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The Real Deal: Tony Hsieh as an Authentic Leader

July 23, 2013 by jlm845

Tony Hsieh, CEO of shoe retail giant Zappos.com, is a more current real-life example of authentic leadership. Hsieh joined Zappos after selling a company he co-founded to Microsoft at the age of 24, and was able to not only improve sales exponentially, but also to create a company culture that landed Zappos on the “Best Companies to Work For” list released by Fortune magazine each year (Delivering Happiness, 2013). Hsieh’s unconventional and passionate approach to organizational culture has set him apart as a leader in business, and he possesses several characteristics that exemplify authentic leadership.

Authentic leadership can be defined in multiple ways. The intrapersonal perspective of authentic leadership focuses on the leader and characteristics like self-concept, while the interpersonal perspective defines authentic leadership as a relational process created by leaders and followers (Northouse, 2012). Still another perspective, the developmental perspective, views authentic leadership as a process of nurturing between the leader and followers (Northouse, 2012).

Bill George developed an approach toward authentic leadership that examines the qualities and characteristics of authentic leaders rather than focusing on the actions of leaders in response to organizational problems (Northouse, 2012). The five basic characteristics identified by George, when examined in the context of Tony Hsieh’s leadership, paint a picture of effective authentic leadership in a company known as much for its cultures as for its product.

Authentic leaders understand their purpose (Northouse, 2012). Hsieh, from a young age, demonstrated an entrepreneurial spirit; he was only 24 years old when he became a millionaire after selling LinkExchange, which he had co-founded, to Microsoft in 1999 (Reiss, 2010). Zappos, as his new project, soared in sales from $1.6 million to over $1 billion in the first decade Hsieh was in the CEO spot (Reiss, 2010). More importantly, Hsieh has succeeded in his purpose of garnering the Zappos brand a reputation for superior customer service and culture (Reiss, 2010).

Authentic leaders have strong values about the right thing to do (Northouse, 2012). Hsieh’s customer-centric business approach has set Zappos apart from many other online retailers. Zappos offers free shipping and returns, as well as an accessible and effective customer service department (Reiss, 2010). The company culture he has developed also points to his concern for employees; Hsieh believes that happy employees make happy customers, and he strives to make both happen every day (Reiss, 2010).

Authentic leaders establish trusting relationships with others (Northouse, 2012). Hsieh’s business model for Zappos involves establishing positive customer relationships – customers know they can count on superior service from Zappos, which allows for a stress-free shopping experience. Within the company, Hsieh’s culture has centered on trust; Zappos employees are given many creative freedoms and enjoy a relaxed working environment because Hsieh feels that the bottom line is customer satisfaction. He trusts his employees to take care of his customers.

Authentic leaders demonstrate self-discipline and act on their values (Northouse, 2012). Hsieh, and by extension, Zappos, lives by the values he has established from the start. Everything he does comes from a place of wanting to do the best by Zappos customers and employees. Hsieh believes so strongly in Zappos that the company relies more on word of mouth than on more conventional advertising methods (Reiss, 2010). The hiring and selection processes used by Zappos remain true to the company’s values as well – candidates must demonstrate technical skill, cultural fit, and values that agree with Zappos’ 10 core values (Reiss, 2010). This model means that many good, technically-qualified candidates are passed over, even at the expense of profits, because cultural fit is so incredibly important (Reiss, 2010).

Authentic leaders are passionate about their mission (Northouse, 2012). Tony Hsieh has made customer satisfaction and company culture his missions, and he is passionate about both. He regularly states that money shouldn’t be a number-one goal, and that passion is what makes a business grow and succeed (Reiss, 2010). His book, Delivering Happiness: A Path to Profits, Passion, and Purpose, was written with the intention of spreading the message of using passion to find one’s purpose and turn a profit (Delivering Happiness, 2013).

Tony Hsieh’s brand of authentic leadership has made its mark on the business world, and those who would like to adopt a similar leadership approach will benefit from his example.

References:

Delivering Happiness. (2013). About the Author. Retrieved from Delivering Happiness: http://www.deliveringhappiness.com/about-us/about-the-author/

Northouse, P. G. (2012). Leadership: Theory and Practice (6th ed.). Thousand Oaks: SAGE Publications, Inc.

Reiss, R. (2010, July 1). Tony Hsieh On His Secrets Of Success. Forbes. Retrieved from http://www.forbes.com/2010/07/01/tony-hsieh-zappos-leadership-managing-interview.html

Servant Leadership: A Matter of Attitude

July 23, 2013 by jlm845

Understanding the concept of servant leadership is one thing, but deciding if it’s the right leadership approach for an individual is quite another. Most people likely consider servant leadership as coming naturally as an extension of a person’s qualities and characteristics. An interesting concept is that a person can actually choose to adopt servant leadership as a leadership approach in his or her organization. In their article Five Necessary Attitudes of a Servant Leader, Larry Boone and Sanya Makhani (2012) assert that by reviewing the attitudes they have identified, a person can decide whether or not servant leadership will be a good fit as a leadership style. This assertion agrees with that of Northouse (2012) stating that anyone can learn to become a servant leader.

