Candidate support pack

PDA Diploma in Management

Management: Organisational Leadership and Development

(DV8A 36)

MANAGEMENT DEVELOPMENT

PUBLISHING INFORMATION First edition

Published date: November 2008 Publication code: CB4557 First Published 2008 Published by the Scottish Qualifications Authority The Optima Building, 58 Robertson Street, Glasgow G2 8DQ Ironmills Road, Dalkeith, Midlothian EH22 1LE www.sqa.org.uk

The information in this publication may be reproduced in support of SQA qualifications. If it is reproduced, SQA should be clearly acknowledged as the source. If it is to be used for any other purpose, then written permission must be obtained from the Assessment Materials and Publishing Team at SQA. It must not be reproduced for trade or commercial purposes.

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TABLE OF CONTENTS

ACKNOWLEDGEMENTS

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ABOUT THE PROGRAMME

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INTRODUCTION

ORGANISATIONAL LEADERSHIP AND DEVELOPMENT

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SECTION ONE

1. DEVELOPING ORGANISATIONAL VISION

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1.1 The characteristics and types of vision 1.2 Core values and ethics 1.3 The core purpose of an organisation 1.4 Core competences of an organisation 1.5 Organisational structure 1.6 Organisational culture 1.7 Stages in developing a vision 1.8 Visioning techniques

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2. EVALUATE ORGANISATIONAL LEADERSHIP

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2.1 Developing leaders 2.2 The learning organisation 2.3 Contribution of organisational culture to leadership development 2.4 Continuous professional development 2.5 Leadership competence and capability 2.6 Career planning 2.7 Conclusion

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SECTION TWO

REFERENCES

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ACKNOWLEDGEMENTS SQA would like to acknowledge the input of Resource Initiatives and its writers to the development of this Diploma in Management support material. SQA would also like to acknowledge the valuable contribution that Scotland’s colleges have made to the development of the Higher National qualifications.

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About the programme

INTRODUCTION Welcome to the Diploma in Management, Development Programme. This pack forms part of the learning programme which has been designed to assist you in meeting the requirements of the HN Unit, Management: Organisational Leadership and Development (DV8A 36), one of the mandatory Units of the Diploma in Management. We hope that you enjoy your studies. Other learning packs available to support the Diploma in Management are as follows: •

Management Research (DV81 36)

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Management: Strategic Change (DV7W 36)

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Management: Develop Strategic Plans (DV87 36)

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Management: Leadership at Work (DV88 34)

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Management: Plan Lead and Implement Change (DV8C 35)

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Managing and Working with People (DV82 34)

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Manage Operational Resources (DV7X 34)

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Creating a Culture of Customer Care (DJ42 34)

The material is a comprehensive learning package which will provide assistance particularly if you are undertaking this Unit as an open or distance learning student. While this pack will assist you in developing your knowledge, understanding and skills you will also benefit from tutor support and interaction with your peers. In order that you are able to get the most out of the pack you need a full understanding of how it is designed and structured. Please read the next few pages of this introduction very carefully. Good luck with your development as a manager!

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THE LEARNING PROGRAMME This learning programme has been developed to help you develop your knowledge and skills, to help you achieve your Diploma in Management. It has been designed as a flexible blended learning solution which is comprised of two parts. 1. A workbook, containing most of the resources that make up the programme. 2. Tutor support provided through the assessment centre you are registered with. Please read the remainder of this introduction to find out more about the programme and how the different components have been designed to support your development as a manager or aspirant manager.

THE WORKBOOK This workbook is broken down into sections which link directly to the HN Unit, Management: Organisational Leadership and Development. The workbook is designed to provide a framework for your learning, leading you through the development in a logical way and introducing the essential requirements of leadership. Each section contains the following features. An introduction — At the beginning of each section you will be given the overall aims of the section, telling you what you will achieve following your period of study. Technical data and discussion — The bulk of the section will be made up of relevant information and discussion. It is broken down into chunks and will be structured to assist your learning. Within this text there will be features which again are aimed to help you. Megabyte boxes — Boxes are used within the text to illustrate important information. Each box has ‘Megabytes’ printed at the top to remind you of key learning points associated with the text. Activities — As part of your study it is important that you are able to relate your learning to your current or future role as a manager. The boxes indicated by ‘Activity’ describe things you need to do to connect your study to your place of work*. It is important that you complete these activities, as they will help you apply your learning. The sample activities associated with this workbook provide guidance on generating answers for each activity. The document recommends a structure and possible approach to each activity. *Please note that if you are not currently employed or in a position where you are able to gain access to the required information via your workplace, you should develop your activities based on an

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MANAGEMENT DEVELOPMENT organisation you are familiar with. This could perhaps be an organisation you have been employed by in the past. Research — This box indicates that at this point in your study you will need to further develop yourself by carrying out additional research using reference materials, via books or websites, or using situations/opportunities at your place of work. Your tutor will also give you guidance. This research is seen as an essential part of your personal development within the programme. Time spent on research will be invaluable to you in the long term. Highlighted text — Bold and italic text are also used to highlight important points in the text.

TUTOR SUPPORT When you enrol on this programme you will be linked to a tutor who will support you within your development. Your tutor will be available to help you with difficulties and support you as you complete the different parts of the development process. Tutors will provide you with support as you complete the activities associated with the programme.

HINTS ON STUDYING As mentioned earlier, this blended learning programme is a very flexible method of study. It is important, however, that you structure your learning to get the most out of it and, as such, you should think carefully about the following:

WHEN TO STUDY Try to get into a regular study routine. Set time aside for study, but be ready to give and take a bit. Miss one of your planned sessions if you must, but try and make up for it later. As well as planned time, grab the odd moment. It is surprising how much you can achieve in 15 minutes.

SETTING TARGETS Set yourself targets. Set realistic targets that you can achieve and stick to them. A realistic target is one you know you can achieve. Your tutor will help you set targets which are realistic.

WHERE TO STUDY A word of advice — do not think that you can study anywhere. You need to be able to concentrate. So if you have a few spare minutes to do some learning, find somewhere suitable which will allow you to concentrate. For all your periods of study, find somewhere where you will not be distracted. It is © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT surprising how you can find places which are quiet and away from distractions. But remember, be flexible, if the place where you normally go is being used, then find an alternative.

HOW TO APPROACH YOUR LEARNING Once you have organised your time and you are familiar with the requirements of the workbook, it is time to start your learning. Prepare yourself; get a pad, a pen or pencil and an area to work. Once prepared, read the introduction and think about what you are going to learn about. Think about how your learning will influence what you do in the workplace, and how it connects to your work role or prospective work role.

GETTING STARTED It is now time to start working through the workbook. Learning using this workbook does not simply mean reading its content. You must be active in your study, get involved, ask questions and make notes. Much of your success will depend on your own efforts, so stick with it and don’t give up!

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ACHIEVING YOUR DIPLOMA IN MANAGEMENT We have mentioned already that the programme has been specifically designed to help you achieve your Diploma in Management. Each of the sections of the workbook relates directly to one of the Outcomes found in the Unit, Management: Organisational Leadership and Development. The activities that you will complete as part of this programme link specifically to the Evidence Requirements of the Unit. To achieve the full Diploma in Management award you will need to successfully complete the Higher National Units listed below. •

Management: Developing Self Management Skills (DV86 34)

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Management: Leadership at Work (DV88 34)

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Management: Plan, Lead and Implement Change (DV8C 35)

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Managing and Working with People (DV82 34)

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Manage Operational Resources (DV7X 34)

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Creating a Culture of Customer Care (DJ42 34)

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Management: Graded Unit 1 (DW2X 34)

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Management: Organisational Leadership and Development (DV8A 36)

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Management: Develop Strategic Plans (DV87 36)

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Management: Strategic Change (DV7W 36)

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Management: Research (DV81 36)

and five optional credits from a range of Units. The pack has been produced to help you achieve your Diploma in Management and also for you to develop as a manager. We hope you find it enjoyable and informative.

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Introduction Management: Organisational Leadership and Development This workbook will give you an understanding of how to develop, analyse and evaluate the organisational processes and functions which contribute to the leader’s development of an organisational vision and the development of leadership capability. By the end of the programme you will be able to: •

analyse the development of a vision to support organisational purposes and values

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evaluate the development of organisational leadership

Throughout the two sections there will be activities which will allow you to put the theory into practice and thereby generate evidence of competence towards the SQA Management Unit, Management: Organisational Leadership and Development. There will also be further reading suggestions and links to additional information you may wish to pursue throughout your study.

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Section One Developing Organisational Vision

INTRODUCING THIS SECTION In this section we will be looking at how to develop organisational vision. As you work through this section you will develop an understanding of organisational vision, what influences vision and how to develop vision. Specifically the section will look at: •

The characteristics and types of vision

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Core values and ethics

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The core purpose of an organisation

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Core competences of an organisation

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Organisational structure

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Organisational culture

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Stages in developing a vision

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Visioning techniques

By the end of the section you will be able to: •

analyse the development of a vision to support organisational purposes and values

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1.1 THE CHARACTERISTICS AND TYPES OF VISION 1.1.1 WHAT DO WE MEAN BY ORGANISATIONAL VISION? Most businesses today specify where they want to be in their Vision Statement. A company’s vision statement contains details of the company's future — its vision of future plans, aims and objectives. Almost by definition, a vision focuses on tomorrow. A vision needs to paint a picture — it makes the image compelling to the recipient. The vision suggests a journey and the destination — without which the future is uncertain. A vision is like a road map, it defines the end point and therefore the path to take. If you do not know where you want to go then any road will do. Think back to the story ‘Alice in Wonderland’ by Lewis Carroll. Alice asked the cat: ‘Would you tell me please which way I ought to go from here?’ ‘That depends a good deal on where you want to get to.’ said the Cat. ‘I don’t much care where.’ said Alice. ‘Then it doesn’t matter which way you go.’ said the Cat. Vision can also be described as an ‘inspiring view of what an organisation could become’, ‘a dream about its future shape and success’. A vision is the long-term aspiration of a leader for his or her organisation that can be described to colleagues. Vision may be thought of as reaching a further goal, a clear and compelling picture of the desired future. A vision must give people the feeling that their lives and work are intertwined and moving toward recognisable, legitimate goals. Collins and Porras (1991) suggest that ‘without vision, organisations have no chance of creating their future — they can only react to it’. A good example of a vision that was fulfilled was President Kennedy’s pledge in 1961: ‘I believe this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the Moon and returning him safely to Earth.’ (Kennedy, Special Joint Session of Congress, May 1961, in NASA, 2002) Interestingly enough, NASA was so mission driven that once the mission had been achieved it floundered aimlessly while it searched for a new vision. This is a salutary lesson for people in leadership roles, emphasising that continual review of the vision, looking at the whole picture and looking into the future is vital.

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MANAGEMENT DEVELOPMENT Let us now look at what we actually mean by vision. Most organisations respond to the need for a vision by creating something called a ‘mission statement’. Collins and Porras suggested that most mission statements are ineffective as a compelling guiding force: ‘They don’t grab people in the gut and motivate them to work toward a common end. They don’t focus attention. They don’t galvanise people to put forth their best efforts towards a compelling goal.’ (1991, p31) They give numerous examples of poor mission statements, one of which is below: ‘We provide our customers with retail banking, real estate, finance, and corporate banking products which will meet their credit, investment, security and liquidity needs.’ (1991, p31) This statement is a description of what the company does, not its vision. It is at this point that it is worth considering what the vision should be in more general terms. Any vision and the statement that expresses it should have the following qualities: A vision should be credible, meaning that it should not be impossible to achieve. If the vision is perceived to be unachievable then people within the organisation will reject it. A vision should not be based on a ‘wish for the future’ or ‘what you would like the organisation to be’; it should be based upon what it is and what it can be. Most importantly a vision should be based upon an organisation’s strengths. A vision should have a realistic timescale which should fit the timescale of the organisation. Factors to consider here are staff turnover and length of employment. If staff turnover is high then a long-term vision extending over many years will not be heeded. In this case it may be more effective and realistic to have a series of short-term visions which employees can relate and buy into. If turnover is low, with a high proportion of long-serving members of staff, then the vision can be set to be achieved over a number of years. Either way it is important to break down the vision into appealing shorter-term milestones, where employees are asked to work towards the first and then the second etc. A vision needs to offer an attractive and challenging future, meaning that what will exist in the future will be better, in important ways, than what already exists. This could be quite simple, ie relating it to increased market share and consequently profitability, which could then lead to a higher wage/bonus. However, whilst this may be attractive to employees, it may not inspire and challenge them. How much better would it be to challenge the organisation to do better and achieve more in some way? How good would employees feel if the challenge was something like ‘to improve and develop our research methods to find a cure for a cancer’. Researchers would feel inspired, challenged and focused. Your organisation may not be one that works in such a challenging field, but that does not mean that the vision cannot be attractive and challenging. It’s up to you, as a manager of a team or department, to

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MANAGEMENT DEVELOPMENT define what the vision is, in a way that means something, is achievable and is a vision that people want to buy in to.

1.1.2 THE ROLE OF VISION Why should an organisation bother to have a vision? A vision can serve to energise and inspire people within an organisation; it can provide direction, focus and unity towards a common purpose. However, it is worth noting that the vision needs to be properly constructed and aligned with an analysis of the real world and tested against it. Vision should also be aligned with an organisation’s culture and the structure within which the people work. It should reflect the values held by the organisation and its leaders and be communicated in a credible, positive way, from the top to the bottom tiers of an organisation. According to Mark Lipton (1996), managing with a vision can benefit an organisation in five ways: 1. A vision enhances a wide range of performance measures. He quotes a study by Shareholders Surveys, Inc. where a long-term vision was most important to shareholders for selecting companies in which they would invest. 2. A vision promotes change. A vision serves as a road map for companies as they move through accelerated change. Lack of vision is why organisational transformation efforts frequently fail. Three independent studies in the United Kingdom (Campbell and Yeung, 1991) found further support that clear visions support change. 3. A vision provides the basis for a strategic plan. An initial vision is crucial if strategic planning is to work at all. Conversely, strategic planning cannot provide the vision on its own and is totally useless without it. Focusing on a ‘plan’ rather than a vision may be too constraining, reduce individual incentive, and lead to paralysis. A plan does not necessarily result from formal planning. A plan conceived as a vision, however, even if it is communicated in imagery or metaphors, may prove a much greater incentive to action. 4. A vision motivates individuals and facilitates recruitment. A shared vision can energise people by connecting them to the purpose of the organisation or department. People need to feel that they are making a useful contribution to a worthwhile venture; the vision enables them to see how their effort contributes to the larger picture. Interestingly, when managers’ values are clear to those with whom they work, organisations benefit from an increased level of employee pride and motivation which, in turn, translates to increased performance. Managers who have difficulty communicating their values find it much easier to convey them in the framework of a vision. 5. A vision helps keep decision-making in context. Visions provide focus and direction. In organisations without a vision, people are exposed to short-term opportunities that they may feel

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MANAGEMENT DEVELOPMENT endlessly compelled to seize. Without focus, the organisation may never develop a strong distinctive competence. Michael Dell of Dell Computer says ‘It’s easy to say what you’re going to do. The hard thing is figuring out what you’re not going to do.’ (Lipton, 1996, p85) Lipton (1996) goes on to say that when visions help individuals focus their attention on what is most important to the organisation, people uncover and eliminate a myriad of unproductive activities. A shared vision can also provide effective yet unobtrusive control and create a context for decisionmaking. Lipton (1996, p85) also goes on to say that: ‘A clearly understood vision, in effect, gives people a compass. If it is properly developed and implemented, vision can affect the perspective or premises that people use to make decisions in the absence of rules, direct supervision, or threats. When managers see senior executives effectively communicating the vision, they report a significantly higher level of job satisfaction, commitment, loyalty, esprit de corps, and clarity about the organisation’s values, pride, productivity, and encouragement.’ Campbell and Samiec (2005) believe that when a vision is clear people need fewer directions. Individuals can make many decisions themselves when they know the overall direction and believe it to be worthwhile. Vision also supplies the motivation and energy to persevere when things are intensely busy for long periods of time. Keeping people focused on the vision is critical if the desired outcome is to be achieved.

Types of vision Find out about the types of vision and how they may relate to your organisation. You should consider the following types: negative, positive, intrinsic and extrinsic types of vision. Give a summary of each and also indicate what you think the effect of each could be on an organisation.

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1.1.3 VISIONING IS FOR YOU Before we go any further you may be thinking that creating a vision statement within your organisation is really not your job; it is such a massive overarching concept that it is the job of someone in overall control of the organisation such as the Chief Executive or Managing Director. Stop there! It is important for you to understand that vision setting should take place at all levels; each group or department can have its own vision which should be consistent with the overall vision of the organisation. If there is no overall vision within the organisation, then that is a good reason for managers, such as you, to set a vision statement, as this is likely to encourage upper management to do the same. Campbell and Samiec (2005) suggest that visioning is not just for senior management and above. Visioning is a dimension that leaders within all levels of an organisation need to use and use frequently. The power and potential of visioning to create unity, enthusiasm, meaning and commitment should be used to the full. We will look at visioning techniques and developing a vision later in the workbook.

1.1.4 WHAT FACTORS CAN INFLUENCE THE VISION OF AN ORGANISATION? It is very easy to be confused about what the vision of a company is, what it contains and what is considered in the ‘process of defining a vision’. The term ‘vision’ is often mixed up with other terms which do bear a relationship with ‘vision’ but are not ‘vision’. Many so-called vision statements are a mixture of values, goals, missions, purposes, philosophies, beliefs and descriptions. To gain greater clarity and understanding of the relationship between all these terms and how they impact upon the creation of a vision it is worth considering what Collins and Porras (1991; 1996) suggest. They suggest that vision consists of two major components. The first is ‘core ideology’ which consists of an organisation’s core values and ethics and an organisation’s core purpose; the second is ‘envisioned future’ which consists of the organisation’s goal and a vivid picture of how the future will be. The following section on core values and ethics describes what we mean by core values and how they relate to, and have an impact upon, vision creation. You will also need to conduct your own research on values and ethics and how they can influence a company vision. We will look at the practical ways of creating a vision and how it relates to your role as a manager later in the workbook.

