Leadership

• Steering towards result & certain output
• Monitor target achievement
• Establish routines 
• Promote / demand discipline & quality awareness
• Prevent errors

• Empower team (give free space)
• Promote shared leadership
• Establish error culture
• Freedom for expression & own ideas

Inspirational-multimodal leadership

- Both hands (ambidextrous)

- Inspirational (transformational)

Definition:

• The will to put intentions into action. 
• Willpower contains absolute commitment to achieve a certain goal.

Characteristics: 

• No difficulties to start implementation
• Attention focus on implementation
• Activation of additional energy in case of setbacks

1. Intention Formation
   1. Opportunity identification
   2. Create emotional link 
   3. Visualize intention
2. Crossing the Rubicon
   1. Conscious choice
   2. Personal responsibility
   3. Dealing with doubts
3. Intention Protection
   1. Controlling the context
   2. Cognitive regulation (towards atteinment of goal)
   3. Managing emotions

• High energy & focus as key to leading others
• Having the courage to focus
• Actively protect energy
• Consciously cross Rubicon for important topics

• Emotional approach
• Leadership via inspiration, vision, charisma
• Change / transformation of subordinates' values

Howver: E.g. praising employees belongs to both transactional & transformational leadership (both are important, employees would not work without salary)

• Focus on goal definition
• Task fulfillment in exchange for reward / punishment
• Purely rational approach

--> moreover:

• Defines clear goals
• Transparent performance standards
• Management by exception
• Work environment needs to promote employees goals achievement
• Systematic + open feedback
• Contingent reward (reward goal achievement)

• Is inspirational
• Goal is to move subordinates to devote their efforts towards higher goals or ideals
• Leader that transforms values and goals 

1. Idealized influence
2. Inspirational motivation
3. Intellectual stimulation
4. Individualized consideration

• Enthusiastic communication
• Behavior which other identify with
• Show integrity at all times 

• Motivation of others through exciting vision / mission
• Enthuse emotionally
• Augment importance of goals & tasks

• Create new ways of thinking
• Communicate new insights

(to foster innovation in employees)

• Consider employees individually
• Reinforce employees individually
• Promote their self-confidence

• Follower satisfaction and motivation
• Ratings of leaders’ effectiveness and job performance
• Objective company performance

• Leaders’ personality (explains about 10%)
• Leaders’ positive mood and emotional intelligence
• Context characteristics (z.B organizational structure and culture)

Transformational leadership contributes to performance outcomes beyond the impacts of transactional leadership

• Implications for Leadership:
  • Follower satisfaction with leader and leader effectiveness are best predicted by transformational leadership
  • Follower job satisfaction and leader job performance are best predicted by contingent reward (transactional leadership)
  • Laissez-faire leadership seems to be a poor, ineffective leadership and highly dissatifyinng for followers
  • High correlation between transformatinnal and transactional leadership confirm the augmentation effect

Is especially relevant if there is none! 

Organizational Energy = is the force with which an organization works à The strength of Organizational Energy manifests in the extent to which a company has mobilized its …

• Emotional --> that employees are passionate about the company and their goals
• Cognitive --> mental alertness for threats and goals
• Behavioral --> employees are active, they actually want to achieve and contribute to the goals Potential in pursuit of its goals 

Two dimensions of org. energy: 

•  Intensity: the degree to which the organization can activate the emotional, cognitive, and behavioral potential within the firm
• Quality: does the potential actually help to achieve the goals? Z.B there is a lot of potential, but it’s not used properly, then the quality is low

1. Productive Energy: the optimal form, all the potential is there and is being used
2. Comfortable Energy: Employees are satisfied but there is not a lot of activity, see this in companies that have been successful for a long time à but no eagerness to achieve the next goal
3. Resigned Inertia: low activity and the quality is also low
4. Corrosive Energy: worst form, destructive behavior, the strongest form that this type could emerge in = strike of employees

--> The 4 States are not exclusive, you can e.g., have all 4 forms within an organization, part of the firm can be productive and other parts are not

The Organizational Energy Index (OEi): to measure organizational energy, shows all 4 states, each state is measured on a scale from 0 to 100%, overall you want:

