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Title: leadership development for construction smes presentation at


1
leadership development for construction smes
  • presentation at SEDiC 2011
  • 26-27 july 2011

2
Outline
  • Importance of SMEs in construction
  • Challenges and risks facing construction SMEs
  • Leadership what is it?
  • Development of knowledge on leadership
  • Leadership and construction
  • Authentic project leader
  • Leadership development
  • SME development
  • Some proposals
  • Conclusion

3
Need for leadership in management of construction
SMEs
  • Construction firms face many risks,
    uncertainties.
  • Construction SMEs face particularly harsh
    business environments, including
  • those which are inherent in construction activity
    such as lack of job continuity owing to the
    project-based nature of the industry which has an
    inherently unstable nature
  • those concerning the deficiencies in individual
    industries themselves
  • those in the operating environment of the
    industry such as difficulties in access to
    finance.

3
4
Need for leadership in management of construction
SMEs ..2
  • Today, SMEs face even more risks and
    difficulties, including
  • more exacting demands of more knowledgeable and
    better organised beneficiaries and stakeholders
  • more extensive regulations in efforts to address
    environmental, health and safety and other
    concerns
  • greater competition from more firms offering same
    services
  • greater expectations from business partners as
    they seek to enhance their own competitiveness
    and project performance
  • pressures to ensure continuity of business
    operations in a world facing increasingly more
    frequent natural and human disasters
  • greater stress on professionalism and
    transparency
  • the need to deal with more knowledgeable
    employees
  • simply, the question of choosing from the wide
    range of possibilities available in terms of
    business opportunities, relationships with
    partners, and support initiatives.

4
5
Need for leadership in management of construction
SMEs ..3
  • More help is available, including
  • greater understanding of the industry and
    increasing maturity in policy development
  • better awareness of nature, needs of SMEs,
    especially in construction
  • development of more appropriate and
    better-focused policies, programmes, initiatives
    for SME development, esp. in construction
  • more ready availability of guidance books and
    on-line resources
  • better training programmes
  • more, and better and user-friendly tools and
    techniques, many of which are computer-based
  • greater understanding of value-chain benefits and
    benefits of co-opetition
  • greater tendency towards solidarity among
    businesses and their leaders to foster common
    interests.

5
6
Need for leadership in management of construction
SMEs ..4
  • Need for SME entrepreneur to be
  • more aware (this goes beyond being better
    informed)
  • able to inspire (employees, clients and partners)
    in order to attain greater joint performance
  • strategic in orientation
  • better able to deal with risk and uncertainty
  • adept at participating in alliances and
    partnerships.
  • In short, the SME entrepreneur, especially today,
    must be a leader.
  • For construction SME, leadership is critical at
    project and enterprise levels.

6
7
Need for leadership in management of construction
SMEs ..5
Statement in marketing literature of SEDiC 2011
may be paraphrased as
Small enterprise development is essential to the
growth of the construction industry in South
Africa and across the continent. Although several
funding and support initiatives are already in
place, a greater need for leadership is essential
for sustainable development.
7
8
Leadership versus Management
9
Management versus leadership in project
management
  • Project Management
  • Planning
  • Organizing
  • Controlling
  • Time
  • Cost
  • Quality
  • HRM
  • Scope
  • Procurement
  • Project Leadership
  • Leading
  • Motivating
  • Integrating
  • Envisioning
  • Transforming (Changing)
  • Developing
  • Reconciling
  • Sense-making-giving
  • Empowering

10
Project management is not sufficient.
Too much focus on tools/techniques, management in
construction
11
  • what is leadership?
  • who is a leader?

12
  • Who is a leader?

13
Lead ??? ??? ??Leader ???? ???
Leadership ??? ???
Some key words
14
Some key words
  • Sun Tzu on Leadership
  • Leaders should be smart, able to develop good
    strategies.
  • Leaders should keep their word. If they break a
    promise, they should punish themselves as harshly
    as they would punish subordinates.
  • Leaders should be benevolent to their troops,
    with almost a fatherly love for them.
  • Leaders must have ability to make brave and fast
    decisions.
  • Leaders must have steadfast principles.
  • Chinese for Leadership it contains ideas of
  • to lead
  • to direct
  • to conduct
  • to guide.

