The Nature of Leadership What does it mean to be a leader? Among all the ideas and writings about leadership, three aspects stand outpeople, influence, and goals. Leadership occurs among people, involves the use of influence, and is used to attain goals. Influence means that the relationship among people is not passive. Moreover, influence is designed to achieve some end or goal. Thus, leadership, as defined here, is the ability to influence people toward the attainment of goals. This definition captures the idea that leaders are involved with other people in the achievement of goals. Leadership is reciprocal, occurring among people. Leadership is a "people" activity, distinct from administrative paperwork or problem-solving activities. Throughout this text, we have looked at various organizations that are experimenting with bosslessness. But every team and organization needs leadership. As described in the "Manager's Shoptalk," being a "leader" can be more powerful than being a "boss."

Conventional management states that organizations need to be highly ordered, with well-defined roles, rules, and regulations, and led by a strong boss. This has always been the standard in the U.S. military. But what if bosslessness and self-organization give rise to an effective order far more powerful than what traditional management might carry out? The story of Captain Michael Abrashoff and his command of the USS Benfold is legendary inside and outside the Navy. Within months, he transformed a crew of demoralized sailors into confident and inspired problem solvers eager to take the initiative. To do this, Captain Abrashoff had to change his traditional management style to a more "bossless" leadership style. Some of Captain Abrashoff's methods for becoming less of a boss and more of a leader include:

LEAD BY EXAMPLE. Real leadership is done by example. Whenever he could not get the results he wanted, Captain Abrashoff asked himself three questions: Did I clearly articulate the goals? Did I give people enough time and resources to accomplish the task? Did I give them enough training? He discovered that many times, he was as much a part of the problem as his people were.

COMMUNICATE PURPOSE AND MEANING. Give employees a compelling vision of their work and a good reason to believe that it is important. Tell people personally what's in it for them. Abrashoff found that the more people knew what the goals were, the better buy-in he gotand the better results they achieved together.

A CLIMATE OF TRUST. The best way to get a shipor any organizationto improve dramatically is to give the troops all the responsibility they can handle and then stand back.

LOOK FOR RESULTS, NOT SALUTES. You need to have people in your organization who can tap you on your shoulder and say, "Is this the best way?" or "Slow down," or "Think about this." When managers announce decisions after little or no consultation, and when they make it clear that their orders aren't to be questioned, then conditions are ripe for disaster. TAKE CALCULATED RISKS. An organization that aims to stay alive and strong should make sure to praise and promote risk takers, even when they fail once in a while. As Abrashoff states, "Show me someone who has never made a mistake, and I will show you someone who is not doing anything to improve your organization. If all you give are orders, then all you will get are order takers."

GENERATE UNITY. Abrashoff says organizations can always hire smart people, but he found that what works best are staff members who work together and support one another. Treating people with dignity and respect is not only morally right, but also highly practical and productive.

Sources: D. Michael Abrashoff, "Retention Through Redemption," Harvard Business Review (February 2001): 136-141; D. Michael Abrashoff, It's Your Ship: Management Techniques from the Best Damn Ship in the Navy (New York: Business Plus, 2002); and Mike Abrashoff, "The Bossless, Not Leaderless Office," Leadership Blog, GLS Worldwide, June 25, 2013, http://www.glsworld.com/thought-leadership/leadership-blog/2013/06/the-bossless-not-leaderless-office/ (accessed November 23, 2013).

Chris Zane, founder and owner of Zane's Cycles in Branford, Connecticut, is an expert at turning first-time customers into lifetime customers. In fact, he wrote the book on itReinventing the Wheel. The book is a reflection of his enduring goal, which is to provide the ultimate shopping experience that makes customers feel great about his products and services. Zane actually started his business at age 16 with a $23,000 loan from his grandfather. Under his leadership, Zane's Cycles has become one of the largest independent bicycle distributors in the United States. Remember This The attitudes and behaviors of leaders shape the conditions that determine how well employees can do their jobs; thus, leaders play a tremendous role in the organization's success. Leadership is the ability to influence people toward the attainment of organizational goals. Many different styles of leadership can be effective.

Contemporary Leadership The concept of leadership evolves as the needs of organizations change. That is, the environmental context in which leadership is practiced influences which approach might be most effective, as well as what kinds of leaders are most admired by society. The technology, economic conditions, labor conditions, and social and cultural mores of the times all play a role. A significant influence on leadership styles in recent years is the turbulence and uncertainty of the environment. Ethical and economic difficulties, corporate governance concerns, globalization, changes in technology, new ways of working, shifting employee expectations, and significant social transitions have contributed to a shift in how we think about and practice leadership. Four approaches that are in tune with leadership for today's turbulent times are Level 5 leadership, servant leadership, authentic leadership, and interactive leadership, which has been associated with women's style of leading.