1.2 CORE VALUES AND ETHICS The core values and ethics form part of the core ideology of an organisation and is where a vision begins. Ideology permeates an organisation, its decisions, its policies and its actions throughout all phases of the organisation’s evolution. It can be thought of as its ‘philosophy of life’. Core ideology or guiding philosophy often comes from the early leaders of an organisation and is often communicated and instilled by their actions, not words. As the company progresses it is important the core values and ethics are often embedded and enshrined within the organisation. A company’s practices and strategies often change continually; the core values should not change. The ideology and core values

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MANAGEMENT DEVELOPMENT define the enduring character of the organisation. Collins and Porras (1991; 1996) suggest that ‘the most lasting and significant contribution of those who build visionary companies is the core ideology’. Bill Hewlett said about his long-time friend and business partner David Packard upon his death: ‘As far as the company is concerned, the greatest thing he left behind him was a code of ethics known as the HP Way. HP‘s core ideology, which has guided the company since its inception more than 50 years ago, includes a deep respect for the individual, a dedication to affordable quality and reliability, a commitment to community responsibility and a view that the company exists to make technical contributions to the advancement and welfare of humanity.’ (Collins and Porras, 1996, p66) One can see that an organisation’s values and ethics are really the key starting point when considering building a company vision. They will colour the vision statement from its creation to implementation. How closely the vision statement embodies and reflects these values and ethics will decide the degree of authenticity and ultimately the ‘buy in’ to it by employees. Any effective vision must embody the core ideology of the organisation, which in turn consists of two distinct parts: core values and core purpose. Core values can be described as a system of guiding principles, what is important in business and life, how business should be conducted, its role in society and what is held as sacred. Collins and Porras (1996) suggest core values require no external justification and that they have intrinsic value and importance to those within the organisation. The Walt Disney Corporation is a nice example of this; their core values of imagination and wholesomeness stem not from market requirements but from the founder’s inner belief that imagination and wholesomeness should be nurtured for their own sake. Core values and beliefs can also span across the categories of people, customers, products, management and business, society, ethical conduct and profitability. Johnson & Johnson explain what their core values mean to the company: ‘The core values embodied in our credo might be a competitive advantage, but that is not why we have them. We have them because they define for us what we stand for, and we would hold them even if they became a competitive disadvantage in certain situations.’ (Collins and Porras, 1996, p67) From this it would seem that organisations decide for themselves what they hold as their core values. From this one can assume that there is no right or wrong way to decide on what a core value is. Effective organisations identify and develop a clear, concise and shared meaning of values/beliefs, priorities, and direction so that everyone understands and can contribute. Values held within an organisation should permeate and influence everything it does. This will only happen if people demonstrate and model their values in action in their personal work behaviours, decision-making,

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MANAGEMENT DEVELOPMENT contribution, and interpersonal interaction. Values guide every decision that is made once the organisation has cooperatively created the values and the value statements.

Values The following is a list of values which can be held by individuals or organisations. Identify any others which you feel are relevant to you or your organisation. Add these to the list below. You will be using the information you gather later in the workbook. Examples of values are: ambition, competency, individuality, equality, integrity, service, responsibility, accuracy, respect, dedication, diversity, improvement, enjoyment/fun, loyalty, credibility, honesty, innovativeness, teamwork, excellence, accountability, empowerment, quality, efficiency, dignity, collaboration, stewardship, empathy, accomplishment, courage, wisdom, independence, security, challenge, influence, learning, compassion, friendliness, discipline/order, generosity, persistence, optimism, dependability, flexibility.

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Find out more about the guiding values and ethics behind the Body Shop’s founder Anita Roddick. Discuss how the core values and ethics held by the Body Shop founder influenced the company vision and its ultimate development into what it stands for today. Use the links below as a start. http://www.anitaroddick.com/aboutanita.php http://en.wikipedia.org/wiki/Anita_Roddick http://www.stfrancis.edu/ba/ghkickul/stuwebs/bbios/biograph/anita.htm The following book may be interesting: Body and Soul: Profits with Principles — The Amazing Success Story of Anita Roddick and the Body Shop. Refer to Collins and Porras (1996, p67), this gives a good illustration of how one company decided on its core values.

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Organisational values At this stage in the workbook it would be interesting for you to think about the organisation you work for and the core values it holds dear, if any. Try to identify what values are truly central to the organisation and note these down. If you have more than four or five you may be confusing them with operating or business practices or cultural norms of the organisation (something we will look at later). Remember, the values must stand the test of time. After you have drafted a preliminary list of the core values, consider each one; would it still be kept if circumstances changed inside or outside the organisation? If you cannot honestly answer yes, then the value is not core and should be dropped from consideration.

Values are also said to be basic beliefs or convictions that govern the behaviour of the organisation and its staff. The key point about the values and ethics that an organisation claims to hold is that it must be true to them; an organisation (and the people who work within it) should ‘walk the talk’ and ‘live by them’. Values and ethics act as a guiding force, a standard and criteria for assessing the behaviour of an organisation and its staff. Values and ethics serve to stimulate or discourage certain ways of behaving. Commonly held values within an organisation serve to create bonds between people in teams, departments and the company as a whole. Values and ethics underlie our everyday relationships with each other. Core values also have an impact upon the type of person who is attracted to either working for, or working with an organisation. Founders and leaders of organisations have their own set of values and ethics which will attract others of similar views to work with them. Your values and ethics will have an impact upon those working with you. You should by now begin to see how fundamentally important core values are to an organisation in terms of the nature of the business, how it conducts business relationships between staff and its vision for the future. The creation and successful implementation of an organisation’s vision is very much dependent upon the incorporation and reflection of these core values — more so, if leaders wish to implement change.

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Your core values as an individual Having looked at your organisation, it is worth looking briefly at the core values that you hold personally. Think about the following and note down your thoughts. What are your core values and how do you distinguish them from other beliefs or strategies in life? What core values do you personally bring to your work? (These should be so fundamental that you would hold them regardless of whether or not they were rewarded.) How do you think they impact upon the way you work? If you awoke tomorrow morning with enough money to retire for the rest of your life, would you continue to live those core values? Does this reflection upon your core values help you to understand your organisation’s values?

Visit the websites of some large European and American companies (for example, Nokia, Hewlett Packard, Amazon, Accenture, Eriksson, IBM) and locate their list of values. Also, look at some non-profit organisations like universities, local government councils, Greenpeace, Amnesty International, Red Cross and Médecins Sans Frontières. What purposes do these lists of values serve and for whom?

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1.3 THE CORE PURPOSE OF AN ORGANISATION Core purpose is the organisation’s most fundamental reason for existence. According to Collins and Porras (1996, p68) ‘Purpose (which should last at least 100 years) should not be confused with specific goals or business strategies (which should change many times in 100 years). Whereas you might achieve a goal or complete a strategy, you cannot fulfil a purpose; it is like a guiding star on the horizon — forever pursued but never reached.’ Core purpose does not simply describe what activities are undertaken or what is produced. Consider the following core purposes: Wal-Mart (owner of ASDA) ‘To give ordinary folk the chance to buy the same things as rich people’ Walt Disney ‘To make people happy’ A useful way of identifying the purpose of an organisation is to ask the question ‘why?’ of the services/products that your organisation undertakes.

The importance of purpose Look at what your organisation does in terms of services or product. Identify the main function or output. Then ask the question ‘Why is that important?’ five times and write down your answer each time. After a few ‘whys’, you will find that you are beginning to establish the fundamental purpose of your organisation. Try this out with someone you know, or someone who is on your course, or someone who works for another organisation. Do any of the real core purposes of either organisation involve the purpose of ‘maximising shareholder wealth’?

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MANAGEMENT DEVELOPMENT their organisation holds. They believe that it is more than ‘generating shareholder wealth’ that motivates people to work. It is true that the best and most dedicated people are ultimately volunteers, for they have the opportunity to do something else with their lives. Mark Lipton (1996, p87) agrees. ‘It is a rare vision that identifies “profit” as the primary mission. In fact, many do not even mention profit or shareholder return. Employees of the organisation or department are usually the vision’s most important audience. For them, the mission should help build a common understanding of the purpose and nurture commitment. Individuals do not work to make money for a firm, because it is nearly impossible to justify meaningfulness in one’s job through the generation of wealth for someone else. People contribute to the delivery of a service or production of a product because it is of value to others and challenging and meaningful to them.’

Your core purpose Apply the same technique used in the activity above to gain an understanding of your own core purpose as an individual. Within your life, ask yourself what you do. Then ask the question ‘Why is that important?’ five times and write down your answer each time. Do this for your working life and your personal life. You may begin to see what you perceive to be your main purpose in each. Are they the same?

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The role of core ideology is to guide and inspire, not to differentiate. Ideology has to be authentic. Do not ask, ‘What core values should we hold?’ Ask instead, ‘What core values do we truly and passionately hold?’

More on core ideology When defining core ideology it is important to get the content right; a deep understanding of your organisation’s core values and purpose is essential. Core ideology captures what you stand for and why you exist. It follows that once the essence of the core ideology is captured then statements to convey the message can follow. Identifying your organisation’s core ideology (values, ethics and purpose) is the first stage in the journey of developing your vision. These statements can change over time, but the essence is still the same. Collins and Porras (1996, p73) go on to state that: ‘Core ideology needs to be meaningful and inspirational only to people inside the organisation; it need not be exciting to outsiders. Why not? Because it is the people inside the organisation who need to commit to the organisational ideology over the long term.

1.4 CORE COMPETENCES OF AN ORGANISATION Core competences within an organisation are an important part of the content of a vision and all that makes up a vision as discussed above. For example, it is no good saying that we are going to be the best in a certain field if there is no knowledge, expertise or experience whatsoever in this field. It is no good Hewlett-Packard, for example, announcing that their new vision is to be the ‘world innovator in frost resisitant garden pots’. They have no competence to develop this further. A core competency can take various forms, including technical/subject matter knowhow, a reliable process, and/or close relationships with customers and suppliers. It may also include product development or culture such as employee dedication. If a core competency yields a long-term advantage to the company, it is said to be a sustainable competitive advantage. A core competence can also be a combination of complementary skills and knowledge based within a group or team that results in the ability to execute one or more critical processes to a world class standard. Two ideas are especially important here. The © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT skills or knowledge must be complementary and when working together they should make it possible to provide a superior product. Prahalad and Hamel (1990, p82) describe core competence of an organisation as: ‘The diversified corporation is a large tree. The trunk and major limbs are core products, the smaller branches are business units; the leaves, flowers, and fruit are end products. The root system that provides nourishment, sustenance, and stability is the core competence. Core competences are the collective learning in the organisation, especially how to coordinate diverse production skills and integrate multiple streams of technologies. If core competence is about harmonizing streams of technology, it is also about the organisation of work and the delivery of value.’

Prahalad and Hamel (1990) quote the example of 3M who have competences in adhesives, micro replication, tapes, medical delivery aerosols, wire connectors, substrates, laser imaging and filtration technology, to name but a few. These shared competences are brought together and combined in various ways, consistently invested in, nurtured and promoted to give rise to an extremely diversified portfolio of businesses. 3M won races for global brand dominance by creating a wide variety of products from their core competences. Prahalad and Hamel (1990) go on to argue that there are at least three tests that can be applied to identify core competences in a company: •

A core competence provides potential access to a wide variety of markets

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A core competence should make a significant contribution to the perceived customer benefits of the end product

•

A core competence should be difficult for competitors to imitate, which will be the case if it is a complex harmonisation of individual technologies and production skills

Competence in display systems, for example, enables Casio to participate in such diverse businesses as calculators, miniature TV sets, monitors for laptop computers, and car dashboards. Canon’s core competences in optics, imaging, and microprocessor controls have enabled it to enter, even dominate, markets as diverse as copiers, laser printers, cameras, and image scanners. It is Honda’s core competence in engines that gives it a distinctive advantage in car, motorcycle, lawn mower, and generator businesses. Core competences are built through a process of continuous improvement and enhancement — this may take time. If a core competence is lost, sold or neglected then it will be difficult for an organisation to develop it again to meet the needs of an emerging market. Prahalad and Hamel also believe that core competence does not diminish with use. Unlike physical assets, which do deteriorate over time, competences are enhanced as they are applied and shared. They are also the engine for new business development. Core competences are not just about research and expertise in technology. Core competence in communication, involvement, and a deep commitment to working across organisational boundaries is essential for spotting new opportunities so as to use the core competences in new settings. It involves many levels of people and all functions. Competences in technological innovation will never be fully exploited if there is no competence in recognising opportunities, developing markets and selling. Core competence is about harmonising streams of technology and the organisation of work and the delivery of value.

Core competences need to be nurtured and protected; knowledge fades if it is not used.

Prahalad and Hamel (1990) also argue that building and investing in core competences is more important, and will be more beneficial for an organisation in the long term, than building and investing in core products. Core products are a company's products which are most directly related to their core competences. These products are then integrated into a variety of end products, either by the © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT company holding the core product or by a second company to which the core product is sold. The end products are sold to users. Core competences can be used across a range of products or services; core products are just that, a product: ‘Canon is reputed to have an 84% world manufacturing share in desktop laser printer ‘‘engines’’, even though its brand share in the laser printer business is minuscule.’ (Prahalad and Hamel, 1990, p87)

1.4.1 PEOPLE AS COMPETENCES Prahalad and Hamel (1990) also argue that the competences of departments and their people should be shared across the organisation. Departments or divisions within an organisation should look to share competences which have been developed. It is important for organisations to look across their various product divisions in an attempt to identify opportunities for coordinated initiatives. As a department, research team, or strategic business unit (SBU) evolves, it often develops unique competences. Typically, the people who embody this competence are seen as the sole property of the department etc in which they grew up. In some organisations the culture is such that SBU managers are not only unwilling to lend their competence carriers but they may actually hide talent to prevent its redeployment in the pursuit of new opportunities. When competences become imprisoned, the people who carry them do not get assigned to the most exciting opportunities, and their skills and enthusiasm begin to stagnate. Prahalad and Hamel (1990) believe that senior management should spend a significant amount of time developing a corporate-wide strategic architecture that establishes objectives for competence building. A strategic architecture is a road map of the future that identifies which core competences to build and their constituent technologies. This strategic architecture bears a direct relationship and indeed forms an integral part of creating an organisational vision. To clarify a vision for the future an organisation must look to its core competences. This concept is discussed in a radio interview with Charles Handy where he is reviewing Gary Hamel’s latest book. You can find the full review with Charles Handy by following the link http://www.bbc.co.uk/worldservice/learningenglish/work/handy/. The following text is taken from this. ‘Nevertheless, it would be folly, wouldn't it, to dream of things that lie beyond your capability? That is why it is crucial to work out what your real core competences are. These are what the firm knows, its skills and its unique capabilities. They may not be quite what you thought. You have to ask yourself ‘what is unique about you?’ What is valuable to your customers and what new opportunities does it open up? Barnes and Noble, the big American booksellers, to take just one example, were never going to beat © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT Amazon.com in virtual bookselling, because Amazon got there first. But Barnes and Noble had one thing that Amazon did not have — they had stores, places in the heart of towns and cities. They started to fill these with comfy sofas, coffee bars and childrens' toys, redefining themselves as leisure outlets with books galore. In other words, don't try to be better than your competitor, try to be different.’

Core competences Take some time to analyse an organisation you are familiar with and identify the core competences. Write a report which lists the core competences and explains your selection.

Other factors which can influence vision The first section covered vision and what should be considered and explored within the process of defining an organisation’s vision. It considered the first component of any lasting vision: core ideology which is influenced by the core values, ethics and the purpose of an organisation. The vision of an organisation cannot be developed without considering other factors which will impact upon its development and also its success or failure. Two other important factors which should be considered are those which form part of the internal environment of an organisation. We will now look at the internal environment of an organisation in terms of its structure and culture.

1.5 ORGANISATIONAL STRUCTURE The structure of an organisation will directly impact upon the success or failure of the vision. It is important for you to consider, as you work through the section below, how the types of organisational structure may impact upon the implementation and success or failure of that vision. You should consider whether a certain type of structure will have a negative or positive influence. You will be asked to complete an activity which will help you explore this. Let us look at the types of organisational structure and how they may affect an organisation’s vision. According to Mullins (2005, p596) organisational structure is:

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MANAGEMENT DEVELOPMENT ‘The pattern of relationships among positions in the organisation and among members of the organisation. Structure makes possible the application of the process of management and creates a framework of order and command through which the activities of the organisation can be planned, organised, directed and controlled. The structure defines tasks and responsibilities, work roles and relationships, and channels of communication.’ The purpose of organisation structure is, first, to divide up the activities of an organisation and put them into departments, sections or units, and then to co-ordinate and control these activities so that they achieve the aims of the organisation. The nature of the structure of the organisation affects productivity and economic efficiency, but also the morale and job satisfaction of the workforce. It also has an impact upon the organisation’s response to vision and ultimately change. Mintzberg (1979; 1983), quoted in Buchanan and Huczynski (2004, pp490–491), distinguished five basic parts of an organisation (strategic apex, operating core, middle line, techno structure, support staff) and suggested ways these could be co-ordinated into five ideal types of organisational structure.. Strategic apex: The group of individuals who direct the organisation. This will be the senior management (chief executive officers, archbishops or generals). This group decides on policies, plans and how resources are allocated and instructions are given. The group are there to ensure that the organisation meets its objectives. They also manage the boundary relations between the organisation and its links with the outside world. Operating core: These people are the functional, core employees which are located at the heart of the organisation. They receive inputs and transform them into products or services. Core employees take raw materials and process them into products such as motor cars; or transform ill patients into well patients. Core operators in one organisation can be semi-skilled, blue-collar, while in another they may be highly trained professionals like doctors and nurses. Middle line: These people are located between the strategic apex at the top and the operating core at the bottom. They are middle managers and supervisors of departments who are responsible for carrying out orders and ensuring that policies are pursued. The middle line links the senior management to the operators, usually through a single line of authority or chain of command. It is the job of these managers to pass information up and down the hierarchy, make decisions, deal with internal disturbances, promote smooth running and manage the relationships across organisational boundaries. Techno structure: These are technical support staff — IT specialists, analysts and technical advisors. They work within all levels of the organisation but are separate from them. The job of these technicians is to standardise the work throughout the entire organisation. They will design systems and procedures, redesign work processes, provide information and library services, provide market information and build financial systems.

