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Leading
Innovation and
Change
Thursday 8.30 – 11.30
UBSS Sydney CBD Campus
Level 10 & 11 233 Castlereagh Street
Sydney NSW2000
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Session 7 Entrepreneurial leadership
Session outline
♦ Revision from session 6
♦ Case – challenge the lecturer
♦ lecture on Leadership
♦ Quiz revision
♦ Assignment – details
♦ Homework
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Learning outcomes
♦ The nature and definition of leadership
♦ Understand the difference between general management and
leadership
♦ Explain the entrepreneurial imperatives of leadership
♦ Understand the role of middle managers as leaders in the
entrepreneurial organisation
♦ Specifically understand specific leadership types including
►transactional
►transformational
►entrepreneurial
►explain leadership values
►leadership success
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The nature and definition of leadership
♦ What does leadership mean?
♦ Definitions have been complex and elusive
♦ Due to the nature of leadership itself
♦ Leadership defined , while there are many definitions we will adopt this one first
articulated by Joseph Rost
♦ “ Leadership is an influence relationship among leaders and followers who intend
real changes and outcomes that reflect their shared purpose”
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leadership
♦ What are the key elements of this definition?
● Influencing
● Followers and leaders
● Changes and outcomes
● Shared purpose
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Defining the role of the leader in the CE
organisation
♦ Having a vision for the organisation – giving clear focus on
the direction. The where are we going question
♦ Being able to develop a entrepreneurial strategy – the how
are you going to get there
♦ Being able to communicate effectively – in particular the
vision, how the vision will be achieved
♦ Creating an appropriate culture in the organisation,
influencing how they think and act in relation to CE
♦ Managing and monitoring performance – Leaders still have to
manage to ensure correct direction and undertake “course
correction”
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Entrepreneurial Leadership
♦ It can be argued that entrepreneurial leadership will accelerate
achievement all the organisation goals, and enhance
organisational performance
♦ some most successful companies headed by entrepreneurs
have been applying specific core values and beliefs – Steve
Jobs
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Entrepreneurial Leadership
♦ Guidelines for entrepreneurial leadership
♦ Cohen (2002) specific factors for conducive to successful
entrepreneurial leadership
● An obsession with finding new business opportunities
● Construction of a plan that clearly defines the entrepreneurial
opportunity and specifies a strategy for exploitation or
exploration
● Ability to identify and gain the support of key stakeholders in the
entrepreneurial effort
Elements; give and take, forming alliances
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Some Characteristics of leadership
Some critical aspects of leading any organisation are reflected in
the following characteristics
a leader has to be ;
● a visionary
● an educator
● an innovator
● a motivator
● a communicator
● a facilitator
● an advisor
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BREAK TIME
♦ BREAK TIME
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WORKSHOP OF
KEY CONCEPTS
KEY
POINT
HERE
Work shop Questions for Homework from week 6
 Case study Microsoft review and discuss
 Innovation to Commercialisation- why is it said
that some innovative projects fail due to
political pressures. What are some of the
reasons this occurs?
Workshop questions from week 6
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Answer
♦Lackofclarityandnarrative(story)
♦Poorlyalignedtobusinessmodel
♦Failuretocommunicatevalue&alignment
♦Threattopeersandsuperiors
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REVIEW
Leadership
We often identify four Approaches to Leadership analysis:
1. Trait approach. The physical characteristics. The Alpha Male – Gorilla Complex.
2. Leadership style. The way a person leads. Often 1 and 2 are joined.
3. Contingency style. The effectiveness of leadership will depend on the dynamic
combination of factors relevant for that situation.
4. New Leadership approach. That is transformative leadership. Such leaders are change
agents.
♦ Think of examples of each?
♦ Leadership? What makes a leader? Gorilla, Position? Traits?
Transformation?
Intrapreneurship: Leading Innovation and Change
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REVIEW
Leadership
Transformational leadership is a type of leadership style
that leads to positive changes in those who follow.
