1. What is Management? What is Leadership?

Managing is about helping organizations and units to get things done, which means action.
Leadership is the ability to inspire a team to achieve a certain goal.
Management is about coping with complexity
Leadership is about coping with change
2. Mintzberg’s Management Modules

3. Management Constraints, Demands and Choices

4. Guidelines for Managers

One of the most important aspects for managers to be successful is time management.

5. Role Conflicts
Different people within the organization can make incompatible demands on the manager
Managers are often more responsive to the expectations of superiors.
The effectiveness of a manager is in managing the concerns of both superiors and subordinates.
6. Foundations of Leadership
Honesty – 85%
Forward-looking – 70%
Inspiring – 69%
Competent – 64%
7. Credibility
Flows from character and competence, is one of the most essential aspects of leadership. High credibility is
a tremendous asset for leaders seeking to achieve exceptional performance and positive impacts.
8. Definitions of Leadership and Management
 9. Culture of Leadership
● Recruiting people with leadership potential
● Opportunities early in their career to be leaders or to lead
● Developing a wide breadth of knowledge and experiences
● By forcing more responsibility on to younger employees who have potential, it creates more challenging
roles at lower levels and allows for more leadership opportunities.
● Often there are bonuses and/or senior management opportunities for those that can nurture good leaders.
10. What is Strategy?
Strategy is a set of choices about winning, and more specifically, the answers to these 5 basic questions.

11. Strategy Execution is Key

Executing the company strategy represents a discipline process and logical set of activities that enables the
organization to take a strategy and make it work.

12.1 Obstacles that organizations face in effective strategy

12.2 The benefits of effective execution as a contribution to competitive advantage

Developing a successful strategy is based on the following:

1. Developing a model to guide execution decisions or actions.
2. Understanding how the creation of strategy affects the execution.
3. Developing organizational structures to support strategic objectives and foster information sharing, coordination,
and accountability.
4. Creating and using incentives to support strategy execution processes and decisions.
5. Developing effective controls and feedback mechanisms
6. Understanding the organizations power or influence structure
7. Knowing how to create an execution supportive culture
8. Exercising execution biased leadership
9. Managing change effectively, including culture change

13.Building a Front Line Focused Organization

● Many organizations benefit from empowering employees, solving customer problems, and engaging more
experienced minds in the process of innovation.
● There is a 5 step process for leaders to build their companies from the front line where the ingenuity,
innovation, and the emotions of many employees can be harnessed:

Step 1 – Connect the front line to the customer

● Top management must be clear on the type of customer experience expected front line employees
to provide
● Understand the changing needs of customers and the complexity of the interactions
● Ensure the organization’s capabilities match the customer promise
● Connect the front line to deliver and improve the value proposition

Step 2 – Teach people to think for themselves

● Once employees understand the strategy and customer requirements, they must be taught how to
make the right customer friendly judgements.
● Teach everyone about customer needs and basic business math.
● Bring together organizational values with problem solving skills.

Step 3 – Experiment to implement

● Once employees understand the customer and business model, they can be encouraged to innovate
and create their own problem solving techniques.
● Thinking of new ways to delight customers and provide the ultimate customer experience.
 ● Still must have some boundaries drawn as to where employees are free to exercise their judgement.

Step 4 – Break down the hierarchy.

● Most organizations have embedded assumptions regarding power roles and cultural norms
governing decision making.
● Senior leaders must reset the organizational context, and change how people talk about the
importance of front line employees.
● Elimination of unnecessary work that pulls workers down with time time-wasting bureaucracy.

Step 5 – Invest in front line capabilities.

● Organization can only be successful if the right type of employees is hired and brought in to the right
front line role.
● Select candidates rigorously and align with customer expectations.
● Develop front line judgement capabilities.
● Teaching leaders of front line associates how to be effective in critical roles.

14. Self-Management vs. Bureaucracy

Bureaucracy
In order to change a bureaucracy to a completely self-managed company is virtually impossible.
Bureaucracy is based on the idea of managing organizations through closed systems. These systems are usually
structured, rigid, and difficult to change. The procedure is as important as the process in bureaucratic companies.

Self management
Is more of an open system that is often criticized for having no management structure. It is possible, however, to
make significant steps so that self management does not mean no management.

1. Involve your employees in the process. Ask everyone to create their own mission and what value they want to
create for their peers. Focus on the benefits they offer to each other and the value they bring to the
organization.
2. Ask employees what keeps them from achieving their mission currently and what slows them down from
completing tasks.
3. Every team within the organization should be provided their own P&L account and employees should be able to
calculate the impact of the financial decisions they make.
4. Finally, look for ways to erase the distinctions between managers and those who are managed. Everyone is
accountable and responsibilities are reciprocal.