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MANAGEMENT DEVELOPMENT Support staff: These people provide administrative and clerical support for the different levels. They provide personnel and human resource management, security, catering, public relations, building maintenance, invoicing, mail etc.

Mintzberg then went on to propose five ideal or pure types of organisational structure (Buchanan and Huczynski, 2004, p493–494). Simple structure: This is made up of the strategic apex and the operating core. It has little or no techno structure, few support staff, a short hierarchy. A garage owner and his team of mechanics would be an

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MANAGEMENT DEVELOPMENT example. This structure is flexible and adaptable. It is a common structure for many new, entrepreneurial, owner-managed firms. Its weakness is that it relies on one individual. Machine structure: The people who operate at the strategic apex make all the decisions in this type of structure. Middle managers control everyday operations using standard procedures and rules. The techno structure and administrative support staff are large in this structure. Work processes are standardised through recognised systems which leads to a guaranteed, unvarying, product or service. Motivating the staff in the operating core can be a problem where the work is standardised and repetitive. However, creativity and challenge could undermine the consistency and uniformity of the product or service. The strategic apex is distanced from the operating core which can lead to problems of communication and understanding. Professional structure: This has a large operating core, with few levels between the strategic apex and the professional employees. This organisation is decentralised and run by hierarchical authority, but stresses the power of expertise. The professional employees (for example, doctors, lawyers, engineers) have received extensive professional training. It has a small techno structure, but a large administrative support staff who serve the professionals. This professional structure can have problems of adapting to change and maintaining quality. Professional autonomy makes it difficult to implement changes and to deal with professional incompetence. Divisional structure: The divisions or strategic business units (SBUs) within the organisation carry out most of the work. The middle line and operating core are large, while the techno structure and support structures are small. The structure of the divisions or SBUs can take any of the forms above. Each division has its own market and function. While overall company rules and regulations exist, it is the managers in the middle line in each division who provide the direction and exert control. This structural form can experience a struggle for control between the operating core and the strategic apex. Ad hoc structure: This is a loose, flexible structure which frequently includes experts from different backgrounds and disciplines. Examples may include a small film or music company, advertising agency, ‘think tank’ or computer software firm or any young, research-based company that needs to innovate in rapidly changing conditions. The most important parts are the support staff in research and development, as well as experts in the operating core. The highly trained specialists are grouped into project teams. Co-ordination is achieved by members directly cooperating and mutually adjusting to each other. Its form is both organic and decentralised. Let us now look at four organisational structures in more detail. Project teams A project team may be set up as a separate unit on a temporary basis for the attainment of a particular task. The project team is often disbanded, or members of the unit are reassigned to a new task, once the project has been completed. Project teams may be used for people working together on a common task or to co-ordinate work on a specific project. For example, project teams have been used © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT in research and development in commercial and military systems, aeronautics and space programmes. A project team is more effective when it has a clear objective, a well-defined task, and a definite end-result to be achieved (Mullins, 2005, p617). Matrix The matrix organisation is a combination of functional departments. For example, a university or college can be grouped both by common subject specialism and by association with particular courses or programmes of study. The matrix organisation can be visualised as a grid, or matrix, with a two-way flow of authority and responsibility. Within the departments authority and responsibility flow vertically down the line, but the authority and responsibility of the ‘project’ manager (or course programme manager) flow horizontally across the organisation structure. The advantages and disadvantages of a matrix structure: •

Matrix organisation offers the advantage of flexibility; greater security and control of project information; and opportunities for staff development.

•

Development of this structure takes time, and a willingness to learn new roles and behaviour.

•

Staff may be reluctant to accept constant change and prefer the organisational stability from membership of their own functional grouping.

•

There can be issues of divided loyalties and role conflict with individuals reporting to two managers; effective teamwork is essential.

•

Reporting to more than one manager can lead to conflict and confusion; the number of channels open to communication can create informational log-jams; resulting in a loss of accountability.

This type of organisational arrangement requires a culture of co-operation, with supportive training programmes to help staff develop their teamworking and conflict-resolution skills (Mullins, 2005, p618– 619). Holding company structure According to Finlay (2000) a holding company is a parent company that has shareholdings in one or more separate companies. In the holding company the linkages between the parent and its operating companies are kept to a minimum. The parent will restrict itself to providing very broad strategic direction, generally setting the boundaries on the scope of the businesses and setting financial targets for them. The parent will be concerned with maintaining appropriate governance arrangements. The holding company is the structure that suits a diversified organisation where the linkages between the businesses are effectively non-existent or, rather, where the parent can’t or doesn’t want to add anything to what the businesses can do on their own.

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MANAGEMENT DEVELOPMENT Divisional structure Finlay (2000) describes this structure as a ‘division’ meaning any grouping of capabilities. A division usually contains one or more strategic business units (SBUs). The divisional structure can provide corporation-wide services, such as personnel and IT, that are more efficient and effective than those of independent strategic business units, and it can help improve individual SBU performance, for example through help with planning. An organisation with a divisional structure can develop competences that may be used by several of its SBUs. It should be recognised that there may be potentially inappropriate parental influence. The parent company may wish to produce a coherent strategy for the whole corporation and the planning and control mechanisms within the divisional structure will be more complex. Parents in divisional organisations will find it harder than those within holding companies to set targets and the associated rewards, and thus might find it harder to motivate the leader-managers in their units.

1.5.1 ALTERNATIVE FORMS OF STRUCTURE Morgan (1993) stated that: ‘The movement towards tighter and leaner organisations has drawn attention to the importance of alternative forms of structure and placed increased emphasis on the demand for flexibility.’ Morgan argues that we are leaving the age of organised structures and moving into an era where selforganisation will become a key competence. Looser organisations and different forms of control will entail a close examination of such issues as growth and size, teamwork, decentralisation, franchising and subcontracting. Mullins (2005, pp49–50) agrees with this: ‘Rapid developments in information technology have also highlighted the need for review of structural design. Organisations have reduced the size of their workforce, especially full-time staff, and have flatter structures with fewer levels of authority.’ Mullins is referring to the increasingly common practice of outsourcing and using specialist service providers such as management consultancies. You may find this within your organisation or one that you know of. Crainer (1998, p47) suggests that the organisation is changing and the world of work is moving into a new age. He lists ‘seven habits of the new organisation’: 1. Flexible and free-flowing © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT 2. Non-hierarchical 3. Based on participation 4. Creative and entrepreneurial 5. Based round networks 6. Driven by corporate goals 7. Utilising technology as a key resource With the influence of European Union Laws passed in April 2003, we can see an increase in demand for flexible working. Employees with children under the age of six are entitled to apply for flexible working. This has contributed to the changes in organisational structure that Crainer (1998) and Morgan (1993) talk about. The Shamrock Organisation This idea comes from Handy (1989) quoted in Mullins (2005, p643). It recognises even then that the impact of technology and changes in legal working practices will change the structure of organisations. Outlined below is the concept: ‘The three leaves are symbolic of the organisation which is seen as made up of three distinct groups of people who are managed, organised and paid differently and with different expectations.’ (Mullins, 2005, p652).

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MANAGEMENT DEVELOPMENT The professional core contains qualified professionals, technicians and managers which are essential to the existence and effective performance of the organisation. These people have the knowledge which marks out the organisation from others. The professional core is often expensive to maintain and it is traditionally this group who are restructured in order to save costs. The contractual fringe are people often outside of the organisation that provide specialist services and undertake all non-essential work which can be done by somebody else. They are generally able to do it better for less. The contractual fringe is paid for results in fees and not wages for time. The flexible labour force is part-time and temporary workers who make up the fastest growing group in the pattern of employment. They enable greater flexibility in human resourcing. These people are brought in as occasional extra part-time labour or temporary staff as changing work situations demand. According to Handy, organisations now have three significant workforces, each with a different kind of commitment to the organisation and a different set of expectations. He argues that each workforce needs to be managed in different ways. This must lead to managers asking what activities, and which people, should belong to the core. There will also be issues concerning the management and control of subcontracting, and of the flexible workforce. Casual and part-time staff are unlikely to have the same degree of commitment or ambition as the core, however, it is important that they are taken seriously and regarded as a valuable part of the organisation so as to encourage commitment towards their work. Handy also states that the core is the critical hub of the organisational network and this raises important questions as to what activities belong in the core; and which people belong in the core, and for how long. Fixed-term contracts will be an increasing feature.

1.5.2 THE IMPACT OF ORGANISATIONAL STRUCTURE ON VISION Looking at the structures outlined above you should be able to conclude that the structure of an organisation can make or break a vision. When considering the impact that each type of structure can have upon vision, it is worth considering what impact each type of structure has upon the following: •

Roles and responsibilities of departments and people within departments

•

Reporting lines of managers and staff and how this can affect performance

•

Flexibility and adaptability to change

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Openness to new ideas and ways of working

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Leadership hierarchy

•

Effectiveness of communication and cooperation between departments and people

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Structure and the impact on vision Using the points above as a guide, choose two distinctly different forms of structure from the selection outlined above. For each structure, describe the effect you think it will have on an organisation’s vision, in terms of its effectiveness and success or failure.

1.6 ORGANISATIONAL CULTURE We have looked at how organisational culture forms part of an organisation’s vision and what needs to be considered when forming a vision. The culture within an organisation can be considered on two levels: •

in terms of organisational practices and values and beliefs

•

in terms of ethnicity and religion

Both levels of culture can have an impact on the nature of the vision and how the vision is implemented and ultimately whether it is successful or not. The impact of organisational culture on vision is easier to assess; the impact of ethnic or religious culture upon the organisation’s vision is not so clear. It is important for you to have an understanding of what organisational culture is and how it can impact on an organisation and its vision. Early writers on the subject of cultures suggested that a company’s culture consists of values and beliefs, myths, heroes and symbols that possess meaning for all employees. Set out below are four theories of prominent management theorists of our day. You should have an understanding of the basic concepts of each theory. It is also important that you carry out your own research to further enhance your understanding of the concepts and how they apply to you within your organisation and to the process of visioning. The first management theorist we will look at is Edgar Schein.

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1.6.1 EDGAR SCHEIN Edgar Schein’s model of culture is among the most widely discussed today. His model views organisational culture in terms of three levels, each distinguished by its visibility to, and accessibility by, individuals. Level 1: Artefacts The most visible level of the culture consists of artefacts and creations — the constructed physical and social environment. It refers to the visible things that a culture produces. It includes both physical objects and also behaviour patterns that can be seen, heard or felt. All these things ‘send a message’ to an organisation’s visitors, customers and employees. It is not the organisation’s culture itself, but only its most apparent and most accessible aspect that can be seen and felt by people. It can include physical space and layout, the technological output, written and spoken language and the observable behaviour of group members. Buchanan and Huczynski (2004, pp645–647) give some examples of level 1 artefacts and creations: Artefacts are material objects created by human hands to facilitate culturally expressive activities. They include tools, furniture, appliances and clothes (‘work wear’). Open-plan offices, with their absence of doors and personal private space, are intended to convey less of an ‘us and them’ message. Ceremonials are systems of rites connected within a single event such as a’ fun day’, ‘celebration of achievement’ awards etc. Courses are sets of instructions for induction, orientation and training that are used to educate new members. Airlines have four- to five-week induction courses for cabin staff, incorporating a course on grooming, including how to apply make-up. The Head of Appearance and Grooming carries out formal, random appraisals on individual crew members. Gestures are movements of parts of the body used to express meaning. These are apparent in military organisations; junior ranks salute senior ranks in a gesture that acknowledges the higher rank. Heroes are characters, living or dead, who personify the values and beliefs; who are referred to in company stories, legends, sagas, myths and jokes; and who represent role models that current employees should emulate, eg Steve Jobs in Apple, and Bill Harley and John Davidson in HarleyDavidson. Language is the particular form of manner in which members use vocal sounds and written signs to convey meaning to each other. It includes both specialist technical vocabulary related to the business (jargon), as well as general naming choices. For example, Wal-Mart has associates; McDonald’s has crew members; Disney has cast members; ASDA, Tesco and Sainsbury’s have colleagues; B&Q has team players; Starbucks has partners; Brook Street Employment Agency has recruitment consultants. © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT Legends are handed-down narratives about wonderful events based on history, but embellished with fictional details. These fascinate employees and invite them to admire or deplore certain activities. Mottoes are maxims adopted as rules of conduct. Unlike slogans, mottoes are rarely, if ever, changed. For example, John Lewis Partnership (British department store chain): ‘Never knowingly undersold’; Special Air Services (SAS) (British military): ‘Who dares wins’. Myths are dramatic narratives of imagined events, usually used to explain origins or transformations. They offer an unquestioned basis for behaviour or techniques. For example, a staff member at Disneyland Paris dressed as Mickey Mouse was sued by the company after taking off his costume in front of tourists. This reinforces to new workers unwritten rules and standards in a powerful way. Norms are expected modes of behaviour that are accepted as the company’s ways of doing things, thereby providing guidance for employee behaviour. For example, in the British Army officer’s mess, one addresses others as Mr or Miss, as a sign of respect. Physical layout concerns things that surround people, providing them with immediate sensory stimuli as they carry out culturally expressive activities. For example, the headquarters at Nike (sportswear manufacture) have a Hall of Fame of famous athletes who wore Nike equipment, down which all employees must pass each morning before arriving at their offices. Rituals are a repetitive pattern of activities that occur in specific circumstances or at particular times in an organisation. They are intended to help employees to manage their anxieties. For example, ASDA staff are encouraged to slap their back pockets while chanting A-S-D-A in a huddle before each shift. Slogans are short, catchy phrases which are regularly changed. They are used for both customer advertising and also to motivate employees. •

Nike: ‘Just do it’

•

British Army: ‘Be the best’

•

ASDA: ‘ASDA price’ jingle

•

Coca-Cola: ‘Always Coca-Cola’

Stories are simple narratives describing how individuals acted and the key decision they made that affected the company’s future. Stories are usually based on true events but can include a mixture of both truth and fiction. For example, at a leadership programme for a large supermarket chain, delegates arrived with examples of leadership in the business that had inspired them. One story concerned a General Store Manager who had swapped jobs with a porter for a day. The manager was new to the store and every morning saw the same porter clearing trolleys in the car park. The porter would shout over and say hello to the manager and always finish with 'don't forget I’ll have your job some day!' Eventually the manager decided to take him up on the offer and said he would swap the © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT next day — he would push trolleys and the porter could run the shop. When the manager woke the next morning it was pouring down with rain and he resolved to cancel the plans — he didn’t want to push trolleys out in the wet and rain! When he arrived at the store there were trolleys everywhere and no sign of the porter, so he went upstairs to his office. As he opened the door he found the porter sat at his desk in his dad's old suit (his dad had died a few years before and he was the breadwinner in the household) and a brand new white shirt. 'What are you doing up here?' said the porter. ‘Get yourself down and sort out the trolleys!’ So he did just that, but did confess to having made several visits into the store to check all was OK too. The manager’s big lesson was: you do what you say you'll do — your people should be able to take you at your word. Symbols or brand logos refer to any act, event, object, quality or relation that serves as a vehicle for conveying meaning, eg Coca-Cola and IBM logos, Nike ‘swoosh’, G for Gucci, McDonald’s ‘Golden Arches’, ‘Intel inside’ symbol on computers.

Influencing vision Choose four of the above creations that you feel could have the most influence on vision in terms of its creation or change, adoption by employees, sustainability and reinforcement and image given to the outside world. Discuss your reasons for your choice and the potential negative or positive impact each one would have on vision.

Level 2: Values and beliefs Cultural learning reflects someone’s original values. Solutions about how to deal with a new task, issue or problem are based on convictions of reality. If the solution works, the value can transform into a belief. Values and beliefs become part of the conceptual process by which group members justify actions and behaviour. They are often unspoken but can mould members’ behaviours. They can be both consciously and unconsciously held, and thus reflect relatively general beliefs. They are typically based on moral, societal or religious precepts that are learned in childhood and modified through experience. Values are located below the surface and not visible. Schein believes that these values are the elements that distinguish an organisation from others. Schein sees these values as truly being an organisation’s culture.

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MANAGEMENT DEVELOPMENT If we look at McKinsey 7-S Framework for organisational success (see the HNC Management workbook, Unit: Management: Plan, Lead and Implement Change or access the following link: HNC Management Development, select Management: Plan, Lead and Implement Change (DV8C 35), then select Planning for Change, 7S), we can see that the values are positioned at the centre of the framework, holding the other elements together. Values are considered to be a key element in achieving high organisational performance. Values are said to provide a common direction for all employees and act as guidelines for their behaviour. In many organisations a single person (founder) has an idea for a new company and brings in other key people to create a core group who share a common vision with the founder. This group creates an organisation, brings in others and begins to builds a common history. Key people such as directors or senior managers can be described as the organisation’s ‘culture carriers’. Values are integrated into company practices and procedures. Schein believes that organisations which have such histories possess cultures that permeate most of their functions.

Values and vision Choose an organisation you are familiar with; identify any messages that convey a deepseated or underlying set of values that are held by the company. Write a report listing the messages which identify these values and the values themselves. Explain why you think these messages convey certain values. Think about how an organisation’s values can have an impact upon vision — its development and implementation and ultimately its success or failure. Summarise your thoughts based upon Schein’s theory on values and beliefs.

