Taking the Lead: The Management Revolution - At the Helm: Styles of Leadership   View more episodes

Aired at 06:30 AM on Tuesday, Oct 20, 2009 (10/20/2009)      View all transcripts from this day

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00:00:42[Narrator]>> of or thatcan brig an oganizaion to life and turn an assemblage of individuals into a dynamic team, leadership has to be near the top of the list.
00:00:52But what is leadership?
00:00:53Does it come justfrom the person or people in charge of an organization,or is there more to it?
00:00:59One view traces the essence of leadership to the character traitsof individual leaders.
00:01:04>> It seems to me that everyleader--every person who might call herself or himselfa leader has three elements involved in their basic character.
00:01:17I want you to think about theseas a tripod of three legs because they have to be keptin some dynamic tension.
00:01:26And one of the three legs is ambition, drive, what the psychologist mcclellantalked about the need for power, the need for achievement.
00:01:35You also needs competence and expertise.
00:01:39And there's no one whodoesn't have some of that.
00:01:42And the third pole or leg isthat of a moral compass, ethics, values.
00:01:51And let's call that integrity.
00:01:52>> That means they're not just honest.
00:01:54That's part of integrity.
00:01:56But their lives are integratedaround a set of principles.
00:02:01And it gives them their orientation toward everything that happens.
00:02:04It also gives them that--their security from within.
00:02:10I think that the secondcharacteristic would be they have certain capacitiesinside their character.
00:02:19They think in abundance terms.
00:02:20That means they want to promote the growth and development of other people.
00:02:25[Narrator]>> promoting the growthof other people suggests a broader view of leadership.
00:02:30That it doesn't just involvethe character of the leader but what he or she brings out in the group.
00:02:36>> Leadership is an empowerment.
00:02:37You empower people to dowhat they think is best for the organization knowingthe values of the organization.
00:02:44Now, the leader has to makesure that everyone in the organization knowsthe values of the organization and the goals of the organization.
00:02:53>> I was not a natural leaderand I was not a natural delegator.
00:02:57I was one of those people whodid the assignments myself, and I was one of those people who viewed, early on in my career, thatthe involvement of others was a complexity that I would prefer to avoid.
00:03:11It became apparent to me asmy responsibilities increased that it was ever more importantthat I learn to delegate and ever more important thati learn to rely on others.
00:03:22It was somewhere during thatprocess a decade or so ago that I realized that the mostimportant thing I can do is coach, and counsel, developthe pride in the people who I'm relying on.
00:03:37So that they will then go out and see that we accomplish our mission.
00:03:41[Narrator]>> accomplishing a missionsuggests a third aspect of leadership, the ability to influence people to accomplish objectives.
00:03:49Different leadership styles will be effective in different situations.
00:03:53>> What you have to do--thebehaviors you have to utilize might vary depending onvarious characteristics of the situation, various characteristicsof the employees, various characteristics of the environment.
00:04:04All in all it just depends on the situation what kind of managerialbehavior is going to be the most effective.
00:04:09>> The starting up of anorganization requires certain kinds of skills,requires being able to say out of a hundred things wecould do in the next two days we're going to do these three.
00:04:18And that stands in sharp contrast to another kind of leadershipsituation, the turnaround, when an organization is in deep trouble.
00:04:25And that becomes an issue ofhow do you stop the bleeding.
00:04:27A third major kind is a largeorganization that's doing okay.
00:04:33And now we're talkingabout three to five years to create a major change.
00:04:38[Narrator]>> often an effective leaderis someone who has a vision that seems to bring everything into focus.
00:04:43>> Leadership is basicallya process of identifying in any particular situationwhere we need to go.
00:04:52What's the vision of whatwe're trying to achieve, and what's the strategy for getting there, of getting the relevant partiesthat need to be onboard and believing in that objectiveonboard and believing it not only in their heads but in their hearts.
00:05:10>> That's the basic ingredient,that capacity to inspire, to enroll, to createfollowership in turbulent times, and to--through vision--and to sustain that vision through action.
00:05:26>> If you list who would begreat leaders, I think what you'd find is they arepeople who got organizations to move, to achieve something that was compelling.
00:05:39I mean john kennedy said, "we're going to send " it was a very simple statement.
00:05:43But for some reason peoplebelieved--they believed him.
00:05:47And they believed that therewas going to be a commitment on his part, a commitment from the government.
