Architectural Style of Leadership

7/31/2019 Architectural Style of Leadership

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EnergizeInspire

Motivation

CHARISMATIC

Organizational design

Maximizing resourcesARCHITECTURAL

A certain power which is exercised to influence others to achieve goals and

visions in general.Leadership has been described as the process of social influence in whichone person can enlist the aid and support of others in the accomplishment of acommon task"


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Flat organization (also known as horizontal organization) refers to an organizationalstructure with few or no levels of intervening management between staff and managers.

The idea is that well-trained workers will be more productive when they are more directlyinvolved in the decision making process, rather than closely supervised by many layers ofmanagement.


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The incoming chief executive, Jack Welch, set aboutreducing the ranks of hierarchy between his officeand the workplace.

At the same time he eliminated many of the staff

functions which had developed at GE, creating a

strategic management focused line function. Belief: Strategic awareness should not be limited to

the top-level management.

Reduced organizational layers from nine to five

We dont need the questioners and checkers,

the nitpickers who bog down the process....

Today, each staff person has to ask, How do Iadd value? How do I make people on the linemore effective and competitive?


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In the 1930s, it was a model of the eras highly centralized, tightly controlled

corporate form.

But a subsequent period of profitless growth in the 1960s caused the company to

strengthen its corporate staffs and develop sophisticated strategic planningsystems.

10 groups, 46 divisions, and 190 departments were 43 strategic businessunits designed to support the strategic planning that was so central to GEs

management process.

Welchs insistence that GE become more lean and agile resulted in a highlydisciplined de-staffing process aimed at all large headquarters groups, including a

highly symbolic 50% reduction in the 200-person strategic planning staff.

At the same time, it helped retain people stifled by the strict hierarchy duringhis predecessors times.


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The Group has been described as a 'keiretsu' organization - a structure of loosely linkedautonomous units run by self-managed teams that use a family brand name.

Richard Branson has argued that, as Virgin almost wholly comprised private companies, the running

of the Group must be fundamentally different from that of a public limited company, which mustkeep shareholders, stakeholders and analysts happy, and must pay attention to short-term goals of high

taxable profits and healthy dividends.

The advantage of a private conglomerate was that the owners can ignore short-term objectives andconcentrate on long-term profits, reinvesting for this purpose In 2000, the head office consisted ofabout 30 people.

Richard Branson is known for a pronounced practice of transforming business units into independent

companies once they reach a certain size (50 people), transferring the power of administration

to former subordinates.

He used social computing to remove the hierarchical differences and flatten the organization tofoster greater understanding.


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Barnevik is credited with firmly implementing the concept of a multi-domestic enterprise

He decentralized ABB, removing multiple layers of management present in traditional hierarchical

structures, and placed most ofdecision-making power into the hands of local managers andthose responsible for specific product sectors.

Barnevik moved from a conventional matrix structure to the consumer-centric structurewhich enabled a greater attention to customers.


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CONSUMER-CENTRIC STRUCTURE


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Young employees entering the company were different from the post-war workers whowere loyal, mechanical and patient.

Seen as a liability in the times of

Mergers

Business Re-engineering

Market uncertainty

Downsizing


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Jack Welch understood the need to adapt the organizations working and HR processes to support the

requirements of a younger workforce.

The new system allowed greater latitude for managers and the opportunity for swifter responses in order to meet

rapidly changing conditions. GEs operating system, referred to as its learning culture in action, entails year-round learning sessions where

leaders from GE and outside companies share intellectual capital and focus on generating the best ideas and

practices.

GE identified five key growth traits:

The starting point for any kind of growth from GEs view.IMAGINATION:

involves being able to transform those imaginative ideas into clearbusiness actions.CLEAR THINKING:

important for GE given its wide-reaching global operations, but in anysituation it helps to have people understand how their diverse roles fittogether within the overall business scheme.INCLUSIVENESS:

expand your focus outwards. The external focus trait is simply:understanding your marketsEXTERNAL FOCUS:

brings confidence, which allows for creative risk taking and

customers love to see that.EXPERTISE:


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Imagination Breakthroughs It is a recent initiative to spur innovative growth and challenges each business group to identify

breakthrough ideas centered around market-driven, customer-focused innovations that deliversolutions for customers and organic growth for shareowners.

Ideas that are heralded as Imagination Breakthroughs are capable of generating at least US$100million of new revenue in three years.

After individuals complete the growth dialogues, leaders report back their findings and what theyre

focusing on.

GE also devised a matrix specifically for rating employees, based on the five growth traits and theircomponents, to be used as part of their annual review.

Each individual identifies a development need and an action plan to improve on that trait.

On the developmental side, GE also uses particulartraining courses at its leadership training center inCrotonville to offer more perspective into the growth traits.


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Richard Branson believed that the new times highlighted the need for a more creative and learning-oriented workforce

People who are willing to adapt, learn and enjoy while working.

