This paper details the nature and roles of leadership in the field of management innovation. Leadership broadens the organizational levels and initiates the innovation activity through motivating the employees and defining an effective structure for the proper functioning. Use of the concept could be done in a wide range of markets and at the degree of the novelty required. The innovation to make it happen within an organization, a link between the leadership systems and innovation strategies has been introduced. The policy implications recognizes the need for the different stages of the innovation process at different levels of the organizational structure , from which a stepping stone at every level can be achieved which will be followed by the Organizational implication which identifies a proper leader for different hierarchy levels and allows to perform according to the stages of innovation process. In total it clearly gives an idea about the ongoing activities in any organization where an innovative activity occurs with the quality leadership in it and the levels of performance in any sector.
Table of Contents
1. INNOVATION 8
1.1. Innovation Vs. Improvement 8
1.2. Innovation Vs. Invention 9
2. Elements for innovation: 10
3. Changing nature of the innovation process 11
3.1. Types of innovation 13
3.2. Innovation implementing methodology 14
4. Degree of Novelty in Innovation 16
5. Leadership Quantities for Innovation 17
6. Definition and Explanation of Leadership Skills 18
6.1. Communication 18
6.2. Integrity 20
6.3. Visions and Goal Statements 21
6.4. Teamwork 22
6.5. Relationships 23
6.6. Persuasion 24
6.7. Adaptability and Flexibility 25
6.8. Coaching and Development 26
6.9. Decision Making 27
6.10. 8.10. Planning 28
6.11. 8.11. Taking Risks 28
6.12. 8.12. Optimism and Motivation 29
7. Innovative Leadership Style and its Impact 31
8. Charismatic Leadership Style 32
8.1. Impact of Charismatic leadership style 32
8.1.1. Communicating with vision:- 32
8.1.2. Accelerating Innovation process:- 33
8.1.3. Leaders can become addicted to charisma:- 33
8.1.4. Organizations can become addicted to the charismatic leader:- 33
8.1.5. Charisma grows for its own sake and forgets its purpose:- 33
8.2. Case Study 34
9. Instrumental Leadership Style 36
9.1. Impact of Instrumental leadership style 36
9.1.1. Structures a innovation process:- 36
9.1.2. Controls a process:- 37
9.1.3. Rewards the innovators:- 37
9.1.4. Constrain to maintain high motive level:- 37
10. STRATEGIC LEADERSHIP STYLE: 38
10.1. STRATEGIC LEADERSHIP PRESUMES: 38
10.2. The strategic leader use different hierarchical position to create innovation structures and processes in the organization such as, 39
10.3. FUNCTIONS OF STRATEGIC LEADERSHIP IN INNOVATION. 40
10.4. A CASE STUDY OF THE IMPACT OF STRATEGIC LEADERSHIP IN A HIGH-WAY ROAD PROJECT. 40
11. INTERACTIVE INNOVATION LEADERSHIP : 42
11.1. THE MOST EFFECTIVE WAY TO EXERCISE INTERACTIVE LEADERSHIP TOWARDS ACCELERATING CHANGE AND INNOVATION IS TO: 42
11.2. THE INTERACTIVE LEADER CO-INNOVATES WITH OTHER MANAGERS, EMPLOYEES AND SUBORDINATES BY, 42
11.3. Interactive leadership pathway: 43
11.4. Effective leaders usually practice the following techniques: 43
11.4.1. Sell the Vision of the organization 43
11.4.2. Walk the Talk with the employees. 43
11.4.3. Empower and Delegate 44
11.4.4. Create Urgency in the process 44
11.4.5. Openly Communicating with everyone in the organization. 44
11.4.6. Removing Obstacles/barriers. 44
11.4.7. Celebrate the Little Successes 44
11.5. THE IMPACT OF INTERACTIVE LEADERSHIP IN AN INNOVATIVE PROJECT 45
List of Figures:
INNOVATION
Innovation is a key word probably being used more than ever by any type of individuals, groups or organizations; from scientist to artists, from engineers to craftsmen. Whether it is the business surroundings or non-profit organizations, political or educational associations, whether it is a developed or a developing market, whether a product or service offering, with high technology or mass production; the word of innovation is word being recognized as one of the most credible one and term of being innovative sounds as the ultimate path to success in any changing environments especially in terms of globalization. In order to use the terms of innovation one should understand what really innovation is, in order to understand what is in the core of innovation and the description of it one should most likely distinguish the term innovation from the terms and definitions that are considered as synonyms or to have very similar meanings and practices. Although these terms could be inter-related or connected to Innovation in somehow in some phases, they cannot be considered as Innovation itself. These misunderstood terms are Invention, Improvement, Being Innovative is also a term most of the time described as being creative, entrepreneur or just able to handle complexity, therefore after distinguishing the term of innovation, the term of being innovative should be described considering these influencing characteristics. Finally Innovation is a important dimension of the change process therefore the importance of innovation in change process should be identified in order lead reasonable descriptions and definitions of Innovation. After this we can discuss the generation of innovation, types of innovation, methodology of it and finally carry on to the impact of leadership on Innovation (Mintzberg 2003)
Innovation Vs. Improvement
Although Continuous improvement may end up with an innovation most of the time, defining innovation with a series of incremental changes as a result of continuous improvements would be an insufficient explanation of innovation. The reason is that incremental changes depends on the lessons learnt and follows a horizontal path throughout the idea processing and knowledge creation, in the case of an innovative idea, a leap in the idea processing is observed, a vertical step in time where the track of previous improvement can't be followed or even found irrelevant to the idea discovered. As it can be understood from the term itself improvements follow a continuous path, but innovations are better described as in continuous breakthroughs from the formal horizontal path. The underlying principle with the innovation is that it deserves not only certain amount of time which can be illustrated by the continuous improvements accomplished through lessons learnt and analysis's but also depends upon certain amount of space which can be explained by the occurrence of some events and situations that triggers this leap in the understanding and level of cognition. To enable a qualified process to overcome sophisticated needs of innovation, continuously improvement is necessary but not sufficient. (Mintzberg 2003)
