The Leadership Experience 7th Edition PDF

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  The Leadership Experience SEVENTH EDITION RICHARD L. DAFT Owen Graduate School of Management Vanderbilt U...

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  The Leadership Experience SEVENTH EDITION RICHARD L. DAFT Owen Graduate School of Management Vanderbilt University With the assistance of Patricia G. Lane Australia Brazil Mexico Singapore United Kingdom United States Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 The Leadership Experience ª 2018, 2015 Cengage Learning¤ Seventh Edition ALL RIGHTS RESERVED. No part of this work covered by the copyright Richard L. Daft herein may be reproduced or distributed in any form or by any means, With the assistance of Patricia G. Lane except as permitted by U.S. copyright law, without the prior written Vice President, General Manager, Social permission of the copyright owner. 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Find your local Weinrebe/Photographer’s Choice RF/Getty representative at www.cengage.com. Images; Bastar/Vetta/Getty Images; Vinimay Kaul/EyeEm/Getty Images; Matic Stojs/ Cengage Learning products are represented in Canada by Nelson ShutterStock.com Education, Ltd. To learn more about Cengage Learning Solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in Canada Print Number: 01 Print Year: 2016 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  To the spiritual leaders who shaped my growth and development as a leader and as a human being. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  BRIEF CONTENTS PART 1: INTRODUCTION TO LEADERSHIP 1 1. What Does It Mean to Be a Leader? 2 PART 2: RESEARCH PERSPECTIVES ON LEADERSHIP 33 2. Traits, Behaviors, and Relationships 34 3. Contingency Approaches to Leadership 64 PART 3: THE PERSONAL SIDE OF LEADERSHIP 97 4. The Leader as an Individual 98 5. Leadership Mind and Emotion 134 6. Courage and Moral Leadership 166 7. Followership 196 PART 4: THE LEADER AS A RELATIONSHIP BUILDER 225 8. Motivation and Empowerment 226 9. Leadership Communication 260 10. Leading Teams 292 11. Developing Leadership Diversity 326 12. Leadership Power and Influence 360 PART 5: THE LEADER AS SOCIAL ARCHITECT 393 13. Creating Vision and Strategic Direction 394 14. Shaping Culture and Values 428 15. Leading Change 462 Name Index 494 Index of Organizations 498 Subject Index 502 iv Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  CONTENTS PART 1: INTRODUCTION TO LEADERSHIP 1 Chapter 1: What Does It Mean to Be a Leader? 2 Leader’s Self-Insight 1.2 17 1.1 Why We Need Leadership 4 1.4 Evolving Theories of Leadership 17 1.1a Defining Leadership 5 1.4a Historical Overview of Major Approaches 18 1.1b Everyday Leadership 6 1.4b A Model of Leadership Evolution 19 Leader’s Bookshelf 7 1.5 Leadership Can Be Learned 21 1.2 The New Reality for Leaders 8 1.5a Leader Fatal Flaws 21 1.2a From Stabilizer to Change Manager 9 Leader’s Self-Insight 1.3 22 1.2b From Controller to Facilitator 9 1.5b Leader Good Behaviors 23 1.2c From Competitor to Collaborator 10 In the Lead 23 Leader’s Self-Insight 1.1 11 1.6 Mastering the Art and Science of Leadership 24 1.2d From Diversity Avoider to Diversity 1.7 Organization of This Book 24 Promoter 11 Leadership Essentials 26 Consider This! 12 Discussion Questions 27 1.2e From Hero to Humble 12 Leadership at Work 27 In the Lead 13 Leadership Right–Wrong 27 1.3 How Leadership Differs from Management 14 1.3a Providing Direction 14 Leadership Development: Cases for analysis 29 1.3b Aligning Followers 15 Sales Engineering Division 29 1.3c Building Relationships 16 The Marshall Plan 29 1.3d Developing Personal Leadership Qualities 16 References 30 1.3e Creating Outcomes 16 PART 2: RESEARCH PERSPECTIVES ON LEADERSHIP 33 Chapter 2: Traits, Behaviors, and Relationships 34 2.1c Drive 40 2.1 The Trait Approach 36 In the Lead 40 2.1a Optimism and Self-Confidence 37 2.2 Know Your Strengths 41 Leader’s Bookshelf 38 2.2a What Are Strengths? 41 2.1b Honesty and Integrity 38 2.2b Matching Strengths with Roles 42 Leader’s Self-Insight 2.1 40 2.3 Behavior Approaches 43 v Copyright 2018 Cengage Learning. 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WCN 02-200-203 vi CONTENTS 2.3a Autocratic versus Democratic Behaviors 43 3.2b Follower Readiness 71 Consider This! 44 In the Lead 72 In the Lead 45 Leader’s Self-Insight 3.2 73 2.3b Ohio State Studies 46 3.3 Fiedler’s Contingency Model 73 Leader’s Self-Insight 2.2 47 3.3a Leadership Style 73 In the Lead 47 3.3b Situation 74 2.3c University of Michigan Studies 48 3.3c Contingency Theory 75 2.3d The Leadership Grid 49 In the Lead 75 In the Lead 50 3.4 Path–Goal Theory 77 2.3e Theories of a ‘‘High-High’’ Leader 50 3.4a Leader Behavior 77 2.4 Individualized Leadership 52 In the Lead 79 2.4a Vertical Dyad Linkage Model 53 3.4b Situational Contingencies 79 2.4b Leader–Member Exchange 54 Consider This! 80 2.4c Partnership Building 54 3.4c Use of Rewards 80 Leader’s Self-Insight 2.3 55 3.5 The Vroom–Jago Contingency Model 81 2.5 Entrepreneurial Traits and Behaviors 55 3.5a Leader Participation Styles 82 Leadership Essentials 56 3.5b Diagnostic Questions 83 Discussion Questions 57 3.5c Selecting a Decision Style 83 Leadership at Work 58 In the Lead 87 Your Ideal Leader Traits 58 3.6 Substitutes for Leadership 88 Leadership Development: Cases for Analysis 58 In the Lead 89 Consolidated Products 58 Leader’s Self-Insight 3.3 90 Transition to Leadership 60 Leadership Essentials 91 References 61 Discussion Questions 92 Leadership at Work 92 Chapter 3: Contingency Approaches to Leadership 64 Task versus Relationship Role Play 92 3.1 The Contingency Approach 66 Leadership Development: Cases for Analysis 93 Leader’s Bookshelf 67 Alvis Corporation 93 Leader’s Self-Insight 3.1 69 An Impossible Dream? 94 3.2 Hersey and Blanchard’s Situational Theory 69 References 95 3.2a Leader Style 70 PART 3: THE PERSONAL SIDE OF LEADERSHIP 97 Chapter 4: The Leader as an Individual 98 4.2b Personality Traits and Leader Behavior 106 4.1 The Secret Ingredient for Leadership Success 100 In the Lead 107 4.1a The Importance of Self-Awareness 100 Leader’s Self-Insight 4.2 108 4.1b Leader Blind Spots 101 4.3 Values and Attitudes 109 4.2 Personality and Leadership 102 4.3a Instrumental and End Values 109 In the Lead 102 Leader’s Self-Insight 4.3 110 4.2a A Model of Personality 102 In the Lead 111 Leader’s Self-Insight 4.1 103 4.3b How Attitudes Affect Leadership 112 Leader’s Bookshelf 106 Copyright 2018 Cengage Learning. 