School of Business Proposing and Practicing Leadership National Association of State Budget Officers...

School of Business

Proposing and Practicing Leadership

National Association of State Budget Officers21 August 2015

James Bailey, Ph.D.Hochberg Professor of Leadership Development

Proposing Leadership: Learning Objective

Stimulate thinking about what leadership is and its impact on others as a

foundation for individual development

Consider…

47 X 47 X 47 = 100,000

(hours per week) X (weeks per year) X (years)

37 X 37 X 37 = 50,000

60 X 50 X 17 = 50,000

Proposition 1

Leadership can be developed, but it takes time

Consider…

Proposition 2

We want leadership, but we hinder it

Corollary: Most organizations are over-managed and under-led

Consider…

Mitt Romney

Susan Komen

Gina Rinehart

Marrisa Mayer

Proposition 3

Leaders are in the spotlight

Consider…

What I want most for Nestle is for everyone to do a little better, bit by bit, day by day. Peter Brabeck

Proposition 4

Small shifts have a big impact

Consider…

Popular leadership accounts emphasize individuals

Proposition 5

Leadership means being authentic, which means being yourself, skillfully

Authenticity

It takes a lot of money to look this cheap

Dolly Parton

Of undisputed origin

Oxford Dictionary

Consider…

Proposition 6

Good leaders have superb situation-sensing skills

Situations and Symbolism

Consider…

Proposition 7

Good leaders aren’t just for the people or of the people. They are the people.

Consider…

Proposition 8

Good leaders reveal their weaknesses

Consider…

Why should anybody WANT to be lead by you?

Proposition 9

Followers want community, significance, excitement, and authenticity

Consider, again…

47 X 47 X 47 = 100,00037 X 37 X 37 = 50,00060 X 50 X 17 = 50,000

Proposition 10

Now is the time to consider your leadership identity and legacy

Practicing Leadership: Learning Objective

To treat negotiations as a social influence process that is a critical leadership skill

Discussion

What words come to your mind when considering the word “negotiations?”

Free associate.

Barriers to Effective Negotiations

• Fear of failing and the anxiety that such fear engenders

• Unfounded belief in “universal” strategies which keeps things simple

• Lack of practice comparative to other cultures, which leads to mediocre skills and general discomfort

Premises

1. Conflict is a common and unavoidable part of life

2. Negotiation—informal or formal—is the primary method of resolving conflict

3. Conflict & negotiation more critical now than ever before

4. Conflict has creative potential that can be tapped via negotiations

Negotiation Defined

• Social decision making process involving parties with non-identical interests (Conflict)

► Claiming value: Using position and process to achieve own goal (Competition)

► Creating value: Partnering and problem solving for mutual benefit (Collaboration)

Sources of Conflict

1.Resource Scarcity

2.Option Limitation

3.Personality

4.Communication

Conflict Diagnostic Model

Difficult Manageable

Issue Principles/values Divisible

Significance Major consequences Minor consequences

Interdependence Zero-sum Positive-sum

Continuity Short term Long term

Structure Disorganized Organized

Third-party No trusted third Trusted, powerful third

progress Unbalanced Balanced

History Animosity None or positive

Determinants of How Conflicts are Approached

• Situational► Time pressure► Importance ► Personal relevance► Complexity► Etcetera…

• Person► Functional

background► Transient state► Gender► Personality► Style

Individual Self-Assessment

Thomas-Kilmann Conflict Instrument

Conflict Styles

Assertive: High concern for own outcomes

Unassertive: Low concern for own outcomes

Cooperative: High concern for others’ outcomes

Collaborating Accommodating

Uncooperative: Low concern for others’ outcomes

Competing Avoiding

Compromising is somewhere in the middle

About Styles

You must bake with the flour you have.-Danish folk saying

Steve Ross, CEO of Time-Warner, and canasta in his planeLarry King and Ted Turner of CNN, negotiating salaryConference Table Thought Experiment• Does this describe you?

► Situational or dispositional• Why are you this way?

► Influences from your past or present• Does your style serve you?

► Adaptive in your current situation• Do you need to change?

► Other style more effective

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Role and Effect of Conflict

• Negative► Compete v. cooperate► Misperceptions► Emotions► Hindered communications► Blurred issues► Rigidity► Magnifies differences;

minimizes similarities► Escalation► Infection► Distrust► Absorbs time and energy

• Positive► Compete to higher level► Sharpens perceptions► Enlists emotions► Builds cohesion/trust► Alters/clarifies issues► Fixes priorities► Points our strengths and

weaknesses► Opportunity for learning

Dyad Exercise

PEMBERTON’S DILEMMA

Interdependent Relationships: The Ties that Bind and Liberate

Leave a good name in case you return. -Kenyan Folk Saying

• All relationships, personal and professional, are interdependent

► Contrient: Interests of parties are contrary (zero-sum)► Promotive: Interests of parties are compatible (non-