Innovation Vs. Invention
Invention is another term being considered with Innovation most of time. What leads to an invention is the orientation of both horizontal and vertical changes, in other words continuous improvements harmonized with innovations. Several Innovations turn into an invention which deserves relatively more time and effort. Some descriptions distinguish innovation as a integrating activity of different disciplines, technologies, approaches, understandings or perspectives whereas claiming invention as of a specific level of change made on a certain study field for long periods. Actually what differs invention from innovation is that invention includes several innovations which lead to a more horizontal and vertical change that makes it even harder to track the continues and integrated improve (Eversheim 2009)
Elements for innovation:
1.Basic needs for innovation (Park 2005)
Changing nature of the innovation process
The change of innovation is completely based on the generations and its requirements. Till now there is five generation of innovations
First generation (1950-1960):
(Research push)
Science and technology Market
Research
Manufacture
Development
Marketing
Sales
Figure:2 First generation innovation process (Dodgson et al. 2008)
Second generation (1965-1975): (Demand pull)
Science and technology
Market
Manufacture
Sales
Research &development
Market and demand
Figure 2: Second generation innovation process (Dodgson et al. 2008)
Third generation (1980-1986):
Research , Development, Design, Prototyping, Testing, Operations, Marketing, Sales, Service. (Coupling)
Science and technology Market Market
Communication and feedback loops
Figure 3: Third generation innovation process (Dodgson et al. 2008)
Fourth generation (1986-2000):
(Collaborative)
Suppliers
Cross functional teams, process based organization
Research, Development, Design, Prototyping, Testing, Operations, Marketing, Sales, Service
Horizontal research Alliance
Science and technology
Market
Customers
Figure 4: Fourth generation innovation process (Dodgson et al. 2008)
Fifth generation (2005-2010):
Process driven by:
Innovative strategy
High level organizational and technological integration (Strategic and integrated)
Strategic and technological integration with customers, Suppliers, Innovation communities and networks
Figure 5: Fifth generation innovation process (Dodgson et al. 2008)
Types of innovation
The six focus areas for innovation are:
Product - What we produce and sell
Process - Continuous improvement of how we do that
Marketing - Exceeding customer expectations
Organization - Business strategies, systems and structures
Open - Working beyond boundaries and collaborating globally
Value - Creating unique value that eliminates the cost to compete
Among these six major four types of innovation in practice are as follows:-
Product innovation:
"Product innovations can be based on new uses or combinations of existing knowledge or technologies. The term "product" is used to cover both goods and services are referred as product innovation".(Organization for Economic Co-operation and Development 2005)
Process innovations :
"Production methods involve the techniques, equipment and software used to produce goods or services are referred as process innovation".(Organization for Economic Co-operation and Development 2005)
Marketing innovation:
"Marketing innovations includes changes in product design that are part of a new marketing concept. Product design changes refer in product form and appearance that do not alter the products or characteristics. They also include changes in the packaging of products, where packaging is the main determinant of the product's appearance. Innovations in product design can also include the introduction of significant changes in the form, appearance or taste of food or beverage products, such as the introduction of new flavors for a food product in order to target a new customer segment".(Organization for Economic Co-operation and Development 2005)
Organizational innovation
"This kind of innovation can be intended to increase a firm's performance by reducing administrative costs, transaction costs, improving workplace satisfaction or cost for supplies".(Organization for Economic Co-operation and Development 2005)
Innovation implementing methodology
The planning phases of the Innovation Roadmap methodology are as follows
Goal setting
Future analysis
Idea generation
Idea evaluation
Idea detailing
Concept evaluation
Implementation planning
Controlling.(Eversheim 2009)
The below figure illustrates the common innovative and Triz methodological thinking for a new innovation. Figure 6: Innovation methodology (Gao Changqing 2005)
Degree of Novelty in Innovation
Three concepts for the novelty of innovations are discussed below: new to the firm, new to the market, and new to the world.
New to the firm:
A product, process, marketing method or organizational method may already have been implemented by other firms, but if it is new to the firm then it is an innovation for that firm.
New to the market:
Innovations are new to the market when the firm is the first to introduce the innovation on its market. The market is simply defined as the firm and its competitors and it can include a geographic region or product line.
New to the world:
Innovations are new to the world when the firm is the first to introduce the Innovation for all markets and industries, domestic and international. New to the world therefore implies a qualitatively greater degree of novelty than new to the market(Organization for Economic Co-operation and Development 2005)
Leadership Quantities for Innovation
This text is based on „Concepts of Leadership" by Donald Clark. http://management.about.com/gi/o.htm?zi=1/XJ&zTi=1&sdn=management&cdn=money&tm=6&f=00&tt=14&bt=0&bts=0&zu=http%3A//www.nwlink.com/~donclark/leader/leader.html
An organization needs to remain competitive a vision. That vision can be reflected in for example new products, services or a reorganization of the organizations structure.
The assignment of the leading staff is, to accomplish those visions by leading the employees. Leading in that case means to influence the employees to accomplish the goals and objectives.
Leadership is „The activity of leading a group of people or an organisation, or the ability to do this." http://www.businessdictionary.com/definition/leadership.html
To lead other people, for a leader it is necessary to be familiar with important leadership knowledge and leadership skills.