00:05:54He created an agency.
00:05:55We put money behind it.
00:05:57Next thing we know we picked astronauts.
00:05:59We started to build rocket ships.
00:06:00People said, "wow, I thinkwe're going to " and then wonderful thngs hapened.
00:06:05[Narrator]>> possessing a vision andbeing able to inspire other people to action mark twoof the main distinctions between a leader and a manager.
00:06:14>> Management is fundamentallya process of figuring out in some meticulous detail howyou get from here to there both in terms of specific actions and in terms of finances.
00:06:26What leadership does--whatthe leadership process does is it helps you to create change.
00:06:31And not just incrementalchange but major change.
00:06:34>> And in this world where change is the rule rather than the exception, perhaps one of the most importantingredients of leadership is going to be the abilityto constantly learn, and grow, and adapt to the environment around us.
00:06:50>> Good morning, mr. schulze.
00:06:51>> Hey, orlando, how are you?
00:06:53>> Fine, thank you, sir.
00:06:54>> Nice to see you.
00:06:56Hi, chan, how are you?
00:06:57[Narrator]>> horst schulze, presidentand chief operating officer of the ritz-carlton hotelcompany, is a classic example of a leader who has come upthrough the ranks and knows how to connect with the people in the ranks.
00:07:08>> I think of myself very often as a waiter.
00:07:11And because I have beena waiter for so many years I understand our employee.
00:07:17I have done that job.
00:07:19I understand the hardship,the difficulties, the pain.
00:07:23So that's probably also whyi feel close to every-- in my heart, close to every employee within the organization.
00:07:33>> I think horst clearly remembers being a line employee.
00:07:38He clearly remembers leavinghome when he was 14 years old and becoming an apprenticewaiter, cleaning dishes, and living in the boarding house, and working extremely hard, and emigrating to the united states.
00:07:50And he remembers the toughdays and constantly draws on those experiences and thatemotion when he relates to the employees.
00:07:59[Narrator]>> for schulze being a waiterdoesn't connote servitude but rather an opportunity toprovide distinguished service.
00:08:06>> I enjoyed working as a waiter.
00:08:07I enjoyed this true momentof service, this true moment of welcoming the guests, and this complying to the guests' wishes.
00:08:18Not just for the food butsensing when the guests needed attention.
00:08:23[Narrator]>> a point that schulzeemphasizes with employees is that he isn't above them.
00:08:28They are all working together.
00:08:30>> You see I myself consider myself an employee of the organization.
00:08:35I'm an employee.
00:08:36I fulfill a different function, not less, but also not more important thanany employee's function.
00:08:43>> If you have a problem or youwant to talk about anything his ears are always opento hear--his heart is.
00:08:50He is compassionate for you.
00:08:51He is just a wonderful guy.
00:08:53>> I go to work for two reasons.
00:08:55One is my vision--to accomplish excellence.
00:09:00That's my vision.
00:09:02And the other reason for my going to work is to see my friends.
00:09:06My friends are all the peoplei work with and there is no barrier there, absolutely none.
00:09:11[Narrator] >> schulze's vision of excellence and the ritz-carlton'stradition of excellence have combined to produce impressive results.
00:09:18Schulze has been named "corporate hotelier of the world" by "hotels"magazine and the ritz-carlton was the first hotel companyto receive the prestigious malcolm baldrige quality awardfrom the u.s.
00:09:27Department of commerce.
00:09:30Not surprisingly when it comesto communicating the vision of excellence to employees,schulze does it personally by conducting leadershipsessions at every hotel in the ritz-carlton chain.
00:09:41>> Teaching is probablythe most important thing that a leader can give.
00:09:47Teaching is truly giving.
00:09:50It is creating the future for your organization.
00:09:56So you had an obligationto do that in the first place setting standards, certainly,caring at the same time setting a vision, creating consensus relative to the visionsthat the organization has.
00:10:11And making employees partof that vision, not having employees work for yourorganization but have employees join your organization.
00:10:21 schulze conducts his leadership sessions in allof our hotels, every new hotel prior to its opening and then once a year in the existing hotels.
00:10:31He continues to reinforce thatmessage, continues to reinforce that vision for the companyso that it crystallizes in everyone's mind.
00:10:41[Narrator]>> schulze backs up histeaching and leadership by the example he sets.