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Find out as much as you can about IKEA, the Swedish based flat-pack furniture supplier, and its core values and corporate culture. In 1976, its founder Ingvar Kamprad crystallised his thinking into a text known as ‘The Testament of a Furniture Dealer’, setting out IKEA's ‘sacred concept’. A strong social and ethical theme runs through IKEA's ‘bible’ such as ‘Waste of resources is a mortal sin at Ikea’, ‘Happiness is not to reach one's goal but to be on the way’ and ‘Only while sleeping one makes no mistakes’. Look at how the shared values, beliefs and ultimately the organisational culture and vision have shaped the company. How has company culture shaped IKEA’s thinking on the following? Company structure/hierarchy; leaders within the organisation; product design and prices; company vision. Type in IKEA, or ‘The Testament of a Furniture Dealer’ into Google. The following links may also help. http://www.ikea.com/ms/en_GB/about_ikea_new/about/history/index.html http://news.bbc.co.uk/1/hi/world/europe/855984.stm http://www.businessweek.com/magazine/content/05_46/b3959001.htm http://www.theage.com.au/articles/2004/07/14/1089694424455.html http://www.guardian.co.uk/g2/story/0,3604,1240462,00.html

The bigger issue in terms of company culture and values is what happens inside IKEA once the founder’s influence ceases to exist. How much influence will Kamprad’s values and, ultimately, culture have on IKEA’s vision for the future and will its core ideology hold true in the future? As Harvard Business School Professor Christopher A. Bartlett said ‘The great challenge of any organisation as it becomes larger and more diverse is how to keep the core founding values alive’ (Bartlett and Nanda, 1996). IKEA is still run by managers who were trained and groomed by Kamprad © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT himself — and who are personally devoted to the founder. As the direct links with Kamprad disappear, the culture may start to fade. Level 3: Basic underlying assumptions When a solution to a problem works repeatedly it comes to be taken for granted. Basic assumptions are unconsciously held learned responses. They are implicit assumptions that actually guide behaviour and determine how group members perceive, think and feel about things. They include the assumptions that individuals hold about the organisation and how it functions. They relate to aspects of human behaviour, the nature of reality and the organisation’s relationship to its environment. They are invisible, preconscious and ‘taken for granted’. They are therefore difficult to access.

1.6.2 CHARLES HANDY Charles Handy (1993) describes four main types of organisational culture or ‘four gods of management’ (named after Greek gods). His theory helps us to classify culture within organisations and try to make sense of their foundations and how it influences their working practices. The four ‘gods of management’ are: 1. Power culture (Zeus) depends on a central power source with rays of influence from the central figure throughout the organisation. A power culture is frequently found in small entrepreneurial organisations and relies on trust, empathy and personal communications for its effectiveness. Control is exercised from the centre by key individuals. There are few rules and procedures, and little bureaucracy. It is a political organisation with decisions taken largely on the balance of influence. The advantages of this type of culture are: speed of decisionmaking; empathy, trust and emotional commitment. It also has a lean and economical structure. The disadvantages are that organisations can be amateur, blinkered and unprofessional. 2. Role culture (Apollo, god of order and rules) is often stereotyped as a bureaucracy and works by logic and rationality. Role culture rests on the strength of strong organisational ‘pillars’ — the functions of specialists in, for example, finance, purchasing and production. The work of, and interaction between, the pillars is controlled by procedures and rules, and co-ordinated by a small band of senior managers. Role or job description is often more important than the individual and position power is the main source of power. This culture assumes that reason should prevail and that tasks can be parcelled out logically. Everyone knows their role and works on their delegated activities according to their job description. Apollo represents bureaucracy and this style can be the most efficient way of running firms which operate in a stable and predictable environment. Because responsibilities are clear and fixed, many people find the Apollo style easy to deal with, secure and stress-free. This style is unlikely to be effective where there is rapid technological or market change or where teamwork is vital. Nor

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MANAGEMENT DEVELOPMENT does it suit creative, restless or questioning individuals or those who like the firm to be highly personal. 3. Task culture (Athena, warrior goddess, the patron saint of craftsmen and explorers) is joboriented or project-oriented. In terms of structure, the task culture can be likened to a net, some strands of which are stronger than others, an example being the matrix organisation. Task culture seeks to bring together the right resources and people, and utilises the unifying power of the group. Influence is widely spread and based more on expert power than on position of personal power. Athena firms have a problem-solving culture and are not hierarchical. There is a respect of professional expertise and an encouragement of teamwork, creativity and energy. Athena firms tend to work in project teams which may be disgruntled once a problem is solved. They can be re-assembled, perhaps with different members, to attack a new challenge. Athena organisations are most appropriate to ‘knowledge industries’ and professional firms, to times of expansion, and to people who think for themselves and can tolerate ambiguity and rapid change. 4. Person culture (Dionysus, the god of existential culture) — where the individual is the central focus and any structure exists to serve the individuals within it. When a group of people decide that it is in their own interests to band together to do their own thing and share office space, equipment or clerical assistance then the resulting organisation would have a person culture. Examples are groups of barristers, architects, doctors or consultants. Although it is found in only a few organisations many individuals have a preference for person culture, for example university professors and specialists. Management hierarchies and control mechanisms are possible only by mutual consent. Individuals have almost complete autonomy and any influence over them is likely to be on the basis of personal power. Dionysians are difficult to manage and often impossible to motivate. They are self motivated, inwardly direct and concerned about the quality of their work and not what anyone else thinks of them. They are not good team players and are most effective in very small firms or one-person units.

1.6.3 DEAL AND KENNEDY Deal and Kennedy (1982) categorise corporate cultures according to two determining factors in the marketplace: the degree of risk associated with the organisation’s activities; and the speed of which organisations and their employees receive feedback on the success of decisions or strategies. These factors give rise to four generic types of culture. 1. Tough-guy, macho culture: This describes an organisation of individuals who frequently take high risks and receive quick feedback on their actions. Examples cited include police departments, surgeons, construction, cosmetics, management consultants, firms dealing on the stock exchange and the entertainment industry. Financial stakes are high and there is a focus on speed. Generally there is intense pressure and frenetic pace which often leads to © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT ‘burn-out’. Internal competition and conflict are normal, staff can be temperamental but they are tolerated. 2. Work-hard/play-hard culture: This organisation is characterised by fun and action, employees take few risks and gain quick feedback. There is a high level of relatively low-risk activity. Examples include sales organisations such as McDonalds, office equipment manufacturers and retail stores. The organisations tend to be highly dynamic and the primary value centres on customers and their needs. It is the team who produce the volume of sales so the culture encourages games, meetings, promotions and conventions to help maintain staff motivation. 3. Bet-your-company culture: Within this organisation there are large high stake decisions made with a high risk but slow feedback, so that it may be years before employees know if decisions were successful. Examples include oil companies, investment banks, architectural firms and the military. The focus is on the future and the importance of investing in it. Decision-making comes from the top down. This culture leads to high-quality inventions and scientific breakthrough, but moves only very slowly and is vulnerable to short-term fluctuations. 4. Process culture: This organisation has a generally low-risk, slow-feedback culture where employees can find it difficult to measure what they do. Typical examples include banks, insurance companies, financial services, and the civil service. The individual financial stakes are low and employees get very little feedback on their effectiveness. Their memos and reports seem to disappear into a void. People tend to develop a ‘cover your back’ mentality. There is often an attention to trivial events, minor detail, formality and technical perfection. Process cultures can be effective when there is a need for order and predictability.

Log on to http://online.wsj.com Look at how Google responds to the rapidly changing world around us. Note how it has structured itself to be able to meet new challenges and exploit opportunities into the future and beyond. Note its company structure and culture and how these promote the development of its long term vision which is to ‘organise the world's knowledge or, as one vice president put it, raise the world's IQ’.

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MANAGEMENT DEVELOPMENT It is interesting to note that McKinsey & Co. analysed the most successful midsize, high-growth firms in the United States. The defining characteristic common to the companies was the intensity with which they managed their cultures. McKinsey’s researchers found that the organisations worked diligently to maintain the same qualities of the culture that had characterised them when they were small, and that had led to their initial success. They were able to institutionalise the culture developed during their formative period by instilling a strong, explicit sense of mission and shared values. They worked constantly to reinforce deeply ingrained beliefs and because they consciously communicated the desired characteristics of the culture through various media, they continually reinforced how they expected people to behave.

1.6.4 MILES AND SNOW Like Handy, Miles and Snow have distinguished four types of organisational culture. These are described as the following: 1. Defenders: Managers within this type of organisation are experts in their limited area of operation but tend not to search outside their current areas for new opportunities. A stable form of organisation is deliberately maintained. This is done by ‘sealing off’ narrowly defined market segments. These organisations tend to strive for increasing efficiency. Major adjustments to their operations are seldom made. 2. Prospectors: These organisations continually search for market opportunities by regularly experimenting with potential responses to emerging environmental trends. The emphasis is on innovation and not efficiency. 3. Analysers: These organisations tend to exhibit both defender and prospector characteristics. In stable situations, these organisations operate through the use of formalised structures and processes. In more dynamic settings, they tend to be followers, watching their competitors closely and copying their most promising innovations. 4. Reactors: This is an organisation in which managers do not know how to react to change. There is a lack of a coherent strategy and reaction happens in response to outside influences. It is easy to see how the characteristics of an organisation’s culture can impact upon the nature of its vision and, in the long term, how effective the organisation is in achieving its vision. The impact of culture will vary according to how engrained and mature the culture is within the organisation. Young organisations often have a visionary leader who establishes the culture, as in IKEA. It could be argued that the leader’s vision is easier to achieve as the culture created by the leader reflects that vision. More mature organisations, with a more ingrained embedded culture, may find that they have difficulty in working towards a company vision, especially if a new vision is to be created.

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MANAGEMENT DEVELOPMENT Leaders may find that creating a new vision based upon original culture, values and beliefs can be harder. The need for change and a new vision may be there but the embedded beliefs, culture, company structures, hierarchies and ‘the way we do things’ attitude may make the job difficult.

Organisational culture Choose the organisation you work for, or an organisation you know well. Consider the culture within the organisation. Describe it and then match it to one of the culture types covered in this section. Show your evidence as to why you made this match. Discuss how you think this culture will impact, or has impacted, upon the vision of your organisation.

The sections above have covered the factors which should be considered when developing a vision for an organisation. These factors form part of the core ideology of an organisation. Collins and Porras suggest that the process of visioning should consider the core ideology of an organisation first (values, ethics, purpose, structure and culture), and then craft the vision in terms of creating an envisioned future. The following section looks at what we mean by envisioned future and how it can be used in the stages of developing a vision. We have considered the factors which influence and have an impact on organisation vision, its creation and effectiveness. Before developing a vision statement you should consider these factors (core ideology, identifying values, ethics, culture, structure, purpose and competences of your organisation) and be aware of how they will influence vision. You will then be able to consider the second part of crafting a vision statement which involves creating and communicating the ‘envisioned future’. The envisioned future is the expressed version of the vision and conveys the long-term goal in an inspirational way.

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1.7 STAGES IN DEVELOPING A VISION It is important to consider the theory behind the creation of a vision; the sections above have given you a summary of factors which can influence vision and the visioning process. Creating an ‘envisioned future’, as described below, is part of the process of identifying and developing vision. The sections above have looked at factors which can influence vision and how they can impact upon the creation and ultimate success of vision. In the early stages of vision creation it is important to consider how each factor will influence and impact upon the creation and adoption of the vision. As part of the stages in developing a vision it is important to look at the other part of the visioning process as described by Collins and Porras. This is the future part of the vision, the goal and the picture of how it will be. This is the creative part of the process.

1.7.1 CREATING AN ENVISIONED FUTURE Collins and Porras suggest that ‘on the one hand [an Envisioned Future] conveys concreteness — something visible, vivid, and real. On the other hand, it involves a time yet unrealised — with its dreams, hopes, and aspirations.’ (1996, p73) As with core ideology, envisioned future is made up of two parts: a 10- to 30-year audacious goal or BHAG as it is commonly known; and a Vivid Description. We now have a clearer picture of what we mean by ‘vision’ and its characteristics and what is involved in its creation. BHAG or Big Hairy Audacious Goal Many companies have goals, ‘to sell 50% more by the end of the year’, ‘to improve client relationships’, ‘to reach a wider audience’, ‘to attract more regular donors to our charity’ and so on. Are these inspiring enough? Collins and Porras suggest: ‘A true BHAG is clear and compelling, serves as a unifying focal point of effort, and acts as a catalyst for team spirit. It has a clear finish line, so the organisation can know when it has achieved the goal.’ (1996, p73) They also go on to suggest that a BHAG is tangible, energising and highly focused. ‘People get it right away.’ The BHAG should not be a mission statement that is impossible to remember. It should be easily remembered, interpreted and understood by everyone. It should be a long-term goal that an organisation can believe it can reach. Collins and Porras suggest that there are four types of BHAGs: •

Target BHAGs

•

Common-enemy BHAGs

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Role-model BHAGs

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Internal-transformation BHAGs

Types of BHAGS Research the BHAGs of companies you are familiar with and decide which type of BHAG they are. To find out more, type BHAGs into Google A useful website is www.jimcollins.com

Vivid description The second part of the Envisioned Future, the vivid description should be just that: a vivid, vibrant, descriptive picture of what it will be like to have achieved the BHAG. People working in the organisation should be able to carry in their heads a detailed graphic picture of what it will be like to get to the end of the goal. Churchill made many speeches which painted vivid pictures of what we can term as BHAGs today. They painted a picture of what it will be like when the war is won and what must be achieved to win. Here is a quote from one of his speeches: ‘Hitler knows he will have to break us on this island or lose the war. If we can stand up to him, all Europe may be free, and the life of the world may move forward into broad, sunlit uplands. But if we fail, the whole world, including the United States, including all we have known and cared for, will sink into the abyss of a new Dark Age, made more sinister and perhaps more protracted by the lights of perverted science. Let us therefore brace ourselves to our duties and so bear ourselves that if the British Empire and its Commonwealth last for a thousand years, men will still say, “This was their finest hour.’’ (House of Commons speech, 18 June 1940) This speech paints a graphic foreboding picture to the Americans about what will happen if they do not join the Second World War. It also inspires the British people to carry out what must be done, and suggests how their efforts and sacrifices will be regarded for hundreds of years to come.

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MANAGEMENT DEVELOPMENT To summarise this section of the workbook: we have looked at what we mean by vision and what can be considered as essential to what a vision should consider. It is important not to get muddled between vision, mission, purpose, values and goals.

Identifying core ideology is a discovery process, but setting the envisioned future is a creative process.

Vision Before you go on to look at ways of developing a vision it would be useful for you to review your research and activities around the factors which influence and contribute to the writing of a vision. Write a summary describing how these factors can have an influence on the creation of a vision and what should be considered when starting the visioning process.

The importance of vision statements should not be underestimated. One good paragraph will describe the values, services and vision for the future. Remember that vision statements if successful will be remembered and become synonymous with your department or organisation. Creating a vision, and encouraging ownership and belief in that vision by all stakeholders, can be a very powerful management tool for an organisation undergoing change. A successful culture change can be agonisingly slow, but when vision becomes the vehicle to drive change, the speed can quickly pick up. For this to happen a vision needs to be credible and be able to persuade other people it’s worthwhile joining you on the ‘journey’. It needs to be relevant to the people, the business or organisation and people should be able to see ‘what’s in it for them’. A good vision statement is a sentence or short paragraph consisting of two to four sentences. Less is more. It shouldn’t require explanation — you just get it.

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MANAGEMENT DEVELOPMENT Before you begin The guidelines below will serve to remind you of the points we have considered in the sections above, and also points to remember when creating a vision for the future. Formulate with the group a compelling picture of a desirable future 1. Painting a compelling picture: the more concrete and descriptive the picture is, the easier it is for people to believe in and commit to the vision. Painting vivid pictures using images, stories, metaphors and examples is central to effective visioning. 2. Envisioning a desirable future: desirable means that the picture connects strongly with the group members’ values and aspirations, which should link with the organisation’s values and culture. This is what gives visioning its power. Making a significant contribution to the world, increasing knowledge, making people’s lives better in some fashion are the kinds of aspirations to which people can commit to and be prepared to invest their time, energy and effort. For a vision to inspire, unify, and sustain performance, it must connect with individuals at this deeper level. The vision must be a concrete, vivid picture of a future and the group must want to create it together. Continually and consistently communicating the vision You should use a variety of means to repeat, restate and re-emphasise the vision. The vision should be consistent and communicated across the whole of the organisation. Mixed messages confuse people and dilute the unifying potential of visioning. You need to be sure that, together, you are communicating one message. Consistency of the message is also demonstrated when your actions are in line with the stated vision. Freeing people to take individual and collective action to achieve the vision The intention behind visioning is not to prescribe specific actions but to inspire initiative and bring unity of focus and direction. You may want to develop a strategic plan for realising the vision but take advantage of individual and/or group initiatives that may contribute to implementing the vision. You will find that your group will have a greater commitment to the cause. The essential task is to create the environment for individuals and groups so that they can act. Recognising the contribution of individual and group activities in realising the vision Most individuals need regular recognition from their leader to maintain their motivation, especially when learning new skills and behaviours, or when actions involve the risk of failure or disapproval from others. You should recognise both the effort and any successes and also look for opportunities to reinforce actions and attitudes that move the group toward the realisation of the vision.

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1.8 VISIONING TECHNIQUES A number of the more commonly used visioning techniques are described below. Interview techniques Interviews of key people within the organisation are essential for developing your vision. Interview each person separately to gather their feedback on the future direction of the organisation. The interview should last about an hour and include both general and specific questions, as well as a mix of past, present and future questions. Such questions can include: •

‘Where and why have we been successful in the past?’

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‘Where have we failed in the past?’

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‘Why should we be proud of our organisation?’

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‘What trends, innovations and dynamics are currently changing our marketplace?’

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‘What do our customers/clients expect from us?

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‘What are our greatest attributes and competences as an organisation?’