15. Advantages and Disadvantages of each

Advantages Disadvantages

Self Lower Costs – Reduced head count and wages Accountability Challenges –
can lead to better wages for all employees and Employees may not be as quick to
management actually help to drive growth. hold other employees accountable
and may try to fill the void
Deeper Expertise – With more responsibilities for themselves, which may lead to a
the quality of work, employees will be more conspiracy of mediocracy.
interested in developing and enhancing their skills.
Growth Issues – With no corporate
Greater Collegiality – With more effort towards ladder to climb, it can be difficult to
working together and not trying to please evaluate one’s own accomplishments
 managers and compete for promotions, there is relative to their peers. This can make
little room for politics and drama. it difficult to evaluate their success
when they leave in search of new
Better Decision Making – With more expertise opportunities.
and taking more responsibility, self management
promotes a smarter and faster decision making
process.

Greater Initiative – Employees with more

autonomy have a greater willingness to help
others and increase their overall reputation as a
team player.

Increased Flexibility – Employees are more

inclined to come together to tackle team
challenges and company wide issues, and
experiment with new ideas when there is no
“hidden agenda”.

Higher Loyalty – More loyalty to the organization

when the work is enjoyable and encourages
commitment.

Bureaucracy

16. Employee Empowerment and Engagement

Employee Empowerment
The ideas behind self managed companies are in line with empowering employees to make decisions and
take responsibility for their actions.

Great companies empower employees and use facets of self management to become successful. As they
work to make money, these types of great companies look at building long term enduring institutions that
will last and take into consideration the needs of people (employees) and society.
There are 6 facets of logic that change leadership and the ideas behind what makes great companies
operate.

A Common Purpose
By looking at the company as a social institution it is able to have a unique identity and purpose
that works against uncertainty and change.
As companies grow, acquire other companies, downsize, and job roles change across country
borders, it is the people and values of the organization that are its identity – not the products or
services it provides.

A long term view

The social institution allows companies to justify long term perspectives with short term sacrifices.
Companies are willing to invest in the human side of the organization in the short term against
investments that may be harmful to the organization despite their short term financial gains.
Great companies identify something larger than transactions to provide purpose and meaning.

Emotional engagement
The transmission of values can create positive emotions, stimulate motivation, and propel self
regulation. The mood of workers can affect health, absenteeism, and levels of effort and energy.

Community building
The paradox of globalization is often the need to connect with local communities. Concerns for
public issues that may benefit the organization can create partnerships that consider social
interests as well as business interests.

Innovation
Having a purpose beyond just making money can help develop strategies and open innovative
ideas for employees to express themselves based on personal values in their everyday work.
Companies are more credible when leaders can allocate time, talent, and resources to community
and national projects with the necessary return on the bottom line.

Self organization
Great companies assume they can rely on the good nature and relationships of people without
rules and formal structures. The idea is that employees can be more motivated with a solid
collaborative working environment that a paycheque.
Resource allocation is determined by informal relationships, actions, and personal preferences
rather than budgets and formal strategies.

17. Maslow’s Hierarchy of Needs

18. McGregor’s Theory X vs. Theory Y on workers

McGregor’s Theory X McGregor’s Theory Y

● Dislike work ● Willing to work and are independent
● Need to be pushed to perform ● Capable of self control
● Desire money ● Willing to accept responsibility
● Lack ambition ● Imaginative and creative
● Avoid responsibility ● Drive to perform
● Resist change ● Capable of self-direction
● Prefer to be led and need supervision

Managers create situations where workers become Managers create situations where workers respond
dependent and reluctant. Behave in a “command with initiative and high performance. Behave in a
and control” fashion. They believe workers “participative” fashion that allows workers more
generally dislike work, lack ambition, are job involvement, freedom, and responsibility.
resistant to change, and prefer to be led rather Workers are willing to work, capable of self
than lead. Manager’s behaviours create passive, control, willing to accept responsibility, are
dependent, and reluctant subordinates. imaginative and creative, and capable of self
direction.

19. 7 surpises of being a CEO and their implications

7 surpises of being a CEO

Surprise One: You Can’t Run the Company
• You are in too many meetings and involved in too many tactical discussions.
• There are too many days when you feel as though you have lost control over
your time

Surprise Two: Giving Orders Is Very Costly

• You have become the bottleneck.
• Employees are overly inclined to consult you before they act.
• People start using your name to endorse things, as in, “Frank says…”

Surprise Three: It Is Hard to Know What Is Really Going On

• You keep hearing things that surprise you.
• You learn about events after the fact
• You hear concerns and dissenting views through the grapevine rather than directly

Surprise Four: You Are Always Sending a Message

• Employees circulate stories about your behavior that magnify or distort reality.
• People around you act in ways that indicate they’re trying to anticipate your likes and dislikes.

