Compendium Consulting Project PDF Fall 2024

Compendium CONSULTING PROJECT Elise Naalsund Fall 2024 Table of Content Lecture 1 – Consulting Project Introduction and Project Economy................................................... 2 Definitions..............................................................

Compendium CONSULTING PROJECT Elise Naalsund Fall 2024 Table of Content Lecture 1 – Consulting Project Introduction and Project Economy................................................... 2 Definitions................................................................................................................................ 2 Project Management Office (PMO)............................................................................................... 2 (Good) Governance.................................................................................................................... 2 Lecture 2 – Business Case Definition and Problem Solving.............................................................. 5 Purpose and Storytelling............................................................................................................. 5 Strategy and Decision-making..................................................................................................... 5 Value Capture............................................................................................................................ 6 Company Values + Employee Behavior = Culture........................................................................... 7 Performance Management Systems (or framework)....................................................................... 7 Problem Solving......................................................................................................................... 7 What is the MECE Framework?...................................................................................................... 9 What is MECE?.......................................................................................................................... 9 Lecture 3 – Performance Management Part 1.................................................................................11 (Tentative) Definitions................................................................................................................11 Performance Management Framework/ System............................................................................11 Management by Objectives........................................................................................................11 Balanced Scorecard (BSC).........................................................................................................13 Objectives Key Results (OKR)......................................................................................................14 Management Control.................................................................................................................15 Lecture 4 – Performance Management Part 2.................................................................................16 Magic of the AND......................................................................................................................16 Financial Performance...............................................................................................................16 Project Financial Assessments...................................................................................................18 Lecture 5 – Change Management..................................................................................................19 Key Components of Any Project..................................................................................................19 Principles for Change Management.............................................................................................20 Lecture 6 – Team Management.....................................................................................................21 Key Success factors in any project..............................................................................................21 Team and Individual Performance Assessment Challenges............................................................21 Evolution in Team Management Practices....................................................................................23 Motivation and Engagement Factors............................................................................................24 Modern Leadership...................................................................................................................24 Lecture 1 – Consulting Project Introduction and Project Economy Definitions Project A project has a start and end, requires investment, and aims to create value through a series of organized activities. The comprise of a series of activities organized in a plan is designed to (hopefully) generate a deliverable (output/solution) aiming at (hopefully) creating value (benefit/impact) Program A program comprises several projects aimed at delivering capabilities that enable new behaviors and (such as organizational structures, processes, and skills and knowledge), generate additional benefits (synergies, enables