LEADERSHIP AND MANAGEMENT

TRAINING FOR
Treasurers & Asst. Treasurers
 GROUND RULES
Be H.O.T!
 Be Here Now
 Be One Hundred Percent Present
 Be A Team Player
 LEARNING OBJECTIVES
• Understand and appreciate the concepts of leadership, managerial
skills and competencies; and its application/significance in one's self
and in the workplace/ LGU

• Imbibe and understand the appropriate leadership values and

competencies/best practices as fiscal advisers and as department
heads/assistant heads of the Treasury Service

• Internalize the significance of leading change and resolving

conflict in the workplace

• Develop an action plan to reinforce their learnings/apply the

acquired knowledge in leadership and management in their sphere
of influence
Chart 3
 COURSE OUTLINE
• Management Functions and Processes
• Leading vs Managing
• Systems Thinking
• Leadership Framework/ Styles
• Leadership Skills Model and Leading Activities:
a) Communicating
b) Motivating and Coaching
• Coaching for Improved Performance
c) Managing Conflicts/ The Leader as Team-Builder
d) Strategic Planning: Using the BSC Model
e) Decision Making
• High Performance Leaders
• Action Planning
Chart 3
 MANAGEMENT FUNCTIONS AND PROCESSES

PLANNING

CONTROLLING DECISION-MAKING ORGANIZING

COORDINATION

COMMUNICATION

INFLUENCING STAFFING

Chart 5
 MANAGING IS …
GOALS AND
OBJECTIVES

ACHIEVING

Manager

Planning Thinking
THROUGH PEOPLE USING TECHNIQUE
Organizing Making Decisions
Directing Communicating
Controlling Improving

UTILIZING ORGANIZATION’S RESOURCES

EFFECTIVELY & EFFICIENTLY

IN AN ORGANIZATION
Chart 4
 L
E
A
D
I
N

Traditional View of Management G

Supervisors/ Managers
Planning Organizing Leading Controlling

Workers

Doing
 L
E
A
D

Contemporary View of Management I

N
G

Supervisors/ Managers
Leading

Workers

Planning & Organizing Doing

Controlling
 KRA’s & Responsibilities

1. Bottom Line/ Financial Increase income/profit,

Mobilize resources effectively
Develop new markets

2. Customer
increase customer satisfaction,
increase customer base
Develop one’s value proposition
3. Process
improve systems and processes
4. People
Promote learning and growth Chart 9 9
Competency Development Framework

Managing the
Organization/Business

Managing Teams/
the Work

Managing
Relationships

Managing the
Self

10
 Competencies of the 21st Century Leader
Managing Competencies
Strategic Planning Organizing &
Staffing
Performance Mgt
Personal Technical
Managing Change, Technology
Effectiveness & Innovation
Competencies
Technical Skills Industry
Self-Knowledge
Awareness Project
Proactivity / Time
Management
Management Professional
Image Interpersonal Entrepreneurial Skills
Competencies
Emotional Intelligence
Interpersonal Sensitivity
Communication Skills
Leadership Networking Org
Sensitivity Negotiating

11
 LEADING Motivate
Communicate
Delegate CONTROLLING
Train Set
Performance
Lead/Control
Standards
Allocate Evaluate
Resources People Communicate
Administer & Motivate
Things
Staff Make Manage
Ideas
Decisions Change
Organize Develop & Plan
Analyze Problems
ORGANIZING
Make Environmental
Plans Set Scan
Goals PLANNING
12
LEADING is …
• The ability to inspire confidence and
support among the people who are
needed to achieve organizational goals
• The art of influencing people by
persuasion and example to follow a line of
action
• The principal dynamic force that
motivates and coordinates the
organization in the accomplishment of its
objectives
• An effort to maintain control and power
over others
 A Leader’s Mentality
LEADER ASSOCIATE
o Complains quietly  Complains loudly

 Thinks  Blames
analyzes Accuses
evaluates
 Initiates actions  Waits for orders

 Acts  Reacts
 Focuses on  Focuses on
achievements problems &
 Thinker excuses
achiever  Worrier
doer
 LEADERSHIP vs MANAGEMENT
• Deals with the • Deals with the
interpersonal administrative
aspects of a aspects of the
manager’s job such manager’s job such
as inspiring, as planning,
motivating, organizing and
influencing and controlling
leading change
• Maintains their
• Transforms their organization
organization with a through order,
vision and mobilizing consistency and
people to predictability
accomplish it
 LEADERS vs MANAGERS
Visionary Rational
Passionate Businesslike
Creative Persistent
Inspiring Tough-Minded
Innovative Analytical
Imaginative Deliberative
Experimental Authoritative
Warm and radiant Cool and reserved
Initiator Implementer
Acts as coach, consultant, teacher Acts as boss
Does the right things Does things right
Inspires through great ideas Commands through position
Knows results are achieved through Focuses on results
people
Basic Principles Of Systems Thinking As
Applied To Management And Leadership
• Systems thinking is a management discipline concerned with
understanding a system (comprising of policies, processes,
practices and people) by examining the linkages and
interactions between the components that comprise the
entirety of that defined system.

