Sym14 02C
Sym14 02C
Sym14 02C
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How to Develop the Right Leadership Team for the Emerging Enterprise
Outside Inside
Extended ESP competition
relationships Business making
Emerging IT decisions
economies Integration
Dynamic Lean staffs
markets
Credibility
Compliance
Rising
M&A demand
Many factors accelerate business complexity, and because the factors all interact, the complexity rises
dramatically. Although midsize enterprises may operate on a smaller scale than large enterprises, they are
nevertheless affected by the same external factors — extended relationships, new channels for competition,
the shift of activities and work to emerging markets, regulatory requirements around compliance and
transparency, and the rising intercomplexity of processes, markets and customers.
During the next three to five years, enterprises of all sizes in all industry sectors and geographies will
confront fundamental changes in the fabric and structure of business and society, with most changes driven
or enabled by technology. Midsize IT organizations will be between a rock and a hard place. At one end,
they are stripped bare. Cost-cutting will slow as cost containment picks up speed. At the other end, they are
expected to lay the groundwork for growth and expansion by cultivating and harnessing innovation.
Moreover, because of the reluctance of midsize IT organizations to use outsourcing in various aspects of
the IT domain, accountability and responsibility for architecture, integration, IT strategy, IT services
portfolios and IT service delivery all fall squarely at the feet of the IT leader. The situation is daunting. The
leader’s credibility to business peers and IS staff becomes crucial.
Action Item: Identify and analyze the drivers of complexity and discontinuity in your industries and
customer bases and use the analysis to explore opportunities and understand threats.
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 1
How to Develop the Right Leadership Team for the Emerging Enterprise
Client Issues
• What are the leadership competencies needed by emerging enterprises today?
• How do you develop those leadership skills?
• When do you need to shift from managing to leading and why?
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 2
How to Develop the Right Leadership Team for the Emerging Enterprise
Task
Clarityof direction
Challenge
Procedures
Evidence of progress
Group Individual
Size,
structure Contributionand
and cohesion inclusion
Communication Trust and
Processes commitment
Norms and beliefs Recognition and
reward
Feedback and
Source: ACL / Adair
development
Source: Based on ACL / J Adair
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 3
How to Develop the Right Leadership Team for the Emerging Enterprise
Clarity of Direction 18 58
Team Commitment 17 48
Rewards 27 39
Flexibility 25 30
Standards 17 21
Responsibility 9 18
0 10 20 30 40 50 60 70
Performance Rating Percentage
Source: Hay Group survey (with Hackman & Wageman)
Source: Based on Hay Group survey (with R Hackman & R Wageman)
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 4
How to Develop the Right Leadership Team for the Emerging Enterprise
Potential productivity
0 2 4 6 8
Process losses
0 2 4 6 8
Source: Stiener
Actual productivity
Source: Stiener, Group processes and
productivity, Academic press, New York
0 2 4 6 8
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 5
How to Develop the Right Leadership Team for the Emerging Enterprise
1 2 3 4
High
Form- Storming Norming Performing
ing
Low
Source: Gartner EXP Research
Time
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 6
How to Develop the Right Leadership Team for the Emerging Enterprise
Source: Continuum adapted from Tannenbaum, R. and Schmidt W.H. How to Choose a Leadership
Patter, Harvard Business Review, 1958: and leadership styles adapted from Goleman D, Hay/McBer
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 7
How to Develop the Right Leadership Team for the Emerging Enterprise
Leadership and management are distinct, but they are often confused. Leaders transform organizations and
processes. Managers sustain existing organizations and processes. Traditional management roles based on
“command and check” do not positively differentiate, but the new management roles in knowledge
enterprises do. Leaders may have many job titles, sometimes including manager, but most managers are not
leaders. Not all leaders have management positions. This is particularly true in knowledge enterprises,
where leadership of the enterprise and leadership of knowledge content will often come from different
people. Enterprise leaders and knowledge leaders often have different positions in the traditional hierarchy-
based structure. The requirements of both types of leader are the same.
The most-important outputs of leadership are the identification of external discontinuities; articulation of
goals and vision; and delivery of drive, guidance and inspiration to achieve success. As enterprises become
more dependent on innovation at the same time as the imperative remains to contain and cut costs, these
leadership outputs become much more important as enterprise differentiators than traditional management
competencies.
Action Item: Create vision and leadership strategies addressing the tension between cost-cutting and
innovation by focusing on purpose, trust and relationships.
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 8
How to Develop the Right Leadership Team for the Emerging Enterprise
Partnering
Partnering
Transactional/
Transactional/
responsive
responsive
Low
Management Leadership
Source: people3
Management/Leadership Emphasis
Source: Based on people 3, a Gartner company
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 9
How to Develop the Right Leadership Team for the Emerging Enterprise
Source: Goleman
Source: Daniel Goleman
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 10
How to Develop the Right Leadership Team for the Emerging Enterprise
A. Self-awareness awareness
2. Accurate self-
assessment
2. Trustworthiness
3. Conscientiousness
2. Organizational
awareness
3. Service
leadership
2. Influence
4. Adaptability 3. Developing others
3. Self confidence orientation
4. Communication
5. Achievement
1. Emotional self-awareness: The ability to read and understand your orientation
6. Initiative
5. Change catalyst
6. Conflict
emotions, as well as recognize their impact on work performance, management
7. Building bonds
relationships and the like 8. Teamwork and
collaboration
Source: Goleman
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 11
How to Develop the Right Leadership Team for the Emerging Enterprise
1. Self-control; the ability to keep disruptive emotions and impulses under5.6. Conflict
6. Initiative
Change catalyst orientation
control management
7. Building bonds
8. Teamwork and
2. Trustworthiness; a consistent display of honesty and integrity collaboration
Source: Goleman
Source: Daniel Goleman
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 12
How to Develop the Right Leadership Team for the Emerging Enterprise
Source: Goleman
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 13
How to Develop the Right Leadership Team for the Emerging Enterprise
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 14
How to Develop the Right Leadership Team for the Emerging Enterprise
Management Leadership
… is about execution … is about direction
Coping with complexity Vision
Performance Strategy
improvement
Inspiration/motivation
Organizing and staffing
Culture/values
Planning, controlling,
problem solving
Source: Kotter
Source: Adapted from J.P. Kotter
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permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
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or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 16
How to Develop the Right Leadership Team for the Emerging Enterprise
Performance
Visionary
Pacesetting
Low
Time
Source: Gartner EXP Research
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 17
How to Develop the Right Leadership Team for the Emerging Enterprise
Cautions Least Destroys Avoid using Avoid using Unsuitable Avoid when
effective in morale when alone when team team is
most over time working is reluctant immature or
situations: with experts to change/ in crisis
use only learn
rarely
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 18
How to Develop the Right Leadership Team for the Emerging Enterprise
Recommendations
By improving
team members’
EI...
… members can
better satisfy
team needs ...
…and hence
improve team
performance
after
© 2004 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written
permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims
all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions
John Bace
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the
selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
02C, SYM14, 10/04 AE Page 19
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