 Transformational leaders are generally energetic,
enthusiastic and passionate. Not only are these leaders
concerned and involved in the process;
they are also focused on helping every member of the
group succeed as well.
MLA (Modern Language Assoc.)
Kirimi, David, and Minja Barine. Transformational Corporate Leadership. Andrews UK, 2012.
APA (American Psychological Assoc.)
Kirimi, D., & Barine, M. (2012). Transformational Corporate Leadership. Luton: Andrews UK.
Intrapreneurship: Leading Innovation and Change
Transformational Leadership vs Transactional leadership
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REVIEW
Leadership
The Transactional Leader:
♦ Approaches followers with an eye to exchanging one thing
for another … Burns
♦ “Pursues a cost benefit, economic exchange to met
subordinates current material and psychic needs in return
for “contracted” services rendered by the subordinate” …
Bass
MLA (Modern Language Assoc.)
Kirimi, David, and Minja Barine. Transformational Corporate Leadership. Andrews UK, 2012.
APA (American Psychological Assoc.)
Kirimi, D., & Barine, M. (2012). Transformational Corporate Leadership. Luton: Andrews UK.
Intrapreneurship: Leading Innovation and Change
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Key differences between Transformational and
transactional leadership
Transactional Leadership
♦ Leaders are aware of the link between the effort
and reward.
♦ Leadership is responsive and its basic orientation
is dealing with present issue
♦ Leaders rely on standard forms of inducement,
reward, punishment and sanction to control
followers.
♦ Leaders motivate followers by setting goals and
promising rewards for desired performance
Transformational Leadership
♦ Leaders arouse emotions in their followers
which motivates them to act beyond the
framework of what may be described as
exchange relations.
♦ Leadership is proactive and forms new
expectations in followers.
♦ Leadership is proactive and forms new
expectations in followers.
♦ Leaders create learning opportunities for
their followers and stimulate followers to
solve problems.
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BREAK TIME
♦ BREAK TIME
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REVIEW
a.) Helping staff develop and maintain a collaborative culture: Norms of
collective responsibility and continuous improvement encourage people to
teach each other how to do things better.
Transformational leaders
♦ involve staff in collaborative goal setting,
♦ reduce isolation,
♦ use bureaucratic mechanisms to support cultural changes,
♦ share leadership with others by delegating power,
♦ and actively communicate the company’s values, norms and beliefs.
.
Three Fundamental Goals Of Transformational
Leadership
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REVIEW
b.) Fostering staff development: Employee motivation for development is
enhanced when they internalize goals for professional growth.
This process is facilitated when they are strongly committed to a corporate
vision. To inspire and energize people, corporate goals should be explicit
and ambitious but not unrealistic.
c.) Helping people solve problems more effectively: Transformational
leaders stimulate people to engage in new activities and put forth that
“extra effort”.
Transformational leaders use practices primarily to help staff members
work smarter, not harder. These leaders share a genuine belief that their
staff members as a group could develop better solutions than the leader
could alone.
Three Fundamental Goals Of Transformational
Leadership
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The new reality for leadership in todays
organisations
OLD paradigm
♦ Stability
♦ Control
♦ Competition
♦ Uniformity
♦ Self Centeredness
♦ Heroism
New paradigm
♦ Change and crisis
management
♦ Empowerment
♦ Collaboration
♦ Diversity
♦ Higher Purpose
♦ Humility
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Comparing Management and Leadership
Management
♦ Planning and budgeting
♦ Organising and staffing Directing and
controlling Creating boundaries
♦ Focusing on objects – producing and
selling goods and services, based on
position power, acting as a boss
♦ Emotional distance, expert mind, talking,
conformity, insight into organisation
LEADERSHIP
♦ Creating Vision and strategy keeping eye
on the horizon
♦ Creating a shared culture, Helping others,
reducing boundaries
♦ Focusing on people – inspiring and
motivating followers, based on person,
Acting as a coach, facilitator servant
♦ Emotional connections,
♦ open mind(mindfulness),
♦ Listening
♦ ,non conformity(courage),
♦ insight into self (character)
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Management versus leadership
♦ management is doing things right
♦ leadership is doing the right things
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CE and Leadership
♦ Innovation and CE does not happen without leadership
♦ leadership in the entrepreneurial organisation is dependent on leadership
which ensures and guides entrepreneurial which initiative are ;
● consistent with the company’s overall strategic direction
● are actually implemented
● produce tangible results
● “walk the talk”
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CE and Leadership
♦ Entrepreneurial leaders
♦ Characteristics of an entrepreneurial organisation
1. Uncertainty,
2. rapid change
3. Risk taking
♦ What do Entrepreneurial leaders need to lead and entrepreneurial
organisation?