• The whole system is a systems thinking view of the complete

organisation in relation to its environment - an integrated,
complex composition of many interconnected systems
(human and non-human) that need to work together for
the whole to function successfully; e.g. the finance system,
the decision-making system, the accountability system
Chart 3
 Basic Principles Of Systems Thinking As
Applied To Management And Leadership
• Systems may be thought about as having clear external boundaries
(closed) or having links with their environment (open). An open
systems perspective is the more common and realistic.

• Whole system success requires group or team-level goal-setting,

development, incentives, communication, reviews, rewards,
accountability. The aim is to focus on what binds individuals
together and what binds systems together rather than functional
silo performance.

Chart 3
Basic Principles Of Systems Thinking As
Applied To Management And Leadership
• A whole system can succeed only through managers
collaborating in and across a number of functional systems. The
whole system can fail only if leadership at the level of the whole
system fails.

• Factors in systemic failure may include confused goals, weak

system-wide understanding, flawed design, individual incentives
that encourage loyalty to sub-ordinate (rather than super-
ordinate) goals, inadequate feedback, poor cooperation, lack of
accountability, etc.

Chart 3
 Basic Principles Of Systems Thinking As
Applied To Management And Leadership

• The leadership challenge is accentuated by the realisation that for

every legitimate, official or consciously designed system (which is
intended to be and is supposedly rational) there is a shadow system.
The shadow system is where all the non-rational issues reside; e.g.
politics, trust, hopes, ambitions, greed, favours, power struggles,
etc.

Chart 3
 Systems Approach to Management

A line of thought in the management field which stresses the interactive nature and

interdependence of external and internal factors in an organization. Chart 3
 LEADERSHIP FRAMEWORK

Leader
characteristics
and traits

Internal & Leadersh

Leader behavior ip
external effective
and style ness
environment

Group member
characteristics

l = f(l,gm,s)
Managing Today: Robbins
 DEVELOPMENT OF LEADERSHIP THEORIES
Approach Central Theme Approximate Time Period
Authentic/ spiritual/ and
Emerging
servant leadership

Transformational
New Leadership
leadership theory
LMX Theory: High
Relational quality relations has
more positive leader
outcomes

Situational Contingency theory:

Different situations
demand different
kinds of leadership

Behavioral What leaders do & how

they act
Trait “Great Man” theory:
Focus on innate 1900 1920 1940 1960 1970 1980 1990 2000 2010
qualities
 OLD vs NEW LEADERSHIP ROLE

Old Role New Role

Command and control Visionary
Rigid, one best way Change agent
Centralized and directive Coach and empowerer

Chart 24
 LEADERSHIP ROLES
1. Figurehead – engage in 5. Team builder & team player –
ceremonial activities; contribute to group morale;
represent group to cooperate w/ others, loyal
outsiders
6. Technical problem solver – serve as
2. Spokesperson – report technical expert or adviser
information about the
group to outsiders 7. Entrepreneur – suggest innovative
ideas; sear for new undertakings
3. Negotiator – make deals for the group
with others for needed
resources 8. Strategic planner– set direction
for others based on external
4. Coach and motivator – environment
recognize achievements,
9. Executor – make things happen;
encourage and inspire
translating plans into action
people
 TRAITS OF EFFECTIVE LEADERS

High Energy/ enthusiasm

Internal locus of control Integrity/
Assertiveness Flexibility
trustworthiness

Sense of Humor TRAITS Humility

Self-confidence Stability Intelligence Sensitivity to others

Chart 15
 CHARACTERISTICS OF CHARISMATIC
LEADERS
• Visionary
• Possess masterful communication skills
• Ability to inspire trust
• Able to make group members feel capable
• Energy and action-oriented
• Emotional expressiveness and warmth
• Romanticize risk
• Uses unconventional strategies
• They challenge, prod and poke
 TIPS TO BECOMING A CHARISMATIC
LEADER
• Be sure to treat everyone you meet as the most important
person you will meet that day.
• Multiply the effectiveness of your handshake
• Give sincere compliments
• Thank people frequently, esp. your own group members
• Smile frequently, even if you are not in a happy mood
• Maintain a childlike fascination for your world
• Be more animated than others
• Think big
 TRANSFORMATIONAL LEADER

