chapter 2 commercial leadership management: commercial theory and practice

Chapter 2 Commercial Leadership Management: Commercial theory and practice

Learning objectives Distinguish between different viewpoints of leadership Understand the relevance of reflectivity and critical reflectivity to effective leadership Identify some core issues in leadership studies Distinguish between leadership and management Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Learning objectives Understand the difference between leadership and power Identify the main trends in the leadership literature Identify desirable qualities in a leader Envision leadership as a task- and learning-focused process Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Leadership remains an ambiguous concept Is commercial leadership the application of leadership in the context of commercial and contract management any different from leadership in other contexts? Introduction Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Most leadership studies: focus on formally appointed leaders suggesting that leadership is hierarchical and position-based this is reinforced by notions of followership construe leadership as a social process that takes place in a group context where the leader influences followers to behave in a certain way so as to achieve organisational goals As a result, technical support personnel in organisations are rarely thought of as leaders even though the activity of leading may be an integral part of what they do Introduction Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Introduction In this presentation commercial leadership (used interchangeably with leadership) is conceptualised as a social process that is primarily about: influencing managing relationships educating multiple stakeholders (as opposed to followers) in order to achieve project goals within the remit of contractual obligations Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Introduction Points of departure: leadership is framed beyond the performative task of leading as a learning process that takes into account: the intra- and interpersonal contexts through which leadership is constructed the sociocultural and environmental forces that shape it. leading as a necessarily politicised process highlights the significance of reflectivity and critical reflectivity for effective leadership practice Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Issues in leadership The nature of leadership studies Leadership as person individuals with innate qualities and skills process interactions between leaders and followers results the outcomes that leaders achieve position the formal position held in the organisation (Grint, 2005) Leader/follower differentiation Positivist/normative assumptions Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Issues in leadership Leadership versus management personality/orientation to change multidirectional influence effective leadership and management are both necessary to the successful attainment of project goals Leadership and power power is closely related to leadership a relational construct between the leader and followers legitimate, reward, coercive, expert and referent power dynamically interrelated Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Trends in the leadership literature (Bryman, 1992) ApproachCore theme Trait approachLeadership ability is innate Style approachLeadership effectiveness is to do with how the leader behaves Contingency approachEffective leadership is dependent on the situation Transformational leadershipThe charismatic and affective aspects of leadership define leadership effectiveness Dispersed leadershipLeadership is shared or distributed between the various stakeholders Learning leadershipThe role of the leader is to design and manage learning processes in the organisation Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Trait theories Emotional intelligence (EI) The ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion within oneself and in relationships with others (Mayer et al., 2000) EI competences: self-awareness, self-management, social awareness, relationship management (Goleman et al., 2002) Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Style/behavioural theories Dimensions/clusters of behaviour: consideration refers to the extent to which leaders and their subordinates have a relationship built on mutual trust, liking and respect initiating structure denotes the extent to which leaders organise work, structure the work context, and clarify roles and responsibilities (Bryman, 1992; Northouse, 2010) Managerial/leadership grid: impoverished management, country-club management style, authority-compliance style, middle-of- the- road management style, team management (Blake and Mouton, 1964) Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Contingency theories Path-goal theory of leadership identifies styles: directive, supportive, achievement-oriented, participative (House, 1971) locus of control refers to an individuals beliefs about who controls their life Modes of leading based on taskrelationship orientation: directing, coaching, supporting, delegating (Northouse, 2010) Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Style and contingency approaches to leadership TheoryTask focus People focus Ohio State leadershipInitiating structure Consideration Blake and Moutons managerial/leadership grid Concern for production Concern for people Path-goal theoryNature and context of the job (task support) Characteristics of subordinates (psychological support) Hersey and Blanchard situational leadership Task behaviour (guidance) Relationship behaviour (support) Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Transformational and transact- ional leadership behaviours (Bass and Avolio, 1994) Key factor Behaviours Transformational behaviours Idealised influence Leaders act as role models, are admired, respected and trusted, consider the needs of others over their own; are consistent in their behaviours; share risks with others and conduct themselves ethically. Inspirational motivation Leaders motivate and inspire others by providing meaning and challenge; rouse team spirit; are enthusiastic and optimistic; communicate expectations and demonstrate commitment to shared visions. Intellectual stimulation Leaders encourage innovation and creativity through questioning assumptions and reframing problems. They avoid public criticism. Individualised consideration Leaders attend to individual needs for achievement and growth, engage in coaching and mentoring, create new learning opportunities, value diversity and avoid close supervision. Transact- ional behaviours Contingent Rewards Leaders provide rewards on the condition that followers conform with performance targets Management by exception Leaders take action when task-related activity is not going according to plan. Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Core themes in the new leadership (Bryman 1992) Vision/mission Infusing vision Motivating and inspiring Creating change and innovation Empowerment of others Creating commitment Stimulating extra effort Interest in others and intuition on the part of the leader Proactive approach to the environment Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Distributed (dispersed) leadership Barrys (1991) distributed leadership model identifies four broad roles: envisioning, organising, social integrating and external spanning Mumford et al.s (2002) model identifies: technical expertise, cognitive skills, interpersonal skills, project management skills and political skills Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Senges leadership skills (Senge, 1996) Building shared visions Encouraging personal vision Communicating and asking for support Visioning as an ongoing process Blending extrinsic visions (relative to a competitor) with intrinsic visions (such as setting new standards) Distinguishing between positive and negative visions Surfacing and testing mental models Seeing leaps of abstraction and avoiding premature conclusions Balancing enquiry and advocacy Distinguishing espoused theory from actual theory in use Recognising and defusing defensive routines Systems thinkingSeeing interrelationships, not things, and processes, not snapshots Moving beyond a blame culture Distinguishing detail complexity from dynamic complexity Focusing on areas of high leverage where a change requiring minimum effort is likely to result in enduring improvements Avoiding symptomatic solutions Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