00:10:45>> Well, you gain the trustinto the vision, into the goals that has been set by living it,by clearly showing that you the leader is drivingrelentlessly but caring to what that vision--involvingeverybody, seeking help seeking input toward the vision from all concerned.
00:11:10It will be very clear in a short time to everyone around that it isreal, that it is sincere, and that it is of benefit.
00:11:19[Narrator]>> in 1989, the ritz-carlton embarked on a total qualitymanagement or tqm program.
00:11:26With its emphasis on standards that employees help to create, tqm provided a perfect fit for schulze's leadership style.
00:11:33>> When as an organization wecame to the point where we didn't really know how to make it better, having been voted best hotelcompany, et cetera, et cetera.
00:11:45We said, all right, being thebest how do you become better?
00:11:51And we clearly saw thattotal quality management, which in itself calls for the involvement of the mind of every employee,that that is the answer.
00:12:06>> He never forces hisinterpretation on others.
00:12:11He shares it freely but clearlycreates the atmosphere, clearly insists that everyone work independently, that everyone take the vision and in keeping that as the focus then go out on your own-- make your own mistakes.
00:12:32>> As a leader, of course, you have to create an environment where--which is free and open to allow employees to be involved and to allow employees to fail.
00:12:42If that doesn't exist theemployee will be scared to be ridiculed, to be wrong, to be laughed at.
00:12:54That doesn't go.
00:12:55That is not leadership.
00:12:57The leadership accepts, and respects, and has compassionfor every individual.
00:13:03Leaders identify opportunities,and reach for opportunities and that stirs things up, because opportu-- creation opportunities means new things, new directions, which creates an uproar because anything new creates uproar.
00:13:19But making people buyinto those new ideas, to those new dreams,to those new visions.
00:13:25That again is the role of the leader.
00:13:27>> This is fully in production now, is that correct?
00:13:30>> Correct. >> okay.
00:13:31So I can expect to see thisthroughout the product line through everything across the board?
00:13:35>> Totally. >> totally.
00:13:36Are you happy with this, barry?
00:13:37[Narrator]>> barbara nyden rodsteinfounded harden industries with her late husband harvey in 1982.
00:13:44The vision behind the company was simple and bold.
00:13:46To design bathroom fixturesas if they were sculptures.
00:13:50In six years rodstein parlayed a $5,000 investment into a company with annual gross sales exceeding $25 million.
00:13:59Like horst schulze,barbara nyden rodstein came from a background of poverty.
00:14:04>> When I look back asa child and--look at some of the experiences that I had,i just am thankful I made it.
00:14:14And sometimes I wonder how.
00:14:16Having had those experiencesdid not necessarily train me for leadership, but fear of failure has.
00:14:26[Narrator]>> if leadership styles canbe viewed on a continuum between autocratic and participative, rodstein's style is definitelyon the participative side of the scale.
00:14:36>> We try to encourage oneanother through communication, the interplay of personality topersonality and idea to idea.
00:14:47And everyone expresses their interests in a project or everyone expresses theirdefinition of a project.
00:14:56And thereby they make some sort of a commitment to it.
00:15:00Even if it's a tacit agreement, if you're just present while it's being discussed, you're encouraged to participate.
00:15:07Once I get that participationi know I've got the commitment.
00:15:10And once I make it fun I knowthat they're going want to be part of it.
00:15:14[Narrator]>> beyond the benefit of getting people to buy into ideas rodstein's style brings out the leadershippotential in her coworkers.
00:15:22>> Someone who feels stronglyabout it and has a level of commitment ability usually takes over the meeting and that's my signal.
00:15:30And I just sit back and manyof my people comment about that.
00:15:35They'll say you can always tellwhen barbara's retreated-- she starts looking around herdesk at paper and my attention wanders because I know thatit's in good hands already.
00:15:45I know that something's beingtaken care of and I don't have to worry about it.
00:15:48[Narrator]>> for the person who created the company and has final authority on all decisions, rodstein views her positionwith disarming modesty.
00:15:56>> There's a lot of push-pull here.
00:15:57It isn't just me pulling.
00:15:58A lot of people behind me whoare brighter, more aggressive, and have higher energy levels, and sometimes more of an interestn what they do than even i have, they push me along and theyforce me to grow with them.
00:16:10[Narrator]>> even in hiring new employeesrodstein doesn't attempt to exalt or protect her own position.
00:16:16Instead she tries to bring thestrengths of others into play.