• Raises people’s awareness

• Helps people look beyond self-interest
• Helps people search for self-fulfillment
• Helps people understand need for change
• Invests managers with sense of urgency
• Is committed to greatness
• Adopts a long-range broad perspective
• Builds trust
• Concentrates resources where most needed
 ETHICAL LEADERSHIP
– Develop a code of ethics and follow it (On Top of RA
6713).
– Establish procedures for reporting violations.
– Involve employees in identifying ethical issues.
– Monitor ethical performance.
– Reward ethical behavior.
– Publicize ethical efforts.

Chart 77
 SERVANT LEADERSHIP
(9 Behaviors)
• Serve First
• Build Trust
• Live Your Values
• Listen to Understand
• Think About Your Thinking
• Add Value to Others
• Demonstrate Courage
• Increase Your Influence
• Live Your Transformation
WELL-LIKED TRAITS OF LEADERS
1. Kind, humane (mabait)
2. Understanding (maunawain)
3. Gets along with others (marunong makisama)
4. Helpful (matulungin)
5. Industrious (masipag)
6. Has good sense of humor (palabiro)
7. Able to give way (mapagbigay)
8. Joyful (masayahin)
9. Patient (mapagpasensiya)
10. Gives order properly (maayos mag-utos)
Chart 32
 DISLIKED TRAITS OF LEADERS
1. Boastful (mayabang)
2. Haughty (mapagmataas)
3. Rude (mataray)
4. Having favorites (may kinikilingan)
5. Lazy (tamad)
6. Does not accept mistakes (ayaw tumanggap ng pagkakamali)
7. Selfish (makasarili)
8. Unapproachable (mahirap lapitan)
9. Gossiper (tsismoso/a)
10. Have no concern for others (walang malasakit sa kapwa)

Chart 33
 Leadership Styles

1.9 9.9

Employee-Centered

5.5

1.1 9.1

Task-Centered
 LEADERSHIP STYLES

1. Country Club Leadership (High People/Low Production)

This type of leader lacks direction and control. The result is
a work environment that is very relaxed and fun, but
production suffers.

2. Produce or Perish Leadership (High Production/Low People)

This type of leader is very autocratic, has strict work rules,
policies, and procedures, and views punishment as the most
effective means to motivate employees. 
 LEADERSHIP STYLES
3. Impoverished Leadership (Low Production/Low People)
This type of leader is mostly ineffective. He/she has neither a high regard for
creating systems for getting the job done, nor for creating a work
environment that is satisfying and motivating. The result is a place of
disorganization, dissatisfaction and disharmony.

4. Middle-of-the-Road Leadership (Medium Production/Medium People)

This type of leader settles for average performance and often believes that
this is the most anyone can expect.

5. Team Leadership (High Production/High People)

This type of leader places production needs and the needs of the people equally.
This creates a team environment, which leads to high satisfaction and
motivation and, as a result, high production.
THEORY X and THEORY Y . . .
 Effective Leadership Practices:
Directive Behavior
 Set goals or objectives
 Makes clear the role each person will play in the
accomplishment of the task
 Plans work in advance to be accomplished by the
follower
 Organize resources
 Sets time lines for future work

Determines methods of evaluation and standards of
performance
 Shows or tells a follower how to do a specific tasks
 Checks to see if work is done properly and on time

Chart 21
 Effective Leadership Practices:
Supportive Behavior
 Listen to the problems of the follower (job or non-job related)
 Praises the follower for task accomplishment
 Asks for suggestions or inputs for task accomplishment
 Encourages or reassures the follower that he/she can do the
task
 Communicates information about the total organization’s
operations
 Discloses information about self (job or non-job related)
 Facilitates follower problem-solving in task accomplishment
 Communicates and demonstrates appreciation for task well done.

Chart 22
Though much is taken, much abides;
and though
We are not now that strength which in old days
Moved earth and heaven, that which we are,
we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not yield.

