A633.4.3.RB - Changing Dynamics of Leadership_RutbellGreg

Reflecting on the opening exercise at the beginning of Chapter 4 of the of Obolensky text and other readings, why do you think the shift in leadership is occurring and do you think this is indicative of what is happening in your organization. List three reasons that support or refute this position. If so, how would leadership dynamics have to be altered to accommodate and promote these types of changes? What are the implications on strategy? Of 100 percent of the solutions that actually make specific changes happen on the ground to get positive results, what percentage of solutions do you think originally come from/are first thought of at the top? (Obolensky, 2010) I think approximately 50% of solutions at Boeing originally come from/are first thought of at the top? My analysis, research and summary is included in my reflection blog. Boeing executive leadership develops top-down: mission, vision, strategies, core competencies and values (culture). These are known as the "what's" and management leadership core. At the bottom-up, the workforce develops: ideas, work flow, processes and production processes. These are known as the "how's" and technical core. Organizations that successfully adapt management leadership changes are large in size, centralized, structured and use complex adaptive systems in response to changes in government, the economy, financial, legal and world events in the environment. (Daft, 2013) For example, Jim McNerney, Chairman, President and Chief Executive Officer of Boeing, has built the strategic position as the world's largest and most profitable aerospace company on a 20 year vision that was introduced in 1996 after the mergers and acquisitions of: McDonnell Douglas, Rockwell International and Hughes Aircraft Company. He has successfully led the integration of these several different cultures and strategies becoming a more broad-based aerospace company with mutual strengths and market-leading positions in commercial airplanes, defense, space and homeland national security by the time Boeing reaches the centennial in 2016. He regarded Vision 2016 as an element of strength for the company that would continue to evolve as the competition, markets and other business factors changed. In fact, Vision 2016 has been updated multiple times since its inception to ensure it stayed aligned with what the company needed to do to win in our markets and better serve our customers. We also further described certain vision elements, such as defining "leadership" as being "the strongest, best—and best-integrated—aerospace-based company in the world." (Boeing, 2014) What are some of the tools and processes McNerney has used to succeed? In line with the concept of fostering corporate entrepreneurship, innovative companies recognize that many ideas come from the people who are doing the work, serving the customers, fighting off the competition, and figuring how best to get their jobs done. Thus, companies that want to support innovation implement a variety of mechanisms, systems, and processes that encourage a bottom-up flow of ideas and make sure they get heard and acted upon by top executives. He appoints executive sponsors for ideas to track progress and implementation. It's a way to force management to focus on promising ideas at an early stage and give resources needed to turn them into successful products and services. He holds Town Hall and Roundtable sessions with employees. He walks the assembly lines and talks to mechanics, managers and support teams. He is process focused including Lean+ for improvement events, lean manufacturing, six sigma, and problem-solving. (Daft, 2013) (Grant, 2013) For example, General Electric's "Work-Out" program is a continuous process of identifying and solving problems, learning, ideas, improvements and starts with large-scale off-site meetings to get people talking across functional, hierarchical, and organizational boundaries. Hourly and professional employees come together from many different parts of the organization and partner with customers and suppliers to discuss and solve different problems. The process which includes both a top down and bottoms up approach forces a rapid analysis of ideas, the creation of solutions, and the development of an implementation plan. Work-Out creates a culture where ideas are rapidly transformed into action and positive business results. "Boundarylessness" was developed at General Electric in the late 1980s and early 1990s. It is one of the cultural elements General Electric credits for its phenomenal business success over the last fifteen years. Proponents of boundarylessness believe traditional boundaries between layers of management (vertical boundaries) and divisions between functional areas (horizontal boundaries) have limited the flow of information and ideas among employees. It is also part of complex adaptive system. A boundaryless culture seeks to overcome the limitations imposed by these and other internal corporate divisions. (Daft, 2013) Pratt & Whitney (United Technologies) has a similar process known as "ACE" Achieving Competitive Excellence. The goal is to engage and empower all employees in continuous improvement in productivity and quality of manufactured parts and improving operations at each organization level. The process is based on the foundations of lean manufacturing, kaizen and TQM. ACE is a universal system and can be applied in all types of businesses regardless of the sort and form of ownership. An important element of the program is regular training of all employees. The overall goal is to increase competitiveness. (Pratt & Whitney, 2014) The ability of some companies to adapt is demonstrated by the fact that many have been leaders in their industries for years. Examples aerospace industry and from relatively large diversified companies show that successful firms adapt well to significant change. For example, Boeing and European Airbus have dominated the commercial aerospace industry. General Electric and Pratt & Whitney have dominated designing and building aircraft engines. (Grant, 2013) The Boeing, GE and P&W examples clearly demonstrate a shift in leadership to Level 5. According to Jim Collins, consultant, author, researcher, speaker and professor in his landmark research and analysis documented in "Good to Great" there is a "Level 5" five-level hierarchy of executive capabilities: Level 1 - Highly Capable Individual. Makes productive contributions through talent, knowledge, skills, and good work rules. Level 2 - Contributing Team Member. Contributes individual capabilities to the achievement of group objectives and works effectively with others in a group setting. Level 3 - Competent Manager. Organizes people and resources toward the effective and efficient pursuit of predetermined objectives. Level 4 - Effective Leader. Catalyzes commitment to and vigorous pursuit of a clear and compelling vision, stimulating higher performance standards. Level 5 - Executive. Builds enduring greatness through a paradoxical blend of personal humility and professional will. The visual diagram for this is a pyramid (triangle) with Level 5 at the top and in descending order (Level 5 to 1). Good to Great leaders (Level 5 traits) is the highest level identified in the research. You don't need to move in sequence from Level 1 to 5, however, Level 5 leaders possess all five layers of the pyramid. (Collins, 2001) References Boeing (2014). [On-Line] Available http://www.boeing.com/boeing/ Collins, Jim (2001). Good to Great: Why Some Companies Make the Leap...and Others Don't. New York City: HarperCollins Publishers. Daft, Richard L. (2013). Organizational Theory & Design (11th ed.). United States: South-Western, Cengage Learning. Grant, Robert M. (2013). Contemporary Strategy Analysis (8th ed.). The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom: John Wiley & Sons Ltd. Obolensky, Nick (2010). Complex Adaptive Leadership: Embracing Paradox and Uncertainty. Farnham (Surrey), England: Gower Publishing Limited. Pratt & Whitney (2014). [On-Line] Available http://www.pw.utc.com/Home