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‘Where do you see our organisation now?’

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‘Where do you see our organisation in 3 years … 5 years … 10 years?’

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‘How will our organisation have changed during that time period?’

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‘How do we sustain out success?’

The results of the interview can then be summarised and presented to the appropriate person who should then draft the vision based on the collective knowledge gathered. Once the draft is completed the entire team should get together to discuss the vision, ensuring it captures the essential elements they discussed during their interviews. You would not expect to have the first draft accepted by everyone, and that is the idea — involve the whole team in the creation process. Back to the future visioning This exercise can be administered either individually or with a group. Distribute several 3” x 5” index cards to each of the participants. To begin the session, ask the group to imagine that they have woken up five, 10 or 15 years in the future (your choice of time increment). Tell them that in order to record their impressions of the future, they have each been given an imaginary disposable camera to capture important images of changes

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MANAGEMENT DEVELOPMENT that have taken place within their organisation. They must create a caption for the pictures they have taken during the day on the index cards they were given. Give the participants about 15 minutes to imagine their trip to the future and encourage them to visually capture as much as possible in their mind’s eye. Ask the group: •

What has happened within your organisation — is it successful?

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What markets are you serving?

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What core competences are separating you from your competitors?

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What goals have you achieved?

Once the 15 minutes are up, you say: ‘Unfortunately, on the trip back to the present the re-entry was a little rough and the pictures were destroyed’ (more animated and comedic facilitators can have a field day with this section) ‘but fortunately for you the captions remain’. Record the captions from the index cards on a flipchart or laptop computer and use them as the raw materials for the initial draft of a vision statement. Magazine front cover This is an effective way of giving people a clear sense of what the organisation will look like when the vision has been achieved. The idea involves creating a mock-up of a business magazine featuring a cover story on your organisation. The magazine’s dateline is sometime in the future. Inside the mock journal are articles about how the company has delivered on its vision, written from the perspective of some future date. The challenge for management is to make the vision tangible so that, in time, you can develop specific strategies and tactics to make it actionable and therefore achievable. This technique works equally well for both organisation-wide visions and those created by unit managers. Using environmental and visual stimulus Managers should seek input from all parts of the organisation. You can form a vision committee comprising people from multiple disciplines. Gather people at an off-site location, somewhere different, to discuss the vision; off-site locations work best because they minimise interruptions and are removed from the everyday running of things. In preparing the environment, take a cue from what product designers do. They ‘dress’ the environment with visual cues to inspire thought. These visual cues can be photographs, works of art, swatches of fabric, or gadgets. By dressing the environment, you prepare people to step outside themselves and focus on something different. Along that line, ask a facilitator to stage activities, games, and even simulations to spark thought. Creating a stimulating environment and combining this with brainstorming/mind mapping or thought showering can be highly effective. Choose a facilitator who has some experience at putting ideas down visually either on paper, or using software programmes which are now available, which could be to your advantage and may © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT make the process run more smoothly. Creating simple pictures, phrases or words and recording them all on one big piece of paper can identify the bigger picture and encourage lines of thought and ultimately direction. Visual sense making This is a technique using a number of artefacts, diverse images from a number of sources such as magazines, internet, newspapers etc. People should work in teams at the outset and use the given resources to create a collage of where they see their organisation now — the competences, culture, structure, values and purpose. The team should also include any difficulties they perceive the organisation to have. The team can then use the collage to inspire a string of words relating to it. These words can be recorded as a mind map or web. Mind maps and brainstorming There are a number of names given to the technique of recording words, pictures, images etc on a large sheet of paper or a computer screen using a certain type of software. Some refer to it as a web, like a spider’s web where ideas or words are connected by the strands of silk; others call them maps as ideas are connected by lines or roads. It is a very visual way of seeing the bigger picture.

For more on mind mapping see the Unit: Management: Developing Self Management Skills at this link: HNC Management Development, choose the Unit Management: Developing Self Management Skills (DV86 34), go to Personal Development Plan and then Mind Maps.

1.8.1 HINTS AND TIPS ON HOW TO WRITE A VISION STATEMENT The following tips may be useful for you to remember when planning your group sessions and creating a vision. 1. Have unreasonable expectations, think big, and think of BHAG! 2. Make your business definition elastic; don't get fixated on one vision. 3. Define a cause or mission, not what your organisation does! 4. Listen to other voices: young people, newcomers, outsiders. 5. Keep an open market for ideas; don't shut anyone up.

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MANAGEMENT DEVELOPMENT 6. Recognise talent; allow people to work in areas that excite them. 7. Take time when writing a vision statement; words are important and if chosen carefully can be highly effective. 8. Pick out the most important points. 9. List some positive words — words of aspiration and inspiration for your statement. Use mind mapping or thought showering. 10. Select your most important words and combine them in one sentence, or put your most important sentences together which must be combined in one short paragraph.

Don’t forget the component parts of vision and seek to establish definition of these first. Core ideologies (core purpose and core values) plus envisioned future (BHAG and vivid description)

Find out more about vision and its creation by referring to http://www.cipd.co.uk/research/_visionandvalues.htm

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Get the 'feel' of vision statements by checking out samples and examples of vision statements of some big companies and small establishments. Here is a vision statement and statement of purpose from Cancer Research UK: ‘Our vision is a statement of what we aspire to, why we exist and the impact we would like to have on society.’ ‘Our purpose describes what we will do to achieve our vision: •

We carry out world-class research to improve our understanding of cancer and find out how to prevent, diagnose and treat different kinds of cancer.

•

We ensure that our findings are used to improve the lives of all cancer patients.

•

We help people to understand cancer, the progress we are making and the choices each person can make.

•

We work in partnership with others to achieve the greatest impact in the global fight against cancer.’

1.8.2 PRACTISE COMMUNICATING YOUR VISION Consider the ‘elevator conversation’. Bill Gates has just got in the lift with you and asks where your business is heading — what’s the vision? Will you be able to communicate it to him in 45 seconds and will he ‘get it’?

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Don’t forget that ‘less is more’.

The example below is all about how the value, culture and philosophy have enabled a vision to be achieved and also how these have impacted on the success and growth of the organisation.

Eden Project A good example of how persistent and positive communication of a vision works, and how ‘talking it up’ actually made it happen, is the Eden Project and its founder Tim Smit. Review the following links. (You can also find more on your own by typing Tim Smit into a search engine.) Find out as much as you can about the project’s origins, the core values and beliefs behind the management style of its founder Tim Smit. •

www.st-andrews.ac.uk/media/Tim_Smit.pdf

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http://www.bbc.co.uk/radio4/news/inbusiness/inbusiness_20070531.shtml

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http://www.guardian.co.uk/society/2004/oct/06/environment.environment

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http://royalsociety.org/page.asp?tip=1&id=3099

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http://www.edenproject.com/about/index.html

Smit created a management plan based around a series of rules. He has stated that: ‘It’s not the rule that is important; it’s the spirit or attitude behind the rule’. Find out what these rules are and how they perpetuate the original culture of the organisation.

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Developing vision Take some time to reflect on the content of this section and the techniques that can be used to develop vision. Once you are familiar with the ideas choose from the techniques and create a vision statement for an organisation or department you are familiar with. Write a report describing your vision and explaining the approach taken.

One last thought… ‘You can dream, create, design and build the most wonderful place in the world, but it requires people to make the dream a reality.’ (Walt Disney, 1901–1966, American Film Producer/Director/Animator)

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Section Two Evaluate Organisational Leadership INTRODUCING THIS SECTION In this section we will be looking at the development of leaders and leadership skills. As you work through this section you will develop an understanding of the methods that can be used to support the development of leaders relevant to the needs of the organisation. It will introduce how the selection of the methods should be matched to organisational culture and how the culture within an organisation can impact on the development of leaders. As part of the leadership development process the concept of national leadership standards will be introduced and linked to the application of standards to support the attainment of competence. Specifically the section will look at: •

Developmental methods for new and aspiring leaders

•

The learning organisation

•

Contribution of organisational culture to leadership development

•

Continuous development process

•

Leadership competence and capability

•

Career planning

By the end of the section you will be able to: •

evaluate the development of organisational leadership

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2.1 DEVELOPING LEADERS Before we look at the development of leaders and leadership skills it is worth reminding ourselves about leadership and what it means. As part of the Unit ‘Management: Leadership at Work’ (DV88 34) you will have considered the leadership at an operational level, what it means and how it varies from management. In this Unit we are going to further develop your understanding of leadership, in particular we are going to consider leadership at a strategic level linked to organisational vision as discussed in Section One of this workbook. As a manager it is important that you understand what makes a good leader and also the type of leader that will best implement the vision of the organisation. In other words: What traits should the leader have? What style of leadership would work best, ie autocratic, democratic, transformational etc? What influences are likely to impact on the leadership style, both external and internal to the organisation?

Understanding what leadership is, and the approaches and styles of effective leaders, is an important premise for any leadership development programme.

Take some time to reflect on the work you completed with respect to the Unit ‘Management: Leadership at Work’, see link HNC Management Development, then choose the Unit Management: Leadership at Work (DV88 34) to ensure you are familiar with the factors that influence how effective a leader is.

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2.1.1 DEVELOPMENT METHODS FOR NEW AND ASPIRING LEADERS In addition to understanding leadership, you must also understand how people learn and be familiar with learning styles. In the Unit ‘Management: Developing Self Management Skills’, as part of your own self development process, you looked at learning styles and their impact on the process of learning. In that context it was about reflecting on your own learning style and how it impacted on your own development as a manager. Obviously these same concepts will apply when you are considering the development of leaders. As a manager who is considering the development of leaders, it is important to be able to apply the approach you took to manage your own learning and apply it to the development of leaders and leadership skills. For example, you need to gain an understanding of the parameters which will control the development programme through the application of the theory associated with: •

the learning cycle

•

learning styles

•

learning needs and their identification

•

the skills and knowledge required by leaders

Once you have developed this understanding you will then need to design the programme of learning that will support the development of your leaders and their leadership skills. The programme will need to be designed with: •

smart aims and objectives

•

realistic and deliverable methods

•

contingency planning to deal with potential problems and barriers

•

mechanisms for monitoring and review

•

methods for evaluating success

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Take some time to reflect on the content of the work you completed with respect to the Unit ‘Management: Developing Self Management Skills’, see link HNC Management Development, then choose the Unit Management: Developing Self Management Skills (DV86 34) to ensure you are familiar with the process of designing a development review.

2.1.2 DEVELOPING LEADERS AND LEADERSHIP SKILLS So far in this section we have reminded you of some of the processes that you need to apply if you are to create a development programme for leaders. Now we need to consider the methods that are available to you to support the development of leaders. When considering the development options it is important to match the approach to the organisation and the culture of that organisation. We will look more at how organisational culture can be matched to the development of people later in this section, but first we will consider the different development methods that are available to you. Leadership development opportunities typically fall into two categories: formal and informal. Formal learning is learning that is conducted or sponsored by an educational or training organisation and leads to some form of recognised certification. For example, the learning you are currently undertaking can be considered as formal in that it is targeted towards achieving an SQA qualification in management. The strengths of formal learning are that it is: •

structured and based on clearly identifiable standards

•

linked to identified objectives

•

linked to specified outcomes

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likely to match the achievement of national qualifications

Formal learning does, however, have its weaknesses, which are that: •

it may not meet the exact development needs of the learner

•

it may not meet fully the aspirations and needs of the organisation

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it is likely to require input from outside agencies and organisations

•

it will often have an external cost that will need to be met

Informal learning has a less formal structure and sequence and is not necessarily linked to a formal qualification. It can come from many aspects of everyday life and may not even be recognised as learning by the individual. In a work context this is probably one of the key components of competence development. You have the theory as part of your formal training sessions and then you get on and apply what you have learned to further develop and refine your knowledge and skills in a work context. For example: you may do this by watching others, you may seek advice from others, you may encourage others to give feedback on what you are doing. The strengths of informal learning are that: •

it is flexible and adaptable

•

the learning is driven by the needs of the organisation and not by the needs of outside influences such as qualification syllabuses

•

it can be linked and targeted to the needs of the organisation

•

opportunities can be many and can occur at short notice

The weaknesses of informal learning are that: •

it can lack structure

•

standards can vary

•

recognition of the learning can be difficult

•

learning can become narrow in its focus

•

rewards for achievement will only be organisational based

It is now time to consider some of the methods that are available to support the development of learners. We describe below a range of techniques that are used in the development of leaders and are likely to be available for you to use to develop leadership knowledge, skills and competence. Secondments Secondments can be used to support the development of learners. In this situation the learner is transferred internally from one part of an organisation to another, or externally to another organisation. Secondments provide development opportunities for individuals and organisations alike through the

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Find out more about secondments and the benefits they offer to individuals and organisations by referring to: www.cipd.co.uk/subjects/lrnanddev/secondment/secondment.htm

Development review This method is more about helping to create development strategy and direction. It is about working with learners to assess their current situation to determine their current position. It is about: •

identifying current roles and contributions made

•

identifying difficulties and obstacles being experienced

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matching personal qualities to job requirements

•

identifying training and development needs linked to current and future roles

•

planning to achieve development requirements

As a manager, the skills you need to be able to review the development of others are the same as those you have developed as part of your own self development. More specifically in the Unit ‘Management: Developing Self Management Skills’ you looked at the process of self review, and using tools such as SWOT analysis. These are the types of processes that you need to support if you are to help potential leaders develop themselves. In other words, you need to be able to apply the skills you have developed to establish their position, linked to their role or intended role. As well as understanding the capabilities of the learner, an important part of the process is being able to understand the environment that the learner operates within. In the Unit ‘Managing and Working with People’, you were introduced to job competences and specifications as a way of determining the skills, knowledge and abilities needed by managers. Being able to accurately determine these requirements is therefore essential to the review process.

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Development review Take some time to reflect on the content of Units mentioned above (Management: Developing Self Management Skills and Managing and Working with People) and then, for a situation you are familiar with, specify a development review process that could be implemented with potential leaders. You should justify the processes and tools you have chosen to use.

Coaching Coaching is increasingly being used as a management development tool for managers and leaders. In particular it is being used to support the development of executives and managers. It offers an opportunity to provide targeted support which can accelerate the development of individuals through enhanced performance. It allows the learner to improve their own awareness and uncover aspects of their character that perhaps are limiting their development. An individual who has received coaching in a professional manner feels valued both in and out of the workplace. When coaching is effective it can lead to a clear sense of their personal direction. As a development method coaching is a simple method to apply, relying on the basic skills of listening, questioning and clarifying. You have already considered coaching as a method for developing people as part of the Unit ‘Managing and Working with People’. In particular the basic coaching model, GROW, was introduced as a way of structuring the coaching session.

Take some time to reflect on the content on the work you completed in respect of the Unit ‘Managing and Working with People’ (DV82 34) to ensure you are familiar with the coaching process. See link HNC Management Development.

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MANAGEMENT DEVELOPMENT In developing leaders, organisations need to provide guided leadership experience, help people to learn from their mistakes, give them challenging assignments and provide extensive mentoring and time for reflection. Few organisations succeed in doing this (Caplan, 2003). For you to get the most out of the coaching process it is important to know when it is appropriate to coach, the type of people who respond to coaches, the types of coaching that are available and what the different approaches are good for. Caplan (2003) also sites Witherspoon (2000) who specifies four executive coaching roles on a continuum.

Find out more about coaching, identifying the advantages it offers to leadership development together with its potential drawbacks. Two useful references include: J. Caplan (2003) Coaching for the Future, CIPD R. Witherspoon (2000) ‘Starting Smart: Clarifying Coaching Goals and Rules, in M. Goldsmith, L. Llyons and A. Freas (eds.) Coaching for Leadership, San Francisco: Jossey-Bass Pfeiffer

Shadowing With shadowing, a learner is linked to someone else within the organisation, and will spend time with them observing the activities being undertaken and gaining an insight into what is going on. You may well have experienced the process of shadowing during your own development as a manager, either directly yourself or observed the process being completed by others. You may, however, not have recognised the process as shadowing. Like any other development process, shadowing works best when it is planned and effectively organised. There should be SMART objectives providing direction to the process and all those involved should be fully aware of the expected outcomes. Ultimately when using shadowing, the success of the process depends on linking the learner to a leader with appropriate skills and abilities. In addition the area of work for those involved should be similar so that the context is correct. The shadowing process itself should allow the learner the opportunity to observe the performance of the leader so that the skills applied and the knowledge required are clearly identifiable. For the process to be effective the activity needs to be carefully planned, implemented and linked to a process of review. It is important for the trainer to engage with the process and help provide the structure for the learner.

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MANAGEMENT DEVELOPMENT This type of learning is most suited to organisations which have cultures that value the ability of people to do their job, rather than valuing the process or mechanism which has been used to gain knowledge.

As with any other training methods it is important that clear and SMART objectives are established for the shadowing activities.

Shadowing offers a range of advantages as a development method: •

It puts the learning into an applied organisational context

•

It demonstrates knowledge and skills in a work-based context

•

It encourages dialogue within the organisation and hence the sharing of ideas

•

It provides access to valuable first-hand experience

•

It can be specifically focused in the areas where the learner is likely to be required to apply the learning

•

It can be very cost-effective

The drawbacks associated with shadowing are that: •

Bad habits may be seen and promoted as best practice

•

It requires careful planning if it is to be successful

•

The experience can be limited in context, limited to that of the trainer

It may not provide access to all the knowledge required, particularly in the context of contingency management, ie if things don’t go wrong at the time, the competence required may be missed

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MANAGEMENT DEVELOPMENT Mentoring As a development process mentoring is very similar to coaching in that it is a process which links two people within the development process. In other words a mentor, like a coach, needs to be able to: •

Facilitate discussion about needs

•

Use questioning techniques effectively

•

Listen

•

Identify competency and gaps in competency

•

Recommend solutions to address gaps in competency

•

Support and encourage the development of competence

Coaching and mentoring both provide a mechanism of analysis, reflection and action.