The manager as instructor, coach and mentor (Marquardt, 1996) DimensionInstructorCoachMentor Focus of the helpTaskResults of the jobDevelopment of person Time spanDay or twoMonth or yearCareer or lifetime Approach to learningShow and tell; opportunity to practise (may be supervised) Explore problem togetherAct as friend, listen and question to enlarge awareness Associated activitiesAnalyse task; give clear instructions; supervise practice; give feedback Jointly identify problem; create development opportunities and review Link work with other parts of life; clarify broad and long-term aims and purposes OwnershipHelperSharedLearner Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Senge's and Marquardt's leadership roles (Denton, 1998) Senge's leadership roles Marquardt's leadership roles Designer Architect and designer Steward Knowledge manager Co-learner and model for learning Coordinator Teacher Instructor, coach and mentor Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

The qualities/attributes of successful managers (Pedler et al. 1994) Basic knowledge and information 1) Command of basic facts 2) Relevant professional understanding Skills and attributes 1) Continuing sensitivity to events 2) Analytical, problem-solving and decision-making skills 3) Social skills and abilities 4) Emotional resilience 5) Proactivity inclination to respond purposefully to events Meta-qualities 1) Creativity 2) Mental agility 3) Balanced learning habits and skills 4) Self-knowledge Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Conceptual framework of commercial leadership Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Summary This presentation has conceptualised leadership (commercial leadership) as a social process that is principally concerned with: influencing both internal and external stakeholders at the multiple interfaces of exchange transactions managing these relationships during the pre- and post-award stages of a projects lifecycle educating the multiple stakeholders engaged in an exchange for example, coaching project managers on the content of a specific contract or agreements generally Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Summary The overall aim of the process is the delivery of organisational objectives via projects and programmes within the context of contractual commitments It has: explored key themes and concepts from the leadership literature reviewed established approaches to the study of leadership, for example trait, style and contingency theories examined contemporary theories, such as transformational and dispersed leadership explored leadership in relation to learning Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Summary presented a conceptual framework that views leadership as a process involving a dynamic interaction between a task focus and learning provided an introduction to the leadership literature enabling commercial practitioners to appreciate the importance of the process for the execution of their day-to-day activities and for their future progression within the organisation provided evidence to support the need for commercial to further develop its leadership capability so that it can be truly accepted as a key participant within the senior management of organisations Commercial Management: theory and practice, First Edition. David Lowe. 2013 David Lowe. Published 2013 by Blackwell Publishing Ltd.

Recommended reading ISBN-10: 1-4051-24687 ISBN-13: 978-1-4051-24683 Chapter 2

chapter 2 commercial leadership management: commercial theory and practice

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