Quoted by Sen. Miriam Santiago in her speech to USC, UP Manila

Chart 82
 L

Model of Leadership Skills E

A
D
I
N
G

Technical Emotional

Int
e
tiv Competence Intelligence
tra

erpe
inis

rson
Adm

la
Managing Core
People Leadership Managing
Skills Conflict

Creating Visions & Problem

Strategic Solving &
Planning Decision Making

Conceptual
Ref: Intro to Leadership, Peter Northouse
 L
E
A

Leading Activities D
I
N
G
 43

COMMUNICATION
“I know that you believe you
understand what you think I said, but I
am not sure you realize that what you
think you heard is not what I meant.”
 L

Communication Process
E
A
D
I

EncodesMe Decodes N

Message G

ssage Feelings
Thoughts
Ideas Receiver
Channel
Sender
s
Filter

Context of

s
Filter
the situation Encodes
Message
Decodes
Message
Feedback Feelings
Thoughts
Ideas
 ELEMENTS OF A SPOKEN MESSAGE
The factual message (“Job Level”) Factual
Info The speaker transmits information to the listener statement
(What I inform you about)

The Self Revelation (“Interpersonal Relations”)

Me The speaker says something about him/herself or disclose
Self
him/herself consciously or subconsciously
revelation
(What I tell you about me)

Relationship (“Interpersonal Relations”)

You/ The speaker assesses the relationship the he/she has to the listener
Us (What I think of you or how well we get on with each other)
Relation-
Appeal (“Interpersonal Relations”) ship
To The speaker requests something from the listener
do (What I want you to do) Appeal

Chart 37
 L
E

COMMUNICATION BARRIERS
A
D
I
N
Management G

• Cultural differences • Preoccupation with other

• Hearing what one wants matters
to hear • Insufficient time
• Poor listening • Assumptions
• Different interpretations • Lack of feedback
• Contradictory verbal and • Ambiguous, nonspecific Peers
Supervisor non verbal messages messages
• Lack of Trust • Physical distractions
• Unclear initial idea (noise, interruptions)
• Fear • Lack of sensitivity
• Negative attitudes to feelings
• Differences in education • Attempting to “snow”
and training the other party

Worker
 COMMUNICATION CHALLENGES OF A
LEADER

• Communicating to “out-group” members

• Communicating in conflict situations

What to Do:

1. Listen
2. Show Empathy
3. Recognize their Unique Contributions
4. Help them Feel Included
5. Create a Special Relationship
6. Give them a Voice and Empower them to Act

Chart 38
 L
E

How to Listen Actively A

D
I
N
G

• Commit yourself to each individual act of listening.

• Neutralize your biases.
• Really concentrate on what is being said.
• Encourage the speaker.
• Ignore all distractions.
• Focus on the main ideas.
• Test your understanding.
• Delay formulating your arguments.
• Suspend judgment.
• Don’t talk too much.
• Remember: listening is a key to personal success.
 Communication Styles
AGGRESSIVE PASSIVE ASSERTIVE

Fight Flight Face

Win-Lose Lose-Win Win-Win

Power over others Others have Power over

power over you yourself

Gotcha games Poor me games No games

You’re not OK, You’re OK, I’m You’re OK, I’m

I’m OK not OK OK
COMMUNICATION IN MANAGEMENT
• Give information to subordinates
• Interpreting department policies and instructions
• Instructing on what and how to work
• Making assignments to subordinates
• Following up or checking on assignments
• Getting information
• Advising subordinates
• Correcting subordinates
• Praising subordinates
• Stimulating subordinates to continue or increase effort
• Leading conferences
• Negotiating with equals
• Conciliating or mediating disputes between subordinates
Chart 40
 COMMUNICATIONS
as PRIME DUTY of Supervisors

Information Downwards Information Upwards

• Company policies and • Suggestions
objectives • Questions
• Departmental and individual
• About job problems
objectives • Complaints and grievances
• About the job
• Feelings and attitudes
• Answers to questions
• Feedback on problems encountered
• Availability of resources
• Feedback on results

Chart 42
 COMMUNICATION 101:
BASIC RIGHTS OF WORKERS
1. Let me know what you expect of me.
2. Give me an opportunity to perform.
3. Let me know how I’m doing.
4. Give me guidance and support when and where I
need it.
5. Reward me according to my contribution.