00:16:20>> I think it's very importantto know your weaknesses.
00:16:24When you're screening and interviewing, and looking for a coworker,it's nice to have someone who really complements you.
00:16:34Who is--i mean it in the sense that their abilities make up for your shortcomings.
00:16:43Because that's a--i think,a sure-fire combination for success, if you work together as a team, which we tend to do around herein a lot of the projects we undertake.
00:16:54[Narrator]>> in many ways, rodstein's leadership style challenges stereotypes.
00:16:59>> If you ask peopleto free associate what words come to mind whenthey ask--when they hear the word "leader," whatthey say is command, strong, linear thinker,competitive, and so forth.
00:17:14And it's interesting that thoseare the very same attributes " [narrator]> argubly a ale ledershipstyle ight work best in traditional hierarchicalorganizations which emphasize chain of command, but theworkplace is changing.
00:17:30>> We don't have hierarchies.
00:17:31Information is communicated in a fast way.
00:17:35We can't wait for it to go up and down the line.
00:17:38So the attributes that women bring to the workforce which are a comfort with ambiguity, a sharing of information, a sharing of power, because they've been outsideof the traditional structures of organizations turn out to be very effective in terms of motivatingand leading organizations.
00:18:01>> I think you've heardthe phrase--i don't know if you've ever heard this phrase, you know, and I've used it in other situations saying, "you don't have to be with me.
00:18:11Just don't be against me.
00:18:12And if that doesn't work justget the hell " so I like to know when I'm supposed to move out of the way sometimes too.
00:18:20And sometimes I have to do that.
00:18:21I have sit back, recognizei can't do these things and let the people around me who have the ability, and the commitment and desire succeed, and sit there and cheer them on.
00:18:33Because it only makes melook good and I like that.
00:18:37I like that a lot.
00:18:40♪♪ [Music playing] ♪♪
00:18:46>> all of us in dade countywelcome virgin atlantic and richard branson.
00:18:51We're glad you're here.
00:18:52[Narrator]>> though only in his earlyforties richard branson has established an astonishingentrepreneurial record as the founder, chairman, and chief executive of the virgin and voyager group of companies.
00:19:02Branson has started or become a partner in nearly 200 ventures.
00:19:06Of these the best known are virgin records and virgin atlantic airways.
00:19:11Unlike horst schulze andbarbara nyden rodstein, richard branson didn't begin life in poverty but childhood experiences didset the tone for his career.
00:19:21>> Well, I think all of us have to go back to-- back to one's parents and ithink I take more of my mother in an entrepreneurialsense than my father.
00:19:35I remember when I was sixyears old driving in devon down to my grandparents'.
00:19:42And about three milesfrom my grandparents' house, and, you know, she stoppedthe car and opened the door and said, "right now you go and find your own way " and it was about 7 o'clock atnight and beginning to get dark.
00:19:55And off I went and got completely lost and anyway found a farmhouse and finally got home to a very, very worried mother who'd realized she'd maybe overstepped her mark somewhat in bringing up her children.
00:20:12But she tried to--they tried to again give me quite a lot of freedomat quite a young age.
00:20:20[Narrator]>> the bransons' willingnessto give richard freedom never wavered even when he announced at age 15 that he wanted to quit schooland start a magazine.
00:20:28>> My father's attitude waswell at least you know what you want to do.
00:20:32You know most people don't know what they want to do when they're 21.
00:20:35Give it a go and if doesn'twork out we'll try to get you some education again later on.
00:20:42[Narrator]>> within a year, young bransonhad earned a million dollars.
00:20:46Although ups and downs followed, branson always maintained the sameapproach to leadership, utilizing a style that has been characterized as inspired delegation.
00:20:54>> And what I've tried to dois give people a lot of freedom and freedom--freedom to make mistakes as well as to make successes of themselves.
00:21:07And if they do make mistakes I try to make sure that I don't criticize them,because I think that if somebody's made a mistake theyknow they've made a mistake.
00:21:17They don't need anybody to tell them.
00:21:19>> He lets you makea decision.
00:21:20He leaves it up to youthe final decision.
00:21:22And that way he lets you--you learn by it.
00:21:25I mean, if you make a mistakehe accepts it and he lets you try again.
00:21:29>> I think that in the same waythat you bring up children, a leader, you know, shouldpraise, praise, and praise.
00:21:38And I think that brings out the best in people.