As reflected in the exhibit, a key characteristic of Level 5 leaders is an almost complete lack of ego (humility) coupled with a fierce resolve to do what is best for the organization (will). Humility means being unpretentious and modest rather than arrogant and prideful. In contrast to the view of great leaders as larger-than-life personalities with strong egos and big ambitions, Level 5 leaders often seem shy and self-effacing. Although they accept full responsibility for mistakes, poor results, or failures, Level 5 leaders give credit for successes to other people. Level 5 leaders build organizations based on solid values that go far beyond just making money, with an unwavering resolve to do whatever is needed to make the company successful over the long term. An example of a leader who demonstrates Level 5 leadership qualities is Sir Terry Leahy, who recently retired after more than a decade leading Britain's Tesco chain of supermarkets. That's a long and successful tenure for a leader that most people know little about. Leahy didn't court personal publicity, much to the chagrin of journalists, and he put his energies into promoting Tesco and its employees rather than himself. Or consider Qi Lu of Microsoft, who grew up in a rural village in China with no electricity or running water. Today, he is executive vice president of Microsoft's Applications and Services Group. How did he get there? Not from personal ambition, say former colleagues at Yahoo. "He shunned the limelight," said Tim Cadogan, now CEO of OpenX, "but he was considered one of the stars." Lu rose through the ranks at Yahoo, and he got the job at Microsoft based not on aggressiveness and pursuit of personal advancement, but rather because of his sheer intellectual abilities and his commitment to go above and beyond the call of duty to accomplish organizational goals. Lu feels a strong sense of duty and loyalty, pouring his heart and soul into the mission rather than spending his energies promoting himself. Level 5 leaders like Sir Terry Leahy and Qi Lu are extremely ambitious for their companies rather than for themselves. This attitude becomes highly evident in the area of succession planning. Level 5 leaders develop a solid corps of leaders throughout the organization so that when they leave, the company can continue to thrive and grow even stronger. Egocentric leaders, by contrast, often set their successors up for failure because it will be a testament to their own greatness if the company doesn't perform well without them. Rather than building an organization around "a genius with a thousand helpers," Level 5 leaders want everyone to develop to their fullest potential.

SOURCE: Based on Jim Collins, Good to Great: Why Some Companies Make the Leap...and Others Don't (New York: HarperCollins, 2001), p. 20.

Servant Leadership Jack Welch spent 20 years as chairman and CEO of General Electric (GE), and during his tenure with GE, the company's value increased 4,000 percent. Known for his forceful personality, Welch was also known to tell his managers that he loved them. When Welch speaks to MBA students, he reminds them that "any time you are managing people, your job is not about you, it's about them. It starts out about you as...an individual in a company," Welch says. "But once you get a leadership job, it moves very quickly to being about them." Some leaders operate from the assumption that work exists for the development of the worker as much as the worker exists to do the work. The concept of servant leadership, first described by Robert Greenleaf in 1970, has gained renewed interest in recent years as companies recover from ethical scandals and compete to attract and retain the best human talent. A servant leader transcends self-interest to serve others, the organization, and society. Marilyn Carlson Nelson, former chairman and CEO of the Carlson Companies (Radisson Hotels, TGI Fridays, Regent Seven Seas Cruises), says being a true leader means that you "have to subordinate your own emotions, your own desires, even make decisions on behalf of the whole that might conflict with what you would do on an individual basis." A stunning example of this occurred when a U.S.-flagged cargo ship, the Maersk Alabama, was seized and raided by Somali pirates. Captain Richard Phillips ordered crew members of the unarmed ship not to fight and gave himself up as a hostage to free the ship and crew. The story of the captain's dilemma and rescue is told in a 2013 movie, Captain Phillips, starring Tom Hanks. Contrast his behavior with that of Captain Francesco Schettino, who allegedly abandoned his ship while passengers were still aboard after the luxury cruise liner Costa Concordia hit a rock and sank off the coast of Italy in 2012, killing at least 30 people. Schettino was charged with manslaughter, shipwreck, and abandoning ship, and was sentenced in 2015 to 16 years in prison. In organizations, servant leaders operate on two levels: for the fulfillment of their subordinates' goals and needs and for the realization of the larger purpose or mission of their organization. Servant leaders give things awaypower, ideas, information, recognition, credit for accomplishments, even money. Servant leaders often work in the nonprofit world because it offers a natural way to apply their leadership drive and skills to serve others. But servant leaders also succeed in business. For two years in a row, Lenovo CEO Yang Yuanqing shared millions of dollars from his bonus with hourly manufacturing workers to recognize their role in the company's success. Fred Keller built a $250 million plastics manufacturing company, Cascade Engineering, by continuously asking one question: What good can we do? Keller started the business 40 years ago with six employees. Today, it has 1,000 employees in 15 business divisions. Keller has made social responsibility a cornerstone of the business. The company offers jobs to welfare recipients. Keller has also donated large amounts to various philanthropic causes, both as an individual and through Cascade.