A definition of mentoring is provided by Clutterbuck and Megginson (1999, p3) as: ‘off-line help by one person to another in making significant transitions in knowledge, work or thinking.’ Typically, to act as a mentor means working with people to provide advice and guidance as a role model, guide counsellor, confidant and sponsor. Typically mentors will come from within the same organisation, from a more senior position. The benefit of experience and knowledge will be passed on to the learner, helping to open doors and encourage progression. Strengths associated with mentoring are as follows: •

The mentor has knowledge and experience which is based in the organisation

•

The process is more adaptable and can be applied within the context of the organisation

•

The mentor will be aware of potential bottlenecks and help plan to avoid them

•

The training can incorporate aspects of organisational culture and vision

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The mentor can focus on new opportunities within the organisation

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The cost is internal and more easily managed

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The development can be easily tailored to meet identified needs

Mentoring as a development technique does have weaknesses: •

It can be difficult finding mentors who are committed to the process

•

It can be difficult finding mentors with the skills to effectively support the process

•

It can be difficult to ensure that the organisation perceives it as an effective use of senior management time

•

The learning can be organic and grow to meet changing needs; hence it can be difficult to control the learning process

This type of learning can work well with organisations where the knowledge, experience and skills of employees are recognised. Experiential learning You have already been introduced to the concept of experiential learning in the Unit ‘Management: Developing Self Management Skills’ when we looked at the learning cycle and the concept of learning from experience as introduced by Kolb. According to Mullins (2005) the approach suggested by Kolb emphasises the importance of the synthesis between an individual’s behaviour and an evaluation of their actions. Reflection of what has been learned in order to experiment with new situations and to become aware of new possibilities is a vital part of the learning process. It is the very essence of action learning; by going through the cycle that learners are exposed to, reflecting and testing out their learning. This encourages individuals in habits compatible with the notion of life-long learning. It is therefore no surprise that Kolb addresses his ideas to managers and suggests that experiential learning will enable managers to cope with change and complexity. This obviously has an application in respect to the concept of self development with a leader. Ideas are tried and tested and reflected as part of leadership development. Experiential learning focuses on the learning for the individual and requires no teacher, just the input from the individual involved. This type of learning occurs naturally and obviously supports its implementation as part of any CPD process as it focuses on the needs and wants of the individual learners. The term experiential learning covers numerous different experiences that people undertake as they develop knowledge and skills.

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Develop your understanding of experiential learning by further investigating the work of Kolb. Type “Kolb” into a search engine such as Google.

Reflective practice Reflective practice is all about taking responsibility for your own progress as an independent learner and thinking about or reflecting on your learning. To be an effective learner you must be able to reflect on your learning experiences and clarify in your own mind: •

What you are learning

•

How you are learning it

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How you are using what you are learning

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What your strengths and weaknesses as a learner are

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What your learning priorities are

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How you can improve and build upon the learning process

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How well you are meeting your short-, medium- and long-term goals

To be an effective and a reflective learner it is important to understand your own qualities as a learner. In other words you need to understand: •

What motivates you to learn

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Your attitude towards learning

•

The skills you need for different components of your learning

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What (if anything) is or potentially could block your learning

•

The gaps in your knowledge and skills, and how they might best be filled

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MANAGEMENT DEVELOPMENT If you are clear about your qualities, then reflecting on your learning experience can help clarify your thoughts and emotions. It can also help you to focus on your development as an independent learner, and on the strategies you use to work towards this. Here are some tips on how to develop your skills as a reflective learner. 1

Create a learning journal to record your thoughts

2

Establish a mechanism for storing relevant documentation such as self-evaluation questionnaires, progress sheets

3

Record some brief background to your learning experience to put your reflections into context

4

Record your thoughts and feelings about your learning

5

Comment on all aspects of learning that take place in your life in general

6

Write about anything that helps you to reflect on your learning. Some examples of the sorts of things you may wish to write about are: o

Your feelings about the course and your progress

o

Your feelings about the trainers and other learners

o

Changes in your motivation or attitude towards your learning

o

Your ideas about how you learn most effectively

o

The things that challenge you; that you find difficult (and why)

o

The things you find easy (and why)

o

Your ideas (or strategies) for tackling assignments

o

How different areas of your study are connected

o

How your study and your developing skills relate to other spheres of your life

(Adapted from Cottrell (b), 2003, p67)

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MANAGEMENT DEVELOPMENT Reflection can be an effective tool in helping to ensure that learning occurs, but it also has its drawbacks: •

People need to find a level where they are honest and fair to themselves, eg do not be too hard or underestimate skills, knowledge

•

The process requires discipline and motivation if it is to be effective

•

The process assumes you have the ability to make an assessment of yourself

Input and feedback from others may be very useful in confirming your opinions.

Find out more about reflective learning and how it may be useful to the development of leaders. Refer to: S. Cottrell (2003a) Skills for Success: The Personal Development Planning Handbook, Basingstoke: Palgrave Macmillan S. Cottrell (2003b) The Study Skills Handbook, Second Edition, Basingstoke: Palgrave Macmillan

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Development methods Familiarise yourself further with the needs of the different development methods and then, for an organisation you are familiar with, write a report explaining which of the methods would best support the development of leaders in this organisation. Support your recommendations with details of the potential advantages of the selected methods as well as the weaknesses which may apply during their application.

2.1.3 TAKING ACCOUNT OF FACTORS WHICH INFLUENCE EFFECTIVE LEADERSHIP So far in this section we have considered the possible approaches that are available to support the development of a leader. We now have to reflect on these methods and relate them back to the development of individual leaders, taking account of their individual attributes and qualities. The development of leaders should therefore take account of the following: •

Leadership traits

•

Leadership behaviours

•

Leadership styles

The methods you select should reflect the needs of the learner; where are they now and where they need to get to. It is also important to be able to recognise which methods will perhaps best fit the leadership development requirements.

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Developing leadership skills For an organisation you are familiar with, or a named case study, identify the qualities of the leaders and then suggest which of the development methods would best support the development of these qualities and their skills as leaders.

2.1.4 EVALUATION: MEASURING THE IMPACT OF LEADERSHIP In the Unit ‘Management: Developing Self Management Skills’ you have already looked at the process of evaluation when considering your own personal development as a manager. As part of this you were introduced to the importance of evaluation and how it should be used to support personal development. We will now consider evaluation again to provide a greater insight as to how evaluation should be used to support the development of leaders.

Refer back to the Unit ‘Management: Developing Self Management Skills’, see link HNC Management Development, then choose the Unit Management: Developing Self Management Skills (DV86 34) and refresh yourself with the principles and processes involved with evaluation.

When considering evaluation it is important to be aware of the overall process and what it entails. Any leadership development must have: •

a clear definition of standards, describing the performance requirements associated with the leadership role

•

an assessment of need, identifying where the learners (potential leaders) currently are and any development areas associated with both the learner and the organisation they work for

•

targeted aims and objectives that provide clear definition of what is required as a result of the development programme — the aims and objectives should relate to both the individual

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a definition of the stakeholders that are involved with the programme, describing all those that are directly involved in the process and those the process will impact on

•

a description of how any leadership development is to be achieved, including a clear explanation of the methods to be used

•

a clear methodology regarding how the success of the development activity is to be determined, and evaluated

Evaluation is important for both the individual learners and the organisation itself.

Designing evaluations Having specified that evaluation is an essential part of the development process, let us now consider the practical implications of developing an effective process of evaluation linked to the process of developing leaders, considering both the design and practical implementation of evaluation processes. The start of any evaluation is the identification of the standards for the learner to achieve. With leaders this requires setting performance standards for both themselves and for the organisation as a whole. The standards defined will establish criteria which will relate to the needs of both the individual leader and to the organisation itself. For the individual leader the measures may look at aspects of personal effectiveness, their own leadership style and traits etc. It is important to consider what the leader needs to be able to achieve, linked to their current position. By considering the standards expected for the individual and comparing these with the qualities of the individual, it is possible to identify the base of any development programme and what change needs to be achieved on behalf of the individual. For the organisation the measures are likely to consider the impact of the leader and the leadership skills that have been ascertained as part of the development programme. In other words, how has the leader impacted on the organisation and the objectives of the organisation? For example, have sales increased, have profits increased, is downtime less, have staff become more motivated and focused?

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MANAGEMENT DEVELOPMENT In both situations we can set out to generate both qualitative and quantitative data relevant to the development of the leader and the impact of the leadership development. Quantitative data collection is linked to aspects of the leadership role where it is possible to gather hard data. For example, performance measures cover such things as output, quality, downtime, cost, profit, absence, sickness etc. These are all areas where it is possible to determine, based on hard data, where leadership development has achieved tangible and measurable results. Data to support this type of evaluation can be drawn from many different sources within an organisation including financial, production or service data. This type of data can relate to an organisation as a whole or for larger organisations can be relevant at a departmental level. Qualitative data collection is more to do with perceptions regarding change and how things have changed. These are more difficult to quantify and include human measures such as morale, attitudes, perceptions, satisfaction, etc. Accurate and objective recording of all these measures can be difficult. Many, including those relating to performance, rely on reporting by individuals and this can be subject to bias. Another consideration which must be considered at the design stage is the evaluation timetable describing when the evaluation processes are to be completed and data analysed. The methods are likely to vary according to the stage of the development itself. Evaluation methods There are a number of options that are used to support the evaluation of leadership development programmes but the method used will usually relate to the chosen method of development which is being used to support the development of the learner. When selecting your method it is important to consider the following: •

Does the method chosen fit into the culture of the organisation, ie is the information to be produced by the evaluation going to be valued by the organisation?

•

Are there resources available to support the selected method, ie have you got the time and money to complete the process?

•

Does the style of evaluation support the style of the development methodology? For example, if you are completing a formal programme of learning then it is likely that the evaluation process will be formal.

•

Is confidentiality an issue, ie are there any restrictions on the data you can collect and hold?

•

Is the evaluation relevant, ie is the information being collected useful in determining the aspects of leadership development being addressed?

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MANAGEMENT DEVELOPMENT These are all questions that should be addressed when selecting the evaluation method. Now let us consider some of the more common forms of evaluation that are often used in association with leadership development programmes. Performance appraisals — these are used as a process of collecting data over a period of time. As a process they provide an opportunity for reflection where the learner is able to take time out and reflect on their own performance and also to gain feedback on their performance from their line manager. If appraisal is to be used as an evaluation method it should be formulised and systematic and should be formed of regular assessments of an individual’s performance. You have already considered the processes involved with appraisal as part of the Unit ‘Managing and Working with People’.

Refer back to the Unit ‘Managing and Working with People’ (see link HNC Management Development then choose the Unit ‘Managing and Working with People’) and refresh yourself with the principles and processes involved with performance appraisals.

360° feedback and upward appraisal — this process represents an opportunity to evaluate with input from many different stakeholders, with feedback being gained from different groups within the work situation (peers and subordinates as well as bosses, and possibly internal and external customers). The idea is to provide a broader appraisal covering good working relationship, teamwork, leadership, decision-making, and quality of service provided. ‘An upward feedback review system involves subordinates’ appraisal of managers. This can help to judge, among other things, managers’ ability to accept constructive criticism. It is also necessary to involve an independent third person who can supply confidential feedback and comment.’ (Mullins, 2005, p765) As a method of appraising and evaluating, 360° feedback: •

is robust and rigorous

•

gives a more complete picture of an individual’s performance

•

assesses how different groups see an individual in a variety of circumstances and situations

•

gives a broader perspective of the individual

•

relies on a high degree of openness and trust

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Find out more about 360° feedback by going to www.cipd.co.uk/subjects/perfmangmt/appfdbck/360fdbk.htm

Performance observations — this is a method of collecting appropriate and direct data on the impact of training and development activities. Observations can produce a range of data which can be easily related back to leadership development, both formally and informally. Providing that the observations are based in real work then the evidence collected is real and should be seen as directly relevant to the individual. For observations to be effective it is important that learners are aware of the process being implemented and that clear criteria are established regarding what is being observed.

It likely that the performance evidence will be considered as part of appraisal interviews.

Performance outcomes — this is the process whereby the resultant outcomes of a leader’s performance are assessed. Typically these judgements are made on the performance of the organisation, looking at such things as production outputs, quality, sales, etc. Employee survey — this is where employees are asked to feed back on the effectiveness of the leader. Questions about values, people's relationships with their leader, and so on, will provide a temperature gauge of the effectiveness of the leader. The information gathered from this type of survey can be considered on its own and compared with organisational data on performance. One form of survey which can be used to gain this information is the use of listening groups with individuals/specific teams. An example of this type of survey is where those on leadership programmes are expected to set up three commitments on leaving a workshop and revisit these with both the individual (how have you applied the learning and cascaded this to the team?) and their team (what do you see differently?). For example, leadership learners are required to write a letter to their Line Manager at the end of the programme detailing aspects of change that are to be implemented. © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT This can then be sent out sometime following the programme to confirm the key leadership actions they would have taken by the time the letter arrived. The purpose was not to say it would all be done by then, rather it was to stimulate a further coaching conversation with their boss and keep the leadership lessons alive!

Evaluating leadership development Earlier in this section we introduced a range of different methods that can be utilised to support the development of leaders. Write a report recommending the most appropriate form of evaluation for each development method and explain your selection.

2.2 THE LEARNING ORGANISATION We have looked at the methods available to support the development of people and leaders, but have not put them into an organisation context, or identified how the environmental conditions available within an organisation impact on their implementation. We will now consider the organisation and how an appropriate learning environment can be created to support the development of people within organisations. For any organisation the development of a learning environment is increasingly important, helping to deal with issues such as: •

Skills shortages

•

Globalisation

•

Rate of change — driven by technology

For learning to be successful within organisations the environment needs to be correct. This is important to those who are involved in the development of learners. The Learning Organisation is a methodology that has been created to form an appropriative learning environment. A Learning Organisation is defined as: an organisational form that enables individual learning to create valued outcomes, such as innovation, efficiency, environmental alignment and competitive advantage (Buchanan and Huczynski, 2004, p127).

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MANAGEMENT DEVELOPMENT When working through this section on the learning organisation you should consider the factors influencing vision which were covered in Section One. These factors are values, ethics, core purpose, core competences and organisational structures and cultures. The nature of each will impact upon the ‘environment’ within an organisation which will directly influence whether the ‘learning organisation’ is able to flourish or not. The concept of the learning organisation is derived from the work of Chris Argyris and Donald Schön (Argyris and Schön, 1974, 1978; Argyris, 1982), but became fashionable during the 1990s. A number of factors have stimulated interest in the learning organisation concept (Buchanan and Huczynski, 2004, pp127–128): •

The production of goods and services increasingly involves sophisticated knowledge. Knowledge is therefore as valuable a resource as raw materials.

•

Many organisations lost knowledgeable staff through delayering in the 1990s.

•

Information technologies are knowledge intensive.

•

Knowledge can have a short life span, made obsolete by innovation; flexibility, creativity and responsiveness are now prized capabilities; knowledge can thus be a source of competitive advantage for an organisation.

Ikujiro Nonaka and Hirotaka Takeuchi (1995) argue that the ability to increase knowledge and solve new problems has become a ‘core competence’ for most organisations. In their view, everyone is a ‘knowledge worker’, not just those who work with books and computers. Anyone dealing with customers, for example the ticket clerk in a theatre run by the local council, is a valuable source of intelligence on customer perceptions of theatre facilities, productions and pricing.

Organisations that learn faster will be able to adapt quicker and therefore achieve strategic advantage.

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MANAGEMENT DEVELOPMENT The learning organisation concept was popularised by Peter Senge who argued that work must become more ‘learningful’ at all levels (1990, p4). He identifies five ‘learning disciplines’ for building organisational learning capabilities. Learning discipline

Explanation

1. Personal mastery

A discipline of aspiration concerning what you as an individual want to achieve

2. Mental models

A discipline of reflection and inquiry, concerning the constant refinement of thinking and development of awareness

3. Shared vision

A collective discipline, concerning commitment to a common sense of purpose and actions to achieve that purpose

4. Team learning

A discipline of group interaction, concerning collective thinking and action to achieve common goals

5. Systems thinking

A discipline which concerns understanding interdependency and complexity and the role of feedback in systems development

Senge’s argument is: have realistic goals, challenge your assumptions, commit to a shared vision, teamworking is good. The organisational application of these ‘disciplines’, however, is problematic as it required the ‘correct’ attitudes, values and beliefs among employees at all levels. The most important of these learning disciplines is the fifth discipline, systems thinking, which means understanding how complex organisations function and how they can be changed to work more effectively (Buchanan and Huczynski, 2004, p131). ‘The practice of organisational learning involves developing tangible activities: new governing ideas, innovations in infrastructure, and new management methods and tools for changing the way people conduct their work. Given the opportunity to take part in these new activities, people will develop an enduring capability for change. The process will pay back the organisation with far greater levels of diversity, commitment, innovation and talent.’ (Senge et al, 1999, p33).

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The manager who wants commitment, flexibility and creativity from employees is advised to provide them with lots of learning opportunities.

So what about the learning organisation, what does it look like? What features does it have? And how would you recognise it? Listed below are some of the key features of learning organisations from Pedler, Burgoyne and Boydell (1997). A learning approach to strategy — The organisation uses trials and experiments to improve understanding and generate improvements, and also to modify strategic direction as necessary. Participative policy-making — The organisation involves all its members in strategy formation, influencing decisions and values and addressing conflict. Informative — Information is shared and made available to everyone to enable front-line staff to act on their own initiative. Formative accounting and control — Accounting, budgeting and reporting systems are designed to help people understand the operations of organisational finance. Internal exchange — Within organisations the sections/departments think of themselves as customers and suppliers in an internal ‘supply chain’, learning from each other. Reward flexibility –— A flexible and creative reward policy, with financial and non-financial rewards to meet individual needs and performance. Enabling structures — The organisation’s charts, structures and procedures are seen as temporary, and can be changed to meet task requirements. Boundary workers as environmental scanners — The organisation treats everyone who has contact with customers, suppliers, clients and business partners as a valuable information source. Inter-company learning — The organisation learns from other organisations through joint ventures, alliances and other information exchanges. A learning climate — The organisation sees the manager’s primary task as facilitating the experimentation and learning in others, through questioning, feedback and support. © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT Self-development opportunities for all — The organisation expects its people to take responsibility for their own learning, and facilities are made available, especially to ‘front-line’ staff.