15
What is leadership?
  • Continuing debate on nature of leadership no
    common definition.
  • Fiedler (1967, p. 36) Leadership behaviour
    means particular acts in which a leader engages
    in the course of directing and coordinating the
    work of his group members.
  • Burns (1978, p. 425) Leadership is the
    reciprocal process of mobilising by persons with
    certain motives and values, various economic,
    political and other resources, in context of
    competition and conflict, in order to realize
    goals independently or mutually held by both
    leaders and followers.
  • Bennis (1989, p. 65) Leadership is the
    capacity to create a compelling vision and
    translate it into action and sustain it.

16
What is leadership? ..2
  • Yukl (1989, p. 253) Leadership involves
    influencing task objectives and strategies,
    influencing commitment and compliance in task
    behaviour to achieve these objectives,
    influencing group maintenance and identification
    and influencing the culture of an organization.
  • Gardner (1990, p. 1) Leadership is the process
    of persuasion or example by which an individual
    (or leadership team) induces a group to pursue
    objectives held by the leader and his or her
    followers.
  • Chemers (1997, p. 1) Leadership is a process
    of social influence in which one person is able
    to enlist the aid and support of others in the
    accomplishment of a common task.
  • Vroom and Jago (2007, p. 18) Leadership is a
    process of motivating people to work together
    collaboratively to accomplish great things.

17
Ancient Philosophers Views
Various New Forms
Charismatic Leadership

Pre-20th Century Thoughts
Authentic Leadership
Contingency Theories
Scientific Management
Human Relations School
Trait Theories
17
Examples of leadership concepts
18
Super Leadership
Self Leadership
Aesthetic Leadership

Servant Leadership
Implicit Leadership
Spiritual Leadership
Shared Leadership
Ethical Leadership
Toxic Leadership Negative Side of Leadership
18
Examples of leadership concepts ..2
19
Some new models of leadership
  • Palus and McGuire (2010, p. 146) note
  • In politics and business, among other spheres,
    individual leadership is proving to be inadequate
    when moving from projects and products to large
    enterprises and cross-border networks.
    Organisations, therefore, are learning to embrace
    coleadership in dyads, small groups and larger
    collectives.
  • Hansen (2011, p. 73) defines another model
  • Collaborative leadership is the capacity to
    engage people and groups outside ones formal
    control and inspire them to work toward common
    goals despite differences in convictions,
    cultural values, and operating norms.

19
20
Current trends in leadership studies
Greater diversity in leadership types, contexts
being studied
Increased interest in new topics, eg.
transformational, charismatic leadership
Greater use of meta- analysis to undertake
systematic reviews
Improved measurement and analytical methods
More and better cross-cultural studies
(Bryman, 2004)
21
Model of leadership competences
Fifteen leadership competencies (Dulewicz and
Higgs, 2005) Intellectual competence Three
intellectual components of leadership
competence 1. Critical analysis and judgment
leader gathers information from a wide range of
sources, probing the facts, identifying
advantages and disadvantages. Sound judgment and
decisions making, awareness of impact of any
assumptions made. 2. Vision and imagination
leader is imaginative and innovative. Leader has
a clear vision of the future and foresees the
impact of changes on implementation issues and
business realities. 3. Strategic perspective
leader is aware of the wider issues and broader
implications. Leader balances short and long-term
considerations and identifies opportunities and
threats.
22
Model of leadership competences ..2
Managerial competences 4. Resource management
leader organizes resources and co-ordinates them
efficiently and effectively. Establishes clear
objectives and converts long term goals into
action plans. 5. Engaging communication leader
engages others and wins their support through
communication tailored for each audience. Leader
is approachable and accessible. 6. Empowering
leader gives direct reports autonomy and
encourages them to take on challenges, to solve
problems and develop their own accountability. 7.
Developing leader encourages others to take on
ever more-demanding tasks, roles and
accountabilities. Leader develops others
competencies and coaches them. 8. Achieving
leader shows determination to achieve objectives,
implement decisions.
22
23
Model of leadership competences ..2
Emotional competence 9. Self-awareness leader is
aware of his/her own feelings and able to
recognise and control them. 10. Emotional
resilience leader is able to maintain consistent
performance in a range of situations. Leader
retains focus on a course of action or the need
to obtain results in the face of personal
challenge or criticism. 11. Intuitiveness leader
arrives at clear decisions and is able to drive
their implementation in the face of incomplete or
ambiguous information. 12. Interpersonal
sensitivity leader is aware of, and takes
account of, the needs and perceptions of others
in arriving at decisions and proposing solutions
to problems and challenges. 13. Influence leader
can persuade others to change a viewpoint based
on the understanding of their position and
recognition of the need to listen to this
perspective and provide a rationale for
change. 14. Motivation leader has drive and
energy to achieve clear results and make an
impact. 15. Conscientiousness leader displays
clear commitment to a course of action in the
face of challenge and matches words and deeds
in encouraging others to support the chosen
direction.
24
Summing up on Leadership
Leadership studied in most fields of activity and
knowledge from many perspectives.
Many contesting concepts, but, leadership style,
trait, orientation should fit the task and be
suitable in the context.
Leader should be sensitive to, and concerned for,
needs, aspirations of followers, stakeholders.
Leader should form best possible team,
resources, practices, procedures to realise task
objectives and interests, needs of stakeholders.