Authentic Leadership Another popular concept in leadership today is the idea of authentic leadership, which refers to individuals who know and understand themselves, who espouse and act consistent with higher-order ethical values, and who empower and inspire others with their openness and authenticity. To be authentic means being real, staying true to one's values and beliefs, and acting based on one's true self rather than emulating what others do. Authentic leaders inspire trust and commitment because they respect diverse viewpoints, encourage collaboration, and help others learn, grow, and develop as leaders. Exhibit 15.2 outlines the key characteristics of authentic leaders, and each is discussed below. Exhibit 15.2 Details SOURCE: Based on Bill George, Authentic Leadership: Rediscovering the Secrets to Lasting Value (San Francisco: Jossey-Bass, 2003). Components of Authentic Leadership Authentic leaders pursue their purpose with passion. Leaders who lead without a purpose can fall prey to greed and the desires of the ego. When leaders demonstrate a high level of passion and commitment to a purpose, they inspire commitment from followers. Authentic leaders practice solid values. Authentic leaders have values that are shaped by their personal beliefs, and they stay true to them even under pressure. People come to know what the leader stands for, which inspires trust. Authentic leaders lead with their hearts as well as their heads. All leaders sometimes have to make tough choices, but authentic leaders maintain a compassion for others as well as the courage to make difficult decisions. Authentic leaders establish connected relationships. Authentic leaders build positive and enduring relationships, which makes followers want to do their best. In addition, authentic leaders surround themselves with good people and work to help others grow and develop. Authentic leaders demonstrate self-discipline. A high degree of self-control and self-discipline keeps leaders from taking excessive or unethical risks that could harm others and the organization. When authentic leaders make mistakes, they openly admit them. One leader who demonstrates many of the characteristics of authentic leadership is Admiral Vernon Clark, who retired in 2005 after a 37-year Navy career. Manager Spotlight Admiral Vernon E. Clark, U.S. Chief of Naval Operations, 2000-2005 Admiral Vernon E. Clark was the second-longest-serving U.S. Chief of Naval Operations (CNO). The job of the CNO is to advise the president on the conduct of war. When Clark was named CNO in July 2000, the Navy was losing too many good sailors who didn't want to reenlist. For Clark, getting and keeping good sailors who could protect the national security was a top priority, and all his decisions were based on connecting with and valuing the people on the front lines. When Navy officials proposed budget cuts in training and development, Clark rebelled. Instead he increased the training budget, strongly supported an increase in pay for sailors, and established the Naval Education and Training Command to increase training. Clark also revised the performance appraisal system to provide constructive feedback for people at all levels. Clark made it a priority to blur the lines between enlisted sailors and officers and revised the job assignment process so that people didn't get forced into jobs and locations they didn't want. Always more concerned about doing things right than being right, Clark encouraged everyone to challenge assumptions, ask questions, and express conflicting views. Thanks to Admiral Clark's emphasis on treating sailors right, first-term reenlistment soared from 38 percent to 56.7 percent within his first 18 months as CNO. Moreover, as the Navy retained more sailors, its ability to respond more quickly to protect the nation increased. An authentic leader like Vernon Clark places high value on personal relationships, supporting followers, being courageous, and standing up for what one believes. Thus, this type of leader is much more likely to make decisions that may not always be popular but that he believes are right. Clark also engaged people by emphasizing each individual's personal role. "What we do matters," he told them. "We do it because it's important and we are people of service. We are committed to something larger than ourselves: the protection of America's interests around the world and democracy."

Apply Skills: Case for Critical Analysis "What's Wrong with the Team?" What's wrong with the team? What's wrong with the team? Nichole Dyer's words repeated over and over in Henry Rankin's head as he boarded the plane from Los Angeles to Chicago.