Leader`s attributes or traits like beliefs, values, ethics and character will influence directly the leadership skills and the leadership style.
Additional to some of the leadership skills, which will be short presented and explained during the next pages, there are some principles of leadership which help to become a better leader.
Know yourself and seek self-improvement
Be technically proficient
Seek responsibility and take responsibility for your actions
Make sound and timely decisions
Set the example
Know your people and look out for their well-being
Keep your workers informed
Develop a sense of responsibility in your workers
Ensure that tasks are understood, supervised, and accomplished
Train as a team
Use the full capabilities of your organization
Definition and Explanation of Leadership Skills
Communication
Definition: „ Two- way process of reaching mutual understanding, in which participants not only exchange (encode-decode) information but also create and share meaning." http://www.businessdictionary.com/definition/communication.html
This text is based on „Communication and Leadership" by Donald Clark.
http://management.about.com/gi/o.htm?zi=1/XJ&zTi=1&sdn=management&cdn=money&tm=4&f=00&tt=14&bt=0&bts=0&zu=http%3A//www.nwlink.com/~donclark/leader/leader.html
Most problems and failed projects in an organization are the results of a wrong communication process or lower communication skills. A failed communication occurs, if the receiver does not understand exactly the information, order or idea which the sender tried to transmit. To prevent confusions and misunderstandings during a communication, a good leader has to know the basics of an effective communication and has to train his communication skills.
To get an idea how a communication process is constructed, the communication process can divide into three steps:
Thought
The message which can be an idea, a concept, information's or feelings will be formed in the mind of the sender.
Encording
The message, which is formed in the mind of the sender, will be send verbal, nonverbal or with symbols.
Decording
To understand the meaning of the message, the receiver translates the information with procedures he understands.
During a communication the message of the sender will include two elements. These two elements are related to each other. The right interpretation of the elements on both sides (sender and receiver) is very important for an effective communication.
The first element is the content. The content includes the verbal information. Verbal information's like spoken words or symbols can be combined to phrases, which then make sense. The verbal content in a message is around 38%.
The sender has to be sure that the receiver understands the verbal informations in the right way, otherwise there will be a possibility for misunderstandings and confusions on the receiver side.
Many words have different meanings and also the interpretation of the meanings of words can be different. A big possibility for misunderstandings and confusion could also be the circumstance, if one of the participants does not speak the same language or is not a native speaker. The language content in a message is around 7%.
A good leader has to train his verbal skills to deliver his message correct to the employees.
The second element of a message is the context. The context describes the nonverbal elements. Nonverbal elements include all elements which describe the way how the message was delivered.
The nonverbal communication is very important in the communication style. The nonverbal content of a message is around 55%.
It delivers feelings to the receiver. The possibility for misunderstandings and confusions on the receiver s side is extremely high, if the nonverbal elements do not fit to the verbal elements.
Examples for nonverbal elements are:
The body language
Examples are the body posture, eye contact and movements.
Hand gestures
Hand gestures are used to underline words or phrases.
The state of emotion
States of anger, fear or uncertainty are mostly negative emotions.
Elements in speech
The tone of the voice.
A good leader has to train, in addition to his verbal skills, also his nonverbal skills to deliver his message correct to the employees.
Behaviors like eye contact, facial expressions, gestures, posture and body orientation, proximity and vocal techniques shall be a part of the communication.
A second important case of communication is the listening part. It can be distinguished between active listening and passive listening.
Passive listening means, if the receiver just listens to the senders message. Much informations get lost, because the receiver does not listen carefully.
Active listening is the opposite of passive listening. The receiver spends attention to the sender's speech to understand the words and feelings.
For a good leader it is important to spend more time on active listening than on talking in meetings and other conversations.
A possibility to be sure that the receiver understood the message in the right way is the feedback. In a feedback, the receiver tells the sender in his own words, how he understood the message verbal and nonverbal. An advantage is that the sender has the chance to explain the message with other words directly, if the receiver understood the message in a wrong way. Fails or problems can be prevented. Also there is the chance to get into a discussion which could affect the message and communication in a positive way.
A feedback is absolutely a benefit for an effective communication.
A leader should be familiar with presentation techniques and tools. They are very helpful for highlighting messages, informations, facts and data and make sure for a better understanding. Also it is easier to reach more people in a shorter time.
Integrity
Definition: „Strict adherence to a moral code, reflected in transparent honesty and complete harmony in that one thinks, says, and does."
http://www.businessdictionary.com/definition/integrity.html
This text is based on „The importance of integrity to leadership" by Siti Ibrahim. http://www.helium.com/items/1495580-the-importance-of-integrity-to-leadership
Integrity has a big influence on the organization`s structure, the staff and the organization`s publicity. Integrity includes honesty, reliability and trustability and is a part of a positive trait.
An integrity based leadership is an interaction between the leader and the employees which benefits the trust, acceptance and respect for each other. Also the communication will have a benefit of integrating an integrity based leadership style.
The staff will be more open to accept mistakes, critics and will not be afraid of receiving any negative feedback. This will decrease stress and anxiety. The behavior of the leaders will influence the employees.
If an organization has many integrity leaders and employees, individuals with a flawed character will not last long in the organization.
Integrity prevents negative actions like corruption or mobbing.
From the economical point of view, it is for an organization very important to have many integrity leaders, because the prestige in public will increase.
Visions and Goal Statements
Definition:
„ An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action. "
http://www.businessdictionary.com/definition/vision-statement.html
This text is based on „Leading and Leadership" by Donald Clark. http://management.about.com/gi/o.htm?zi=1/XJ&zTi=1&sdn=management&cdn=money&tm=5&f=00&tt=14&bt=1&bts=1&zu=http%3A//www.nwlink.com/~donclark/leader/leader.html
A leader needs a strong vision where to go to. Employees want a vision for what they are working for. The leader's assignment is to give the employees a vision.