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WCN 02-200-203 CONTENTS vii Consider This! 112 5.5 Leading with Love versus Leading with Fear 153 4.4 Social Perception and Attributions 114 Leader’s Self-Insight 5.3 154 4.4a Perceptual Distortions 114 5.5a Fear in Organizations 155 4.4b Attributions 115 In the Lead 155 In the Lead 116 5.5b Bringing Love to Work 156 4.5 Cognitive Differences 116 Consider This! 157 4.5a Patterns of Thinking and Brain 5.5c Why Followers Respond to Love 158 Dominance 117 Leadership Essentials 158 Leader’s Self-Insight 4.4 118 Discussion Questions 159 In the Lead 119 Leadership at Work 160 4.5b Problem-Solving Styles: Jungian Types 120 Mentors 160 4.6 Working with Different Personality Types 122 Leadership Development: Cases for Analysis 160 Leader’s Self-Insight 4.5 123 The New Boss 160 Leadership Essentials 126 The USS Florida 162 Discussion Questions 127 References 163 Leadership at Work 127 Past and Future 127 Chapter 6: Courage and Moral Leadership 166 Leadership Development: Cases for Analysis 128 6.1 Moral Leadership Today 168 A Nice Manager 128 6.1a The Ethical Climate in Business 168 Environmental Designs International 130 Leader’s Bookshelf 169 References 131 6.1b Leaders Set the Ethical Tone 169 In the Lead 170 Chapter 5: Leadership Mind and Emotion 134 Leader’s Self-Insight 6.1 172 5.1 Leading with Head and Heart 136 6.2 Acting Like a Moral Leader 173 5.2 Mental Models 136 6.3 Becoming a Moral Leader 174 5.2a Assumptions 138 6.4 Servant Leadership 176 5.2b Changing or Expanding Mental Models 138 6.4a Authoritarian Management 176 In the Lead 139 6.4b Participative Management 177 5.3 Developing a Leader’s Mind 140 6.4c Stewardship 177 5.3a Independent Thinking 140 6.4d The Servant Leader 178 Leader’s Bookshelf 141 In the Lead 179 5.3b Open-Mindedness 142 Leader’s Self-Insight 6.2 180 Leader’s Self-Insight 5.1 143 6.5 Leading with Courage 180 5.3c Systems Thinking 144 6.5a What Is Courage? 181 5.3d Personal Mastery 145 Consider This! 181 5.4 Emotional Intelligence 146 In the Lead 182 5.4a What Are Emotions? 146 Leader’s Self-Insight 6.3 184 5.4b Why Are Emotions Important? 147 6.5b How Does Courage Apply to Moral 5.4c The Components of Emotional Leadership? 184 Intelligence 149 6.5c Finding Personal Courage 185 In the Lead 152 In the Lead 186 Leader’s Self-Insight 5.2 153 Leadership Essentials 187 Copyright 2018 Cengage Learning. 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WCN 02-200-203 viii CONTENTS Discussion Questions 188 Leader’s Bookshelf 209 Leadership at Work 189 In the Lead 209 Scary Person 189 7.5 The Power and Courage to Manage Up 210 Leadership Development: Cases for Analysis 189 7.5a Sources of Power for Managing Up 210 ‘‘What Should I Say?’’ 189 7.5b Necessary Courage to Manage Up 211 The Boy, the Girl, the Ferryboat Captain, and the Hermits 191 In the Lead 213 References 192 7.6 What Followers Want from Leaders 213 7.6a Clarity of Direction 214 Chapter 7: Followership 196 7.6b Opportunities for Growth 214 7.1 The Art of Followership 198 7.6c Frequent, Specific, and Immediate Feedback 216 7.1a Learn to Manage Up as Well as Down 199 7.1b Managing Up Presents Unique Challenges 199 Leader’s Self-Insight 7.3 217 7.6d Protection from Organizational In the Lead 199 Intrusions 217 7.2 What Your Leader Wants from You 200 Leadership Essentials 218 7.3 Styles of Followership 201 Discussion Questions 218 Leader’s Self-Insight 7.1 203 Leadership at Work 219 In the Lead 204 Follower Role Play 219 Consider This! 205 Leadership Development: Cases for Analysis 220 7.4 Strategies for Managing Up 205 Waiting for Clearance 220 7.4a Understand the Leader 205 Jake’s Pet Land 221 7.4b Tactics for Managing Up 206 References 222 Leader’s Self-Insight 7.2 207 PART 4: THE LEADER AS A RELATIONSHIP BUILDER 225 Chapter 8: Motivation and Empowerment 226 8.4a The Psychological Model of Empowerment 244 8.1 Leadership and Motivation 228 8.4b Job Design for Empowerment 244 8.1a Intrinsic and Extrinsic Rewards 229 8.4c Empowerment Applications 246 8.1b Positive and Negative Motives 230 In the Lead 246 Leader’s Bookshelf 232 Leader’s Self-Insight 8.3 248 8.2 Needs-Based Theories of Motivation 232 8.2a Hierarchy of Needs Theory 233 8.5 Giving Meaning to Work through Engagement 248 8.2b Two-Factor Theory 234 In the Lead 249 In the Lead 235 8.2c Acquired Needs Theory 236 8.6 New Ideas for Motivation 250 8.6a The Making Progress Principle 250 Leader’s Self-Insight 8.1 237 8.6b Building a Thriving Workforce 250 8.3 Other Motivation Theories 237 Leadership Essentials 251 Consider This! 238 Discussion Questions 252 8.3a Reinforcement Perspective on Motivation 238 8.3b Expectancy Theory 240 Leadership at Work 252 8.3c Equity Theory 241 Should, Need, Like, Love 252 Leader’s Self-Insight 8.2 242 Leadership Development: Cases for Analysis 254 8.4 Empowering People to Meet Higher Needs 243 Commissions for Charlotte 254 Copyright 2018 Cengage Learning. 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WCN 02-200-203 CONTENTS ix Sun Spots 255 Chapter 10: Leading Teams 292 References 256 10.1 The Value of Teams 294 10.1a What Is a Team? 294 Chapter 9: Leadership Communication 260 Consider This! 295 9.1 How Leaders Communicate 262 10.1b Types of Teams 295 9.1a Management Communication 263 In the Lead 297 Leader’s Self-Insight 9.1 264 10.2 The Dilemma for Team Members 298 9.1b The Leader as Communication Champion 264 Leader’s Self-Insight 10.1 299 Consider This! 265 10.3 Leading a Team to High Performance 300 9.2 Leading Strategic Conversations 266 Leader’s Bookshelf 301 In the Lead 266 10.4 Team Processes 301 9.2a Creating an Open Communication 10.4a How Teams Develop 302 Climate 267 10.4b Team Cohesiveness 303 9.2b Asking Questions 267 In the Lead 304 9.2c Listening 268 10.4c Team Norms 305 Leader’s Self-Insight 9.2 270 10.5 What Team Members Must Contribute 306 9.2d Dialogue 270 10.5a Essential Team Competencies 306 9.2e Communicating with Candor 272 Leader’s Self-Insight 10.2 307 Leader’s Self-Insight 9.3 273 10.5b Team Member Roles 307 In the Lead 273 10.6 Leading a Virtual Team 308 9.2f The Power of Stories 274 In the Lead 309 Leader’s Bookshelf 275 10.6a Uses of Virtual Teams 309 9.3 Communicating to Persuade and Influence 275 10.6b Challenges of Virtual Teams 310 9.4 Selecting the Correct Communication 10.7 Handling Team Conflict 311 Channel 276 10.7a Types of Conflict 312 9.4a The Continuum of Channel Richness 277 10.7b Balancing Conflict and Cooperation 312 In the Lead 278 10.7c Causes of Conflict 313 9.4b Effectively Using Electronic Communication 10.7d Styles to Handle Conflict 313 Channels 279 Leader’s Self-Insight 10.3 315 9.5 Nonverbal Communication 281 10.7e Negotiation 316 9.6 Current Communication Challenges 281 Leadership Essentials 317 9.6a Leadership via Social Media 281 Discussion Questions 317 9.6b Being Crisis-Ready 282 Leadership at Work 318 In the Lead 283 Team Feedback 318 Leadership Essentials 283 Leadership Development: Cases for Analysis 319 Discussion Questions 284 Decision Time 319 Leadership at Work 285 Devereaux-Dering Group 320 Listen Like a Professional 285 References 322 Leadership Development: Cases for Analysis 286 The Superintendent’s Directive 286 Chapter 11: Developing Leadership Diversity 326 Hunter-Worth 287 11.1 Leading People Who Aren’t Like You 328 References 288 Leader’s Self-Insight 11.1 329 Copyright 2018 Cengage Learning. 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WCN 02-200-203 x CONTENTS 11.2 Diversity Today 329 The Trouble with Bangles 355 11.2a Definition of Diversity 329 References 356 11.2b Changing Attitudes toward Diversity 330 In the Lead 331 Chapter 12: Leadership Power and Influence 360 11.2c The Value of Organizational Diversity 331 12.1 Four Kinds of Influential Leadership 362 11.3 Challenges Minorities Face 332 12.1a Transformational Leadership 362 11.3a Prejudice, Stereotypes, and 12.1b Charismatic Leadership 363 Discrimination 332 Leader’s Self-Insight 12.1 364 Leader’s Self-Insight 11.2 333 12.1c Coalitional Leadership 365 11.3b The Glass Ceiling 334 In the Lead 366 Leader’s Bookshelf 336 12.1d Machiavellian-Style Leadership 368 In the Lead 337 Leader’s Bookshelf 369 11.4 Ways Women Lead 337 Leader’s Self-Insight 12.2 370 Consider This! 338 In the Lead 371 11.4a Women as Leaders 339 12.2 Using Hard versus Soft Power 371 11.4b Is Leader Style Gender-Driven? 