Rankin is responsible for the technical implementation of the new customer relationship management (CRM) software being installed for the sales offices in both cities. The software is badly needed to improve follow-up sales for Rankin's company, Reflex Systems. Reflex sells exercise equipment to high schools and colleges, as well as to small to mid-sized businesses for recreation centers, through a national force of 310 salespeople. The company's low prices have won a lot of sales; however, follow-up service is uneven, and the new CRM system promises to resolve those problems, with historical data, inquiries, reminders, and updates going to sales reps daily. The CEO of Reflex has ordered the CRM system installed with all possible haste.

Rankin pulled a yellow pad and pen from the side pocket of his carry-on bag and tossed them on the seat beside the window, stashed the bag in the overhead compartment, and sat down as other passengers filed past. In an effort to shut out his thoughts, he closed his eyes and concentrated on the muffled voices and low whooshing sound of the air vents. He wrote "What's wrong with the team?" three times and began drawing arrows to circles bearing the names of his team members: Barry Livingston and Max Wojohowski in Los Angeles, and Bob Finley, Lynne Johnston, and Sally Phillips in Chicago.

He marked through Sally's name. She had jumped ship recently, taking her less-than-stellar but still-much-needed talents with her to another company. It was on a previous LA-to-Chicago flight that Sally had pumped him for feedback on her future with Reflex. She had informed him that she had another job offer. She admitted it was for less money, but she was feeling under pressure as a member of the team and she wanted more "quality of life." Rankin told Sally bluntly that her technical expertise, on which he placed top importance, was slightly below her peers, so future promotion was less likely despite her impressive people and team skills.

He wrote "quality of life," circled it, and then crossed it out and wrote "what the hell?". "Why should she get quality of life?" he mused. "I've barely seen my wife and kids since this project started." Rankin's team was under a great deal of pressure, and he had needed Sally to stick it out. He told her so, but the plane had barely touched down when she went directly to the office and quit, leaving the team shorthanded and too close to deadline to add another body.

What's wrong with the team? Rankin furiously scribbled as his thoughts raced:

The deadline is ridiculously short. Dyer had scheduled a ten-week completion deadline for the new CRM software, including installation and training for both cities. Rankin suddenly stopped writing and drew a rider and horse, then returned to his list. I feel like some frazzled pony-express rider running back and forth across the country, trying to develop, build, set up, and work the kinks out of a new system that everyone at Reflex is eager to see NOW. He was interrupted by the flight attendant. "Would you care for a drink, sir?" "Yes. Make it scotch and water. And be light on the water." Rankin took his drink and continued to write.

Thank God for LA. From the outset, Barry and Max had worked feverishly while avoiding the whining and complaining that seemed to overwhelm members of the Chicago team. The atmosphere was different. Although the project moved forward, meeting deadlines, there appeared to be less stress. The LA guys focused tirelessly on work, with no families to consider, alternating intense work with joking around. Those are my kind of people, he thought.

But there is Chicago, he wrote. Earlier in the day, Sam Matheny from sales had e-mailed and then called Rankin to tell him that the two remaining members of the Chicago team appeared to be alternating between bickering and avoiding one another. Apparently, this had been going on for some time. "What's with that?" Rankin wondered. "And why did Sam know and I didn't?" So that morning, before his flight, Rankin had to make time to call and text both Finley and Johnston. Finley admitted that he had overreacted to Johnston. "Look, man. I'm tired and stressed out," Finley said. We've been working nonstop. My wife is not happy."

"Just get along until this project is completed," Rankin ordered. "When will that be?" Finley asked before hanging up. Rankin thought about Nichole Dyer's persistent complaints to him that the team appeared to have a lack of passion, and she admonished him to "get your people to understand the urgency of this project." Her complaints only added to his own stress level. He had long considered himself the front-runner for Dyer's job when she retired in two years. But had his team ruined that opportunity? The sense of urgency could be measured now in the level of stress and the long hours that they had all endured. He admitted his team members were unenthusiastic, but they seemed committed. Rankin wondered, "Is it too late to turn around and restore the level of teamwork?" He tore off the sheet from the pad, crumpled it in his hand, and stared out the window.

2. How would you characterize Rankin's leadership style? What approach do you think is correct for this situation? Why?
4. What would you do now if you were Rankin? How might you awaken more enthusiasm in your team for completing this project on time? Suggest specific steps.
6. How would you suggest that Rankin modify his leadership style if he wants to succeed Dyer in two years? Be specific.