alignment). Ensures that those related projects are managed in a coordinated way Project Management Office (PMO) A function that defines and maintains project management standards across the organization. Can be: Supportive: best practice, templates Controlling: standards and tools applied Strategic: focused on most strategic projects Project Portfolio Management: Selection and prioritization of projects as a portfolio aligned with company strategy. Can be responsible for the PMO but not necessarily related to one person/department (Good) Governance Good governance involves balancing time, cost, and quality. Success factors include: A clear business case Engaged sponsors Leader-minded project managers And agility Project Management and Organizational Design The illustration presents four types of organizational structure that influence how projects are managed. 1. Functional Organization: Traditional structure where staff members report to functional managers, and project coordination happens within functions. 2. Weak Matrix Organization: Project coordination occurs, but functional managers still hold authority over resources, with less power given to the project manager. 3. Strong Matrix Organization: The project manager has greater authority, balancing between functional managers and dedicated project staff. 4. Projectized Organization: The project manager has full authority, with staff dedicated solely to the project. Project Manager The role of the project manager: Achieving project objectives. Acting as a link between strategy and the team, ensuring alignment with organizational goals. Requires strong interpersonal skills, with communication being critical for project success or failure. Typology of projects Projects are categorized based on their complexity and uncertainty: 1. Efficiency Projects: Low complexity and low uncertainty, focusing on maintaining existing processes or making incremental improvements. 2. Sustaining Projects: Moderate complexity and uncertainty, aimed at enhancing current operations or structures. 3. Transformative Projects: High complexity and high uncertainty, focused on major changes or innovations, often with high strategic importance. Success Factors for Good Governance A clear business case connected to a compelling purpose. An engaged sponsor who supports the project. Proactively addressing logical resistance to change. A project manager with a leader mindset. Prioritizing people over processes. Effective risk management. Emphasizing agility and avoiding silos. Using KPIs focused on output (value, benefits) rather than input (time, costs). Proper project closure. Project Canvas/Charter The Project Canvas/Charter serves as a project "contract" and should: 1. Be properly endorsed and socialized within the organization. 2. Be updated in the case of scope adjustments. 3. Be included in all status updates and presentations. 4. Be used during post-mortem evaluations to assess project outcomes against its original goals. Lecture 2 – Business Case Definition and Problem Solving Purpose and Storytelling Purpose is central to the business case and project management. A few notable quotes and points: Antoine de Saint-Exupéry: Inspiring people through purpose (e.g., aiming for the "vast and endless sea") is more effective than just giving orders. JFK: Setting bold goals (e.g., landing a man on the moon) gives clarity and inspiration. Simon Sinek: Combining idealism and pragmatism is necessary for long-term success. McKinsey’s 2021 survey showed that employees seek purpose in their work; if not found, they may leave. Purpose: Connects the organization’s identity to a future vision. Goes beyond financials, acting as the glue that binds a team into a productive workforce. Needs to be resilient, inclusive, and authentic. Strategy and Decision-making Strategy is more than just a plan: 1. It gives long-term direction, guiding actions and decisions. 2. It involves value creation and capture, through decisions about resources and scope. 3. It requires change management and acts as a powerful communication tool internally and externally. 4. Strategy frameworks help set trade-offs and decision-making processes. Bill Gates: People often overestimate short-term goals but underestimate long-term potential, highlighting the importance of setting achievable milestones. Porter’s Generic Strategies and SWOT Analysis Both tools are crucial in strategy formulation: Porter’s strategies help in deciding how to compete. SWOT analysis provides insights into the current situation, helping in identifying where to compete and what strategic actions to take. Porter’s Generic Strategies: Cost Leadership: Compete on price by being the lowest-cost producer in a broad market. Differentiation: Offer unique products or services in a broad market. Cost Focus: Target a niche market with lower-cost offerings. Differentiation Focus: Target a niche market with specialized, unique offerings. SWOT Analysis: Strengths: Internal advantages (e.g., skilled employees). Weaknesses: Internal limitations (e.g., outdated technology). Opportunities: External factors to exploit (e.g., market growth). Threats: External risks (e.g., increased competition). Value Capture Value capture is about how an organization can generate and retain