He realized that managing this generational shift required different ideas and policies in the structural

design, rewards and promotion and overall work cycle of the corporation.

He believed that management must understand the following needs to effectively harness the talent of

its employees-

Reasonablecommitments to job

security;

Facilities andpolicies that exceedthe legal minimums;

High sensitivity towork-family balance

issues;

High degree ofemployeeautonomy;

Opencommunication;

A sense ofownership.


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Virgin Atlantic introduced a leadership development programme that was led by business objectivesrather than HR processes, and fitted into the organization's long-term goal of increasing profits by 7%.

The leadership team started by identifying the traits it believed had made Virgin successful and followed

this with a 360-degree appraisal of the management team's strengths and weaknesses

The programme finished by producing individual personal development plans and split each groupinto two sets of six managers, who met up six times over the next nine months to monitor their own

progress and bounce ideas off each other.

4 management steps followed at Virgin:-

By watching and listening,

Be Observant and Involved.

Understanding your style of managing has always been basic, but it is vital today. Adjustingconstantly to be in sync with the young and impatient Being aware of that means:-Allowing ampletime to a technical prodigy who insists on presenting thoroughly.

Assess Your Management Style.

Understanding the language and values of the young which enabled the management to integratethese with the organizations goals.

Accommodate the Young.

Young managers are better at handling younger employees.

Hire Managers Attuned to the New Generation.


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Percy Barnevik believed that the traditional command-and-control style of management was effectiveonly for the unskilled labour class.

He believed that decentralization and operational autonomy was a pre-requisite to attract the newtalent who tolerate ambiguity and are internally motivated.

Successfulintegration

Internalcompetition

Creativityand

innovation

Self-confidence

Openinteraction

Employeeand

customerparticipatio

n

Customerservice

orientation

Propensityfor action

and change

Securityand

seniority

Respectfor the

individual


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How they do it?

Employee Recognition

An award-based employee-to-employee appraisal system that tried 2 things: Rewarding the achievers and retaining them

Encouraging others to emulate them and driving internal competitiveness.

HR helpdesk

A basic concept of query and solution regarding employment issues.

Converted into an IT-based system for accessing doubts and difficulties faced by employees andgain feedback.

IT Campus

An institution to foster innovation and creativity through open-discussion

Combination of formal and informal environment to allow best of both worlds.

HR Cockpit

Consultative mechanism to redress all HR-policy issues.

One-stop shop for all HR related activities and training opportunities.


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Its basically the various management which anorganization uses in its organizational structure


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Welch believed in getting rid of Managers.

Weed out the bottom 10% and give bonuses to the top 20% stars.

Welch reduces the management levels from 29 to 6..

How can we get less formal?

Brainstorm with colleagues and bosses Hold more informal meetings

Consider occasional informal get-together


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Virgin Group serves as a parent company of over 100

separately run companies that operate in industries that areoften completely unrelated.

Virgin resembles an assemblage of loosely linkedcompanies in which employees have the possibility toconstantly rewrite their job definitions depending on the

kind of new challenges they are prepared to undertake.


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He decentralized ABB, removing multiple layers of managementpresent in traditional hierarchical structures.

He placed most of decision-making power into the hands of localmanagers and those responsible for specific sectors.

Barnevik has expressed it, "We want to be centralized and

decentralized, big and small, global and local." In aid of that goal,he created a company made up of 5,000 profit centres.Likewise, Barnevik has said that when there are more than fiftypeople in a building, they lose their sense of identity and belonging.When that happens, it is time to spin off the division and create a

new business in another building.


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A is an organization of non-elected officials of a government ororganization who implement the rules, laws,

and functions of their institution.


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To kick bureaucracy and simplify things:

Drop unnecessary work Work with colleagues to streamline decision making

Make your workplace more informal.

to that:

Welch, once said, I dont mind a little bureaucracy if it bringsimproved results.


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He once said, At the heart of most companies,theres a fatty layer of inefficient senior

management who could not of their livesdepended on it.

He has created exceptionally short decision-making chains.The normal committee stages are almostabsent.

where people can


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, where people canfreely express their thoughts and ideas, without bias andreservation.

Barnevik created 5000 separate profit centres, whichhad their own profit sheets.Each profit centre, on an average, has not more than 50employees.This gives them the advantage of a SMALL BUSINESSincreased responsibility, authority and recognition.But they also have a security of working for a very largeand diversified organization, as well as, all its resources.


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Richard Branson

Virgin Group

NIIT Technologies has partnered with Virgin Atlantic toprovide custom-built technologies at the Company

The softwares are designed to link customer details, flightinformation and limo service details together and providesVirgin Atlantic staff with accurate information and tools toefficiently and effectively manage the Upper Class Wingoperation.

The companies are part of a family rather than a hierarchy.They are empowered to run their own affairs, yet the

companies help one another, and solutions to problemsoften come from within the Group somewhere. The company frequently creates partnerships with others to

combine industry specific skills, knowledge, and operationalexpertise.