The factors which let employees follow are clearly defined goals and trust.
The leader has to set goals to realize the visions.
These goals should be:
Realistic
Attainable
Improve the organization
All employees should be involved in the goal setting process
A program should be developed to achieve the goals
Inspiration helps to induce employees to do something, because the task will get a purpose.
Also motivation has a big influence to the implementation of a task.(Gao Changqing 2005)
Teamwork
Definition:
„ The process of working collaboratively with a group of people in order to achieve a goal."
http://www.businessdictionary.com/definition/teamwork.html
In addition to be able to work as a leader in a team, it is for a leader even more important to be able to form a team and stick it together.
This ability is based on the knowledge of:
The employees
To know the strengths and weaknesses in the technical- , social- and creative-abilities of each employee.
Group dynamics
To know the coherent of behaviors and psychological processes in a group.
Psychology
To appreciate charakters of individuals correctly.
Team communication
To know the rules of communication and to be able to communicate with more people simultaneous. The leader has to get also into the role as a moderator.
A usual mistake of leaders is that they form their team out of employees which are too similar.
A better output of teamwork will be achieved the more diverse the team members are.
The diversity resultates out of:
Opinions
Backgrounds
Capabilities
Relationships
Definition:
„A connection between variables, such as a correlation, or between people, such as a marriage."
http://www.businessdictionary.com/definition/relationship.html
Relationships are for an organization very important. It helps to increase the loyalty of the employees to the organization, products and participants. There can also be relationships to suppliers, customers and other organizations or departments.
Some benefits for the organization are:
Loyal customers, suppliers, employees
It will increase sales and market share
Exchange of information
Increasing the communication in a positive way
Increasing the motivation
Decreasing the sickness absence rate
Increasing the workflow because of better connections
Relationship is based on respect, trust, acceptance, support, understanding, share and celebrating and freedom.
For a leader it is important to care for the employees and the organization.
A leader should be able for building relationships and networks with and between employees and other contacts. (Dodgson et al. 2008)
Persuasion
Definition:
„ Process aimed at changing a persons (or a groups) attitude or behavior toward some event, idea, object, or other person(s), by using written or spoken words to convey information, feelings, or reasoning, or a combination of them."
http://www.businessdictionary.com/definition/persuasion.html
This text is based on „Leadership by Persuasion - Four Steps to Success" by Patsi Krakoff,Psy.D..http://ezinearticles.com/?Leadership-by-Persuasion---Four-Steps-to-Success&id=118428
One of the most important leadership skills which a leader should have is the ability to persuade. Persuasion is related to trust, relationship and communication. By persuasion, people can be influenced to do something voluntary. The benefit is that the people act without coercion, because they are convinced to do something which makes sense in their minds.The leader must only give a reasonable reason. The success of a leader to realize the visions and goals depends on the persuasion skill.
The four steps to a successful persuasion are:
Establish credibility
Expertise and relationships are the sources which develop credibility.Necessary is active listening to other peoples suggestions. Their opinions should be valued. Data and informations should be collected to support the own arguments.
Understand the audience
Identify benefits to which the audience relates. Identify the interests of important people in the group like decision makers or stakeholders.
Reinforce position
Arguments should be logical and have consistent facs and experience, should be addressed to audiences interests and neutralize alternatives.
Connect Emotionally
The communication to the audience should be a mix of intellectual and emotional commitment.(Mintzberg 2003)
Adaptability and Flexibility
Definition:
„Ability of an entity or organism to alter itself or its responses to the changed circumstances or environment. Adaptability shows the ability to learn from experience, and improves the fitness of the learner as a competitor."
http://www.businessdictionary.com/definition/adaptability.html
Flexibility and adaptability are necessary for innovations. Without flexibility and adaptability an organization will become inflexible and will not be able to react on intern or extern changes.
The business of a leader is to realize the visions and goals with the help of the staff.
Problems have to be solved.
Solution orientated working will be more effective, if a leader is flexible and adaptable in mind.
The ability on changing strategy, plans or programs to unforeseen events will be easier and more successful, because the motivation to change old practices will be higher.
With a flexible and adaptable thinking, a leader will be able to find more solutions for a problem and the chance to project similar situations from the past to current situations to find solutions or strategies will increase.
A flexible and adaptable leader sees innovations and changes as an opportunity for improvement.
Coaching and Development
A leader has to be able to coach and develop employees. It is very important to have the focus on coaching and developing young and upcoming employees.
These employees often do not have much experience but if they have just finished the university they have a current status of know-how.
The benefits are that these employees are motivated and learn in a correct way the skills they really need for the job. Also they bring new influences into the team and gain greater competence. Coaching helps to overcome barriers and to improve job performance.
Decision Making
Definition:
„The thought process of selecting a logical choice from the available options."
http://www.businessdictionary.com/definition/decision-making.html
This text is based on „Decision Making Skills" by mindtools.
http://www.mindtools.com/pages/article/newTED_00.htm
Every day a leader has to make decisions. Those decisions have to be timely and well considered, otherwise projects can fail or problems will occur. Decisions can be separate to long term decisions like program activities in two years and short decisions like program activities in the next week.
Typically involved issues in long term or short term decision are still the same. Unknowing facts, many interrelated factors, high risk consequences, alternatives and interpersonal issues will make to find the best decision for a leader even harder. To be able to make better decisions, a leader should use a logical, organized and systematic decision making process. It helps to find critical elements and important factors.