Servant leadership has been defined in several ways; it focuses on a leader’s behaviors, and emphasizes that leaders “be attentive to the concerns of their followers, empathize with them, and nurture them” (Northouse, 2012). What sets servant leadership apart from other approaches and theories that focus on leader behaviors is its emphasis on the development of followers (Northouse, 2012).

The model of servant leadership shows the relationships between antecedent conditions, servant leader behaviors, and outcomes; leader attributes like characteristics and attitudes determine and contribute to behaviors like conceptualizing and empowering, which results in outcomes like follower growth (Northouse, 2012). Leader characteristics, including listening, empathy, awareness, persuasion, foresight, and commitment to the growth of people, are an important aspect of servant leadership (Northouse, 2012). Attitudes, according to Boone and Makhani (2012) are critical as determinants of the behaviors that result in positive outcomes.

“Visioning isn’t everything, but it’s the beginning of everything” (Boone & Makhani, 2012). For a leader to lead, he has to know where he wants his followers to go. Leaders influence followers to accomplish a goal, and goal-setting requires leaders to both have and communicate a vision (Boone & Makhani, 2012). A person lacking the ability to look forward will have a very hard time inspiring or motivating others to follow his lead.

“Listening is hard work requiring a major investment of personal time and effort – and it is worth every ounce of energy expended” (Boone & Makhani, 2012). A leader should not influence followers to accomplish a goal that only he has in mind. Instead, leaders must work with followers to determine a collective goal, and then inspire and motivate them to achieve that goal. If a person is too busy listening to his own voice to hear his followers’ voices, he will not be able to effectively identify their needs or a collective goal, and will face difficulty in demonstrating to his followers that he understands their needs or can help them to achieve their goals.

“My job involves being a talent scout and committing to my staff’s success” (Boone & Makhani, 2012). A leader should be able to recognize followers’ strengths, and not only identify the ways those strengths can benefit the organization, but also help the followers to see how they can use their strengths to contribute toward goal achievement. On the other side of the coin, a servant leader should be able to recognize weaknesses, and work with followers to figure out the best ways around the obstacles those weaknesses may create in the workplace. The success of the leader and followers rely on one another; if followers have failed, so has the leader.

“It is good to give away my power” (Boone & Makhani, 2012). Leaders should be prepared to not only help their followers find their wings, but also to allow them to fly. The power associated with leadership is probably the most difficult part of servant leadership; the servant leader’s focus should remain on empowering and developing followers rather than on hoarding power. Boone and Makhani (2012) quote Maxwell as stating that “only secure leaders give power to others.” Empowerment means literally to give power or to enable (Merriam-Webster, Incorporated, 2013).

“I am a community builder” (Boone & Makhani, 2012). Servant leaders, by sharing a vision, listening to followers, and recognizing and utilizing the strengths of followers, build a community of people united by a collective goal. Servant leadership incorporates directive, supportive, and participative behaviors, and requires the leader to work closely with followers to bring together the right people and reinforce the values and goals of the organization (Boone & Makhani, 2012).

A person may possess the right blend of characteristics and qualities to lead, but servant leadership relies heavily on the attitudes that determine how those characteristics translate to behaviors. Servant leadership is not for everyone; it truly takes a person who can put himself last, and who can commit to helping followers to grow and develop.

References:

Boone, L. W., & Makhani, S. (2012). Five Necessary Attitudes of a Servant Leader. Review of Business, 33(1), 83-96.

Merriam-Webster, Incorporated. (2013). Empowerment. Retrieved from Dictionary: http://www.merriam-webster.com/dictionary/empowerment

Northouse, P. G. (2012). Leadership: Theory and Practice (6th ed.). Thousand Oaks: SAGE Publications, Inc.

LIG: Team Leadership at GE

July 16, 2013 by jlm845

How many leaders does it take to change a light bulb? Trick question: the leaders at GE are changing much more than a light bulb – they’re turning their signature innovation toward developing strong, effective management teams to support the company’s goals of growth and expansion. The General Electric Company (GE) is a shining example of what an organization should look like, and exemplifies many of the ideas associated with team leadership theory and leadership in general.

Since its formation in 1892, GE has been at the forefront of innovative technology behind energy, healthcare, transportation, and building (General Electric, 2013). Behind its creativity and innovation lies strong leadership in Jeffrey Immelt, Chairman and CEO, whose focus on growth and expansion inspired the launch of the Leadership, Innovation, and Growth (LIG) program to aid in the development of the company’s management teams (Prokesch, 2009).

