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FLEXIBLE LEADERSHIP THE SECRET TO CORPORATE SUCCESS.
OCTOBER 22, 1995 -
THE STAR
CONVENTIONAL wisdom does not seem to count for much today;
what seemed to work yesterday does not seem to work that well
today. Businesses and organisations in general have been woken
from their slumber.
Many organisations have gone under while others are struggling
to survive, quite a few are at a loss as to what to do. In
these turbulent times, some maverick organisations are making
waves; they are beating the giants.
What are these mavericks doing that is right? What would it
take for the average manager and his organisation to
survive-and forge ahead?
Management gurus say the important things that would take
companies into the 21st century are a strong corporate
culture, proper structures, systems and plans, leadership at
all levels of the organisation, and a competitive environment.
Corporate culture has worked wonders. A good example would be
the National Cash Register (NCR) company at Dundee which was
turned around by Jim Adamson. From a company that was making
losses (1980) and having its products sent back, NCR Dundee
turned out profits, became the market leader by producing the
best ATM machines anywhere (1983).
Over a number of years, Adamson turned a suspicious,
lackadaisical, dispirited set-up into a dynamic vibrant and
proud factory. People worked towards a vision (Adamson's),
they co-operated, led where necessary, exchanged views,
communicated and worked towards the betterment of all.
Nissan, from being the second largest auto-maker in Japan
after the war, began to decline after 1972. Domestic market
share fell from 33.7 per cent in 1972 to 25.6 per cent in
1985.
It was during those difficult times that Yutaka Kume took over
the presidency of Nissan. He had to address what he called a
"big corporation disease,"-too many layers,
departmentalisation, parochial decision-making, elaborate
rules were the order of the day.
Kume set up a task force called Product Market Strategy group
(Denzo Sonoda). The task force came out with suggestions that
had sweeping results. An example of the change was that the
development group of Nissan need not wear uniforms, had
flexitime and could also use a competitor's car (to study).
The making of the Nissan Silvia was left in the hands of young
designers, engineers and others - the oldest member of the
team was 28 years old. They were to create a car which "they
themselves would want to buy."
The Silvia won the Car of the Year award and went on to beat
its competitor, the Honda Prelude.
Kume was able to instil in his workforce the spirit of wanting
to excel, co-operation and a sense of pride. He empowered them
to succeed.
Successful organisations are less centralised, have shorter
and smaller hierarchies, are externally focused with
relationships across firm boundaries being sometimes stronger
than intra-firm relationships.
Peter Drucker, Charles Handy, Gary Hamel and others have
spoken about those BIG organisations needing to became lean
and small in order to succeed. General Electric CEO Jack Welch
claims to have made his company a "boundary less corporation,"
with information and people flowing between functions,
divisions, firms and nations.
Management gurus have for some time been saying that good
leadership would make or break an organisation. Some have
ventured to differentiate between a manager and a leader.
Joe D. Batten, when comparing the two, says that managers are
number-crunchers, rigid, passive, high-tech and involved in
generalities; while leaders are intuitive, have mental
agility, are passionate and tough-minded.
Charles Manz and Hertry Sims say that these leaders must turn
others into leaders. They say that "one who can lead others to
lead themselves" is the kind of person who is needed for firms
to succeed today.
Konusuke Matsushita had said that it was the duty of managers
to find the strength of the staff and develop it.
Tom Peters and R. Waterman, in their book in Search for
Excellence, had spoken about decentralisation, allowing for
autonomy and entrepreneurship. This, they say, would help
organisations weather the storms.
John Kotter of Harvard Business School has written numerous
works on surviving in today's turbulent times. He says that
modern organisations are overmanaged and underled. They have a
knack to turn potential leaders into cautious corporate
managers.
Managers, he says, plan, budget and organise. They ascertain
that goods and services are of quality, arrive in time and
within the budget. Leaders, on the other hand, have a vision
and a strategy. They communicate clearly, motivating employees
to work towards the vision. They move, they create change,
they develop new things or reform the old.
Kotter believes that modern organisations need both. Adamson's
NCR Dundee succeeded because of his vision and strategy.
Kotter's study also reveals that about a third of leadership
characteristics go back to birth and early childhood. This
would include drive, ambition and energy level. Other elements
would be an above average intellectual skill, good mental
health and integrity.
Some leadership characteristics are acquired through
experience, observation, working with a mentor or by
role-modelling, or being members of task forces. Successful
companies like Johnson and Johnson and 3M, says Kotter,
stretch their people and "put them on the stage."
In his latest book, The New Rules, Kotter says that
conventional wisdom is not working; in fact the unconventional
seems to be winning. Globalisation, he says, is producing
rapid change and people who are able to capitalise on it can
succeed.
He cites the example of Japanese car manufacturers who quickly
responded to the 1973 oil crisis by producing fuel-efficient
and cheaper cars.
Kotter says that more young people seem to like to work for
small companies, where they have autonomy and can practise
entrepreneurship. Some even like to head their own companies.
Kotter elaborates that big organisations need to slim down,
form closer relationships with customers and
suppliers-otherwise they will disappear. Success in managerial
jobs requires leadership which should be at all levels of the
company.
"The inability to lead is hurting companies " says Kotter.
There are opportunities for deal-makers. Winners can reap huge
rewards.
"In a rapidly-changing environment, formal education is
important but insufficient," adds Kotter. In order to succeed,
one has to continually learn.
He advises young professionals to not just settle for
"good"-it is not enough. They should develop skills and
attitude, go for good institutions and join competitive
industries. They should seek a nonlinear career path.
Ethics, says Kotter, is important. For big corporations, he
recommends that they should create a revolution-re-engineer,
be less hierarchical and bureaucratic. They will have to go
for speed and simplicity. They need strong leadership and must
find ways to attract good employees.
In order to survive and excel, individuals and organisations
have to change. What is good today may not be good tomorrow.
Leadership is an essential ingredient for success.
Organisations must create corporate leaders and not just
managers.
Creating a corporate culture that encourages creativity and
autonomy is essential. Structures that are flexible and less
rigid - plus a competitive environment that keeps the company
on its toes- will go a long way. A company which is willing to
learn and change, while giving its people room to "enjoy their
work," will prevail.
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