Chart 44
 L
E
A

Leading Activities D
I
N
G
 Motivation
(A perspective on Employee Motivation)

Dreams, Values,
Unfulfilled Needs, Effort
Wants, Desires
Performance Outcomes

Ability

ATTITUDES
Fulfills Not Fulfill
FEEDBACK
(motivating) (Not
motivating)
MASLOW’s Hierarchy of Needs

Self- To be creative and imaginative, to grow

Actualization To display one’s abilities and talents
with pride
Self-Esteem
To feel accepted and respected,
Social
to belong

Security To feel safe and secure

To survive and stay alive, to fill body
Physiological needs

Chart 27
 L
E
A

HERZBERG’s Two-Factor Model D

I
N
G

Maintenance Factors Motivators

• Company Policies/ • Achievement
Administration • Recognition
• Supervision
• Work itself (Challenge)
• Working conditions
• Interpersonal relations
• Responsibility
• Benefits • Professional Growth
• Status • Personal Growth
• Security
MASLOW’s Hierarchy of Needs Needs of TODAY’s Workers

SELF- self-fulfillment, Opportunity to learn ACTUALIZATION realization of

new facts/information, individual potential, chance to develop
new skills
self-respect, Respect from fellow recognition, workers, chance to
ESTEEM achievement accomplish something worthwhile, moving up
in one’s career
friendship, The friendliness of acceptance fellow workers,
the SOCIAL decency with which you are treated
security, protection Opportunity to get a
SAFETY from harm, promotion, job security, freedom from fear
a safe work environment food, water, air, Fair wage to pay for
PHYSIOLOGICAL shelter, sex food, clothing, and a
place to live

Chart 29
 Principles of Motivation
Principle of Participation
Motivation to accomplish results tends to increase as people are
given the opportunity to participate in the decisions affecting those
results.

Principle of Communication
Motivation to accomplish results tends to increase as people are
informed about matters affecting those results.

Chart 34
Principle of Recognition
Motivation to accomplish results tends to increase as people are
given recognition for their contribution to those results.

Principle of Delegated Authority

Motivation to accomplish results tends to increase as people are
given authority to make decisions affecting those results.

Chart 35
 L
E
A

Some Suggestions for Motivating Employees D

I
N
G

• Recognize individual differences

• Match people to jobs
• Use goals
• Ensure company goals are perceived attainable
• Rewards and recognition
• Link rewards to performance
• Don’t ignore money
 L
E
A

Coaching D
I
N
G

Coaching involves teaching, the passing on of knowledge,

but it goes beyond. Coaching is active transfer of
competence.
Steps in Coaching
1. Prepare the learner
2. Demonstrate the operation
3. Create a positive atmosphere
4. Have the learner perform the operation
5. Follow up
 L
E

KEY PRINCIPLES in
A
D
I

COACHING
N

1
G

KP Maintain or enhance self-esteem

KP 2 Listen and respond with empathy

KP 3 Ask for help in solving problem

62
 Effective Coaching Habits
• Describe the specific problem
• Emphasize performance standards and
management expectations
• Discuss possible causes of the problem
• Explore possible solutions and agree on most
appropriate solutions
• Prepare action plan and agree on follow up date
• Express confidence in employee’s ability to
work for improvement.
 L
E
A

Leading Activities D
I
N
G
Kinds of Conflicts
 SOURCES OF CONFLICT
• ROLE AMBIGUITIES – unclear job expectations and
other task uncertainties

• RESOURCE SCARCITIES – having to share

resources with others and/or compete for resource
allocations make a situation conflict prone, specially
when resources are scarce

• TASK INTERDEPENDENCIES – when individuals

or groups depend on others’ outputs in order to
perform well themselves.

Chart 51
 SOURCES OF CONFLICT

COMPETING OBJECTIVES – when objectives are poorly set

or reward systems are poorly designed, individuals or groups may
come into conflict by working to one another’s disadvantage
STRUCTURAL DIFFERENTIATION – differences in
organization structures and in the characteristics of people
staffing them may foster conflict because of incompatible
approaches toward work
UNRESOLVED PRIOR CONFLICT – unless a conflict is fully
resolved, it may remain as a lingering basis for future conflicts.

Chart 52
 CONFLICT RESOLUTION FRAMEWORK
High
Accommodation Collaboration
Playing down conflict & seeking Searching for a solution that
harmony among parties meets each other’s needs
Degree of
Cooperativeness
Compromise
Bargaining for gains
and loses to each
party.