According to research, teams in the workplace can produce positive results, such as improved productivity, better decision-making and problem-solving, and increased innovation and creativity (Northouse, 2012). A caveat to the success and effectiveness of teams is that the company culture must support collaboration in decision-making and a more lateral style of communication (Northouse, 2012). The culture of GE, especially under Immelt’s leadership, provides an environment conducive to and supportive of teamwork.

The four-day LIG program is successful in positively impacting GE’s management teams for a couple of reasons. The program gives managers an opportunity to focus on identifying both “hard barriers to change” like limits created by GE’s structure and resources, and “soft” barriers like the management team’s own behaviors, and to devise a plan of attacking those barriers (Prokesch, 2009). With a company of GE’s size and scope, barriers are sure to exist – the company is constantly forced to address current issues while predicting future issues, and it would be easy to spread the company’s resources too thin. Immelt, by focusing on growth and expansion of the existing company rather than on acquisitions, has eliminated some barriers, but has likely created new ones as well. The management team must develop action plans to avoid barriers, and to help their employees to avoid them as well.

The approach of identifying barriers and planning responses to them accomplishes two things: first, the team can more quickly implement changes when needed; second, the team, having already developed a plan of action, is more “obligated to deliver on it” (Prokesch, 2009). Effective leaders must be able to recognize obstacles to progress toward accomplishing a team goal and respond appropriately to break through those obstacles (Northouse, 2012). Followers’ perceptions of a leader’s effectiveness are important, and the responsiveness of a leader has a great and positive impact on these perceptions. Quick action demonstrates to followers that their leader recognizes and appreciates the need for change, and shows consideration and concern for the followers.

The LIG program also allows the management team to frame challenges and ideas in a way that is more universally understood across the company; they are able to create a “common vocabulary of change” that becomes inextricably entwined with GE and its ventures (Prokesch, 2009). Essentially, everyone is on the same page – effective communication is imperative to effective leadership, and the time spent in the LIG program allows the management team to focus on ensuring a common understanding away from the normal rush of reading emails, fielding calls, and getting a word in during a hurried meeting.

Leadership, and more specifically team leadership, is strong at GE, and has played an invaluable role in creating and maintaining the company’s success over the past 121 years. GE’s leadership starts at the top, and where many businesses fail to cultivate strong leadership in its management, GE’s management team development efforts continue to set the company apart from the rest.

References:

General Electric. (2013). About Us. Retrieved from GE.com: http://www.ge.com/about-us/building

Northouse, P. G. (2012). Leadership: Theory and Practice (6th ed.). Thousand Oaks: SAGE Publications, Inc.

Prokesch, S. (2009, January). How GE Teaches Teams to Lead Change. Harvard Business Review, 99-106.

Teacher’s Pet: Leader-Member Exchange

July 9, 2013 by jlm845

She was always the first to raise her hand when the teacher asked a question, and always the first to turn in her test. She reminded the teacher to collect or assign homework, and always asked for extra credit assignments. We all knew one of these people in school: she was the teacher’s pet.

We’re all familiar with the idea of the teacher’s pet, and as adults, we can look back and say that in some cases, the annoyance we felt toward the teacher’s pet came from jealousy more than an actual dislike for our classmate. The teacher’s pet, in my experience, seemed to enjoy school and had a different relationship with the teacher than the rest of the class. The teacher seemed to favor that student, giving better grades, or paying more attention than to anyone else. The interaction between the teacher and teacher’s pet was simply different, which frequently resulted in teasing or other negative behaviors from classmates.

Now that we’re adults, we still see the teacher’s pet phenomenon occuring at work between a co-worker and supervisor. We might still call it a teacher’s pet relationship, but a much more grown-up perspective is to consider the relationship through the eyes of the leader-member exchange (LMX) theory.

Leader-member exchange theory takes an approach toward leadership that focuses on the interactions between leaders and followers (Northouse, 2012). In early studies of LMX theory, or vertical dyad linkage theory as it was known at the time, researchers characterized two general types of interactions between leaders and followers: in-group relationships were based on “negotiated role responsibilities,” and out-group relationships were based on defined roles (Northouse, 2012). The method of determining whether a person is part of the in-group or out-group comes from examining how well the leader and follower work together; in-group individuals demonstrate an interest and willingness toward taking on tasks or responsibilities beyond those normally required of them, while out-group individuals tend to be satisfied with performing to the minimum requirements of their positions (Northouse, 2012).

