’s organisations must focus on • achieving optimal productivity through its

people • recognise that the new challenge is how to build

speed, flexibility and self renewal • need for competent and motivated people

in order to grow and flourish.

At the core of this challenge is the quality and maturity of its Leadership

..hence Good Management is No Longer Enough…

Leadership

Skills

Management Skills

Hi

Lo

Lo

Hi

Definition of Leadership Leadership is a process whereby an individual influences a group of individuals to achieve a common goal. Leadership: • is a process • involves influence • occurs within a group context • involves a common goal

Leadership, Power and Influence

Position/Authority confers Power and Influence (Management)

Leadership is an Activity (not a person) Effective Leadership may not derive from

Position or Power

Effective Leadership in Organisations Effective leadership is “the development of vision and strategies,

the alignment of relevant people behind those strategies, and the empowerment of individuals to make the vision happen despite obstacles”

- Kotter

Leadership and the Status Quo Every system is perfectly designed to get the

results that it is getting today (you keep getting what you keep getting, because you keep doing what you keep getting).

For a different of better results, the system needs

to change. This requires Leadership

Attributes of Effective Leaders Ability to • set Direction – mission-vision-goals • formulate Strategy – “how to” • mobilise Followers • lead/manage Change • solve organisational Problems • developing other Leaders/manage yourself • delegate • exhibit Ethical and Moral compass

Effective Leaders have Essential Competences

• They are able to engage others by creating a shared meaning – they have a vision and can persuade others to make that vision their own – are richly endowed with empathy

• Authentic leaders have a distinctive “voice” – a purpose, self-confident, ie emotional intelligence (Al Gore didn’t have)

• True leaders have integrity - strong moral compass, a powerful belief in something outside one-self,

• Leaders have adaptive capacity – what allows them to respond quickly and intelligently to relentless change

Forces that Drive Leadership

• Passion • Vision • Self-confidence • Tolerance for ambiguity and paradox • Intuition • Empathy

Management v/s Leadership Management is about what “Authority”

demands, ie involves “Meeting Expectations”,

- Direction - Protection - Order It may have nothing to do with Leadership, and is

fairly easy to accomplish, and we can be so good at it.

Leadership v/s Management

Leadership involves Change, and is about “Challenging Expectations” (disappoint, hurt) - Observation - Interpretation - Intervention, And is about thinking “out of the box”, moving out of

the “status quo”, doing something different, and can even be risky and dangerous, eg, attacking

Corruption, dealing with expired drugs etc (Jesus, Mandela, Luther King, Welch, etc)

Leadership v/s Management Managers do Things Right Leaders do the Right Things

Managers manage Structures/ Things Leaders lead People

Who is a Leader?

• Anybody can be learn to be a Leader • Leadership does not depend on Power or

Position • We can all learn to be an Effective Leader

by improving our Leadership skills

Leadership occurs in Context

• Leadership involves a situation requiring change and people who are willing to make that change – hence situation/circumstance matters

• Leadership is a process of influencing other people, whose attitude to influence differ substantially by culture – hence style of operation is culture related (rational persuasion, collaboration and consultation, gift-giving, socialising, pressure/coercion

• Work-related values differ across cultures Hence what constitute effective leadership is

culture-related

Personality and Leadership Styles

• Charismatic Leadership • Transactional Leadership • Transformational, Visionary or Strategic

Leadership

Strategic Leadership “the development of vision and strategies, the

alignment of relevant people behind those strategies, and the empowerment of individuals to make the vision happen despite obstacles”

- Kotter

Becoming a Strategic Leader

• General intelligence • Technical or professional knowledge and

competence • Personality • Ability to inspire • Listening, sharing and delegating skills • Self-knowledge • Ability to think strategically