340 12.2a Specific Types of Power 372 In the Lead 340 In the Lead 374 11.5 Global Diversity 341 12.2b Follower Responses to the Use of 11.5a The Sociocultural Environment 341 Power 375 Leader’s Self-Insight 11.3 342 Consider This! 376 11.5b Social Value Systems 343 12.3 Increasing Power through Political Activity 376 11.5c Developing Cultural Intelligence 344 12.3a Leader Frames of Reference 377 11.5d Leadership Implications 345 12.3b Political Tactics for Asserting Leader 11.6 Becoming an Inclusive Leader 346 Influence 378 In the Lead 347 Leader’s Self-Insight 12.3 379 11.7 Ways to Encourage the Advancement of Women In the Lead 382 and Minorities 349 12.4 Don’t Take Power Personally 382 11.7a Employee Affinity Groups 349 Leadership Essentials 384 11.7b Minority Sponsorship 350 Discussion Questions 385 Leadership Essentials 351 Leadership at Work 386 Discussion Questions 352 Circle of Influence 386 Leadership at Work 352 Leadership Development: Cases for Analysis 387 Personal Diversity 352 The Suarez Effect 387 Leadership Development: Cases for Analysis 353 Waite Pharmaceuticals 388 True to Myself 353 References 390 PART 5: THE LEADER AS SOCIAL ARCHITECT 393 Chapter 13: Creating Vision and Strategic Direction 394 Consider This! 397 13.1 The Leader’s Job: Looking Forward 396 13.1b Strategic Leadership 398 13.1a Stimulating Vision and Action 396 In the Lead 399 Copyright 2018 Cengage Learning. 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WCN 02-200-203 CONTENTS xi 13.2 Leadership Vision 400 14.3d Specialized Language 442 Leader’s Self-Insight 13.1 402 14.3e Selection and Socialization 442 13.2a What Vision Does 402 14.3f Daily Actions 443 Leader’s Self-Insight 13.2 404 14.4 The Competing Values Approach to Shaping 13.2b Common Themes of Vision 404 Culture 443 In the Lead 406 Leader’s Self-Insight 14.2 445 13.2c Leader Steps to Creating a Vision 406 14.4a Adaptability Culture 446 13.3 Mission 407 In the Lead 446 13.3a What Mission Does 407 14.4b Achievement Culture 446 14.4c Involvement Culture 447 Leader’s Bookshelf 408 14.4d Consistency Culture 447 13.3b A Framework for Noble Purpose 410 14.5 Ethical Values in Organizations 448 In the Lead 412 In the Lead 448 13.4 The Leader as Strategist-in-Chief 413 13.4a How to Achieve the Vision 413 14.6 Values-Based Leadership 449 13.4b How to Execute 415 14.6a Personal Values 449 In the Lead 415 In the Lead 449 14.6b Spiritual Values 450 Leader’s Self-Insight 13.3 416 Leader’s Self-Insight 14.3 451 Leadership Essentials 419 Leadership Essentials 453 Discussion Questions 420 Discussion Questions 454 Leadership at Work 420 Leadership at Work 454 Future Thinking 420 Walk the Talk 454 Leadership Development: Cases for Analysis 422 Leadership Development: Cases for Analysis 456 The New Museum 422 Culture Clash 456 The Visionary Leader 423 5 Star and Amtech 457 References 425 References 458 Chapter 14: Shaping Culture and Values 428 Chapter 15: Leading Change 462 14.1 Organizational Culture 430 14.1a What Is Culture? 430 15.1 Leadership Means Leading Change 464 15.1a Resistance Is Real 464 Leader’s Bookshelf 431 15.1b The Leader as Change Agent 465 14.1b Importance of Culture 432 Leader’s Self-Insight 15.1 466 In the Lead 433 In the Lead 466 Consider This! 434 15.2 A Framework for Change 467 14.2 Culture Strength, Responsiveness, and Performance 435 15.3 Using Appreciative Inquiry 469 14.2a Responsive Cultures 435 15.3a Applying Appreciative Inquiry on a Large Scale 469 Leader’s Self-Insight 14.1 436 14.2b The High-Performance Culture 437 Leader’s Self-Insight 15.2 470 In the Lead 439 In the Lead 472 15.3b Applying Appreciative Inquiry Every 14.3 Cultural Leadership 440 Day 472 14.3a Ceremonies 441 Leader’s Bookshelf 473 14.3b Stories 441 14.3c Symbols 441 15.4 Leading Creativity for Change 473 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xii CONTENTS 15.4a Instilling Creative Values 474 Leadership at Work 487 15.4b Leading Creative People 475 Organizational Change Role Play 487 Leader’s Self-Insight 15.3 477 Leadership Development: Cases for Analysis 488 15.5 Implementing Change 481 ‘‘From This Point On...’’ 488 Consider This! 481 Riverside Pediatric Associates 489 15.5a Helping People Change 482 References 491 15.5b The Keys That Help People Change 483 In the Lead 484 Name Index 494 Leadership Essentials 486 Index of Organizations 498 Discussion Questions 486 Subject Index 502 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  ABOUT THE AUTHOR Richard L. Daft, Ph.D., is the Brownlee O. Currey, Jr., Professor of Management and Principal Senior Lecturer in the Owen Graduate School of Management at Van- derbilt University. Professor Daft specializes in the study of leadership and organiza- tion theory. Dr. Daft is a Fellow of the Academy of Management and has served on the editorial boards of Academy of Management Journal, Administrative Science Quarterly, and Journal of Management Education. He also served as the associate dean at the Owen School, was the associate editor-in-chief of Organization Science, and served for three years as associate editor of Administrative Science Quarterly. Professor Daft has authored or coauthored 14 books. His latest books include The Executive and the Elephant: A Leader’s Guide to Building Inner Excellence (Jossey-Bass, 2010) and Building Management Skills: An Action First Approach (with Dorothy Marcic, Cengage/Southwest, 2014). He is also the author of Organi- zation Theory and Design (Cengage/Southwest, 2016), Management (Cengage/ Southwest, 2018), and Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations (with Robert Lengel, Berrett-Koehler, 2000). He has also authored dozens of scholarly articles, papers, and chapters. His work has been published in Organizational Dynamics, Administrative Science Quarterly, Academy of Management Journal, Academy of Management Review, Strategic Management Journal, Journal of Management, Accounting Organizations and Soci- ety, Management Science, MIS Quarterly, California Management Review, Leader- ship Excellence, Leader to Leader, and Organizational Behavior Teaching Review. Dr. Daft also is an active teacher and consultant. He has taught leadership, lead- ing change, management, organizational theory, and organizational behavior. He has also produced for-profit theatrical productions and helped manage a start-up enterprise. He has been involved in management development and consulting for many companies and government organizations, including the National Academy of Science, Oak Ridge National Laboratory, American Banking Association, Auto- Zone, Aegis Technology, Bell Canada, Aluminum Bahrain (Alba), Bridgestone, TVA, Cardinal Healthcare, Pratt & Whitney, Allstate Insurance, State Farm Insur- ance, the United States Air Force, the U.S. Army, Central Parking System, USAA, Bristol-Myers Squibb, Eli Lilly, Vulcan Materials, and the Vanderbilt University Medical