Denying the existence of Forcing a solution to impose one’s

conflict and hiding true feelings will on the other party

Low Avoidance Competition

Low High
Degree of Assertiveness
Chart 54
A MODEL ON TRANSACTIONAL ANALYSIS

Chart 53
 Conflict Resolution
A constructive conflict…
• Each person expresses concerns respectfully and
actively listens
• Concerns are expressed in “I” language without
attacking the character of others
• Constructive solutions are considered to resolve the
conflict for the benefit of all involved
• A solution is selected with an agreement to review the
outcomes of the solution at a future date
 ATTITUDES for
Collaborative Conflict Resolution
• Belief in availability and desirability of a mutually accepted
solution.
• Belief in cooperation rather than competition.
• Belief that everyone is of equal value.
• Belief in the views of others as legitimate statements of
their position.
• Belief that differences of opinion are helpful.
• Belief in the trustworthiness of other members.

Chart 55
 HANDLING CONFLICT
1. Be positive and patient.
2. Focus on the problem, not on the person.
3. Keep an open mind; be flexible.
4. Seek the other person’s ideas and point of view.
5. Explore all alternatives for resolving conflict.
6. Try to understand the other person’s perception.
7. Respect the opinion of others.
8. End on a positive note.

Chart 56
 THE LEADER AS TEAMBUILDER
• Involves clarifying roles of each subordinate and creating the
conditions necessary for mutually cooperative efforts

• As a team leader, you are probably aware of the excitement as

well as the uncertainty that goes with the formation of a
team.

• In addition to what each individual experiences, every new team

goes through its own process of change. This process is
necessary in order to forge a fully functioning team.

Chart 45
 WHY WOULD PEOPLE JOIN TEAMS
It offers psychological and material rewards:

• SECURITY. It is where members can feel safe and cared for.

• BELONGING. It provides an identification.

• INDIVIDUALITY. It recognizes and supports the valuable differences

of its members.

• PRIDE. Members share in group achievements and failures.

• RECOGNITION. The outside world respect it as a more powerful entity

than it would an individual.

Successful leaders know how to create and nurture teams so they

become their source of pride.
Chart 46
 WHEN TEAMWORK ISN’T THERE

Competition is normal. People will compete for attention, promotions,

another step in the corporate ladder.
But jealousy, hostility and politics result and most organizational tasks
suffer when individuals compete as individuals rather than as teams.

WATCH FOR THESE SYMPTOMS :

Ø Queries from other departments are handled sloppily or not at all.

Ø You hear repeatedly “That is not my job.”
Ø Conversations are gossipy , with snide remarks and unrelated to work.
Ø Faces are blank or sullen than smiling and welcoming.
Ø Absenteeism and turnover are high.

Chart 49
 L
E
A

Leading Activities D
I
N
G
 Strategic Planning

• Strategic planning is the process by which an

organization envisions its future and develops the
necessary procedures and operations to achieve
that future.

Provides a picture of the organization

as it wants to look in the future.
 A Balanced Scorecard is a

Carefully Selected
Set of Measures
Derived from the Organization’s
Strategy
What is a Balanced Scorecard?

Measurement
System

Strategic
Management
System

Communication
Tool
 BSC Translates Mission, Values,
Vision and Strategy

Balanced Scorecard
Mission Why we exist

Guiding Principles Values

Vision Word picture of the future

Differentiating activities Strategy

 Translating with the BSC
QUALITY
Our desired Future State

VISION

Differentiating Activities
STRATEGY

What we must do n order

to OBJECTIVES
Employee
Internal
implement our strategy FINANCIAL CUSTOMER Processes
Learning &
Growth

MEASURES
How strategic Employee
Internal
success is FINANCIAL CUSTOMER
Processes
Learning &
Growth
measured and
tracked
 What is the Balanced Scorecard?

PROFITAB The BSC Retains

LE GROWTH the traditional
Financial financial measures
Perspective
New Revenue Current Business Productivit Use of Assets
y

Customer Value Proposition

Customer Best in Best Total Best Total
Perspective Product/ Solution Cost
Service
The BSC links the
financial measures
Internal Product Customer Operational with the drivers
Perspective Innovation Intimacy Excellence of future
performance

Learning and Skills Technology Environment

Growth
 The BALANCED SCORECARD

The BSC is a shared understanding of the Vision-Mission strategy

translated into:

s n s
it ves e s s i ve Pl a c es
c u r e t i a t o n u r
je a s rg it t i s o
O b M e T a I n A c R e
Financial
Customer
Internal
Learning&Growth
The Balanced Scorecard translates the vision and strategy into a coherent
set of measures in four balanced perspectives
Strategy Map Objective Measure Target Initiative
• Grow Revenue • Annual • Marketing
Revenue Growth from new Gross Sales +30% program
Financial products

• Satisfy • Customer • CRM Program

Customer New Products Customer Profitability +20%
Needs

World-Class • Fast Time to • Time to from 9 • Cycle Time

Internal
Product Market Market down to 6 Reengineering
Development months

Learning & • Acquire, • Staff • Skills

Growth Highly Skilled
Develop Skills Competence 90% Development
Workforce
Program
 L
E
A

Leading Activities D
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 DECISION-MAKING
 is the process of choosing a course of action for dealing with a
problem or opportunity

 Steps in systematic decision making.