00:21:42We all like to be told howwonderful we are, and that spurs us on to try to go to even better things.
00:21:50[Narrator]>> in their studies on the life cycle of leadership, hersey and blanchard notedthat a critical feature of effective leadership isthe ability to let go of the reins when group membersdon't need tight control.
00:22:02Richard branson's abilityto let go and rely on others has helped him to develop a wealth of capable long-term colleagues.
00:22:09>> I was lucky in thati started as a teenager.
00:22:12And the people who I was working with were also teenagers, and we'veliterally grown up together.
00:22:20I think that fact that we are delegating to people that we know well, because they've grown up within the companies helps.
00:22:25So you know, I'm always pretty certain whether or not somebody's going to go wild or not.
00:22:34[Narrator]>> the most outwardly visible aspect of branson's leadership styleis his enthusiasm and concern for other people.
00:22:41>> Well, see ya later.
00:22:43>>The most important aspectof running a company is motivating your staff andcaring about them, basically.
00:22:55>> I think a lot of peoplerealize about richard branson that he's human.
00:22:58That he understands people's needs.
00:23:01It's like for the crew for instance.
00:23:02There's not one passengercould ask of her crewmember, and she or he won't be able tosay that they haven't met him.
00:23:08>> You may have no endof important business meetings.
00:23:11Your diary might keep on getting full up.
00:23:13But you've just got to clear--clear the time and the space to go out and be with yourstaff as often as you can.
00:23:20[Narrator]>> at any given time, branson may hop on a flight and throw himself into servicewith the rest of the crew.
00:23:26The practical value of suchunconventional behavior extends beyond lifting crew morale.
00:23:31>> By the time one's talked to 500 passengers, you'll know exactly whetheror not you're doing it right or not doing it right.
00:23:39By the time you talk to your20 cabin crew, you'll be able to find out whether things aregoing right or not going right.
00:23:46And you'll always end up,however good a company may be, with some suggestions for improvements for the next flight.
00:23:53>> There was one time, richard on the plane when I was giving a passenger a massage.
00:23:58And I was massaging thisgentleman, and richard told me to move away and he startedmassaging the passenger.
00:24:06And actually the passengerdidn't realize at first and then suddenly he looked up and there was richard, and he absolutely loved it.
00:24:13He always tries to getinvolved and they don't realize it at first.
00:24:17It's like when he's on the plane, he's always serving tea and coffees, and putting on the uniform justto make passengers laugh.
00:24:27He gets involved.
00:24:27He's prepared to sort of basically muck in with everybody else.
00:24:31And they absolutely love it.
00:24:33>> Richard leads from the front.
00:24:35That's how I put it.
00:24:36He gets involved and takesyou in a direction that he thinks you should go.
00:24:42[Narrator]>> richard branson has foundedeach of his enterprises on a clearly focused,often brilliantly simple strategic plan.
00:24:50He conceived virgin atlanticairways, for instance, after assessing the qualityof other airline service, and carefully studying why british entrepreneur freddy laker had failed in his attempt to pioneer low-budget travel across the atlantic.
00:25:03>> I had decided that hismistake was that he'd gone for a low-quality product and low fares.
00:25:11I felt that the only way thatyou could sustain low fares was to go for the best product in the world.
00:25:17And by creating the bestproduct, you get people going out of their way to flyyou and telling their friends about you.
00:25:25And you'll be able to attract the business market and the businessman.
00:25:29And because the businesspeople were traveling you, you could then afford to reduce your fares to the tourist traveler.
00:25:37[Narrator]>> richard branson professesthat he's not a gambler, that he carefully limitsthe risks in any venture.
00:25:43But the key to his leadership style as well as to the admiration and loyaltyhe inspires, may well be that he's willing to take a chance.
00:25:59>> He's seen by not just hisstaff but by the public at large is as, as we say in england, putting his money where his mouth is.
00:26:08Therefore, if he wants to dosomething, he's quite likely to just go and do it.
00:26:14Because he instinctively feels it's right.
00:26:17>> I think the sad thing isthat people are too afraid of failure.
00:26:21And I think that by definition a failure is somebody that doesn't give something a try.
00:26:26And I think if somebody givessomething a try and fails that they haven't failed.
00:26:31They've learned a lesson, which hopefully the next time around itcan be put to good use and be successful the next time.
00:26:45♪♪ [Music playing] ♪♪

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