♦ Require leader characteristics combined with
♦ Leadership paradigms –
♦ Underlying this contingency theory tells us entrepreneurial leaders should
modify their actions to fit the specific local circumstances at any point of time.
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CE Leaders characteristics
♦ Strategic leaders
♦ Reflectors
♦ Strategic learner
♦ Authentic learners
♦ Emotional intelligence
♦ Self awareness
♦ Self management
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Leaders paradigms
Leadership in a learning organisation
♦ Transactional /transformational leadership Bass(1985,1998)
● Transactionalsetting goals, systems and controls and rewarding
individuals that meet those goals
● Highlighted by efficiency and incremental change, reinforcing rather
than challenging organisational learning
● Transformational– more emotional and is about encouraging and
motivating
● Inspiration, excitement and intellectual stimulation
● Best suited to highly turbulent and uncertain
♦ similar to Visionary leadership
♦ Dispersed leadership for CE organisations
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Visionary leadership
♦ Provides clear leadership which focussed on peoples goals that
are part of the vision
♦ Has good interpersonal communication skills that gets everyone
to understand the focus and to work together towards common
goals
♦ Acts consistently over time to develop trust
♦ Cares and respects others, making them self confident
♦ Provides creative opportunities that others can buy into and
own, empowering opportunities
♦ Marshall Sashkin (1996)
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Leadership in the learning organisationDispersedleadership
♦ So entrepreneurial leaders are builders of organisations that are
both visionary and transformational
♦ Leaders must be recast as social-system architects who enable
innovation
♦ In the new world the primary role of a leader is to create an
environment where every employee has the chance to
collaborate, innovate and excel.
♦ Organisations are networks of individuals, all exercising some
form of leadership, with everyone influencing through patterns
♦ The entrepreneurial leader, therefore draws on models of
dispersed or distributed leadership
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Challenges for leaders in Learning organisations
and CE
♦ leaders need to
● identify Intrapreneurs – need to have the skills of Intrapreneurs
● need to evaluate opportunities presented to them quickly
● be an advocate for Corporate Entrepreneurship to allocate resources
● develop and nurture and entrepreneurial culture
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Challenges for leaders in Learning organisations
and CE
♦ leaders need to
● identify Intrapreneurs – need to have the skills of Intrapreneurs
● need to evaluate opportunities presented to them quickly
● be an advocate for Corporate Entrepreneurship to allocate resources
● develop and nurture and entrepreneurial culture
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Five beliefs for learning leaders
♦ To encourage adaptive learning leaders
● Failure is the opportunity to begin again with more experience
● Go out on a limb : that is where the fruit is
● Those who say it can’t be done should not interfere with those doing it
● Opportunities come from knocking on doors until they open
● It is better to attempt great things and fail than to attempt nothing and succeed
● Irwin W. Kabak, “beliefs for Management:#10”
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WORKSHOP OF
KEY CONCEPTS
KEY
POINT
HERE
Work shop Questions for Homework week
 Describe the imperatives of Leadership.
 Which type of leadership style is more likely to encourage
innovation and entrepreneurship in an organisation? Why?
 Case study Accordia Companies – pleased read and
complete questions
Workshop Homework questions from
week 7