Leadership most needed in circumstances of
construction in developing countries and on
large, innovative projects.
Authentic leadership most suitable today. Now,
need for vision, hope, dedication, tenacity
human relationships matter doing things with the
heart is important stakeholders are numerous.
24
25
Continuing debate about leaders and leadership ..2
Definition of Leadership
Are Leaders needed?
Leadership in Context?
Do leaders learn from success or failure?
Who makes the best leader?
26
  • authentic leadership

27
Authentic leader
  • Recent research shows that authenticity is
    fundamental to good leadership it is the basis
    of effective leadership that is ethical, moral,
    trustworthy and inspiring.
  • Authenticity means to thine own self be true,
    as the old Greek adage goes.
  • In social psychology, authenticity is
    unobstructed operation of ones true, or core,
    self in ones daily enterprise.

28
Authenticity
Authenticity of leadership is a pattern of
leader behaviour that draws upon and promotes
both positive psychological capacities and a
positive ethical climate, to foster greater
self-awareness, an internalized moral
perspective, balanced processing of information,
and relational transparency on the part of
leaders working with followers, fostering
positive self development (Walumbwa et al.,
2008, p. 94).
29
Components of authentic leadership
Understands its purpose
Practices solid values
Leads with heart
Establishes connected relationships
Demonstrates self-discipline
Moral and Ethical
(George, 2003)
30
  • leadership development

31
Leadership Development
  • Long debate on whether leaders are born or can be
    developed.
  • Consensus that some leadership traits may be
    endowed, but some attributes, capabilities can be
    developed via structured interventions.
  • Avolio (2007) leadership can be better
    understood by researching when, where, how it is
    activated and how it makes a difference in team
    performance and process effectiveness.
  • Luthans and Avolio (2003) construct taxonomies
    of trigger events that promote leadership
    development, eg., role models, in ones life,
    events, experiences, social institutions which
    influence ones behaviour.

32
Leadership Development ..2
  • Rothstein et al. (1990) personal history,
    trigger events, experiences at work, personal and
    organisational factors may be antecedents to
    emergence as a leader.
  • Biographies of leaders show that challenges,
    struggles, obstacles, crises, and dilemmas help
    to hone a potential leaders talent.
  • Study of leadership development is still a
    fledgling field lack of framework.

33
  • leadership in construction

34
Need for leadership in construction
  • Need for leadership at many levels of
    construction...
  • Level of the industry need for strategic
    leadership and championing to ensure continuous
    development and improvement of industry.
  • Each professional institution and trade
    association requires effective leadership to
    ensure development of skills and expertise of its
    members.
  • Level of companies need to be led with
    competence and innovation.
  • Project level need for effective project
    leadership.
  • Paper focuses on leadership of construction SMEs.