cash: Focus on operating profitability (e.g., reducing costs, improving productivity). Capital rotation: Utilizing working capital and fixed assets efficiently. Balance between investing in expansion and returning value to shareholders (e.g., dividends, share buybacks). Company Values + Employee Behavior = Culture Company values: Act as a compass that reflects the company’s identity. Should be timeless, enduring, and guide behaviors. Can be shaped either top-down or bottom-up. A strong, shared culture supports strategy, but it’s fragile and influenced by national and organizational dimensions. Peter Drucker: "Culture eats strategy for breakfast," meaning a strong culture can drive success more than strategic plans alone. Performance Management Systems (or framework) Performance management frameworks integrate purpose, strategy, and values: Clear SMART objectives (Specific, Measurable, Actionable, Relevant, Time-based) align actions to the organization’s strategic goals. These systems ensure alignment between the company’s purpose/vision, objectives, and values. Problem Solving Problem-solving is a key part of project management, with a focus on pragmatism and rigor:  Common sense questions: Identifying the problem, why it’s happening, who’s responsible, what actions are needed, and when to follow up. Tools for brainstorming and developing solutions include fishbone diagrams and structured, iterative methods. Steps include: 1. Define: Clarify the problem and success criteria. 2. Structure: Use tools like issue trees to break down the problem. 3. Analyze: Develop a work plan, using tools like Gantt charts and RACI matrices to assign responsibilities. 4. Synthesize: Build and present a solid business case, ensuring the format and content match the audience’s needs. Problem Solving: Structured and Iterative Approach Define: Goal: The team debates and agrees on the core problem, ensuring everyone understands the context, scope, and success criteria. Why: This step ensures the team is aligned on the problem and methodology, fostering a common understanding. Key Aspects: o Charter: Defines context, scope, stakeholders, and constraints. o Ensures the team is aligned and allows for the problem definition to be revisited as needed. Structure: Goal: Identify the best problem-solving approach and break down the problem using tools like an issue tree (or fishbone diagram). Why: This helps to prioritize and target key issues, bringing the right approach to solve the problem effectively. Key Aspects: o Issue Tree: Helps visually break down the problem into smaller, manageable parts. o MECE (Mutually Exclusive, Collectively Exhaustive): Ensures that all issues are covered without overlap or omission. Analyze: Goal: Apply appropriate analytical tools to conduct a thorough analysis, using frameworks such as Gantt charts and RACI matrices to track responsibilities and timing. Why: Analytical rigor is essential to avoid errors and provide confidence in the results. Key Aspects: o Work Plan: Clearly defines models, sources, responsibilities, and timing. o Gantt Chart & RACI: Visual tools to ensure clear scheduling and assignment of roles. Synthesize: Goal: Pull together key findings and develop actionable recommendations. Ensure that the solution is effectively communicated. Why: This helps engage leadership and build momentum around the recommended solution. Key Aspects: o Business Case Development: Presenting solutions in a way that is clear and persuasive to the target audience. o Pitching Skills: Ensure the presentation's content and format suit the audience. What is the MECE Framework? What is MECE? MECE stands for Mutually Exclusive, Collectively Exhaustive, and it’s a framework for organizing complex problems into logical categories that don’t overlap and cover all possible options. Mutually Exclusive (ME): Categories must not overlap; each item fits into only one category. Collectively Exhaustive (CE): Categories must cover all possibilities without gaps. Steps to Apply MECE: 1. Identify the Problem: Be specific about what you're trying to solve. 2. Break Down the Problem: Brainstorm potential contributing factors and ensure no biases. 3. Create MECE Categories: Group factors into mutually exclusive and collectively exhaustive categories. 4. Analyze: Gather data for each category to understand the problem more deeply. 5. Refine: Adjust categories as needed based on the data and analysis. Importance to Consultants: Consultants use MECE to break complex problems into smaller, manageable parts. It helps create a structured approach to problem-solving, ensuring clarity without missing any key factors. Examples: Library Book Categorization: Books are classified into distinct genres (e.g., Fiction, Non-Fiction). Each book falls into only one genre (ME), and all books are accounted for (CE). Theme Park Revenue: Break down revenue into categories like park admissions and merchandise without overlap (ME) and ensuring all revenue streams are captured (CE). Applications of MECE: Market segmentation Business plan development Supply chain management Risk assessment Operational process improvement MECE and the 80/20 Rule: Using MECE with the 80/20 rule helps focus efforts on the most impactful areas (e.g., prioritizing categories