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Percy Barnevik

ABB Group ABB links its operations at every opportunity by sharing technology,

expertise, marketing strategies, and distribution networks. The goal of all linking is to provide whatever channels are necessary

to let information flow freely among people and units separated by

grouping. The challenge to managers is to create the right amount of linking

that creates the clearest communication channels with the minimumcommitment of people, time, money, and other organizationalresources.

ABB People and ABB Local Phone Book providing employee contact

information allows an easy access to colleagues who possess theknowledge. E-mail system and Sametime are IT basedcommunication channels allowing world wide instantcommunications and discussions

IT applications assist the socialization process in placing the right employees where their

skills and expertise are in need and


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Jack Welch

GE


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Information Technology is the keyenabler for GE to compete and winin our broad range of global

industries. IT is a strong area of focus and

investment across the company,employing over 9,000 ITprofessionals in more than 50countries.

No other company in the worldoffers such a diverse set ofbusinesses for an IT professional towork, and such a development-focused culture in which to grow.

Networking and data storage &analysis technologies enablecompanies like GE to gain acompetitive advantage by providingunique products and services totheir customers.

This strategic investment in IT has adramatic effect on the profitability


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Definition ofagilityability to quickly respond and adapt to change

the organizational capability to be flexible, responsive, adaptive,and show initiative in times of change and uncertainty.

Agility grew as a reaction against the slowness of bureaucraticorganizations to respond to changing market conditions.

The virtual organization has been quoted as one extreme exampleof an agile organization
http://www.qfinance.com/dictionary/virtual-organizationhttp://www.qfinance.com/dictionary/virtual-organization


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VIRTUAL ORGANIZATIONWhat are virtual organizations?

"Why do we need to go to a specific physical place to work?"

All work is be done electronically and you and everyone else could do theirwork from any location.


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But there is more to virtual organizationsWhat makes a virtual organization different?

Removes many barriers - especially that oftime and location.

Emphasizes concentrating on new services and products, especially those withintensive information and knowledge characteristics, rather than concentrating on

cost savings made possible by removing the barriers. More flexible :

- continuously changing partners

- arrangements are loose and goal oriented,

- its processes can change quickly by agreement of the partners


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JACK WELCHPounce Everyday, Dont Move Cautiously

To survive in an increasingly competitive environment, He wants his employees to

pounce everyday, move faster than competitors to win business, please

customers and snap up opportunities.How to live this edict?

Live with a sense of urgency

Make decisions faster

Work harder


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The GE WayFor GE (General Electric), agility is all about simplifying the developmentprocess to produce better quality products and services at a faster pace.

How they do it? GE adopted a lean six sigma approach to process management. The goal was to

reduce the number of tickets and to get rid of non-value add sign-offs for approvals. Standardize the tools and systems that its' developers were using in order to

further simplify development. It was noted that GE was able to reduce theirdevelopment time on large projects by 39 percent, by cleaning up the developmentprocess.

Start with the basic processes and understand why they're doing what they'redoing.

"Keep asking why do I have these steps?" Merchant said. "Why can I notsimplify this stuff down and make it a lot easier?"


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The Virgin WayAn interesting leadership trait is having insight into situations. This helps

speeding up decision-making . It must be regarded that Branson had it.

For example his venture into space tourism.

How they do it? When a company grows to its limit, part of it is split off to form a new

company. The new company must find a market for itself that is different

from the markets of all other companies in the network. That is why Virgin is

so diversified: Music, hotels, spaceflight, soft drinks, etc. This prevents

different companies in the network from competing with each other.

The Virgin Group has an internal management consultant organizationfor the purpose of helping to solve thorny management problems.


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The Virgin WayAn interesting leadership trait is having insight into situations. This helps

speeding up decision-making . It must be regarded that Branson had it.

For example his venture into space tourism.

How they do it? When a company grows to its limit, part of it is split off to form a new

company. The new company must find a market for itself that is different

from the markets of all other companies in the network. That is why Virgin is

so diversified: Music, hotels, spaceflight, soft drinks, etc. This prevents

different companies in the network from competing with each other.

The Virgin Group has an internal management consultant organizationfor the purpose of helping to solve thorny management problems.


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The ABB WaySpeed also has an essential place in Barnevik's management philosophy. Hesaid that "it is better to be roughly right than exactly right with respect tospeed."He made it very clear that it is permissible to make mistakes due tospeed. At ABB, not taking action , losing opportunities because of a

reluctance to make decisions , is unacceptable behaviour and leads todismissal.How they do it? Implementing a complex matrix structure*under which each of the 300 companies

is aligned with one of fifty business areas, which are then grouped into industrysegments

ABB assigns a manager for each country in which ABB has a company. So, eachcompany president reports to a country manager and a business area manager.

*superimposing functional and product structure creating dual line of authority balanced by top managers ,meant to maximize strengths and minimize weaknesses of both structures.


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Architectural Style of Leadership

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