Improving Your Leadership Skills

What does it take to be a Leader? • Personal ambition • Intelligence/competence • Ability to articulate • Ability to manage yourself • Learn from others – books, videos,

courses – and practise

Trust and Integrity– 4 Ingredients leaders have to generate and sustain

• Constancy – stay on course • Congruity – walk the talk; no gap between

the theories they espouse and the life they practice

• Reliability – being there when it counts; ready to support their subordinates

• Integrity – honour their commitments and promises

Next generation of leaders • Broad education • Boundless curiosity and enthusiasm • Contagious optimism • Belief in people and teamwork • Willingness to take risks • Devotion to long-term growth rather than short-term

profit • Commitment to excellence • Adaptive capacity • Empathy • Authenticity • Integrity • Visionary – Strategic Thinking

The 21st Century CEO’s Dream A company that • does the Right Things • is customer-focussed • has a competitor understanding • has operational excellence • moves fast and is flexible • has good internal communication • under strong Visionary Leadership

Thank You Email:pikayrichardson@yahoo.com Email:pikay.richardson@mbs.ac.uk

Leadership Theories

Effective Leaders: Born or Made:

• Trait Theories • Behavioural Theories • Contingency Theories • Dyadic Theories

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Stability

Return On

Capital

Time

The old order and business impact

…then the old Order Changeth…

• De-regulation/Liberalisation • Globalisation – borderless world, FDI,

Trade, etc • Geo-politics and Africa marginalisation • RTAs • Technology – IT revolution, Jet • Rise of Tax havens • Customer sophistication

… and giveth Way to a New…

the New Order – • Fast change • Knowledge more important, Talent management • Search for best host (FDI) • IT Revolution- E-commerce, Internet, etc • New entry • Political savvy • CSR

..and fostered new global business challenges..

• More market choices • Clients unyielding demand for world-class quality

at village-low prices • Required speed faster than available speed • More miles yet from quarter tank • Past experience often inadequate for new

unknowns • Conventional tools made obsolete by new

complexities

xxx

x x

x x x

Stability

Return On

Capital

Time

xxx

…that Changed the playing field..

x

xxx

x x

x x x

Stability

Return On

Capital

Time

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..many are called but few..

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1/3

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x x

x x x

Stability

Return On

Capital

Time

xxx

...those who win do the…

x

1/3 Right Things

Things Right

42

Good Management is No Longer Enough

Leadership

Skills

Management Skills

Hi

Lo

Lo

Hi

BBC News Flash, 19 January 2012

Eastman Kodak, the company that invented the hand-held camera has filed for Chapter 11 Bankruptcy protection.

The 133 year-old firm has struggled to keep

up with competitors who were quicker to adapt to the digital era.

How are the Mighty Fallen? • Founder George Eastman produced the first

film-in-roll camera in 1883 • 1888, Kodak launches the first consumer camera

with the slogan “you press the button, we do the rest”

• 1900, Kodak introduces a camera for $1, the Brownie, which becomes a best-seller in America

• 1969, Kodak camera is used during the first moon landing

• 1975, Kodak invents the first digital camera , with resolution, 0.1 megapixels

• 2012, January 19, Kodak files for bankruptcy

What Went Wrong at Kodak?

The 133-year old firm has struggled to keep up with competitors which are quicker to adapt to the digital era.

It has struggled as mobile phone

manufacturers have introduced increasingly sophisticated cameras in their own devices. This has had a huge impact on the lower end of the digital camera market which Kodak concentrated on.

… and there are others..

• Hoover • McDonnell Douglas • Pan Am • Compaq • Woolworths • Comet •

The Cause of Failure

Laurence J. Peter said, “There are two kinds of failures: those who thought and never did, and those who did and never thought.” If you don’t make an attempt, you will never realize the potential of what you might have been able to achieve.

Leadership Versus Management

• Three major distinguishing marks between leaders and managers. – Managers operate within current systems, accept the

status quo and deal with incremental change. Leaders operate out of the box, create new paradigms and lead non-incremental change.

– Managers implement other’s vision; leaders implement their own vision.

– Managers focus on systems, structures, controls and the short run; leaders focus on people, inspire trust and focus on the long run.

In sum, managers do Things Right; leaders do the Right Things.

(Adapted from Warren Bennis).

…and that…

Your ability to define and obtain the right career goals, and succeed as an Effective Manager in a modern world, depends very much on the quality of your LEADERSHIP.

This will exerts a major impact on your own

quality of life and your company’s success.