Center. xiii Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  PREFACE Many leaders have recently had their assumptions challenged about how organiza- tions succeed. Leaders are struggling to make sense of the shifting environment and to learn how to lead the people in their companies effectively and successfully in the midst of turmoil. The crisis in the housing, mortgage, and finance industries and resulting recession; volatile oil prices; ethical scandals; political turmoil; and other events have dramatically shifted the organizational and economic landscape. This edition of The Leadership Experience addresses themes and issues that are directly relevant to the current turbulent environment. My vision for the seventh edition is to give students an exciting, applied, and comprehensive view of what leadership is like in today’s world. The Leadership Experience integrates recent ideas and appli- cations with established scholarly research in a way that makes the topic of leader- ship come alive. Organizations are undergoing major changes, and this textbook addresses the qualities and skills leaders need in this rapidly evolving world. Recent chaotic events, combined with factors such as a growing need for creativity and innovation in organizations, the rise of social media, the growth of e-business and mobile commerce, the use of virtual teams and telecommuting, glob- alization, the growing problem of cybercrime, and other ongoing transformations place new demands on leaders that go far beyond the topics traditionally taught in courses on management or organizational behavior. My experiences teaching lead- ership to students and managers, and working with leaders to change their organiza- tions, have affirmed for me the value of traditional leadership concepts while highlighting the importance of including new ideas and applications. The Leadership Experience thoroughly covers the history of leadership studies and the traditional theories but goes beyond that to incorporate valuable ideas such as leadership vision, shaping culture and values, leadership courage, and the impor- tance of moral leadership. The book expands the treatment of leadership to capture the excitement of the subject in a way that motivates students and challenges them to develop their leadership potential. NEW TO THE SEVENTH EDITION A primary focus for revising The Leadership Experience, seventh edition, has been to relate leadership concepts and theories to real events in today’s turbulent environ- ment. Each chapter has been revised and updated to bring in current issues and events that leaders are facing. Topics and application examples that have been added or expanded in the sev- enth edition include: xiv Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 PREFACE xv developing a global mindset agile leadership leading with humility fostering a thriving workforce leadership courage as a skill team competencies the influence of emotions on how to confront others during performance conflict the importance of self-awareness for diversity of thought leadership co-creating a vision entrepreneurial leadership building a high-performance culture overcoming bias in the workplace through values and results candid communication the mental transition required for how leaders use social media people to change behavior leadership coaching using a positive emotional attractor balancing conflict and cooperation Some of the new examples of leaders and leadership within organizations that show practical applications of key concepts include: Pope Francis Seattle Seahawks Mickey Drexler, J. Crew Earl’s Restaurants Warren Buffett, Berkshire Mattel Toys Hathaway Chris Rufer, Morning Star Satya Nadella, Microsoft Golden State Warriors Laura Smith, Yola Vivek Gupta, Zensar Technologies Nancy Dubec, A&E Networks Inga Beale, Lloyd’s of London Angela Ahrendts, Apple Intel Coach Ron Rivera, Carolina HealthFitness Panthers Norman Seabrook, Riker’s Island Chade-Meng Tan, Google Dick Costolo, Twitter Kip Tindell, Container Store BNSF Railway Gen. Stanley McChrystal, U. S. Rui Sousa, Ronnie McKnight,Tom Army Camp, UPS Rich Gee, Rich Gee Group Natarajan Chandrasekaran, Tata Dan Price, Gravity Payments Consultancy Grant Reid, Mars Inc Marvin Ellison, J. C. Penney Zingerman’s Jon Fairest, Sanofi Canada Honda Engine Plant The Leadership Experience continues to offer students great opportunities for self-assessment and leadership development. An important aspect of learning to be a leader involves looking inward for greater self-understanding, and the seventh edi- tion provides many opportunities for this type of reflection. Each chapter includes multiple questionnaires or exercises that enable students to learn about their own leadership beliefs, values, competencies, and skills. These exercises help students gauge their current standing and connect the chapter concepts and examples to ideas for expanding their own leadership abilities. A few of the self-assessment topics involve engagement, networking, ethical maturity, personality traits, leading diverse people, developing a personal vision, spiritual leadership, candor, leadership cour- age, optimism, and leading with love versus leading with fear. Self-assessments related to basic leadership abilities such as listening skills, emotional intelligence, motivating others, and using power and influence are also included. Additional self- assessments are available within MindTap. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xvi PREFACE ORGANIZATION The organization of the book is based on first understanding basic ways in which leaders differ from managers, and the ways leaders set direction, seek alignment between organizations and followers, build relationships, and create change. Thus, the organization of this book is in five parts: 1. Introduction to Leadership 2. Research Perspectives on Leadership 3. The Personal Side of Leadership 4. The Leader as a Relationship Builder 5. The Leader as Social Architect The book integrates materials from both micro and macro approaches to lead- ership, from both academia and the real world, and from traditional ideas and recent thinking. DISTINGUISHING FEATURES This book has a number of special features that are designed to make the material accessible and valuable to students. In the Lead The Leadership Experience is loaded with new examples of leaders in both traditional and contemporary organizations. Each chapter opens with a real- life example that relates to the chapter content, and several additional examples are highlighted within each chapter. These examples are drawn from a wide variety of organizations including education, the military, government agencies, businesses, and nonprofit organizations. Consider This! Each chapter contains a Consider This box that is personal, compelling, and inspiring. This box may be a saying from a famous leader, or wisdom from the ages. These Consider This boxes provide novel and interesting material to expand the reader’s thinking about the leadership experience. Leader’s Bookshelf In this edition, six of the 15 chapters have new Leader’s Bookshelf reviews. A unique feature of The Leadership Experience is that each chapter includes a review of a recent book relevant to the chapter’s content. The Leader’s Bookshelf connects students to issues and topics being read and discussed in the worlds of academia, business, military, education, and nonprofit organizations. New Leader Action Memo This feature helps students apply the chapter concepts in their own lives and leadership activities and directs them to self-assessments related to various chapter topics. Leader’s Self-Insight These boxes provide self-assessments for learners and an opportu- nity to experience leadership issues in a personal way. These exercises take the form of questionnaires, scenarios, and activities. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 PREFACE xvii Student Development Each chapter ends with discussion questions and then two activ- ities for student development. The first, Leadership at Work, is a practical, skill- building activity that engages the student in applying chapter concepts to real-life leadership. These exercises are designed so students can complete them on their own outside of class or in class as part of a group activity. Instructor tips are given for maximizing in-class learning with the Leadership at Work exercises. Leadership De- velopment: Cases for Analysis, the second end-of-chapter activity, provides two short, problem-oriented cases for analysis. These cases test the student’s ability to apply concepts when dealing with real-life leadership issues. The cases challenge the student’s cognitive understanding of leadership ideas while the Leadership at Work exercises and the feedback questionnaires assess the student’s progress as a leader. Business Insights: Essentials’ intuitive user interface makes it easy for students and instruc- tors to search and find in-depth information on businesses, industries, and products. Features and benefits include the ability to search across multiple data types from a single search box with targeted search options by category. This includes company information, articles, industry data, SWOT Reports, Thomson Reuters Company Financials and Investment Reports, Market Share Reports, and Industry Essays. We have created assignments based on articles that connect directly with the content covered in your text, including assessment questions to test students on their knowl- edge of the content and emphasizing real-world examples. MindTap¤ Management for Daft’s The Leadership Experience, 7th Edition, is the digital learning solution that helps instructors to engage and transform today’s students into critical thinkers. Through paths of dynamic assignments and applications that you can per- sonalize, real-time course analytics, and an accessible reader, MindTap helps you turn cookie-cutter into cutting-edge, apathy into engagement, and memorizers into higher-level thinkers. As an instructor using MindTap, you have at your fingertips the right content and a unique set of tools curated specifically for your course, all in an interface designed to improve workflow and save time when planning lessons and course structure. The control over building and personalizing your course is all yours, so you can focus on the most relevant material while also lowering costs for your stu- dents. Stay connected and informed in your course through real-time student track- ing that provides the opportunity to adjust the course as needed based on analytics of interactivity in the course. The MindTap Assignments are fully integrated with the text, providing calcu- lated combinations of lower- and higher-order thinking skills exercises. Students can work together in the experiential exercises to create videos, write papers, deliver pre- sentations, and more. Interactive Self-Assessments engage students by helping them make personal connections to the content presented in each chapter. A flexible grad- ing system offers grade analytics and grade book export tools to work with any learning management system. ANCILLARIES This edition offers a wide range of instructor ancillaries to fully enable instructors to bring the leadership experience into the classroom. These ancillaries include: Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xviii PREFACE Instructor’s Manual A comprehensive Instructor’s Manual is available to assist in lecture preparation. Included in the Instructor’s Manual are the chapter outlines, suggested answers to end-of-chapter materials, suggestions for further study, and a quick-glance overview for each chapter of the available MindTap resources to assist instructors in their planning. Test Bank Cengage Learning Testing Powered by Cognero is a flexible, online system that allows you to author, edit, and manage test bank content from multiple Cengage Learning solutions; create multiple test versions in an instant; and deliver tests from your LMS, your classroom, or wherever you want. The test bank for The Leader- ship Experience, seventh edition, includes approximately 60 questions per chapter to help you in writing examinations. Types of questions include true/false, multiple choice, completion, short-answer, and essay, with all questions tagged to relevant national competencies. To ensure consistency across our entire package, the content of the test bank has been fully reviewed and updated by the same authors who have crafted our new digital resources. PowerPoint Lecture Presentations An asset to any instructor, the PowerPoint lecture presentations include outlines for every chapter, illustrations from the text, and additional examples to provide learn- ing opportunities for students. Videos Videos compiled specifically to accompany The Leadership Experience, seventh edi- tion, allow students to engage with the textual material by applying theories and concepts to real-world situations. ACKNOWLEDGMENTS Textbook writing is a team enterprise. This book has integrated ideas and support from many people whom I want to acknowledge. I want to extend special thanks to my editorial associate, Pat Lane. I could not have undertaken this revision without Pat’s help. She skillfully drafted materials for the chapters, found original sources, and did an outstanding job with last-minute changes, the copyedited manuscript, art, and galley proofs. Pat’s talent and personal enthusiasm for this text added greatly to its excellence. Here at Vanderbilt I want to thank my assistant, Linda Roberts, for the tremen- dous volume and quality of work she accomplished on my behalf that gave me time to write. Eric Johnson, the dean at Owen, and Sal March, associate dean, have maintained a positive scholarly atmosphere and supported me with the time and resources to complete the revision of this book. I also appreciate the intellectual stimulation and support from friends and colleagues at the Owen School—Bruce Barry, Ray Friedman, Jessica Kennedy, Rich Oliver, David Owens, Ty Park, Ranga Ramanujam, Bart Victor, and Tim Vogus. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 PREFACE xix I want to acknowledge the reviewers who provided feedback. Their ideas helped me improve the book in many areas: Thomas H. Arcy Richard T. Martin University of Houston—Central Washburn University Campus Jalane Meloun Janey Ayres Barry University Purdue University Mark Nagel Kristin Backhaus Normandale Community College SUNY New Paltz Ranjna Patel Bill Bommer Bethune Cookman College Georgia State University Chad Peterson William Russell Brown Baylor University Navarro College Gordon Riggles Jared Caughron University of Colorado University of Oklahoma Miriam Rothman Meredith Rentz Cook University of San Diego North Central Texas College Bill Service Glenn K. Cunningham Samford University Duquesne University Dan Sherman Jeffrey Fisher University of Alabama at Huntsville Embry Riddle Aeronautical Bret Simmons University North Dakota State University Ron Franzen Shane Spiller Saint Luke’s Hospital University of Montevallo Adrian Guardia Shand H. Stringham Texas A&M University—San Antonio Duquesne University Delia J. Haak Ahmad Tootonchi John Brown University Frostburg State University Nell Hartley Mary L. Tucker Robert Morris College Ohio University Ann Horn-Jeddy Joseph W. Weiss Medaille College Bentley University Ellen Jordan Donald D. White Mount Olive College University of Arkansas Alyson Livingston Xavier Whitaker North Central Texas College Baylor University Gregory Manora Jean Wilson Auburn University–Montgomery The College of William and Mary Joseph Martelli George A. Wynn The University of Findlay University of Tampa The developers at Cengage Learning also deserve special mention. Senior Prod- uct Manager Mike Roche supported the concept for this book and obtained the Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xx PREFACE resources necessary for its completion. Associate Content Developer Jamie Mack provided terrific support for the book’s writing, reviews, and production. I also thank Bob Lengel at the University of Texas at San Antonio. Bob’s enthusi- asm for leadership many years ago stimulated me to begin reading, teaching, and training in the area of leadership development. His enthusiasm also led to our collabo- ration on the book Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations. I thank Bob for keeping the leadership dream alive, which in time enabled me to pursue my dream of writing this leadership textbook. Finally, I want to acknowledge my loving daughters Danielle, Amy, Roxanne, Solange, and Elizabeth. Although everyone is now pursuing their own lives and careers, I appreciate the good feelings and connections with my children and grand- children. On occasion, we have been able to travel, vacation, watch a play, or just be together—all of which reconnect me to the things that really count. Richard L. Daft Nashville, Tennessee Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Part 1: Introduction to Leadership Chapter 1: What Does It Mean to Be a Leader? Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Chapter 1: What Does It Mean to Be a Leader? Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 YOUR LEADERSHIP CHALLENGE After reading this chapter, you should be able to: Understand the full meaning of leadership and see the leadership potential in yourself and others. Recognize and facilitate the six fundamental transformations in today’s organizations and leaders. Identify the primary reasons for leadership derailment and the new paradigm skills that can help you avoid it. Recognize the traditional functions of management and the fundamental differences between leadership and management. Appreciate the crucial importance of providing direction, alignment, relationships, personal qualities, and outcomes. Explain how leadership has evolved and how historical approaches apply to the practice of leadership today. CHAPTER OUTLINE 4 Why We Need Leadership In the Lead Leader’s Bookshelf 8 The New Reality for Leaders 13 Pope Francis, Roman Catholic 7 My Life in Leadership: The Church Journey and Lessons Learned 14 How Leadership Differs from 23 Google Along the Way Management 17 Evolving Theories of Leader’s Self-Insight Leadership at Work Leadership 27 Leadership Right–Wrong 11 Your Learning Style: Using 21 Leadership Can Be Learned Multiple Intelligences Leadership Development: Cases for 24 Mastering the Art and Science 17 Your Leadership Potential Analysis of Leadership 29 Sales Engineering Division 22 Are You on a Fast Track to 24 Organization of This Book Nowhere? 29 The Marshall Plan A braham Lincoln had less leadership experience than any previous president, but when historians rank the ‘‘greatest presidents,’’ Lincoln frequently tops the list. Interest in Lincoln’s leadership swelled with the release of Steven Spielberg’s historical film Lincoln, which was a huge critical and commercial suc- cess, grossing more than $250 million at the box office and garnering 12 Academy Award nominations. ‘‘Lincoln’s presidency is a big, well-lit classroom for business leaders seeking to build successful, enduring organizations,’’ said Howard Schultz, CEO of Starbucks. In this era of disconnected and often morally bankrupt leaders, it is no wonder the skills, strengths, and character of Lincoln have struck a chord. Lincoln once provoked an opponent to tears by using his expert communication skills to mimic and ridicule his rival. Soon afterward, the man who would later become the 16th president of the United States felt disappointed and ashamed of his own behavior and sought out his opponent to offer an apology. Lincoln took this as a valuable lesson about channeling his emotions, practicing empathy, and using his abilities to promote good. From then on, Lincoln applied his superb leadership and communication skills to serve the higher interests of the American people rather than his own goals and ego. His ability to control his emotions and stay committed 3 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 4 PART 1 INTRODUCTION TO LEADERSHIP to a vision even under intense hardship, his commitment to go into the field and establish connections with soldiers and the general public, and his willingness to lis- ten to different points of view and to share credit for successes and take blame for failures all tap into a deep longing within people for genuine leadership.1 The public trust in leaders may be at an all-time low. Referring to the dire eco- nomic situation that followed the ethical and financial problems in the mortgage and finance industries, David Rothkopf wrote in the Washington Post, ‘‘This is not just a global economic crisis. It is a global leadership crisis.’’2 1-1 WHY WE NEED LEADERSHIP Many of us think of leadership in a way similar to what U.S. Supreme Court Justice Potter Stewart said about obscenity in reviewing a 1964 pornography case: we may not be able to define it but ‘‘we know it when we see it.’’3 People can clearly see leadership in Abraham Lincoln, but many are having a hard time seeing it in current political, business, military, and even religious leaders. General David Petraeus, one of the most decorated military leaders of his generation, stepped down as director of the Central Intelligence Agency after the FBI inadvertently discovered he had an extramarital affair with his biographer and began investigating for potential leaks of classified information. The British Broadcasting Corporation (BBC) was tarnished by allegations that managers covered up years of sexual abuse by a well-known reporter.4 Senator Chuck Grassley recently probed the financial records of six well- known televangelists, including Creflo Dollar and Kenneth Copeland, after reports that tax-exempt