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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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