Surprise Five: You Are Not the Boss

• You don’t know where you stand with board members.
• Roles and responsibilities of the board members and of management are not clear.
• The discussions in board meetings are limited mostly to reporting on results and management’s
decisions.

Surprise Six: Pleasing Shareholders Is Not the Goal

• Executives and board members judge actions by their effect on stock price.
•Analysts who don’t understand the business push for decisions that risk the health of the company.
• Management incentives are disproportionately tied to stock price

Surprise Seven: You Are Still Only Human

• You give interviews about you rather than about the company.
• Your lifestyle is more lavish or privileged than that of other top executives in the company.
• You have few if any activities not connected to the company.

The CEO’s role in large, complex corporations

(Study by Michael Porter and Nitin Noria at Harvard Business School)
 20. Reality of Being a CEO
1.Reporting to the Board of Directors
2.Limits of Powers
3.Obtaining the right information
4.Visiblity
5.Personify the company
6.Time Horizons
7.Expectations of Change
8.Unpredictability
9.Severe Limits of Time

21. 5 Levels of Leadership

Level 1: Position This is the lowest level of leadership—the entry level. People who make it only to Level 1 may
be bosses, but they are never leaders. They have subordinates, not team members. They rely
on rules, regulations, policies, and organizational charts to control their people. Their people
will only follow them within the stated boundaries of their authority.
"Position" is the only level that does not require ability and effort to achieve. Anyone can be
appointed to a position. This means that a position is a fine starting point, but every leader
should aspire to grow beyond Level 1.

Level 2: Making the shift from Position to Permission brings a person’s first real step into leadership.
Permission Leadership is influence, and when a leader learns to function on the Permission level,
everything changes. People do more than merely comply with orders. They actually start to
follow. And they do so because they really want to. Why? Because the leader begins to
influence people with relationship, not just position.
When people feel liked, cared for, included, valued, and trusted, they begin to work together
with their leader and each other. And that can change the entire working environment. The old
saying is really true: people go along with leaders they get along with

Level 3: Production qualifies and separates true leaders from people who merely occupy leadership
Production positions. Good leaders always make things happen. They get results. They can have a
significant impact on an organization. Not only are they productive individually, but they also
are able to help the team produce. No one can fake Level 3. Either you’re producing for the
organization and adding to its bottom line (whatever that may be), or you’re not.
Some people never move up from Level 2 Permission to Level 3 Production. Why? They can’t
seem to produce results. When that is the case, it’s usually because they lack the
self-discipline, work ethic, organization, or skills to be productive. However, if you desire to go
to higher levels of leadership, you simply have to produce. There is no other way around it.

Level 4: People On Level 3, the emphasis is on personal and corporate productivity. The ability to create a
Development high-productivity team, department, or organization indicates a higher level of leadership ability
than most others display. But to reach the upper levels of leadership that create elite
organizations, leaders must transition from producers to developers. Why? Because people
are any organization’s most appreciable asset.
Good leaders on Level 4 invest their time, energy, money, and thinking into growing others as
 leaders. How does this emphasis on people and people decisions translate into action?
Leaders on the People Development level of leadership shift their focus from the production
achieved by others to the development of their potential. And they put only 20 percent of their
focus on their personal productivity while putting 80 percent of it on developing and leading
others. This can be a difficult shift for highly productive people who are used to getting their
hands dirty, but it’s a change that can revolutionize an organization and give it a much brighter
future.

Level 5: The It takes a lot to be able to develop other leaders so that they reach Level 4; that’s what Level 5
Pinnacle leaders do. The individuals who reach Level 5 lead so well for so long that they create a legacy
of leadership in the organization they serve.
Pinnacle leaders stand out from everyone else. They are a cut above, and they seem to bring
success with them wherever they go. Leadership at this high level lifts the entire organization
and creates an environment that benefits everyone in it, contributing to their success. Level 5
leaders often possess an influence that transcends the organization and the industry the
leader works in.
Most leaders who reach the Pinnacle do so later in their careers. But this level is not a resting
place for leaders to stop and view their success. It is a reproducing place from which they
make the greatest impact of their lives. That’s why leaders who reach the Pinnacle should
make the most of it while they can. With gratitude and humility, they should lift up as many
leaders as they can, tackle as many great challenges as possible, and extend their influence to
make a positive difference beyond their own organization and industry.