zero-sum)► Mixed Motive: Interest of parties are simultaneously

contrary and compatible

• Game Theory► Mutual influence and imperfect information, and thus,

the necessity for speculation

Interdependent Exchange

• Dilemma of Honesty► Extent to which you disclose positions and

values

• Dilemma of Trust► Extent to which you believe other party will

honor agreements

• Dilemma of Perceptions► Determining fairness, equity, inputs, outputs,

etcetera…

Trust

• It takes decades to build trust, but only a moment to destroy it

• An ounce of trust is worth 1000 pounds of contracts

• Relationships are between PEOPLE, not firms

Models of Negotiation

Competitive

Contrient

Distributive

Positional

Collaborative

Promotive

Integrative

Principled

Flow of Information Conceal or use strategically

Disclose; free and open

Perspective No effort to understand

Attempt to understand

Commonalities v. Differences

Emphasize departures Emphasize shared interests & goals

Focus on Solutions At the expense of other party

Meets needs of all parties

The Game of Competitive Negotiations

• Distributive or Positional► Contrient interdependence► Resources fixed► Zero-sum relationship► Object is to claim value► View other party as opponent► Game-playing orientation

Exercise

Peach Computers v. Campus Computer Store

Critical Concepts

• Target Point► Desired outcome (CL)► Determined by Subjective Utilities

Importance & priorities (e.g. value attached to outcomes; cost of difficulty or delay

► Sets strategy► Dilemma of Winner’s Curse

Alice: “Would you tell me please, which way I ought to go from here?” Cheshire Cat: “That depends a good deal on where you want to get to.”Alice: “I don’t much care where…”Cheshire Cat: “Then it doesn’t matter which way you go.”

-Alice’s Adventures in Wonderland, Lewis Carroll

Critical Concepts…

• Specific and moderately difficult goals lead to better settlements that more moderate ones

► If too vague, we tend to settle; If too high promotes failure and frustration; If too low promotes apathy and helplessness

• Articulate: Writing down helps to surface tacit, unrecognized desires or assumptions

• Visualize: Assists in triggering psychological striving mechanisms

• Proclaim: Publicly announcing intentions commits one to persevere in the face of adversity

Aiko Morita and Sony in 1955

Critical Concepts…

• Resistance Point► Outer limit or boundary; “Walk away point”► Needs to be firm to prevent being persuaded► Sets strategy

• BATNA► Best Alternative to Negotiated Agreement

(Calt)► Base of power & leverage► Develop assiduously!!

Strategy

You’ve got know when to hold them, know when to fold them, know when to walk away, know when to run…”

-The Gambler, Kenny Rogers

• Assessing the situation, anticipating what will happen, and acting appropriately

Strategic Intentions

• Know the other party’s Subjective Utilities (e.g., homework, interpretation)

• Modify the other party’s Subjective Utilities (e.g., positions, persuasion)

• Manage the other party’s impression of your own Subjective Utilities (e.g., silence, over-emphasis)

The Art of Collaborative Negotiations

• Integrative or Principled► Promotive Interdependence► Resources fluid and can grow► Positive-sum relationship► Object is to create value► View other party as partner► Problem-solving orientation

Dyad Exercise

SALLY SWANSONG VS. LYRIC OPERA

Necessary Conditions

• Potential for mutual gain ► Fundamental motivation

• High aspirations► Laborious & tedious

• Problem-solving orientation► Required to work through issues

• Premised on Relationship► Dilemmas of Honesty and Trust

Keys to Win-Win Negotiations

• Focus on shared goals► bind or are common to parties

• Separate people from problem► Especially if history of animosity or the people are the

problem

• Attend to interests, not positions► All positions have underlying interests

• Be creative► Avoid pre-conceived solutions or singular

interpretations of the problem

Stage 1: Define the Problem & Goal

• Define in mutually acceptable terms► Use consensus► Keep as simple as possible

• Depersonalize► Don’t place blame, don’t make it about people

• Separate problem from solution► Premature consideration of solutions is

counter-productive

Stage 2: Identify Interests

• Substantive ► Objective, tangible outcomes

• Process► Tone or structure of proceedings

• Relationship► Respect, trust, long & short-term

• Principles► Values, precedent

Stage 3: Identify Obstacles

• Identify obstacles that stand between you and your goal

► Things that have to be accomplished or overcome to achieve goal

► Quantify and assign responsibility in a consensual manner

► Don’t entertain problems associated with given solutions

Stage 4: Develop Criteria for Solutions

• Conditions and outcomes of any acceptable solution

► Costs► Benefits► Reputation► Relationship► Synergy

Stage 5: Generate Alternatives

• Brainstorm► Free-flowing and non-evaluative

• Surveys► Solicit broad input

• Be prepared to:► Expand resources► Log-roll► Cut costs of compliance► Seek bridge solutions

Stage 6: Evaluate and Select Alternatives

• Narrow range of alternatives using criteria

• Use quality and acceptability as standards

• Justify subjective utilities

• Use sub-groups, caucuses and time-outs

• Keep decisions tentative and conditional until final agreement

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