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Strategic Leadership: Creating a Learning Organization and an Ethical Organization

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Title: Strategic Leadership: Creating a Learning Organization and an Ethical Organization


1
Chapter 11
  • Strategic Leadership Creating a Learning
    Organization and an Ethical Organization

2
Leadership Three Interdependent Activities
  • Leadership is the process of transforming
    organizations from what they are to what the
    leader would have them become
  • Leadership should be
  • Proactive
  • Goal-oriented
  • Focused on the creation and implementation of a
    creative vision

3
Leadership Three Interdependent Activities
  • Successful leaders must
    recognize three interdependent
    activities
  • Determining a direction
  • Designing the organization
  • Nurturing a culture dedicated to excellence and
    ethical behavior

4
Setting a Direction
  • Scan environment to develop
  • Knowledge of all stakeholders
  • Knowledge of salient environmental trends and
    events
  • Integrate that knowledge into a vision of what
    the organization could become
  • Required capacities
  • Solve increasingly complex problems
  • Be proactive in approach
  • Develop viable strategic options

5
Designing the Organization
  • Difficulties in implementing the leaders vision
    and strategies
  • Lack of responsibility and accountability among
    managers
  • Reward systems that do not motivate individuals
    and groups toward desired organizational goals
  • Inadequate or inappropriate budgeting and control
    systems
  • Insufficient mechanisms to coordinate and
    integrate activities across the organization

6
Nurturing a Culture
  • In nurturing a culture dedicated to excellence
    and ethical behavior, managers and top executives
    must
  • Accept personal responsibility for developing and
    strengthening ethical behavior
  • Consistently demonstrate that such behavior is
    central to the vision and mission
  • Develop and reinforce
  • Role models
  • Corporate credos
  • Codes of conduct
  • Reward and evaluation systems
  • Policies and procedures

7
Overcoming Barriers to Change and the Effective
Use of Power
  • Reasons why organizations and managers at all
    levels are prone to inertia and slow to learn,
    adapt, and change
  • Vested interests in the status quo
  • Systemic barriers
  • Behavioral barriers
  • Political barriers
  • Personal time constraints

8
A Leaders Bases of Power
9
Emotional Intelligence A Key Leadership Trait
Accounting, business planning, etc.
Analytical reasoning, quantitative analysis, etc.
Ability to work with others, passion for work,
etc.
10
Emotional Intelligence
  • Five components of emotional intelligence
  • Self-awareness
  • Self-regulation
  • Motivation
  • Empathy
  • Social skill

11
Five Components of Emotional Intelligence at Work
Definition Hallmarks
  • Self-management skills
  • Self-awareness
  • The ability to recognize and understand your
    moods, emotions, and drives, as well as their
    effect on others.
  • Self-confidence
  • Realistic self-assessment
  • Self-deprecating sense of humor
  • The ability to control or redirect disruptive
    impulses and moods.
  • The propensity to suspend judgmentto think
    before acting.
  • Trustworthiness and integrity
  • Comfort with ambiguity
  • Openness to change
  • Self-regulation

12
Five Components of Emotional Intelligence at Work
Definition Hallmarks
  • motivation

Self-management skills
  • A passion to work for reasons that go beyond
    money or status.
  • A propensity to pursue goals with energy and
    persistence.
  • Strong drive to achieve
  • Optimism, even in the face of failure
  • Organizational commitment
  • Managing relationships
  • Empathy
  • The ability to understand the emotional makeup of
    other people.
  • Skill in treating people according to their
    emotional reactions.
  • Expertise in building and retaining talent
  • Cross-cultural sensitivity
  • Service to clients and customers

13
Five Components of Emotional Intelligence at Work
Definition Hallmarks
  • Social skill

Managing relationships
  • Proficiency in managing relationships and
    building networks.
  • An ability to find common ground and build
    rapport.
  • Effectiveness in leading change
  • Persuasiveness
  • Expertise in building and leading teams

14
Developing a Learning Organization
  • Successful learning organizations
  • Create a proactive, creative approach to the
    unknown
  • Actively solicit the involvement of employees at
    all levels
  • Enable all employees to use their intelligence
    and apply their imagination

15
Developing a Learning Organization
  • Learning environment
  • Organizationwide commitment to change
  • An action orientation
  • Applicable tools and methods
  • Guiding philosophy
  • Inspired and motivated people with a purpose

16
Four Critical Processes of Learning Organizations
  • Salient elements of empowerment
  • Start at the bottom by understanding needs of
    employees
  • Teach employees skills of self-management
  • Build teams to encourage cooperative behavior
  • Encourage intelligent risk taking
  • Trust people to perform

17
Four Critical Processes of Learning Organizations
  • Open book management
  • Numbers on each employees work performance and
    production costs generated daily
  • Information is aggregated once a week from top
    level to bottom level
  • Extensive training in how to use and interpret
    the numbershow to understand balance sheets,
    cash flows and income statements

18
Four Critical Processes of Learning Organizations
  • Awareness of environmental trends and events
  • Internet accelerates the speed with which useful
    information can be located
  • Garden variety traditional sources for
    acquisition of external information
  • Benchmarking
  • Focus directly on customers for information

19
Four Critical Processes of Learning Organizations
  • Challenging the status quo
  • Create a sense of urgency
  • Establish a culture of dissent
  • Foster a culture that encourages risk taking
  • Cultivate culture of experimentation and curiosity

20
Creating An Ethical Organization
  • Organizational ethics is a direct reflection of
    its leadership
  • Unethical business practices
  • Involves tacit, if not explicit, cooperation of
    others
  • Reflect the values, attitudes, and behavior
    pattern that define the organizations operating
    culture

21
Creating An Ethical Organization
  • Driving forces of ethical organizations
  • ethical values
  • Integrity
  • Ethical values
  • Shape the search for opportunities
  • Shape the design organizational systems
  • Shape the decision-making process used by
    individuals and groups
  • Provide a common frame of reference, that serves
    as unifying force

22
Approaches or Strategies for Ethics Management
Characteristics Compliance-Based Integrity-Based
Approach Approach
  • Ethics Conformity with externally
    Self-governance according to
  • imposed standards chosen standards

Objective Prevent criminal Enable responsible
conduct misconduct
Leadership Lawyer-driven Management-driven with
aid of lawyers, HR, and others
23
Approaches or Strategies for Ethics Management
Characteristics Compliance-Based Integrity-Based
Approach Approach
  • Methods Education, reduced Education,
    leadership,
  • discretion, auditing and accountability,
    organizational
  • controls, penalties systems and decision
  • processes, auditing and controls, penalties

Behavioral Autonomous beings Social beings
guided by Assumptions guided by material
material self-interest, values, self-interest id
eals, peers
24
Key Elements of Highly Ethical Organizations
  • These interrelated elements must be present and
    constantly reinforced
  • Role models
  • Corporate credos and codes of conduct
  • Reward and evaluation systems
  • Policies and procedures
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