donations were financing lavish lifestyles for the religious leaders, including mansions, Rolls Royce cars, and private jets.5 Nearly every month brings a new report of a business leader somewhere lying to, misleading, or cheating employees, customers, or the government. No wonder survey after survey shows that confidence in leaders is sinking and suspicion and distrust are rising.6 Yet there are good leaders working in every organization, large and small. In fact, quality leadership is all around us every day, in all facets of our lives—our fam- ilies, schools, communities, social clubs, and volunteer organizations, as well as in the world of business, sports, religion, government, and the military. Without good leadership, our institutions and society would fall apart. Before we can examine what makes an effective leader, we need to know what leadership means. Scholars and other writers have offered hundreds of definitions of the term leadership, prompting James McGregor Burns to conclude that leadership ‘‘is one of the most observed and least understood phenomena on earth.’’7 Defining leadership has been a complex and elusive problem largely because the nature of leadership itself is complex. Some have even suggested that leadership is nothing more than a romantic myth, perhaps based on the false hope that someone will come along and solve our problems by sheer force of will.8 There is some evidence that people do pin their hopes on leaders in ways that are not always realistic. Think about how some struggling companies recruit well- known, charismatic CEOs and invest tremendous hopes in them, only to find that their problems actually get worse.9 For example, Yahoo hired former Autodesk CEO Carol Bartz in 2009 with high hopes that the star leader could turn the strug- gling company around, only to ask her to leave a couple of years later as Yahoo’s fortunes continued to slide. In mid-2012, Yahoo hired former Google executive Marissa Mayer as the fifth CEO in five years. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 CHAPTER 1 WHAT DOES IT MEAN TO BE A LEADER? 5 Particularly when times are tough, people often look to a grand, charismatic type of leader to alleviate fear and uncertainty. Think of how Barack Obama sailed to the U.S. presidency in 2008 based largely on his charisma and the ability to make people feel hopeful in a time of uncertainty. In recent years, the romantic or heroic view of leadership has been challenged.10 Much progress has been made in under- standing the essential nature of leadership as a real and powerful influence in organ- izations and societies. 1-1a Defining Leadership Leadership studies are an evolving discipline, and the concept of leadership will con- tinue to develop. For the purpose of this book, we will focus on a single definition that delineates the essential elements of the leadership process: Leadership is an influ- ence relationship among leaders and followers who intend real changes and out- comes that reflect their shared purposes.11 Exhibit 1.1 summarizes the key elements in this definition. Leadership involves influence; it occurs among people; those people intentionally desire significant changes; and the changes reflect purposes shared by leaders and followers. Influence means that the relationship among people is not passive; however, also inherent in this definition is the concept that influence is multidirectional and noncoercive. The basic cultural values in North America make it easiest to think of leadership as something a leader does to a follower.12 However, leadership is reciprocal. In most organizations, superi- ors influence subordinates, but subordinates also influence superiors. The people involved in the relationship want substantive changes—leadership involves creating change, not maintaining the status quo. In addition, the changes sought are not dictated by leaders but reflect purposes that leaders and followers share. Moreover, change is toward an outcome that both the leader and the followers want, a desired Leadership future or shared purpose that motivates them toward this more preferable outcome. an influence relationship An important aspect of leadership is influencing others to come together around a among leaders and followers who intend real common vision. Thus, leadership involves the influence of people to bring about changes and outcomes that change toward a desirable future. reflect their shared purposes EXHIBIT 1.1 What Leadership Involves Influence Intention Personal Followers Leader responsibility and integrity Shared purpose Change Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 6 PART 1 INTRODUCTION TO LEADERSHIP Also, leadership is a people activity and is distinct from administrative paper- work or planning activities. Leadership occurs among people; it is not something done to people. Since leadership involves people, there must be followers. An indi- vidual performer who achieves excellence as a scientist, musician, athlete, or wood- carver may be a leader in her field of expertise but is not a leader as defined in this book unless followers are involved. Followers are an important part of the leader- ship process, and all leaders are sometimes followers as well. Good leaders know how to follow, and they set an example for others. The issue of intention or will means that people—leader and followers—are actively involved in the pursuit of change. Each person takes personal responsibility to achieve the desired future. One stereotype is that leaders are somehow different, that they are above others; however, in reality, the qualities needed for effective leadership are the same as those needed to be an effective follower.13 Effective followers think for themselves and carry out assignments with energy and enthusiasm. They are committed to some- thing outside their own self-interest, and they have the courage to stand up for what they believe. Good followers are not ‘‘yes people’’ who blindly follow a leader. Effective leaders and effective followers may sometimes be the same people, playing different roles at different times. At its best, leadership is shared among leaders and followers, with everyone fully engaged and accepting higher levels of responsibility. 