that account for the majority of an issue). MECE is a powerful tool for simplifying and structuring complex problems, ensuring that every factor is considered without redundancy. Lecture 3 – Performance Management Part 1 (Tentative) Definitions Performance in general can be defined in many ways, one common way is: the manner in which or the efficiency with which something reacts or fulfils its intended purpose. Other way to define performance (corporate versus individual): Corporate Performance: Measures how well an organization executes its financial, market, and shareholder goals. This can be assessed by comparing results to objectives. Individual Performance: Evaluates a person’s output against preset standards like accuracy, speed, and completeness. This is used for performance appraisals to give feedback and guide decisions on promotions or further training. Performance Management Framework/ System Performance management involves setting objectives, measuring performance, and ensuring alignment across the organization. Peter Drucker’s famous quote, “What gets measured gets managed,” emphasizes the importance of tracking performance to drive results. Management by Objectives MBO was first introduced by Peter Drucker and focuses on ensuring that employees understand their roles in achieving organizational goals. It aligns individual and organizational objectives to increase motivation and job satisfaction. SMART objectives (Specific, Measurable, Actionable, Relevant, Time-bound) help create clear and effective goals. Challenges: Badly defined objectives can lead to undesirable behaviors, making it essential to set clear and motivating goals. The image above illustrates the Performance Management System based on Management by Objectives (MBO). Here’s a breakdown: On the Left: Performance Management Cycle The diagram shows the four key stages in performance management: 1. Objectives and KPIs: o Set clear objectives and Key Performance Indicators (KPIs) that align with the organization’s overall purpose and strategy. 2. Performance Tracking: o Regularly track and monitor the performance against the set objectives and KPIs. 3. Performance Discussion: o Conduct discussions on performance, offering feedback and identifying gaps between expectations and actual results. 4. Identification and Planning of Corrective Actions: o Based on performance discussions, identify necessary corrective actions and create plans to address shortcomings or improve performance. On the Right: Continuous Quality Improvement (Sisyphean Cycle) The illustration on the right is an analogy of the Sisyphean cycle, which refers to the continuous and often challenging process of quality improvement. It compares the process to the myth of Sisyphus who is condemned to repeatedly push a boulder uphill, only for it to roll back down. PDCA Cycle: The diagram shows a Plan-Do-Check-Act (PDCA) cycle, which is a fundamental approach to continuous quality improvement: o Plan: Set the project plan. o Do: Execute the project. o Check: Audit or review the results. o Act: Take corrective actions based on the review. This cycle emphasizes step-by-step improvement and highlights how setbacks are inevitable, but consistent effort and alignment between business and IT help to achieve continuous quality improvement. Balanced Scorecard (BSC) The Balanced Scorecard approach evaluates performance from four perspectives: 1. Financial: Measures financial outcomes and efficient resource use. 2. Customer: Assesses performance from the customer's viewpoint, such as customer satisfaction and retention. 3. Internal Business Process: Focuses on the efficiency and quality of internal processes. 4. Innovation & Learning: Measures how well the organization is enhancing its people, systems, and culture. An additional focus is placed on sustainability, incorporating social and environmental performance into business goals. Triple bottom line (3P): Examples: Objectives Key Results (OKR) OKR is a goal-setting framework that encourages focus, alignment, and accountability by setting clear, measurable objectives and tracking progress. OKR Superpowers: 1. Focus on Priorities: Sets a clear direction quarterly and annually. 2. Alignment: Aligns intra-team and inter-team objectives. 3. Commitment: Creates transparency and acts as a social contract. 4. Tracking: Measures progress quarterly, detached from compensation. 5. Stretch for Ambition: Encourages teams to set high but achievable goals. Example: For an organization aiming to eradicate malaria by 2040, key results might include developing diagnostic tools and maintaining global progress toward the goal. This diagram illustrates the Objectives and Key Results (OKR) framework, showing the relationship between objectives, key results, and initiatives, with a focus on transparency and alignment across all levels of the organization. Objective: Describes what the organization, team, or individual aims to achieve. These are: 1. Significant: The objective should be impactful and meaningful. 2. Concrete: Clearly defined, not abstract. 3. Action-Oriented: Focuses on actions to drive progress. 