34
35
Need for leadership in construction firm level
  • How relevant is leadership to construction?
  • Many studies, in industrialised nations and
    developing countries show that business failures
    are common in construction.
  • Reasons cited include
  • growing too fast
  • obtaining work in a new geographic region
  • increase in the sizes of single jobs
  • obtaining new types of work
  • high employee turnover
  • inadequate capitalization
  • poor estimating
  • poor accounting systems
  • poor cash flow.
  • The blame is often put on factors outside the
    control of the organisations. Some blame economic
    cycles and the political environment (Enshassi et
    al., 2006). Thus, there is still a lack of
    appreciation, among researchers, of the
    importance of leadership, and lack of awareness
    of the dangers of ineffectiveness of leaders in
    the construction industry.

35
36
Need for leadership in construction firm level
..2
  • Reasons cited by Koksal and Arditi (2004) for
    organisational failures in construction included
  • insufficient capital
  • lack of business knowledge
  • fraud
  • lack of managerial experience
  • lack of line experience
  • lack of commitment
  • poor working habits
  • over expansion
  • environmental problems such as weaknesses in
    industry, impact of various disasters, poor
    growth prospects, high interest rates.

36
37
Need for leadership in construction project
level
  • Greater need for leadership in construction
    industry than in, arguably, any other field of
    commercial endeavour.
  • Construction projects are technically complex and
    large.
  • Projects involve high expense, and stock of
    buildings represents a large proportion of a
    nations savings.
  • Projects take quite a long time, and involve a
    very large number of discrete activities.
  • Teams involved in projects are not only large,
    but are also multi-disciplinary.
  • Projects involve serious implications for the
    health and safety of the workers involved, and
    the general public.

37
38
Leadership research in construction
2000s
1980s
1990s
39
Project management is not sufficient.
  • Sunindijo et al. (2007) a study had found that
    about 88 of project managers spent more than
    half of their working time interacting with
    others.
  • Rowlinson et al. (1993) study of leadership
    style of construction managers in Hong Kong
    showed human skills are of paramount importance
    in project management.
  • Project managers must be able to lead effectively
    to manage conflicts and to build good
    relationships to ensure project success of their
    projects.
  • As project leader, project manager has to be
    facilitator, co-ordinator, motivator and
    politician (Briner et al., 1996).

40
Project management is not sufficient.
  • Henry L. Gantt noted in 1910
  • Whatever we do must be in accord with human
    nature. We cannot drive people we must direct
    their development... the general policy of the
    past has been to drive but the era of force must
    give way to the era of knowledge, and the policy
    of the future will be to teach and lead, to the
    advantage of all concerned.
  • Diverse interests of many stakeholders must be
    reconciled.
  • Shenhar (2004) project management must evolve
    into strategic project leadership that can focus
    on building corporate competitiveness and adding
    value to organizational capital.

40
41
Project leadership and project performance
  • In 1975, UK government report had highlighted
    that project managers personal qualities, not
    technical skills, were the key factors in
    effective project delivery.
  • Russell et al. (2006) construction industry
    needs leaders to lead construction projects not
    over- or micro-manage the projects.
  • Dukerich (2002)
  • first interviewed project team members about
    factors that lead to high levels of team
    performance
  • used results to develop set of questionnaire
    which was given to 151 project teams
  • focused on project team leader behaviour, use of
    team building, and team member characteristics as
    predictors of project cost and schedule
    performance
  • leader behaviour was found to be a significant
    predictor of project cost performance.

42
Efficiency and effectiveness of projects (IMEC
projects)
  • Efficiency focuses on costs, schedules,
    technical performance.
  • Effectiveness overall utility, combining
    economic performance, technical
  • functionality, social acceptability,
    environmental acceptability, political
  • legitimacy, economic development.
    (Miller and Lessard, 2000, p. 15).