This image of the learning organisation is an ideal, something to which to aspire, rather than a description of any particular organisation.

2.2.1 CREATING A LEARNING ORGANISATION Using the theory associated with the learning organisation it is possible to start to create the vision that is the learning organisation. It requires the creation of a system made up of different sub-systems as described below. Learning as a sub-system This sub–system is divided into three component parts. 1. Levels of learning — this recognises that learning in organisations happens at different levels: individual, group/team and organisational. Each of these levels is seen as an integral part of the learning sub-system. Individual learning is needed because all organisations are made up of individuals. As individuals learn, so the organisation learns. Group/team learning accepts that teams and groups within organisations learn as an entity. This learning should be shared with other teams and is one of the ways that individual learning translates to organisation learning. Organisational learning is the result of the individual and team learning, where the sum of the learning is considered as a whole, and is seen to benefit the whole organisation. 2. Types of learning — this recognises the different types of learning that can exist in organisations. o

Adaptive learning — where we learn from experience

o

Anticipatory learning — where we learn from future predictions as defined by vision

o

Deuteron learning — where we learn by reflecting on taken-for-granted assumptions within an organisation

o

Active learning — where we learn as part of work when dealing with problems and implementing solutions

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MANAGEMENT DEVELOPMENT 3. Critical organisational skills — as defined by Peter Senge, these include personal mastery, mental models, shared vision, team learning, and systems thinking. Organisation as a sub-system This sub-system refers to the organisation, and the environment it provides to support the learning process. The four key components of this are: 1. Vision — with a shared focus on learning within the organisation 2. Culture — where the culture within an organisation embraces learning 3. Structure — where the structure of the organisation facilitates learning and does not put artificial barriers in the way of learning 4. Strategy — where an organisation has an overall strategy which focuses on the development of strategy that supports the promotion and development of learning People as a sub-system People are the key to learning organisations, as it is actually the learning that people undertake that allows organisations to develop and grow. When considering people it is important to embrace the wider context of people so as well as those internal to the organisation (employees, manager, leaders etc), the learning organisation should take account of those external to the organisation who also need to learn (for example customers, suppliers, business partners and the community). Knowledge as a sub-system This sub-system recognises that knowledge is one of the main company assets. It recognises that for an organisation to develop and grow, knowledge must be maintained. In other words an organisation must have systems in place to capture and retain the knowledge learned by individuals and teams. The learning organisation sub-system must allow for the gathering, creation, storage, transfer and utilisation of knowledge. For this sub-system organisations need to: •

empower people to be able to collect and transfer knowledge

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capture and utilise external knowledge

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facilitate the transfer of knowledge

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encourage and reward innovation and invention

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train staff to facilitate the storage and transfer of knowledge

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provide mechanisms for storing and retrieving knowledge

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ensure that classroom learning relates to the work and is applied

Technology as a sub-system These are the mechanisms that support the provision of knowledge and learning within organisations. It is comprised of three components: information technology, technology-based learning and electronic performance-based systems. Information technology is the computer-based technology that is used to gather, process, store and transfer information. It is seen as a way of facilitating and communicating knowledge transfer, helping to provide flexible access. Technology-based learning is access to e-learning components supporting the transfer of knowledge and the development of skills and understanding relevant to the work of the organisation. Electronic performance support systems (EPSS) are the electronic database systems that are used to capture, store and distribute the information throughout an organisation.

2.2.2 PRACTICAL TIPS It is important to recognise that the development of a learning organisation will only happen if the leaders within the organisation are committed to the process of learning. This comes down to the culture and values held within an organisation and may well be reflected in the long-term vision. Your research on the Eden Project will have revealed how staff development and learning is an important part of the culture within that organisation. Tim Smit has directly influenced this. The concept of the learning organisation is one that can effectively support the development of not only employees, but also their leaders, so it may be one that you want to implement. To assist you with this process, the list below summarises some practical tips associated with the development of a learning organisation. Steps to becoming a learning organisation It is important to remember that one never fully is a learning organisation. Change always continues, as well as learning. Below are16 steps taken by various organisations in order to become learning organisations (Marquardt, 1996, cited in Kasvi, online). 1. Commit to becoming a learning organisation. 2. Connect learning with business operations (direct connections between learning and improved business operations make it easier to persuade people). 3. Assess the organisation’s capability on each sub-system of the systems learning model.

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MANAGEMENT DEVELOPMENT 4. Communicate the vision of a learning organisation (the most sophisticated vision is of no use unless it can be clearly understood by others). 5. Recognise the importance of systems thinking and action (a company cannot become a learning organisation by focusing on just one sub-system or on one part of the organisation). 6. Leaders demonstrate and model commitment to learning. 7. Transform the organisational culture to one of continuous learning and improvement. 8. Establish corporate-wide strategies of learning (encourage experimentation, recognise and praise learners, reward learning, spread the word about new learning, apply the new learning). 9. Cut bureaucracy and streamline the structure. 10. Empower (to possess the necessary freedom, trust, influence, opportunity, recognition, and authority) and enable (to possess the necessary skills, knowledge, values and ability) employees. Significant resources of time, money and people are allocated to increase employees’ skills, not only in the present job, but also for future unforeseen challenges. 11. Extend organisational learning to the entire business chain. 12. Capture learning and release knowledge (quickly throughout the organisation). 13. Acquire and apply best of technology to the best of learning. 14. Encourage, expect and enhance learning at individual, group and organisation levels. 15. Learn more about learning organisations. 16. Continuous adaptation, improvement and learning. The connection between developing a learning organisation and developing a vision within an organisation is unmistakable. Creation of a vision is all about identifying values, ethics, culture, structure and competences. These factors all have a direct influence on the development, nature and success of a vision; they also have a direct influence on the growth and development of the learning organisation. As a leader, you should begin to see how you can influence learning and development in your organisation. You may have an input into the promotion and development of a learning organisation; this mission may form part of your organisation’s vision for the future.

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Find out more about the learning organisation by referring to: M. Marquardt and M. Sashkin (1996) Building the Learning Organisation, Maidenhead: McGraw-Hill Education J. J. J. Kasvi ‘Building the Learning Organisation: A Book Summary’, available online at http://www.knowledge.hut.fi/projects/itss/referMarquardt.pdf

Learning organisations Using the sub-systems described in this section as a base-line, complete an audit of the organisation you work for, or an organisation you are familiar with, to determine their status as a learning organisation. Write a report summarising your findings and explaining how the concept of the learning organisation may be used to assist the development of its leaders.

2.3 CONTRIBUTION OF ORGANISATIONAL CULTURE TO LEADERSHIP DEVELOPMENT Organisational culture should be considered on two levels. The culture within the organisation itself and also, on a wider level, the culture of the country in which the organisation operates. Some organisations operate in one country only, whilst others operate across national boundaries. It is important to consider this when looking at how organisational culture contributes to leadership development. You have looked at organisational culture in Section One of this workbook, so you should have an understanding of the types of culture and how culture impacts upon the development of vision. The purpose of this section is to look at how organisational culture can impact upon leadership development.

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In addition to considering organisational culture it is also worth considering how national cultural traits can impact on leadership development. Find out more about how national culture affects leadership development by referring to C. D. McCauley and E. Van Velsor (2004) Handbook of Leadership Development, 2nd edition, Jossey-Bass, p331.

Culture permeates an organisation, the ‘in’ terms of ‘how things are done around here’ and common values, beliefs and attitudes will therefore have a significant effect on organisational processes such as decision-making, design of structure, group behaviour, work organisation, motivation and job satisfaction, and management control. For this part of the workbook it would be helpful for you to consider the theories on organisational culture which are covered in Section One. Edgar Schein’s theory on organisational culture suggests that there are three levels: artefacts, values and beliefs, and basic underlying assumptions. Charles Handy describes what he calls the ‘four gods of management’: power, role, task and person culture. Deal and Kennedy define culture within an organisation according to the degree of risk and speed of results or feedback. It is easy to see how organisational culture, described in such ways, can have an impact upon attitudes towards leadership and leadership development and whether a culture of learning thrives within certain types of organisations. Think again of IKEA’s founder and his testament that ‘only when you’re asleep do you not make mistakes’. It is important for you to look again at the types of culture, consider their characteristics and relate this back to how learning may or may not be encouraged and supported within an organisation. When considering organisational culture and the impact it can have on leadership development, ask the following questions: 1. How mature is the culture within, has it been there since the organisation began or has there been a shift in culture? 2. If there has been a shift in culture, was it a conscious planned shift or has it grown to be like that? Changes in culture can be both negative and positive.

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How embedded is the culture within the organisation? Does the culture permeate throughout the whole organisation from bottom to top? Are leaders in the organisation strong ‘carriers’ of the culture? Do they follow through or adhere to ‘the way things are done’ or ‘the way we work’?

8

Are people in the organisation committed to the culture and vision?

Use these points to consider each culture type as described and draw your conclusions as to whether each type will hinder or help leadership development.

Find out about Theory ‘Y’ and ‘X’ of Douglas McGregor (1960). How does this theory on the two types of behaviour that he suggests people exhibit relate to the culture within an organisation? To find out more, type into Google ‘theory x y McGregor’, or refer to Douglas McGregor The Human Side of Enterprise (2006) McGraw-Hill

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Based upon the findings of the activity on page 48 of the workbook, discuss the culture of your organisation and how it has impacted upon the learning and self-development of its leaders. Consider whether: •

it encourages continuous learning for all employees

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it promotes and supports active problem solving and conflict resolution

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it leans towards theory Y type of people

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it values listening and reflection

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there is communication between and at all levels

•

relationships are just as important as tasks

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learning and self-development are encouraged and ‘fit’ within the culture

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a ‘blame’ culture (where mistakes are seen as negative) exists

•

training and development is open to all regardless of rank, position or length of service

•

decision-making is encouraged at all levels within the organisation

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2.4 CONTINUOUS PROFESSIONAL DEVELOPMENT You were briefly introduced to the concept of Continuous Professional Development (CPD) as part of the Unit ‘Management: Developing Self Management Skills’ where you considered the application of CPD as part of your own development as a manager. It is important that you now further develop your understanding of the process as it applies to both yourself and others. To recap, CPD is where people engage with a continuous process of personal growth, developing skills and knowledge that will help facilitate the achievement of personal and organisational goals. When applied effectively as a process it helps individuals to improve their capability and realise their full potential. It is about committing to the concept that learning never stops and that to maintain the required level of professionalism learning should continue. CPD is about achievement by obtaining and developing a wide range of knowledge, skills and experience which go beyond those normally acquired during initial training or routine work, and which together develop and maintain competence to practise.

According to the Chartered Institute of Personnel and Development CIPD, there are a number of reasons why you may wish to undertake CPD, including: •

The desire to develop your professional knowledge and skills

•

A condition placed on your continuing membership of a professional body

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To demonstrate your professional standing to clients and employers

•

To assist you with your career development or a possible career change

The concept of CPD is essential for leaders as a way of further developing their leadership skills, and is particularly useful in the modern world of work where the pace of change associated with new technologies and legislative changes demands constant updating of knowledge and skills to maintain professional competence. For many organisations and professional bodies, for example many associated with the health service, CPD is a mandatory requirement of many work roles. In this situation individuals must undertake CPD activities and maintain an effective record of all those undertaken. It is seen as essential to maximising the potential for life-time employability, and to maintain high levels of professional competence. CPD comprises updating particular areas of competence, developing personal and management skills and broadening experience leading to new opportunities. The challenges and opportunities of the work experience provide the central mechanism for maintaining CPD.

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MANAGEMENT DEVELOPMENT The following sections deal with questions commonly raised in respect of CPD and seek to provide illustrative answers. However, since CPD is very much a personal matter it is impossible to cover the circumstances of each individual. Why should a leader undertake CPD? The world of work is changing all the time. Potentially people can no longer rely on their employer to identify and satisfy their individual development needs. Therefore to maintain the required level of performance individuals need to take ownership of their continuing development. It is in the best interest of all leaders to develop a personal portfolio of professional activities and their relevance to your job competence and your career ambitions. By undertaking CPD you will be: a) demonstrating your continuing commitment to your profession b) developing the good practice of regularly reviewing your professional needs and selecting appropriate learning activities How much CPD should be undertaken? There is no simple answer to this, other than to say ‘it depends’! It varies from one person to another. It will obviously be driven to a certain extent by the demands of your job and personal ambition. The most important consideration is ‘have I achieved my goal?’, ie the learning outcome, rather than the number of hours of study which you undertake, ie the input.

With CPD quality is much more important than quantity.

What CPD activities should leaders undertake? Section 2.1 looked at a range of different ways to access learning. Your organisation and you will have a preferred way of accessing learning. The method of learning will need to be chosen to reflect the learning style of you as a leader, and the culture within the organisation. The training activities undertaken will depend upon the role of the leader, their personal qualities and ambitions. CPD should be chosen so that it adds to your personal store of relevant skills, knowledge and experience. There is no limitation to the range of subjects that can be included, although it is recommended that in order to develop expertise on a broad front, CPD should be undertaken in the following areas. © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT 1. Technical knowledge and skills development in the field of leadership 2. Technical knowledge and skills into fields associated with the leadership role 3. Associated non-technical knowledge and skills, eg management, communication, presentational skills, law (health and safety, environmental, employment), finance, and languages, thus preparing you to assume wider or greater responsibilities when the opportunities arise What should CPD comprise? Professional Development may be achieved in any of the following ways, depending on your circumstances, learning style and the opportunities open to you. a) At home — private study, such as distance learning; special projects or structured study, which may involve reading, watching TV, DVDs, CDs and /or listening to radio programmes and audio tapes; writing papers for presentation or publication b) At work — where, simply through day-to-day activities, relevant knowledge and skills are acquired by on-the-job learning and/or company provision c) At events — such as presentations, lectures, seminars, conferences and also formal courses of study, whether or not they lead to a qualification.

For activities to count they should be relevant to your learning needs.

Why keep CPD records? Maintaining CPD records offers a number of advantages: a) It provides documented evidence of your commitment to your chosen profession and of your continued competence b) It provides an excellent reference source for recalling details of topics you have studied c) It provides a useful aid in your career development, providing a means by which you can plan, record and review your relevant activities

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MANAGEMENT DEVELOPMENT How should I keep my records? It is strongly recommended that CPD records are maintained in a personal file (portfolio). A portfolio can take a range of forms but usually it is, quite simply, an A4 ringbinder containing evidence of your CPD activities. For it to be an effective tool it should include: a) a professional development plan — identifying development needs and providing structure b) a professional development record — detailing specific activities undertaken c) copies of relevant CPD documentation including certificates; examples of work which demonstrate your competence; projects/courses undertaken etc

2.4.1 HOW TO GET THE MOST OUT OF CPD Like many things in life, CPD can be organised so that it is carried out (almost) automatically. For leaders to get the most out of the process it is important that they engage with the process and provide structure to the development. CPD should fit into the training cycle.

Identify need

Evaluate

Develop

impact

training

Deliver training

Like any other training activity it is important to: 1. effectively plan development activities, based on need 2. complete the activities according to the planned approach 3. assess the impact of the activities 4. evaluate and review the impact of the activities, relevant to the plan Many employers have bespoke systems in place to support this process, as do many professional bodies.

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MANAGEMENT DEVELOPMENT With the learning associated with CPD being very much learner-focused, there are really two types of learning that are commonly associated with its implementation as a development approach — experimental learning and reflective practice which you were introduced to earlier in this section. CPD is a form of learning which is driven forward by the individual learner. As such it offers a number of advantages. CPD can be: •

targeted to individual needs

•

personalised so it can target issues that are personal

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managed to fit in with other work activities

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owned and managed by the individual

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flexible so it can be modified to reflect environmental changes

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potentially very dynamic and able to be matched to changing development needs

There are a number of disadvantages associated with CPD: •

The targets are set by the individual and so may not stretch the individual

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The vision of the activities may not push the boundaries of the individual

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The process does not have to involve anyone else, so its value may be limited

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The outcome may not always benefit the host organisation

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The individual must be motivated to engage with this form of self-development

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The opportunities available may be limited or outside the scope of the resources available to the individual

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If the benefits from the process are not seen by the individual, it can be seen as an unnecessary burden

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Spend some time researching the advice available from your employer, industry bodies or professional organisations on the development and implementation of leadership CPD.

2.5 LEADERSHIP COMPENTENCE AND CAPABILITY One of the key roles of a manager is to recognise the competence of their staff, in other words the manager is able to identify when people can complete their job effectively at all times, including when things do not go to plan. Over the last 20 years the use of competence-based standards — National Occupational Standards (NOS) — have grown in importance as a mechanism to support the development of work-related training and assessment systems. NOS have been created in all industry sectors, and cover all the functions of an organisation from buying through to producing and selling products and services. As part of this development National Occupational Standards have been developed to support the functions of management and leadership. The development of the NOS in management and leadership was completed by the Management Standards Centre (MSC), an employer-led organisation which champions management and leadership. The MSC was responsible for developing a new set of National Occupational Standards for management and leadership in May 2004. The standards themselves represent a benchmark of best practice, they define the role of management identifying what a manager should be able to do, the behaviours they require and the knowledge they need to be effective.