A decision making process can base on six steps:
Creating a constructive environment
By establishing the objective, agreeing on the process, involving the right people, allowing opinions to be heard, making sure asking the right questions, using creativity tools from the start.
Generate good alternatives
By using general ideas like brainstorming, considering different perspectives, organizing ideas.
Exploring the alternatives
By doing risk analysis, using implications, validation.
Choosing the best alternative
By using for example decision trees.
Checking the decision
For doing a sense check to make sure that there were no decision errors.
Communicate the decision and moving to action
Explaining the decision to those who are affected by it and involved in implementing it.(Gao Changqing 2005)
8.10. Planning
Definition:
„The planning process identifies the goals or objectives to be achieved, formulates strategies to achieve them, arranges or creates the means required, and implements, directs, and monitors all steps in their proper sequence."
http://www.businessdictionary.com/definition/planning.html
To accomplish objectives and achieve goals to realize the vision, a leader has to plan. Panning fixes a strategy, how an action will be enforced. Planning can be separate into long term planning and short term planning.
The procedure to achieve long term and short term plans should be a logical, organized and systematic based process. The better the planning is, the lower will be the risk of fails.
For optimal planning facts, informations and data will be required. The leader has to evaluate if the facts and data are useful to accomplish objectives or not. The data and informations should be up to date.
A leader has to be flexible in changing plans because of unforeseeable events. Every employee who is involved in the project should be informed in the detailed planning steps.
8.11. Taking Risks
Definition:
„A probability or threat of a damage, injury, liability, loss, or other negative occurrence that is caused by external or internal vulnerabilities, and that may be neutralized through preemptive action."
http://www.businessdictionary.com/definition/risk.html
This text is based on „Leadership Willingness to take Risks" by Mike King.
http://learnthis.ca/2009/01/leadership-willingness-to-take-risks/
Without the willing to take risks, there will be stagnation. Stagnation means - no growth - which ends in regression. Organizations which are stagnated are not able to survive in the global market. Taking risks means to be the first or to do something different.
Risks can be separate in calculable risks and incalculable risks. The difference is that calculable risks can be pre-estimate and incalculable risks not. A leader needs the ability to take stock of a risk. The ability is based on knowledge, informations, routine and sometimes instinct. Risk taking is necessary to change things. The proof is important and risk shall be beared responsible.
8.12. Optimism and Motivation
Definition:
„Internal and external factors that stimulate desire and energy in people to be continually interested in and committed to a job, role, or subject, and to exert persistent effort in attaining a goal."
http://www.businessdictionary.com/definition/motivation.html
This text is based on „Employee Motivation Factors" by Ivan Makenan.
Source: http://ezinearticles.com/?Employee-Motivation-Factors&id=1536176
A leader should be an optimist. If not, it is harder to be open for new ideas, taking risks, and encourage others to be innovative and not being stuck.
With an optimistic attitude, uncertainty and fears will be minimized and people will be easier convinced for new projects or programs.
Optimism and motivation react on each other. The motivation will increase if there is an optimistically mood. On the other side the optimism will increase if there is a high level of motivation.
Motivation is necessary because it pushes to achieve objectives and goals.
A leader should also be a motivator.
There are some motivation factors which can increase motivation:
Treating people fair and with respect
Employees should work on tasks which are best suited for them for preventing stress and negative experiences.
Using employees talents wisely
Development and choaching
Building employees self esteem and confidence
Giving self responsibility
Innovative Leadership Style and its Impact
Leadership style refers to the patterns of behaviors, an individual leader uses across a full range of managerial and leadership situations. Normally leaders come across many situation in there managerial career where in they have to adapt themselves to a suitable style which will help them to solve situations they have encounter with ease.
Some of the important innovative leadership styles are:-
Charismatic Leadership Style.
Instrumental Leadership Style.
Strategic Leadership Style.
Interactive Leadership Style.
Charismatic Leadership Style
The charismatic leadership style is the predominant leadership style where sheer personality, imagination, and capability will drive the innovation process. As new vision, goals and resolutions of future business are created, charismatic leader is considered. These leaders are always known for being visionaries. They are excellent at finding out the inefficiencies within organizations. The charismatic leaders often find results and solutions to various problems by compiling facts and critical thinking. If there are organizational lapses in a company, where revenue can be improved, these leaders begin formulating strategies and proposals that address these inefficiencies. They create missions around solving problems and will implement solutions inside the current organization or create a new organization altogether. (Bart A G Bossink 2005)
A charismatic leader understands the vision, goals and targets of the organization and focus on full filling them by showing the right way, leading by example, initiating the innovation and by gaining the loyalty of all the employees. Charismatic leader are known as "people persons" their greatest mental replenishment comes from solitude and self-reflection. Charismatic leaders are performance driven and relentless. Once charismatic leaders set their course on a mission, nothing can thwart them outside of accomplishing the mission. They do not see failure as an option. They will never give up the mission until it is completed. (Bart A G Bossink 2005)
Impact of Charismatic leadership style
Communicating with vision:-
The leader clearly understands the vision of the organizations and works towards meeting the goals and targets of the company. He communicates the vision to all the level of employees and explains them the need to work together in achieving the goals and target of the company.