Going back to our school example, the teacher’s pet phenomenon demonstrates the idea of the in-group as defined by LMX theory. The teacher’s pet is willing to put forth the best possible effort in the classroom, and to take on additional work to prove interest in and commitment to the class and the teacher, and is therefore more likely to receive more attention and effort from the teacher (Northouse, 2012). The rest of the class demonstrates the idea of the out-group, coming to class because they are required to, and doing only the bare minimum of what is expected of them to pass the class (Northouse, 2012).

The teacher’s pet phenomenon also demonstrates some of the problems that arise when the in-group and out-group are so easily differentiated; the biggest problem is that the out-group, in this case the class, perceives the teacher as showing favoritism. This could result in a decrease in respect for the teacher, or reduced motivation in the students. Also, the other students will likely feel resentment toward the teacher’s pet. These same issues are present in the work place; a supervisor who plays favorites jeopardizes the ability of the work unit to work as a cohesive, productive unit (Northouse, 2012).

A solution to this issue is to take the approach prescribed by the leadership-making model, which suggests that leaders should find ways to build strong, healthy relationships with all of their followers as equitably as possible, so that the whole group becomes an in-group (Northouse, 2012). The mark of a great teacher is one who is able to move the entire class forward together – it is far easier for a teacher to lavish praise on a couple of students who have fallen into his or her favor, but far more effective to make efforts toward creating positive relationships with each student.

References:

Northouse, P. G. (2012). Leadership: Theory and Practice (6th ed.). Thousand Oaks: SAGE Publications, Inc.

Maybe She’s Born with It . . .

June 25, 2013 by jlm845

You could ask a hundred people to define “leadership,” and you would most likely end up with a hundred different responses as a result. Many of these responses would define leadership from the point of view that successful leaders tend to have a certain set of qualities or characteristics that others might not have. Other responses might approach defining leadership from the point of view that leaders behave a certain way. One important difference between these two types of responses is that one translates to leadership being exclusive to those born with it, while the other translates to leadership being attainable by anyone (Northouse, 2013).

So the question is this: can leadership be taught? By first identifying traits that are commonly perceived as being characteristic of leadership, we can connect those traits to the behaviors we would expect to see as demonstrating leadership. From that point, we can analyze the skills required for performing those behaviors, and can further establish training and development geared toward maximizing the identified skills.

Some believe that individuals who become leaders are able to do so because they have a certain set of qualities they were born with – this is known as the trait perspective of leadership (Northouse, 2013). Some traits generally associated with leadership are intelligence, determination, or charisma (Northouse, 2013). On the other hand, some believe that leadership occurs as behaviors and interactions between leaders and followers – this is known as the process perspective of leadership, which views leadership as being available to anyone (Northouse, 2013).

A leadership theory that bridges the gap between the trait and process perspectives is the skills approach, which focuses on the technical, human, and conceptual skills and abilities that support leadership and can be learned or developed (Northouse, 2013).

As an example, we will take a look at charisma, which is commonly viewed as a characteristic or quality of leadership, through the eyes of the skills approach. Antonakis et al. (2012) define charisma as “the ability to communicate a clear, visionary, and inspirational message that captivates and motivates an audience,” and suggest that it is not an innate trait, but instead a set of learnable skills. These verbal skills have been labeled “charismatic leadership tactics” or “CLTs,” and are useful in establishing credibility, inspiring passion, and persuading followers (Antonakis et al., 2012):

Connect, compare, and contrast by using metaphors, similes, analogies, anecdotes, and contrasts
Engage and distill by posing rhetorical questions and presenting three-part lists
Show integrity, authority, and passion by expressing moral conviction, reflecting group sentiments, setting high goals, and conveying confidence

Antonakis et al. (2012) found that a training program that demonstrated real-life examples of these concepts and allowed managers to practice them in groups, on their own, and on film, the leadership ratings of participating managers nearly doubled.

What does this mean? Essentially, once leadership “traits” have been identified, we can look at how they are demonstrated by leaders – what actions, behaviors, or skills represent the desired trait? The best approach must then be determined for developing those behaviors and skills. This process is not unlike designing training in an organization through needs assessment: the organization will perform a job analysis to determine what the position does, and will then identify the knowledge, skills, and abilities needed to perform well in the position before selecting the best method for developing the knowledge, skills, and abilities in employees.

By focusing on the skills, abilities, and behaviors of leadership rather than on the traits they support or demonstrate, those without innate or natural leadership qualities can be taught to lead. Using a skills approach toward leadership, much like the process perspective, allows for anyone who wishes to become a leader to do so.

References:

Antonakis, J., Fenley, M., & Liechti, S. (2012, June). Learning Charisma. Harvard Business Review, 90(6), pp. 127-130.

Northouse, P. G. (2013). Leadership: Theory and Practice (6th ed.). Thousand Oaks: SAGE Publications, Inc.