43
Projects are firms strategic weapons.
Projects
Leadership
44
Critical success factors of project management
Source IMEC
44
45
  • smes in construction and their development

46
Importance of construction SMEs
  • Construction SMEs are critical in structure of
    industry...
  • geographical dispersal of projects required to be
    undertaken
  • disparate nature of distinct projects makes
    consolidation impossible and/or unnecessary
  • stream of repair and maintenance work which each
    built item generates in its life is mainly in
    small packages
  • variety of specialisations in construction
    facilitates corporate autonomy
  • flexible employment approaches which main
    contractors adopt in order to obviate business
    instability promotes SMEs.

46
47
Differences between small and large firms
  • Gibbs features of small firms..
  • absence of functional managers
  • on-the-job learning by owner, staff
  • resources from personal sources, hence limited
  • discontinuities, thresholds, eg. lack of
    flexibility in expanding capacity
  • informal business systems, procedures,
    management, organisation
  • decision making informal, personalised
  • organisational structures
  • controlnot through standardisation, performance
    measurement, bureaucracy.
  • Jennings Beaver, 1997
  • dominated, controlled by one person (strength
    and weakness)
  • reliant on few customers, hence vulnerable
  • small market share, so unable to influence its
    sector
  • lack of access to stock market or opportunities
    to raise funds
  • restriction of product or service.
  • Beaver, 2002
  • owner/manager is principal stakeholder and
    strategic manager
  • little separation of ownership and control
  • managerial competence and independence may limit
    development
  • perceptions of success depends on owners
    orientation toward firm.

47
47
48
support large firms outsourcing operations
help diversify economys base, so it can respond
to different market conditions
have greater proclivity to innovate than larger
ones
can increase competition, choice, diversity
promote local control, accountability
offer natural avenues for self-development and
achievement
provide dynamism, independence to local economies
provide opportunity to overcome unemployment,
social inequality
afford meritocracy, opportunity, provide social
cohesion
ameliorate excesses of large firms, monopolies
cater to niche markets which large firms may
ignore in global strategies
assist in dissemination of new technology,
innovation
Benefits of small firms (Bridge et al).
49
Lack of technical and managerial expertise
Difficulties in obtaining resource inputs
Difficulties in winning tenders
Lack of entrepreneurship
Lack of commitment to construction
Poor estimating and financial planning
Short horizon, limited plans for expanding firm
Tight personal or family control of firms
operations
Lack of knowledge of construction law, contracts
Inability or unwillingness to employ qualified
personnel
Lack of planning, management of projects,
companies
Limitations in variety of projects they can
undertake
Problems of small contractors
49
50
Governments understanding, commitment
Poor monitoring, review
Administrative issues
Support from clients
Difficulty in assessing agencys work
Commitment of contractors
Resource constraints
Effectiveness of support programme
Difficulty in assessing firms progress
Associations involvement
Appropriateness of policies
Support from value network
Lack of dissemination of good practice
Lack of effective championing
Lack of development of knowledge
Reinvention of the wheel
Sustainability of programme
Lack of role models
Coordination among agencies
Variety of schemes
Conduciveness of operating environment
50
Obstacles to contractor support programmes
51
Contractor development to be part of industry
development
Continuous feedback, monitoring, review
Best practice guides for managing small
contractors
General development orientation
Contractor development to be part of SME
development
Initiatives for contractors at all stages
Strategies, with targets, for SME, contractor,
industry development
Coordinating agency for small contractor
development
Best leader, best personnel, a champion
51
52
  • research on leadership development in Singapore

53
Leadership research in Singapore
Theme Leadership development in construction
industry.
Method Qualitative approach, based on grounded
theory.
Main concept Authentic leadership a new
construct.
Sample Acknowledged authentic leaders in
industry.
Result Authentic Leadership Development Model.
Other studies (1) Global survey (2) 360 degree
study of Project Managers.
53
54
Leadership antecedents
Changes leaders desire in their firms, their
professions, industry
Legacy leaders hope to leave
Tipping points in leadership development
What leaders see as the future
Followership
Significant persons
Some controversies, eg leaders, born or made?
lessons from failure or success?
1. Leadership vs management 2. Peculiar nature of
leadersip in business
54
Key points in leadership research in Singapore
55
Recent findings in Singapore

Authenticity and values
Authentic role modeling
Authentic
Developing followers
Developing sustainable leadership
Leadership
Developing sustainable organizations
56
Recent findings in Singapore ..2
57
Recent findings in Singapore ..3
58
  • proposals and conclusion

59
Leadership development role of universities
  • What should universities do?
  • Shirazi and Hampson (1998) suggest changes in
    project management curricula and teaching
    methods
  • lectures should be student-centred with emphases
    on action learning, role play, case study,
    teamwork and group projects
  • teachers must be assisted, supported to acquire
    knowledge and skills in course development and
    effective teaching strategies.