The charismatic leader leads by examples, he sets a good example by motivating all the employees. He is an attention seeker and emotionally attracts the employees. He clearly explains the benefits of working towards the innovation to the employs and gains the trust and steers them to work towards the companies goals.(Bart A G Bossink 2005)
Accelerating Innovation process:-
The charismatic leader is self driven by his charisma, he clearly identifies the inefficiencies and initiates innovation process. He speeds up the innovation work in the organization by stressing on the importance of innovation. He initiates the innovation from the lowest possible level of the company, he clearly communicates the inefficiencies to the employees and takes in idea from all the employees and drive innovation from the there. (Steve Nguyen 2010)
Leaders can become addicted to charisma:-
A leader who employs too much charisma can come to rely on this ability as an end unto itself. Assume a leader who can inspire a group, or promote a vision, or simply want to walk into a room as the center of attention, all with seemingly little effort. All this fame, recognition, validation, and basic positive feedback generated by their charisma can tempt a leader's motivation and interest to work for the company's vision. This will also reduce the interest of a leader to face situations that are more challenging or unpopular.(Brian Evje 2012)
Organizations can become addicted to the charismatic leader:-
A leader becomes over charismatic and draws focus from the rest of the organization by demanding attention for him. When the focus shifts to the personal characteristics of the leader, accountability is diminished. The decision making become on self focused and the group blindly follows the leader as they are loyal to the leader. The leader takes all the responsibilities and power under his own decisions and self interest which may lead the company to the downfall. The enterprise loses the ability to make decisions and has to wait for the leader to make the decisions as the power rests within him and they believe the leader knows the best.(Brian Evje 2012)
Charisma grows for its own sake and forgets its purpose:-
This normally happens when both the leader and the organization are addicted to charisma. Normally organizations with big visions are led by people who display significant charisma in order to keep the vision moving forward. The bigger the vision, the more the organization tilts towards the "visionary," thus increasing the risk of charismatic addiction and organizational dependency.
Smaller and newer companies are especially vulnerable because they have no other center of gravity outside of the charismatic founder. As the company grows the challenge expands, because followers tend to believe that the charismatic leader is responsible for any success. The leader must supply more charisma to keep the dynamic humming; the need shifts to growing charisma, not the organization's ability to grow itself. (Brian Evje 2012)
Case Study
The case study is Facebook, with several recent reports portraying the breadth of its founder-centric focus. All-hands meeting are described as "part religious revival," the movements of the CEO include involvement in a dizzying range of details, and the running narrative (the company mythology in- action) is that everyone feels the CEO is extraordinary because he is exceptionally "smart."
While most companies will not achieve the size and scale of Facebook, the example of an extreme focus on the leader is useful to every company. If you find yourself influencing others for the wrong reasons, ask
How am I drawing attention to myself, and away from others?
What is the organization missing while it's focusing on me?
What do I do when I don't know what to do and have not built up others to contribute?
Do I spend my time empowering others to make decisions, or does my involvement force people to look to me for answers?
How often do I dive into details that belong to others?
How do my actions and attention help - or prevent - others from taking greater responsibility and accountability for their actions?
What happens if my moral compass becomes shaky, or if I did not develop one before becoming the charismatic leader everyone adores?
If my company relies on me too much, what happens if I need a break, or become ill, or want to do something different?
What do I do when all my old tricks of charisma or being "smart" don't suit some future challenge?
If I have created this reliance on me, who will help me recognize this and change?
Charisma is a capability, not a basic need. If there is a charismatic leader, everyone will know it, and there is no need for the leader to overplay the role. The leader should have the courage to see charisma as an attribute, one of many, and strive for more graceful leadership that requires you to attend to the higher needs of the organization, and not just self interest. (Brian Evje 2012)
Instrumental Leadership Style
Instrumental leadership style can be defined as "goal oriented" leadership style. It is a style of leadership based around team building specific to a goal or task. It might be called a form of management rather than of leadership, since it really only deals with overseeing the work of a team. This approach to leadership is based on contingency and situational forms of leadership. The instrumental leader is not necessarily a born leader, or even one with the traits necessary for good leadership. This approach stresses the fact that some leaders do better under certain conditions than others. In this case, leadership is based on the ability to build a team toward a specific goal. The leader must be matched to the goal.(Bart A G Bossink 2005)
This style is a very open and collegial style of running a team. Ideas move freely amongst the group and are discussed openly. This style is needed in dynamic and rapidly changing environments where very little can be taken as a constant. In these fast moving organizations, every option for improvement has to be considered to keep the group from falling out of date. This leadership style facilitating the conversation, encouraging people to share their ideas, and then synthesizing all the available information into the best possible decision. The instrumental leader must also be able to communicate that decision back to the group to bring unity the plan is chosen. (Bart A G Bossink 2005)
Instrumental leadership offers a great deal of flexibility to adapt to better ways of doing things when there are frequent changes in situations. Unfortunately, this type of leadership style consumes more time to make a decision, so while it may embrace newer and better methods; it might not do so very quickly. This leadership style will bring the best out of an experienced and professional team. It capitalizes on their skills and talents by letting them share their views, rather than simply expecting them to conform. The most benefit of this leadership style is when it comes to make complex and critical decisions, it is important to have the different areas of expertise represented and contributing input. (Bart A G Bossink 2005)
Impact of Instrumental leadership style
Structures a innovation process:-
The leader is entitled to follow the guidelines and policies of the company and will always have to follow the standard procedures. The leader structure the process by discussing with the team and comes up with the organized structure which fits in the companies policies and also drive the company towards its goals and targets.(Bart A G Bossink 2005)
Controls a process:-
It was very important for a leader to control the organization decision and to make sure that the process follow the structured frame work. He makes sure that all the innovation and other critical process are driving the company towards its targets.(Bart A G Bossink 2005)
Rewards the innovators:-
This type of style recognizes the innovators and provides a platform in which they can invest their ideas and taught which will help in increasing the efficiencies of the process. Each and every ideas are taken into consideration and the best idea in the interest of the company will be selected. Here in this style the leader identifies the innovators and motivates them to drive the company towards excellence.(Bart A G Bossink 2005)
Constrain to maintain high motive level:-
The leader has to maintain a high level of motivation within the organization. The followers are asked to follow the standard procedures and policies of the company all the time, which may be de motivating for the employees. Hence it's important for the leader to constantly maintain a high motivation in the followers. (Bart A G Bossink 2005)
STRATEGIC LEADERSHIP STYLE:
"Strategic innovation leadership refers to a manger's potential and ability to express a innovative strategic vision using their hierarchical power in favor of organization, to motivate and persuade others to acquire that vision".