2.5.1 THE STRUCTURE OF NOS Before considering the structure of the standards it is important to understand the framework which has been formed to provide structure and cohesion to the development of the National Occupational Standards. This framework comes from the process of functional analysis, the analytical process that was used to create the standards. By using this process the role of the manager was defined in terms of function areas, identifying that to be an effective manager entails: •

managing self and personal skills

•

providing direction

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facilitating change

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working with people

•

using resources

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achieving results

As a management trainee you should be able to understand this grouping, given the similarities between this list of functions and the Units that you have completed as part of your development towards your management qualification. All the Units you have completed would fit into one of these areas and the development of the NOS also follows this same pattern. In other words each of these functional areas was analysed to identify the specific management requirements needed to demonstrate competent performance. This analysis resulted in the formation of units of competence, relevant to the function. For example, in the functional area ‘Providing Direction’ the following units have been developed. B1 Develop and implement operational plans for your area of responsibility B2 Map the environment in which your organisation operates B3 Develop a strategic business plan for your organisation B4 Put the strategic plan into action B5 Provide leadership for your team B6 Provide leadership in your area of responsibility B7 Provide leadership for your organisation B8 Ensure compliance with legal, regulatory, ethical and social requirements B9 Develop the culture of your organisation B10 Manage risk B11 Promote equality of opportunity and diversity in your area of responsibility B12 Promote equality of opportunity and diversity in your organisation Each of these units describes a different aspect of the function and provides detail of the national standard. Each of the other functional areas contains a similar number of different units.

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MANAGEMENT DEVELOPMENT They all include the following detail. Each of the component parts of the units is illustrated using a sample unit (B5: Provide leadership for your team) taken from the Management standards. A unit summary — identifying what the unit is about, who it is aimed at, how it links to the other management units, and the skills that are required if the unit’s function is to be applied successfully. The unit summaries are useful in determining which of the management units apply. B5 Unit Summary

What is the unit about? This unit is about providing direction to the members of your team and motivating and supporting them to achieve the objectives of the team and their personal work objectives. Who is the unit for? The unit is recommended for team leaders. Links with other units This unit is linked to units D1 Develop productive working relationships with colleagues, B6 Provide leadership in your area of responsibility and D5 Allocate and check work in your team in the overall suite of National Occupational Standards for management and leadership. Skills Listed below are the main generic skills which need to be applied in providing leadership for your team. These skills are explicit/implicit in the detailed content of the unit and are listed here as additional information. Communicating, Planning, Team building, Leading by example, Providing feedback Setting objectives, Motivating, Consulting, Problem solving, Valuing and supporting others, Monitoring, Managing conflict, Decision-making, Following

Outcomes of effective performance — describing the outcomes a manager needs to be able to achieve, to be considered competent. In respect to unit B5 the outcomes that are seen as essential to leadership are specified. B5 Outcomes

You must be able to do the following: 1. Set out and positively communicate the purpose and objectives of the team to all members 2. Involve members in planning how the team will achieve its objectives 3. Ensure that each member of the team has personal work objectives and understands how achieving these will contribute to achievement of the team’s objectives 4. Encourage and support team members to achieve their personal work

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MANAGEMENT DEVELOPMENT objectives and those of the team and provide recognition when objectives have been achieved 5. Win, through your performance, the trust and support of the team for your leadership 6. Steer the team successfully through difficulties and challenges, including conflict within the team 7. Encourage and recognise creativity and innovation within the team 8. Give team members support and advice when they need it, especially during periods of setback and change 9. Motivate team members to present their own ideas and listen to what they say 10. Encourage team members to take the lead when they have the knowledge and expertise, and show willingness to follow this lead 11. Monitor activities and progress across the team without interfering

Behaviours which underpin effective performance — these are the personal attributes of a manager, defining some of the personal qualities and motivators which are essential to the achievement of the standard. B5

1. You create a sense of common purpose

Behaviours 2. You take personal responsibility for making things happen 3. You encourage and support others to take decisions autonomously 4. You act within the limits of your authority 5. You make time available to support others 6. You show integrity, fairness and consistency in decision-making 7. You seek to understand people’s needs and motivations 8. You model behaviour that shows respect, helpfulness and co-operation

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MANAGEMENT DEVELOPMENT Knowledge and understanding — this defines the knowledge which is seen as essential to underpin performance. In other words, what does a manager need to know if he/she is going to be able to achieve the required performance? This includes knowing what to do when things go wrong! B5 Knowledge

You need to know and understand the following: General knowledge and understanding 1. Different ways of communicating effectively with members of a team 2. How to set objectives which are SMART (Specific, Measurable, Achievable, Realistic and Time-bound) 3. How to plan the achievement of team objectives and the importance of involving team members in this process 4. The importance of and being able to show team members how personal work objectives contribute to achievement of team objectives 5. That different styles of leadership exist 6. How to select and successfully apply a limited range of different methods for motivating, supporting and encouraging team members and recognising their achievements 7. Types of difficulties and challenges that may arise, including conflict within the team, and ways of identifying and overcoming them 8. The importance of encouraging others to take the lead and ways in which this can be achieved 9. The benefits of and how to encourage and recognise creativity and innovation within a team

Industry/sector-specific knowledge and understanding 9

Legal, regulatory and ethical requirements in the industry/sector

Context-specific knowledge and understanding 10 The members, purpose, objectives and plans of your team 11 The personal work objectives of members of your team 12 The types of support and advice that team members are likely to need and how to respond to these 13 Standards of performance for the work of your team

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It is important that you familiarise yourself with the management and leadership standards. Go to www.management-standards.org and take some time to explore the different standards and familiarise yourself with their structure and the process that was used to support their development.

2.5.2 USING NATIONAL OCCUPATIONAL STANDARDS TO DEVELOP LEADERS As already mentioned, National Occupational Standards can be used to form an effective benchmark, a standard to be compared against. When considering this in terms of your own development or the development of others as managers, the NOS can be an important tool. Personal development To develop as a leader, having a benchmark can be extremely beneficial. Such benchmarks might already be established within organisations and so would be available for people to access. It is, however, quite feasible that an organisation has no benchmark. This is where the NOS units can be extremely useful, providing a clearly defined standard of the competence required by managers. This applies to both established managers, who are looking to further develop their skills, and to managers under development such as you. By comparing against the standard, personal strengths and weaknesses can be identified together with threats and potential opportunities for development. Completing this process effectively can result in managers being able to: •

describe the skills they need

•

evaluate the skills they already have

•

identify the skills they will need to develop

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Comparisons against the standards can be completed as a self-evaluation by the manager or can be completed by others who deal with the manager in some way, eg a colleague, supervisor, peer

Linked to personal development, these national standards also provide an opportunity for people to undertake work-based vocational qualifications (SVQs). The SVQ management qualifications have been developed based on the NOS units. They support all aspects of management and are available at a number of different levels from supporting the role of the team leader through to that of the senior manager. To achieve these qualifications managers have to able to provide evidence that as a manager they complete their job role according to the standards defined within the management units. For individual managers it is also possible to use the standard framework to identify possible opportunities for professional development and progression. This is achieved by implementing the progress implicit within the standards framework. In other words, once you have achieved the basic level unit you can identify where you need to develop next.

Management standards Once you are familiar with the management standards, reflect on your role as a manager and identify those of the management units that best support what you do. Write a report identifying your competence as a manager against these standards, to identify what you consider you do well and any areas where you feel you are not working according to the requirements of the national standards. For any shortfalls you should suggest ways in which you can address these.

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MANAGEMENT DEVELOPMENT Organisational management We have discussed the fact that the overall functions mentioned earlier are seen as essential to the management of all organisations. They define aspects of management that are considered crucial to any organisation. So at an organisational level it is possible to use these standards as a framework or structure to identify the management requirements of an organisation. This process is completed by first identifying the management standards that are relevant to an organisation and those that apply at the different levels within an organisation. Once identified, the standards can then be used in a variety of different ways to support the development of leaders and managers. Some of these uses are described below. The national standards can be used as the basis of job descriptions and personal specifications etc. In other words unit B5 ‘Provide leadership to your team’ would be an obvious base standard for team leaders identifying performance, knowledge and behaviour required to support the job role. In addition other standards may be added to form the overall job description, to reflect other aspects of the job, and may include other standards taken from the other functional areas, such as those found in Using Resources or Achieving Results. Given that the national standards describe the qualities required by mangers, they can therefore be used for the base of training courses and materials. In other words the units can be used to provide structure to training activities or programmes enabling individuals to develop their skills and knowledge linked to the NOS. For organisations that are recruiting managers, the standards can also be used to provide the criteria needed to support the recruitment process. With clear definitions of what managers need to be able to do and the qualities they should have, being provided within the standards, interviews can be structured to specifically target the exact needs of the recruiting organisation.

Applying standards in leadership For a named case study or an organisation you are familiar with, describe how you feel the management standards could best be used to support the development of leadership skills. You should identify within the report any shortfalls where you feel the management standards potentially fall short in the development of leaders.

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2.6 CAREER PLANNING As part of Section Two we have considered a range of different options associated with the development of people as leaders. To conclude the section it is important to discuss career planning and its role in the development of a leader. In many ways this process is a continuation of the personal development planning (PDP) process that was introduced to you as part of the Unit ‘Management: Developing Self Management Skills’. When considering the PDP, the scope of the development was targeted toward the development of yourself within your role as a manager: 1. Reflecting on your status 2. Identifying your intended role of manager 3. Analysing and comparing to determine gaps in your skills and knowledge 4. Establishing targets and objectives as to where you want to be 5. Designing a development plan 6. Implementing your plan 7. Reviewing your progress against your plan The development and implementation of the PDP is therefore something which is specific to the here and now and the development processes that are likely to reflect short- to medium-term. Career planning, however, is about long-term planning, a lifelong process. It is more about choosing an occupation, getting a job, growing in a job, possibly changing careers, and eventually retiring. As with the PDP planning a career should incorporate a series of steps, similar to the development of your PDP. Step 1: Self review Self review is the first step in this process. As with the development of the PDP it is about developing an understanding of where you are now. But where your PDP will have focused on your capabilities relevant to your work role, this review should be wider in its application and include such things as: •

Your interests both inside and outside of work

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Your personal values, for example: What makes you tick? What makes you get up in the morning? What is your personal brand?

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The roles you have taken on in your private life, as part of formal education and at work

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Your skills/aptitudes, again both relevant to work and your private life

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The environments you prefer to be in, for example urban, rural, inside, outside

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Any developmental needs that you feel you have relevant to where you want to get to

•

Your realities, what is the situation that you are in?

Step 2: Options The second step in the process is all about identifying the options that are available to you. This requires applied research looking at possible occupations and industries that suit your profile. You need to determine if they are really for you and whether they offer a future. In respect to this it is important to also determine the viability of labour markets and where employment opportunities are likely to occur. Once you have formulated a picture of the options available you should try to further refine the list. Taking time to find out more and narrow down your options can be very useful and should be time well spent. Finding out more about the options available can be done in a variety of different ways which include: •

Collecting and reviewing published information, using books, journals and the internet to gain a greater understanding of what is involved

•

Organising meetings or interviews with people who work in the field to find out the realities of work

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Organising work-based activities through voluntary work or perhaps job shadowing

Completing this detailed review of your options should put you in a position where you will be able to: •

identify possible occupations

•

evaluate these occupations

•

understand the different alternatives

Step 3: Planning Once you are clear about the options you can now set yourself short- and long-term goals. Be realistic, consider the time you have available, focus on the options. Apply the same principles as you used when you created your PDP, and write down your plan. Having the plan written down allows you the opportunity to reflect on your development and also allows you the opportunity to gain feedback on what you are trying to achieve from careers advisors and from people within the industry.

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Feedback on your plan will help maintain realism!

Step 4: Action This is about putting your plan into action, and making it happen for yourself. You need to follow through on what you set out to do and put things in place to achieve your goals. At this point in your development it is important that you effectively implement your developments. The actions you undertake may include such things as: •

Undertaking additional training and education, if needed

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Developing and implementing a job search strategy

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Developing and maintaining an up-to-date CV

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Maintaining information on prospective employers and industries

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Composing cover letters

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Preparing for job interviews

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Preparing and developing your personal brand

A personal brand may be a concept that is new to you but in simple terms it is about how you come across. Research consistently shows that first impressions are based on what we see, rather than what we hear. No matter how hard we try to be unbiased or uninfluenced by somebody’s appearance, studies convincingly prove that first and lasting impressions are significantly shaped by the visual image we are presented with. Our personal branding is a persuasive tool each and every one of us has at our disposal to use to maximise a positive image impact. However, the power of our personal brand is often overlooked and is either not used to its maximum potential or, worse still, it can get in the way of projecting our true qualities and abilities (Lesley Everett, 2004).

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MANAGEMENT DEVELOPMENT The concept of personal branding is therefore all about you and how you come across. It is about developing self-awareness and an understanding of such things as: •

How the way you dress can create an impact

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How grooming can create an impact

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How the way you communicate in writing (letters, e-mails, text messaging) can create an impact

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How the way you communicate verbally (face-to-face, telephone) can create an impact

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How the way you communicate using body language can create an impact

Find out more about personal branding by referring to Lesley Everett: Walking Tall, Key steps to total image impact (2004).

Finally, an important part of any action you undertake as part of your career development is the gaining of feedback. It is important to seek feedback whenever possible from your applications and interviews. Always ask for feedback as most employers, though by no means all, will take the time to give you feedback on your written application or your performance at interview.

Always seek feedback on your personal brand when the opportunity arises.

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All educational institutions offer support for career planning. Find out more about career planning by referring to the careers department at the institute you are registered with.

2.7 CONCLUSION Section One looked at vision, the creation of a vision and the factors which influence the creation of that vision. Successful crafting and implementation of that vision relies upon the knowledge and personal skills of the leader or leaders, within that organisation, to inspire and draw people into believing in that vision. In Section Two we looked at leadership in the context of the organisation and also in the context of the individual. We also looked at the concept of the learning organisation and the factors which can influence the development of this. A successful organisation values learning and self-development as a necessary prerequisite for the achievement of its goals and ultimately its vision. There is often a culture where the knowledge, skills and experience of an individual are valued and their development encouraged; where it is OK to make mistakes as long as a lesson is learned. A successful organisation also values the development of its leaders.

Evaluating leadership development For an organisation or department you are familiar with, evaluate the processes employed to support the development of its leaders. Write a report describing how the overall approach to leadership development fits with the culture and vision of the organisation, identifying the strengths of the approach together with recommendations for its further development.

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MANAGEMENT DEVELOPMENT Cottrell, S. (2003b) The Study Skills Handbook, Second Edition, Basingstoke: Palgrave Macmillan Crainer, S. (1998) Key Management Ideas: Thinkers that Changed the Management World, Third Edition, Harlow: Financial Times Prentice Hall Coyne, K. P. Hall, S. J. D. and Clifford, P. G. (1997) Is Your Core Competence A MIRAGE? McKinsey Quarterly, 1: 40–54 Deal, T. E. and Kennedy, A. A. (1982) Corporate Cultures: The Rites and Rituals of Corporate Life, New York: Penguin Everett, L. Walking Tall, (2004) Key steps to total image impact, London: McGraw-Hill Finlay P. (2000) Strategic Management: An Introduction to Business and Corporate Strategy, Harlow: Pearson Education Limited Handy, C. (1989) The Age of Unreason, New York: Century Handy, C. (1993) Understanding Organisations, Forth Edition, London: Penguin Books Huysman, M. (1999) Balancing Biases: A Critical Review of the Literature on Organisational Learning, in Easterby-Smith, M. Burgoyne, J. and Araujo, L. Organisational Learning and the Learning Organisation, London: Sage Kasvi, J. J. J. (no date) Building the Learning Organisation: A Book Summary, [online], available from: http://www.knowledge.hut.fi/projects/itss/referMarquardt.pdf Kotter, J. (1996) Leading Change, Harvard Business School Press: Boston Lipton, M. (1996) Demystifying the Development of an Organisational Vision, Sloan Management Review, Summer, 37(4): 83–92 Llyons, L. and Freas, A. (eds.) Coaching for Leadership, San Francisco: Jossey-Bass Pfeiffer Marquardt, M. and Sashkin, M. (1996) Building the Learning Organisation, Maidenhead: McGraw-Hill Education Mascarenhas, B. Baveja, A. and Jamil, M. (1998) Dynamics of Core Competencies in Learning Multinational Companies, California Management Review, 40(4): 117–132 McCauley C. D. and Van Velsor E. (2004) Handbook of Leadership Development, 2nd edition, San Francisco: Jossey-Bass, p331. McGregor, D. (2006) The Human Side of Enterprise London: McGraw-Hill Mintzberg, H. (1979) The Structuring of Organisations, New Jersey: Prentice Hall Publications © Scottish Qualifications Authority

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MANAGEMENT DEVELOPMENT Mintzberg, H. (1983) Structure in Fives: Designing Effective Organisations, New Jersey: Prentice Hall Publications Morgan, G. (1993) Imaginization: New Mindsets for Seeing, Organising and Managing, California: Sage Publications Mullins, L. J. (2005) Management and Organisational Behaviour, Seventh Edition, Harlow: Pearson Education Limited NASA, (2002) Project Apollo, [online], available from: http://spaceflight.nasa.gov/history/ Nonaka, I. and Takeuchi, H. (1995) The Knowledge Creating Company, New York: Oxford University Press Pedler, M. Burgoyne, J. and Boydell, T. (1997) The Learning Company: A Strategy for Sustainable Development, Second Edition, London: McGraw-Hill Prahalad, C. K. and Hamel, G. (1990) The Core Competence of the Corporation, Harvard Business Review, May-June 1990:79–91 Senge, P. (1990) The Fifth Discipline: The Art and Practice of the Learning Organisation, London: Transworld Senge, P. Kleiner, A. Roberts, C. Ross, R. Roth, G. and Smith, B. (1999) The Dance of Change: The Challenges of Sustaining Momentum in Learning Organisations, London: Nicholas Brealey Van Velsor, E. (2004) Handbook of Leadership Development, 2nd edition, San Francisco: JosseyBass, p331 Witherspoon, R. (2000) ‘Starting Smart: Clarifying Coaching Goals and Rules, in Goldsmith, M. Llyons, L. and Freas A. (eds.) ‘Coaching for Leadership’, San Francisco: Jossey-Bass Pfeiffer

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