4. Aspirational: Motivates and pushes the organization or team toward high achievements. Key Results: These measure how you know the objective is being achieved. For each objective, there are 3-5 key results that are: 1. Specific: Clearly define what success looks like. 2. Time-bound: Set deadlines for achieving the key results. 3. Aggressive but Realistic: Challenge the team, but still within reach. 4. Measurable/Verifiable: Focus on outcomes rather than activities, ensuring progress can be tracked quantitatively. Initiatives are the actions or projects undertaken to achieve the key results. They are the practical steps that will help reach the objectives. Full Transparency and Alignment The gray arrows on the left represent full transparency across the organization, both top-down and bottom-up. This transparency creates creative tension by ensuring that the company-wide objectives align with team and individual objectives. Company-wide objectives flow down to team and cross-team objectives, which then cascade to individual objectives, ensuring alignment and cohesion throughout the organization. Management Control Management Control is about ensuring that execution happens as planned. It can address issues like: Lack of direction Motivation problems Personal limitations Control can be focused on results, actions, or personnel/culture to guide performance improvement. Lecture 4 – Performance Management Part 2 Magic of the AND The Magic of the AND refers to managing trade-offs between competing priorities in different business areas, ensuring balance across various performance drivers. Finance: Trade-offs between financial performance and other aspects like ESG (Environmental and Social Governance), customer satisfaction, and reputation. Sales & Marketing: Balancing growth in top-line revenue with margins, bad debt, and inventory management. Supply Chain: Focusing on cost reduction while maintaining delivery schedules, demand stability, and inventory levels. Manufacturing: Trade-offs between production planning, inventory levels, purchasing costs, and delivery time. Financial Performance Financial Function Finance’s role has evolved in recent years, with increasing complexity due to: Changing business environments and models.  IT tools (ERP) and new legislation impacting operations. Greater involvement in strategic decisions and potential overlap with operations. This figure illustrates the evolution of the finance function and its growing role as a business partner. It shows how the responsibilities of the finance department have shifted over time, with an emphasis on adding more value to the organization through decision support and strategy.Shows how things have changed. For instance, the transaction processing going from 40% to 20% utilization rate. Value (Cash) Generation and Allocation Cash generation sources: Operating Profitability: Improving quality, pricing, productivity, and inventory reduction. Capital Rotation: Effective management of working capital and fixed assets. Cash allocation decisions involve: Organic expansion or M&A. Dividends, share buybacks, or debt repayment. Value cash Generation Operating Profits (1st Source of Cash): This shows how a company generates cash through its core activities: Activities like new contracts, ensuring product quality, pricing, cost reductions, and productivity lead to operating profits. This corresponds to the Profit & Loss (P&L) Statement. Capital Rotation (2nd Source of Cash): The company can further generate cash by optimizing working capital and fixed assets: Activities include reducing inventories, negotiating with customers and suppliers, and selling non-productive assets. These actions are reflected in the Balance Sheet. Value (Cash) Allocation Retain: The company can choose to retain cash for: Cash reserves (keeping funds for emergencies or future use). Organic expansion (investing in the company's growth). Repaying debts. Mergers & Acquisitions (M&A). Distribute: Alternatively, the company can distribute cash to shareholders through: Dividends. Share buybacks (in some jurisdictions). Both these two diagrams above show how companies manage cash flow from operating activities and capital efficiency, and then decide how to use or distribute that cash to drive growth or reward shareholders. Project Financial Assessments Several key financial metrics are used to assess project viability: Cost of Capital (WACC): The weighted average cost of capital considers both debt and equity and influences decisions on project attractiveness. Net Present Value (NPV): A project with an NPV > 0 is financially attractive, as it returns more than the cost of capital. Internal Rate of Return (IRR): The discount rate at which NPV equals zero, used to evaluate the financial return of a project. Discounted Payback: The number of years needed to recover the initial investment, accounting for the time value of money. Summary This lecture delves into the importance of managing financial performance while balancing other business priorities. The Magic of the AND approach helps navigate trade-offs, while financial assessment tools like NPV, IRR, and WACC are essential for making informed investment and project decisions. Lecture 5 – Change Management Key Components of Any Project The Project Canvas/Charter acts as a contract for change management within a project: It must be endorsed and socialized among