In today's modern world, usually high technology firms face unique challenges beca use of the fast paced and ever-changing technological landscape of the industries. Intellectual capital and innovation have become the key sources of competitive advantage in a wide range of industries .The key to the future competitiveness of organizations in many of the countries are the ability to innovate and bring new products to market.
The link between leadership and strategy can sometimes hinder and sometimes promote the development of dynamic capabilities in organizations. Leader's contributions in high technology firms will matter a lot for the innovative activity, but most importantly, traditional approaches to the study of the leadership innovation have not specifically addressed the requisite characteristics for executive leadership in such firms
The main objective of strategic leadership is strategic productivity in an organization . Another aim of strategic leadership is to develop an environment in which employees understand their responsibilities and identify their own innovative job. Strategic leaders usually encourage the employees for even a small improvement in the work , because of which the employee can get motivated and could be a reason for a major innovation in the organization with the inventiveness, perception, and planning of the individual.(Dodgson et al. 2008)
http://www.bus.miami.edu/_assets/files/executive-education/leadership-institute/strategic-leadership.pdf
STRATEGIC LEADERSHIP PRESUMES:
An ability to influence those with whom one works.
The leader understands the emergent strategy process.
A shared vision of what the organization is to be.
Agreement among senior manager & board members of opportunities and threats.
Visionary leadership that entails many characteristics such as a willingness to take risks.
Managerial leadership that includes an intended rational way of looking at the world.
The strategic leader use different hierarchical position to create innovation structures and processes in the organization such as,
Using power to innovate:
The leader uses the hierarchical position to authorize innovative activity and processes.
In any organization , the leader takes the sole responsibility and also the risk for innovation . Initiation of any innovative process in the organization will be done through the orders placed by the different authority levels in an organization , the leader should bring the innovative idea to the implementation stage in the lower management level.(Bart A G Bossink 2005)
(Nam and Tatum, 1997; Eisenbach et al., 1999; Norrgren and Schaller, 1999).
Committing employees to innovation:
The leader assigns innovative tasks and responsibilities to subordinates.
A leader has to give a chance to the lower level organization to take up the challenges , and make it happen with the involvement of each and every worker and enabling them to know the real facts and figures.(Bart A G Bossink 2005) (Saleh and Wang, 1993; Norrgren and Schaller,1999; Waters, 2000).
Enabling employees to be innovative:
The leader assigns innovative competences.
In any company, the worker who works in the processes will know better than the higher level management , so a leader should let the lower level employees to innovate things.
(Eisenbach et al., 1999; Norrgren and Schaller, 1999)
FUNCTIONS OF STRATEGIC LEADERSHIP IN INNOVATION.
Purpose/vision: It provides the direction to any organization .
Strategic thinking and planning: To route to set a vision.
Operational/administration: Executing the vision.
Organizational fitness to situational requirement: Organizing.
Energy, morale and confidence: releasing the corporate spirit.
Allies and partners, stake holders and political : Relating the organization to other organizations and society as a whole.
Teaching and leading the learning by example: Choosing today's leaders and developing tomorrow's leaders.
(Eversheim 2009)
http://www.1000ventures.com/business_guide/crosscuttings/leadership_strategic.html
A CASE STUDY OF THE IMPACT OF STRATEGIC LEADERSHIP IN A HIGH-WAY ROAD PROJECT.
This is a project to facilitate transportation roads where the municipal manager represents the municipality in a project to design and develop the roads for an national high way. The primary participants in this project were the municipality as the client, represented by the municipal manager, and an architect's firm as the designer, represented by a managing designer.
The innovation purpose of the municipality was to develop an national high way road with the lane having dividers and also plantation in the dividers to have an ecological garden high way. The municipal manager used a strategic leadership style and hired an architect's firm to design a proper lane road design with the ecological plantation in the dividers. The municipal manager used client-power to direct the designer's activities. The architect had to adjust the rough draft and preliminary design according to the wishes and demands of the municipal manager. In the final lane roads with the dividers and the ecological plantation design with the caution boards and signals were combined.
The municipal manager presented the rough draft, preliminary design and final design to
a municipal designer. The municipal manager enabled the municipal designer, who was
highly motivated to contribute to the design process, to develop sub designs, and arranged that they were integrated in the overall high way road design.
The final result of the strategic leadership style in the national high way project was a well designed concrete road with the lanes divisions having plantation in it and also the sign boards and signals .(Bart A G Bossink 2005)
INTERACTIVE INNOVATION LEADERSHIP :
"Interactive leaders empower others to innovate, cooperate with them to innovate, and show them how to become innovation leaders for themselves. An innovative leader interacts with the environment and shows individualized consideration when providing support, coaching and guidance to employees". (Eisenbach et al.1999)
"A leader expects his orders to be literally and promptly obeyed but he knows one's limitations better than one does himself and he invariably allows for them, he never expects one to do more than one is capable of, he trusts one implicitly and he always appears to be pleased with what one has done". - (Huntford 1985 pg. 426)
Interactive Leadership is when a leader takes it upon themselves to include others as much as possible, by delegating tasks and not doing all of the 'leader' jobs by themselves. This means that groups are made, collaborations are built and relationships extended so that everyone feels part of the way they organization is run. Letting people know they are part of the company is a very important aspect for many leaders as not only does it make motivation higher for the staff, it increases motivation for the leader.