1-1b Everyday Leadership Using this definition of leadership makes clear that leadership can come from any- one. When we stop equating leadership with greatness and public visibility, it becomes easier to see our own opportunities for leadership and recognize the leader- ship of people we interact with every day. Leaders come in all shapes and sizes, and many true leaders are working behind the scenes. Leadership that has big outcomes often starts small. Wendy Kopp was a senior at Princeton University when she first came up with the idea of a sort of ‘‘Peace Corps for teachers,’’ a national organization that would recruit recent college graduates to commit to teach for two years at some of America’s toughest public schools. One of her Princeton professors admits he called her ‘‘deranged’’ when she proposed the idea to him. Yet Teach for Amer- ica, the organization Kopp started, became one of the most respected educa- tional initiatives in the United States. As the organization has grown larger, it has come under attack, but most observers agree it has changed education for the better and it continues to harness the idealism of young college graduates as a force for good.14 Clinical psychologist Barbara Van Dahlen was working primarily with children in the Washington, D.C., area when she became concerned about the effects of the wars in Iraq and Afghanistan on the mental health of U.S. soldiers, veterans, and their families. Van Dahlen founded Give an Hour to provide free services that give help and hope to returning service members. The organization now has a national network of more than 6,100 mental health professionals who volunteer their time. Give an Hour also works with other organizations, such as Bare the Burden, a nonprofit organization that creates an online community for veterans to heal by connecting with others.15 During his five years working as a car salesman, Robert Chambers was dis- gusted by how some dealers and finance institutions preyed on low-income cus- tomers. After he retired from a varied career, the 62-year-old electrical engineer Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  LEADER’S BOOKSHELF My Life in Leadership: The Journey and Lessons Learned Along the Way by Frances Hesselbein What college dropout transformed one of Leader Institute (she still serves as CEO organizational chart rather than at the world’s largest volunteer organiza- of the organization, recently renamed the top of a hierarchy. Everyone was tions, was named Fortune magazine’s the Frances Hesselbein Leadership Insti- a member of a team, and there were ‘‘Best Nonprofit Manager in America,’’ and tute). Here are a few of the key lessons no superiors and subordinates. Being received America’s highest civilian honor, Hesselbein has learned along the way: inclusive develops leaders at every the Presidential Medal of Freedom? The level and increases the energy and Have a Clear Mission That Everyone answer: Frances Hesselbein, who began creativity of the entire organization. Can Support. As soon as she became her amazing leadership journey as a Make Learning a Top Priority. CEO of the national Girl Scouts, Hes- somewhat reluctant volunteer leader of Organizations have to keep changing selbein took a close look at the mis- Girl Scout Troup 17 in Johnstown, Penn- and adapting when it’s necessary. sion of the organization and began sylvania, when she was in her early twen- ‘‘The first item in your budget should asking leaders at all levels, as well as ties. In her autobiography, My Life in be learning, education, and develop- girls themselves, what they really val- Leadership, Hesselbein, now in her late ment of your people,’’ she says. ued, wanted, and needed. ‘‘Because 90s, shares what she has learned about we included everyone, it became THE GREAT ADVENTURE leadership throughout her long career. theirs, not ours,’’ she says. Hesselbein Hesselbein tells her story in Learning to ‘‘LEADERSHIP IS A MATTER OF HOW calls the mission, vision, and values Lead as a great adventure that she TO BE, NOT HOW TO DO’’ ‘‘the soul of the organization,’’ which enjoyed every step of the way. It is a Hesselbein argues that ‘‘it is the quality should be central ‘‘even as we aban- story told in a very personal way, but and character of the leader that deter- don the vestiges of the past that spell one that is packed with observations mines performance.’’ For her, leader- irrelevance in the future.’’ and reflections that are as relevant to ship is about serving others. From her Be Inclusive. Hesselbein also ditched today’s leaders as when Hesselbein first beginning as a volunteer Scout leader, the hierarchy, sharing information began her long leadership journey as a she eventually became CEO of the Girl and power with leaders at all levels volunteer Girl Scout leader. Scouts of the USA, and later was found- from the beginning. A concept she ing president of famed management called ‘‘circular management,’’ put Source: Learning to Lead, by Frances Hesselbein, scholar Peter Drucker’s Leader to the leader in the middle of the is published by Jossey-Bass. decided to do something about it. He founded More Than Wheels, which helps low-income people buy new, base-model cars at low prices and on good loan terms. With branches in New Hampshire, Vermont, and Maine, More Than Wheels has negotiated price and extended warranty deals with a dozen or so auto dealers and worked with banks to provide low interest rates. More Than Wheels guarantees the loan and then works with clients to help them manage their finances, improve their credit scores, and improve their future.16 There are opportunities for leadership all around us that involve influence and change toward a desired goal or outcome. As further illustrated in the Leader’s NEW LEADER Bookshelf, widely known and highly respected leaders often begin their leadership ACTION MEMO journeys in small ways. The leaders of tomorrow’s organizations will come from As a leader, you can recognize anywhere and everywhere, just as they always have. Do you have the capacity and opportunities for leadership commitment required for taking a leadership role in your school, community, or and act to influence others and bring about changes for a workplace? You can start now, wherever you are, to practice leadership in your better future. own life. Leadership is an everyday way of acting and thinking that has little to do with a title or formal position in an organization. As we will discuss in the following section, business leaders need to understand this tenet more than ever in the world of the twenty-first century. 7 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 8 PART 1 INTRODUCTION TO LEADERSHIP 1-2 THE NEW REALITY FOR LEADERS Social media. Globalization. Mobile commerce. Geopolitical wars. Renewable tech- nologies and smart machines. Outsourcing. Climate change and resource scarcity. Telecommuting and virtual teams. Cybercrime. Redistribution of economic power. Massive changes in the world mean today’s leaders are facing challenges they couldn’t even imagine just a few years ago.17 In a survey by the Center for Creative Leadership, 84 percent of leaders surveyed say the definition of effective leadership changed significantly within the first few years of the twenty-first century.18 And that was even before social and mobile technologies began reshaping everyday life and work. Social connectedness and mobility are becoming central aspects of every leader’s job. Some historians and other scholars believe our world is undergoing a transfor- mation more profound and far-reaching than any experienced since the dawn of the modern age and the Industrial Revolution more than 500 years ago. Today’s leaders operate in a world where little is certain, the pace is relentless, and everything is more complex. This transformation requires a transition from a traditional to a new leadership paradigm, as outlined in Exhibit 1.2.19 A paradigm is a shared mindset Paradigm that represents a fundamental way of thinking about, perceiving, and understanding a shared mindset that repre- the world. sents a fundamental way of Although many leaders are still operating from an old-paradigm mindset, as out- thinking about, perceiving, and understanding the lined in the first column of