60
Leadership development role of universities
  • What actions are being taken?
  • University of Wisconsin
  • provides learning opportunities for all
    undergraduates to acquire, develop knowledge,
    skills, attitudes and values of leadership in
    order to attain comprehensive leading and less
    micro-managing
  • interviewed staff of successful construction
    firms on their definition of success, view of
    financial resources, outside activities,
    accomplishments, leadership strategies, and ideas
    for developing future leaders
  • applying results in teaching and learning.
  • NUS has revamped its undergraduate programme to
    focus on Project and Facilities Management.
  • It covers also, soft issues such as human
    resource management, integration and innovation.
  • Emphasis on students taking responsibility for
    their own learning.

60
61
Leadership development role of universities
  • What about research?
  • Columbia Universitys Center for Project
    Leadership seeks to
  • develop useful theories of project leadership and
    management that are suitable for dynamic
    situations
  • help in developing effective project management
    practices
  • develop practices facilitating leadership
    development of practitioners and leadership
    orientation of students. 
  • It works
  • with industry to ensure that theories it develops
    are useful
  • with practitioners during all phases of research,
    from formulation of the research questions and
    development of the models through their testing
    and dissemination.
  •  

62
Leadership development role of government
  • Centres for excellence established by CIDB at two
    universities are a step in the right direction.
  • CIDBs fostering of graduate-level research is
    also encouraging.
  • Need for national agenda setting, action
    research, and strong linkages among government,
    industry and universities.
  • Universities can make greater use of adjunct and
    visiting appointments to cover more than
    teaching, specifically, to drive research.
  • Professional councils can set criteria for, and
    drive, continuing professional development.
    Leadership should be a key component of the
    requirements, and details of the programme should
    be a progressive flow at various levels of
    responsibility.
  • National programme on leadership development in
    construction industry in South Africa should be a
    goal.

62
63
Leadership development role of entrepreneur
  • Develop own understanding of need for leadership
    expertise.
  • Develop own leadership skills through appropriate
    interventions and practice.
  • Ascertain and evaluate appropriate styles in
    various contexts.
  • Practice and continuously learn.
  • Develop followers through mentorship, courses,
    practice.
  • Monitor and measure leadership performance by
    oneself and through others, and continually
    improve leadership skills.

63
64
Conclusion
  • Leadership is important to the SME for many
    reasons.
  • Entrepreneur sets the vision for the company
    this is a key function of a leader.
  • Entrepreneur is close to all aspects of the
    business, and should motivate people in all areas
    of firms operations.
  • Entrepreneur is directly involved with customers
    and partners of the company.
  • Personal performance of entrepreneur can have a
    major impact on the business.
  • Leadership, as a field, continues to grow and
    develop, and perhaps it will never stop evolving
    as it is psychological, social and cultural in
    its functioning.

64
65
Conclusion ..2
  • In construction industry, leadership is needed at
    levels of the company, the project, industry and
    the government.
  • Individual practitioner should operate as a
    leader, and should seek to develop leadership
    skills. Then, organisations will comprise
    individuals with a clear understanding, and keen
    sense, of leadership and how leaders function,
    what they need, and the factors which contribute
    to their success.

65
66
Looking ahead
  • Possible to perceive following elements of
    leadership
  • Each person has leadership potential.
  • However, individuals have different levels of
    leadership propensity.
  • When one operates as a leader, the person has a
    leadership quotient.
  • This influences the persons leadership
    performance.
  • As the leaders function must be continuously
    undertaken, this gives rise to the notion of
    leadership sustainability.

66
67
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