• Corrosive Energy < 25%
• Productive Energy > 75% and
• Productive Energy > Comfortable Energy

1. Slaying the dragon
2. Winning the princess

1. Slaying the Dragon: use this strategy when company is faced with a threat and needs change

• From Resigned Inertia or Comfortable Energy à to Productive Energy
• Only use the strategy when there is a real threat, otherwise trust will be destroyed à it’s not a mobilizing strategy à to maintain productive energy you need good leadership
• Can use the Dragon in crisis but also during good times, z.B. Hilti: use it systematically in good times, when they sense a threat from competitors
• Proceedings:
  • Definition and Interpretation of the threat: make it vivid to employees, define it, keep it simple and make sure you trust them to overcome it
  • Communication of the threat
  • Strengthening the trust in one own’s competences: z.B by referring to things they overcame in the past

Winning the Princess is a positive approach

• From Resigned Inertia or Comfortable Energy à to Productive Energy
• By “painting a beautiful princess” as a new mission statement or new product (=something that the organization needs right now) à you can get them to productive Energy
• Create an emotionally appealing vision that activates your employees at the same time you need to strengthen trust
• Princess vision should not be too far in the future, you need to make sure that the goal can actually be achieved
• Proceedings:
  • Developing, defining and interpreting a vision
  • Inspiring communication of the opportunities

Strengthening trust in one’s own competences

Weakening a company’s ability to leverage resources is the inertia trap, this happens after a long period of either only success of poor performance

• Keep momentum
• Avoid burnout

when a company faces external threats (or opportunities) at the same time as it confronts internal discord, it may fall into this trap --> instead of working together to achieve a goal, people channel their energy into internal fights

• Positive energy turning destructive
• Due to loss of shared focus OR abuse of trust

Acceleration Trap: When Productive Energy > Comfortable Energy (esp. of more than 10), it creates an imbalance

--> we want productive Energy but not to an extend where people burnout/ where the organization overheats

Driver of acceleration trap: the strongest one = weak leadership, especially if there is neither transactional nor transformational leadership

• Overloading: when the amoun t of work is too much, companies constantly work on tasks that exceed their resources (35% of the cases)
• Multiloading: when there are too many tasks at the same time and you’re not able to prioritize anymore, companies constantly work on too many different tasks, missing focus (35%)
• Perpetual Loading: is overtime, when there is too much work for too long, no relaxing phase, companies do not regenerate, permanent operating close to capacity limits (30%)

Consequences of the Acceleration Trap:

Is bad for people and performance --> not good for employer health, spirit within the organization usw.,

Lower Performance even though People go to their limits, because:

• Quality issues, mistakes, extra work to correct the mistakes
• Less time for Customer Care --> Complaints, have to deal with those, customer satisfaction suffers
• No time for reflection --> prioritizing gets more difficult
• No regeneration --> without regeneration you cannot perform --> analogy to top athletes

--> Company can only perform, if they prevent their people from burnout

Overcoming the Acceleration Trap: the trap can not always be detected through numbers, you need to be close to employees to sense it, to overcome ist: people need a sense of shared priorities, the following steps:

1. Identification and Analysis of the Acceleration Trap
2. Set clear priorities
3. Stop doing
   1. Stop-doing initiatives 
   2. Launch spring-cleaning (e.g. with ABC-Analysis)
4. Avoid acceleration
   1. Restrict annual goals
   2. Select new projects
   3. Launch a burying culture
5. Pit Stops

ABC-Analysis (as a Form of Spring Cleaning) = way to classify activities and stop the less important ones (= the ones in category C) --> need the right culture to make it work

• Category A: Absolutely urgent for the company
• Category B: Important, but could be put on hold for a while
• Category C: Possible to put on hold for 2 years or to cancel --> discard those = Stop-Doing-Process

Definition Organizational Inertia:

expresses the idea that organizations do not change quickly or completely enough in order to be adequately adapted to the environment -->  Structures of organizations have high inertia when the speed of reorganization is much lower than the rate at which environmental conditions change