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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
X
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
X