– Recognize and define the problem or opportunity.
– Identify and analyze alternative courses of action, and estimate
their effects on the problem or opportunity.
– Choose a preferred course of action.
– Implement the preferred course of action.
– Evaluate the results and follow up as necessary.

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 Decision Analysis
• Establish goals or objectives
• Study current situation
• Search for options
• Compare options, use goal / objective as basis
• Shortlist options
• Assess adverse consequences of options
• Choose the best option
 POTENTIAL PROBLEM
ANALYSIS
1. Identify Potential Problems

2. Identify Likely Causes

3. Take Preventive Action

4. Plan Contingent Actions

 L
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Decision Making Styles D

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One A small Majority Team discusses Team comes to

person group decides and comes to a a unanimous
decides decides consensus conclusion
 CONTINUUM OF LEADERSHIP BEHAVIOR
Boss-Centered Subordinate-Centered
Leadership Leadership

Use of authority by
leader
Area of freedom for
subordinate

Leader makes Leader Leader Leader Leader Leader Leader permits

decision and presents ideas presents presents defines limits, subordinates to
sells decision
announces it and invites tentative problem, gets asks group to function within limits
questions decision subject suggestions, make decision defined by superior
to change makes decision
 TYPES OF DECISIONS

– Programmed decisions.
• Involve routine problems that arise regularly and can be
addressed through standard responses.

– Nonprogrammed decisions.
• Involve nonroutine problems that require solutions
specifically tailored to the situation at hand.

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 DECISION ENVIRONMENTS

 Certain decision environments.

◦ Exist when information is sufficient to predict the results of
each alternative in advance of implementation.

 Risk decision environments.

◦ Exist when decision makers lack complete certainty regarding
the outcomes of various courses of action, but they are aware
of the probabilities associated with their occurrence.

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 UNCERTAIN DECISION ENVIRONMENTS
– Exist when managers have so little information on hand that they canno
even assign probabilities to various alternatives and their possible
outcomes.
– Described as a rapidly changing setting in terms of:
• External conditions.
• The information technology requirements needed for analyzing and
making decisions.
• The people who influence problem and choice definitions.

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UNCERTAIN DECISION ENVIRONMENTS

– Can be described in terms of types of risks encountered by the

organization.
• Strategic risks are threats to overall business success.
• Operational risks are threats inherent in the technologies
used to reach business success. 
• Reputation risks are threats to a brand or to the firm’s
reputation

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 DECISION-MAKING REALITIES

– Decision making information may not be available.

– Bounded rationality and cognitive limitations affect

the way people define problems, identify alternatives,
and choose preferred solutions.

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DECISION-MAKING REALITIES. . .

– Most decision making in organizations goes beyond

step-by-step rational choice.

– Decisions must be made under risk and uncertainty.

– Decisions should be ethical.

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 GROUP DECISION-MAKING
Decisions often are made by groups of people:
◦ May be composed of individuals at different or at the same
level in the organization
◦ May make some decisions without managerial input
◦ Tend to follow the same decision-making process
◦ Will have dynamics and interpersonal processes that make group
decision making very different from decisions made by an
individual.

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INDIVIDUAL vs GROUP DECISION-MAKING

• Important considerations for judging the

overall value of group decision vs. individual
decision making
– Time
– Cost
– Nature of the problem
– Satisfaction and commitment
– Personal growth

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 GROUP DECISION-MAKING TECHNIQUES

Brainstorming
◦ Large number of ideas are generated while evaluation of the
ideas is deferred

Imagination is encouraged. No idea is too unique or different,

and the more ideas offered the better
Using or building on the ideas of others is encouraged
There is no criticism of any idea, no matter how bad it may
seem at the time
Evaluation is postponed until the group can no longer think of
any new ideas

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GROUP DECISION-MAKING TECHNIQUES. . .
Nominal group technique
1. Individuals silently, and without discussion, write down their ideas
2. Each member presents one idea at a time, until all ideas are
presented, without discussion
3. Ideas presented on a blackboard and then discussed to clarify
and evaluate
4. Silent and independent vote or ranking of alternative choices
Delphi technique
◦ Highly structured survey of participants regarding their opinions
or best judgments