THE MOST EFFECTIVE WAY TO EXERCISE INTERACTIVE LEADERSHIP TOWARDS ACCELERATING CHANGE AND INNOVATION IS TO:
1. Define clear goals , consensual objectives.
2. Sharing past experiences with the sub-ordinates.
3. Allow the counterparts to take risk in innovative activities.
4. Teaching the fail lessons in the leadership.
5. Appreciate the success in the team.
THE INTERACTIVE LEADER CO-INNOVATES WITH OTHER MANAGERS, EMPLOYEES AND SUBORDINATES BY,
Empowering innovators: The leader stimulates and allows subordinates to develop
and realize innovative ideas by educating them with the leadership experience.
Cooperating with innovative employees: The leader works together with
innovators to develop and realize their innovative ideas.
Developing additional leadership: The leader teaches others how to be an
additional innovation leader in the organization's innovative processes (Bart A G Bossink 2005)
Interactive leadership pathway:
Leadership is a very essential quality which every individual in an organization should possess or develop as there are many benefits of it. It is a positive quality tool which doesn't need to be used for overpowering and dominating but to lead a group towards success. Leadership yields other useful qualities such as; confidence, positivity, ability to make quick decisions, creativity, ambition, endurance to bear consequences of wrong decisions and to pull up a team from failure to success.
Effective leaders usually practice the following techniques:
Sell the Vision of the organization
The leaders walk into the lower level management and draw the attention of the workers and try to impress them with the facts and figures of the organizational growth and also encourage the achievements of the workers . In the mean while the leader clearly details about the organization vision for the future growth and also the involvement of the workers in it to achieve the same.
Walk the Talk with the employees.
In any organization , the leader should have a relation with the employees to gain the trust in their work for the organization . The practice of interactive management allows the leaders to build trust and loyalty and demonstrate their true character with their employees.
Usually the leaders speak to individual employees when ever time permits and try to understand their problem and try to give solutions to the problems and also tries to understand the capability of the employees for innovation .
Empower and Delegate
The practice of interactive leadership strengthens trust between leaders and employees when leaders actively empower employees and delegate tasks and assignments as needed. The employees should be awarded for their growth in the organization and make them have a proud feeling to be a part of the team.
Create Urgency in the process
The rapid pace of change creates its own sense of urgency, but as transformation often takes time, the leaders should motivate the employees by creating an urgency condition where they are not allowed to feel the change.
Openly Communicating with everyone in the organization.
For any Interactive leadership to discuss about a thing , he or she does an open communication with the fellow employees so that they can actively listen and respond to ideas offered and also could get a feedback from the employees about the same. This allows leaders to use all of their physical senses to observe and learn firsthand what is happening within their organization and to minimize the distortion of information.
Removing Obstacles/barriers.
When leaders openly and actively interacting with their employees in the organization, they are able to identify and remove frustrations and barriers impeding forward movement.Allowing the employees to meet the higher management without any frustration in them , if there is a problem with any employee.
Celebrate the Little Successes
The leader should celebrate every success of the organization with the whole team , so that they also feel that they are the part of the success and which will motivate them to come forward and perform better in the future.(mtice 2009)
THE IMPACT OF INTERACTIVE LEADERSHIP IN AN INNOVATIVE PROJECT
In terms of innovative building project outcomes, the performance of an interactive leadership style in the project also was a success. The main reasons were that the construction manager:
Came down to the construction site to understand the situation.
Had an interaction with the employees.
Understood the project improvement points.
Was an informal member of all construction project teams that were formed.
Was able to convince the managers of the real estate agents in all project teams that an design architect had to be hired.
Could motivate the architect to act as additional innovation leader in all the projects.
The construction manager based the interactive leadership style on the absence of a formal
power base, and on the conviction that an interactive role could provide an informal
power base. As a consequence of the selection of the design architects and the manager's
interactive leadership style the design processes delivered substantial ecological results in
all the projects. (mtice 2009)
Publication bibliography
Bart A G Bossink (2005): Leading Innovation Development Processes: Balancing Transaction and Transformation. Available online at ftp://zappa.ubvu.vu.nl/20040027.pdf, updated on 9/06/2005, checked on 6/05/2012.
Brian Evje (2012): 3 Dangers of Charismatic Leadership. Available online at http://www.inc.com/brian-evje/three-dangers-of-charismatic-leadership.html, updated on 6/05/2012, checked on 6/05/2012.
Dodgson, Mark; Gann, David; Salter, Ammon (2008): The management of technological innovation. Strategy and practice. 2nd ed. Oxford: Oxford Univ. Press.
Eversheim, Walter (2009): Innovation management for technical products. Systematic and integrated product development and production planning. Berlin: Springer (RWTH edition).
Gao Changqing, Haung KezhengMa Fei (2005): Comparison of innnovation methodologies and TRIZ. Available online at http://www.triz-journal.com/archives/2005/09/07.pdf, updated on 27/07/2005, checked on 6/05/2012.
Mintzberg, Henry (2003): The strategy process. Concepts, contexts, cases. 4th ed. Upper Saddle River, NJ: Pearson Education International.
mtice (2009): Microsoft Word - Strategic Leadership and Innovation White Paper a. Available online at http://www.bus.miami.edu/_assets/files/executive-education/leadership-institute/strategic-leadership.pdf, updated on 15/07/2009, checked on 6/05/2012.
Steve Nguyen (2010): The Dangers of Charismatic Leaders - Workplace Psychology. Available online at http://workplacepsychology.net/2010/11/26/the-dangers-of-charismatic-leaders/, updated on 6/05/2012, checked on 6/05/2012.