stakeholders. Can and must be updated with any scope adjustments. Used for all status updates and during post-project evaluations (post- mortems). Change or die The section stresses the urgency of change: Alan Deutschman: "Change or die" emphasizes that adapting to change is crucial for survival. Hyman Minsky: Stability often leads to instability when crises hit. Marc Aurèle: "Comfort is the worst addiction," reinforcing that staying comfortable inhibits necessary change. Charles Darwin: It’s not the strongest or most intelligent species that survives but the one most adaptable to change. These quotes highlight the inevitability and necessity of adapting to change in dynamic environments. Conditions for change There are specific conditions that make change both necessary and effective. This includes recognizing crises or opportunities and aligning the organization toward a common purpose for change. Principles for Change Management John Kotter’s 8-Step Process for Leading Change: 1. Establish a sense of urgency Identify market and competitive realities. Discuss crises or major opportunities to motivate change. 2. Form a powerful guiding coalition Assemble a group that can lead the change effort and work together as a team. 3. Create a (shared) vision Develop a vision to direct change and create strategies to achieve it. 4. Communicate the vision Use every means possible to communicate the vision and strategies. Lead by example, with the guiding coalition embodying the change. 5. Empower others to act on the vision Remove obstacles to change, alter systems/structures, and encourage risk-taking. 6. Plan for and create short-term wins Plan for visible performance improvements, create those improvements, and reward those involved. 7. Consolidate improvements and produce more change Use credibility to change systems and structures that don’t fit the vision. Promote employees who align with the change vision and continue to push new projects. 8. Institutionalize new approaches Make connections between new behaviors and corporate success. Ensure leadership development and succession planning to sustain the change. Change is inevitable and necessary for survival. Kotter’s 8-step process provides a structured approach to leading organizational change, focusing on creating urgency, developing a vision, and institutionalizing new behaviors. Lecture 6 – Team Management Key Success factors in any project People and reputation are the most important assets of a company, as highlighted by a quote from Henry Ford. Effective teamwork is crucial for project success. The team must grow beyond individual performance and foster team confidence to achieve excellence. The Project Canvas/Charter is a "contract" that needs endorsement and should be used for updates, status reports, and post-mortem evaluations. Team and Individual Performance Assessment Challenges Performance Definition: Performance is the accomplishment of tasks measured against standards of accuracy, cost, speed, and completeness. It also involves performance appraisals to evaluate work behavior and determine feedback, promotions, or further training. Tuckman’s Model: Tuckman’s Model of team development is a widely recognized framework for understanding how teams evolve over time. It describes the stages that teams go through as they form and work together, leading to higher performance. Teams go through stages of forming, storming, norming, performing, and adjourning, which are natural steps in team development. 1. Forming: The team comes together, members are polite and getting to know each other, with little conflict. 2. Storming: Conflicts arise as team members assert their ideas and roles, leading to power struggles. 3. Norming: The team resolves conflicts, roles are clearer, and collaboration improves. 4. Performing: The team is highly productive, working smoothly with clear communication and minimal supervision.  5. Adjourning: The project ends, and the team disbands, reflecting on their achievements and moving on. Performance Management Cycle: Set objectives and KPIs. Track performance. Conduct performance discussions. Plan corrective actions if necessary. Management Control: Is a system to ensure that execution and implementation are effective within teams. It highlights the reasons why management control may be needed and the types of control that can be applied. Why is can be needed: Need to address lack of direction: Team members may not fully understand the objectives or the direction of the project. Motivation problems: Low motivation can lead to poor performance and lack of engagement. Personal limitations: Team members may have skill gaps or personal challenges that limit their ability to perform effectively. Types of Management Control: Results-Oriented Control: Focuses on the outcomes and whether the team achieves its set goals and objectives. It looks at measurable results, such as key performance indicators (KPIs) and deliverables, to assess performance. The aim is to ensure the team produces the expected results. Action/Personnel/Culture-Oriented Control: This type of control focuses on the process of achieving results. It looks at how actions are taken, how personnel behave and contribute, and the overall team or organizational culture. Management