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GROUP DECISION-MAKING TECHNIQUES. . .
Dialectical inquiry
◦ Debate between very different sets of recommendations and
assumptions to encourage full discussion
◦ Overcomes tendency of group to avoid conflict when evaluating
alternatives
Devil’s advocacy
◦ Individual or subgroup argues against the recommended actions
and assumptions put forth by other members of the group
◦ Also overcomes tendency of group to avoid conflict when
evaluating alternatives

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 Advantages and Disadvantages
of Group Decision Making
Groups can accumulate more knowledge and facts Groups take more time to reach decisions than do
and thus generate more and better alternatives. individuals.

Groups often display superior judgment when Group social interactions may lead to premature
evaluating alternatives, especially for complex compromise and failure to consider all
problems. alternatives fully.
Group involvement in decisions leads to a higher Groups are often dominated by one or two
level of acceptance of the decisions and “decision leaders” which may reduce acceptance,
satisfaction. satisfaction and quality.

Group decision making can result in growth for Managers may rely too much on group decisions,
members of the group. leading to loss of their own decision and
implementation skills.

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 GROUP DECISION-MAKING PITFALLS
• GROUPTHINK
– Symptoms include
• Self-censorship  Rationalization  Morality
• Pressure  Invulnerability  Stereotype
 Mindguards
• Unanimity

 Common information bias

– Group members overemphasize information held by a majority, failing to
be mindful of information held by one or a few group members reduces
 Availability of unique information ideas
 Perspectives possessed by individual group members

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 GROUP DECISION-MAKING PITFALLS
Diversity-based infighting
◦ Instead of creating rich discussions and insight, diverse ideas
create ill will and fractured groups
May occur when individuals feel strongly about their ideas
No mechanisms exist to channel disagreement in productive
ways

Risky Shift
◦ Groups make either riskier decisions than would have been
made by individual members acting alone
Direction of shift may be affected by diffusion of
responsibility
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ASK AND ANSWER THESE QUESTIONS:

– Is the problem easy to deal with?

– Might the problem resolve itself?
– Is this my decision to make?
– Is this a solvable problem within the context of
the organization?

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 REASONS FOR
DECISION-MAKING FAILURE

◦ Managers too often copy others’ choices and try to

sell them to subordinates.

◦ Subordinates may believe the manager is imposing his

or her will rather than working for everyone’s
interests.

◦ Managers may focus on the problems they see rather

than the outcomes they want.

◦ Managers use participation too infrequently.

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 WHY LEADERS FAIL
1. Are insensitive to others. They use an abrasive, intimidating,
bullying style.
2. Are cold, aloof, and arrogant toward others.
3. Betray trust.
4. Are overly ambitious. They think of the next job, and they play politics.
5. Have specific performance problems with the business.
6. Over manage. They are unable to delegate or build a team.
7. Cannot staff effectively.
8. Cannot think strategically.
9. Cannot adapt to a boss with a different style.
10. Are over dependent on an advocate or mentor.

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LEADERSHIP WHEEL

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 LEADERSHIP WHEEL

FOCUS and CONTEXT: At the hub of the wheel, the vision, values
and purpose on which leaders effectively focus themselves and their
teams or organizations.
RESPONSIBILITY FOR CHOICES. Leaders take initiative and
do what needs to be done rather than waiting for someone else to do
something.
AUTHENTICITY. Leaders are authentic and lead by visible
example, fostering openness and continuous feedback.
PASSION and COMMITMENT. Leaders are passionate and build
strong commitment through involvement and ownership.
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 LEADERSHIP WHEEL

SPIRIT and MEANING. Leaders lead with heart and rouse team
or organizational spirit.

GROWING and DEVELOPING. Leaders help people grow through

strong coaching and continuous development.

MOBILIZING and ENERGIZING. Finally, leaders energize people

by building strong teams, inspiring and serving.

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 ‘Start-Stop-Stay’ Action Planning
“On the basis of what you have learned in this Course, what are the
activities that you will, beginning tomorrow and up to the next 30
days:
a. Start/ Stay/Continue doing.
b. Stop doing.

• List and prioritize these activities.

• Make two copies of your plan.
• Present and discuss, if called.
• Keep a copy for your self.
• Give one to your supervisor or a close
friend --- to help you monitor your progress.

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“I will pay more for the ability to deal with people
than for any other ability under the sun.”

John D. Rockefeller
Noted Industrialist & Businessman

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