can implement controls by influencing the actions people take, promoting a supportive culture, or aligning personnel decisions (such as hiring or task delegation) with project needs. Dunning-Kruger Effect The Dunning-Krueger Effect deals with being ignorant of your own ignorance. This is where the less someone knows, the smarter they think they are. Conversely the more they read, the more they realise how much they do not know. Some people recognise their own ignorance and look to become better informed. Importance in Team Management: Recognizing Overconfidence: It helps team leaders identify when team members might be overconfident despite lacking the skills or knowledge necessary to succeed. This can prevent mistakes made out of ignorance. Supporting Learning Curves: It emphasizes the need to support team members through the "Valley of Despair" as they build competence, encouraging them to keep learning and improving. Fostering Growth: Leaders can use this model to ensure continuous learning and development, ultimately guiding individuals toward the "Plateau of Sustainability" where their confidence and competence are well-aligned. Evolution in Team Management Practices There are issues with traditional performance evaluation methods, like forced bell curves. This method limits the number of high performers, artificially creating "losers" and focusing rewards in the middle of the curve. Instead what is Best Practices for Performance Talks: Both managers and employees should prepare. Increase the frequency and informality of feedback. Focus on objectivity and give/accept constructive feedback. Disconnect performance discussions from compensation talks. Motivation and Engagement Factors Employees are motivated by finding purpose in their work, as highlighted by a McKinsey survey (2021). A formula to explain the relationship between organizational efficiency and the efficiency of its individual parts: Eo ≠ Sum(Ei): o The efficiency of the organization (Eo) is not just the sum of the efficiencies of its individual parts (Ei). This means that even if all individual parts are functioning well, the organization as a whole might not be efficient due to other factors like misalignment or poor communication. The formula for organizational efficiency (Eo) is based on: M (Motivation/Engagement). C (Competencies). I (Information/Support). Training vs. Retention: A bad CFO might worry about training employees who leave, but a good CEO recognizes the bigger risk of not training employees who stay. This shows the importance of continuous development. Intrinsic Motivation: Comes from within an individual, driven by personal satisfaction and interest. Key factors include Sense of achievement, Curiosity, Interest in the task itself., and Pride in accomplishments. These motivators are linked to personal fulfillment and self-driven goals. Extrinsic Motivation: Driven by external rewards or pressures. Key factors include Money, Grades, Praise or recognition from others, and Career goals or advancement. These motivators depend on external incentives or recognition rather than personal satisfaction. Modern Leadership Modern Leaders possess certain qualities: They create clarity and provide vision while exuding positive energy. They are kind, humble, brave, and honest. They listen to feedback, take responsibility, and give others space to grow.  They avoid micromanaging, don’t play favorites, and give credit where it’s due. A quote from Warren Buffet: "Surround yourself with people who push you to do and be better. No drama or negativity, just higher goals and motivation." Hiring for Attitude: Herb Kelleher emphasizes hiring people with the right attitude, as skills can always be taught. Two key models to understand and adapt leadership styles Team Leaders Delegation model: The left-hand chart shows how a leader can delegate decisions based on the impact and risk of a situation. It demonstrates the progression of decision-making responsibility from the leader to the team members as they gain experience and trust: 1. You Decide, Tell Me After: High trust, low impact/risk situations where team members have full autonomy. 2. You Decide, Consult Me First: Moderate trust, where the leader is involved before final decisions are made. 3. I Decide: High-risk or high-impact decisions where the leader retains control. The Leadership Styles Diagram: On the right, the Leadership Styles diagram (S1 to S4) represents how leaders should adapt their approach based on the competence and commitment of their team members: S1 - Directing: For individuals with low competence but high commitment (D1), the leader provides clear instructions. S2 - Coaching: For developing competence with some commitment (D2), the leader provides support and guidance. S3 - Supporting: For individuals with moderate competence and commitment (D3), where the leader offers encouragement rather than direct supervision. S4 - Delegating: For highly competent and committed team members (D4), the leader delegates responsibility entirely. MBTI test: Different personality traits influence leadership approaches, showing that there’s no one-size-fits-all style. Leaders need to be aware of their own tendencies and how to work effectively with varying team member personalities.