School of Business

Proposing and Practicing Leadership

National Association of State Budget Officers21 August 2015

James Bailey, Ph.D.Hochberg Professor of Leadership Development

Proposing Leadership: Learning Objective

Stimulate thinking about what leadership is and its impact on others as a

foundation for individual development

Consider…

47 X 47 X 47 = 100,000

(hours per week) X (weeks per year) X (years)

37 X 37 X 37 = 50,000

60 X 50 X 17 = 50,000

Proposition 1

Leadership can be developed, but it takes time

Consider…

Proposition 2

We want leadership, but we hinder it

Corollary: Most organizations are over-managed and under-led

Consider…

Mitt Romney

Susan Komen

Gina Rinehart

Marrisa Mayer

Proposition 3

Leaders are in the spotlight

Consider…

What I want most for Nestle is for everyone to do a little better, bit by bit, day by day. Peter Brabeck

Proposition 4

Small shifts have a big impact

Consider…

Popular leadership accounts emphasize individuals

Proposition 5

Leadership means being authentic, which means being yourself, skillfully

Authenticity

It takes a lot of money to look this cheap

Dolly Parton

Of undisputed origin

Oxford Dictionary

Consider…

Proposition 6

Good leaders have superb situation-sensing skills

Situations and Symbolism

Consider…

Proposition 7

Good leaders aren’t just for the people or of the people. They are the people.

Consider…

Proposition 8

Good leaders reveal their weaknesses

Consider…

Why should anybody WANT to be lead by you?

Proposition 9

Followers want community, significance, excitement, and authenticity

Consider, again…

47 X 47 X 47 = 100,00037 X 37 X 37 = 50,00060 X 50 X 17 = 50,000

Proposition 10

Now is the time to consider your leadership identity and legacy

Practicing Leadership: Learning Objective

To treat negotiations as a social influence process that is a critical leadership skill

Discussion

What words come to your mind when considering the word “negotiations?”

Free associate.

Barriers to Effective Negotiations

• Fear of failing and the anxiety that such fear engenders

• Unfounded belief in “universal” strategies which keeps things simple

• Lack of practice comparative to other cultures, which leads to mediocre skills and general discomfort

Premises

1. Conflict is a common and unavoidable part of life

2. Negotiation—informal or formal—is the primary method of resolving conflict

3. Conflict & negotiation more critical now than ever before

4. Conflict has creative potential that can be tapped via negotiations

Negotiation Defined

• Social decision making process involving parties with non-identical interests (Conflict)

► Claiming value: Using position and process to achieve own goal (Competition)

► Creating value: Partnering and problem solving for mutual benefit (Collaboration)

Sources of Conflict

1.Resource Scarcity

2.Option Limitation

3.Personality

4.Communication

Conflict Diagnostic Model

Difficult Manageable

Issue Principles/values Divisible

Significance Major consequences Minor consequences

Interdependence Zero-sum Positive-sum

Continuity Short term Long term

Structure Disorganized Organized

Third-party No trusted third Trusted, powerful third

progress Unbalanced Balanced

History Animosity None or positive

Determinants of How Conflicts are Approached

• Situational► Time pressure► Importance ► Personal relevance► Complexity► Etcetera…

• Person► Functional

background► Transient state► Gender► Personality► Style

Individual Self-Assessment

Thomas-Kilmann Conflict Instrument

Conflict Styles

Assertive: High concern for own outcomes

Unassertive: Low concern for own outcomes

Cooperative: High concern for others’ outcomes

Collaborating Accommodating

Uncooperative: Low concern for others’ outcomes

Competing Avoiding

Compromising is somewhere in the middle

About Styles

You must bake with the flour you have.-Danish folk saying

Steve Ross, CEO of Time-Warner, and canasta in his planeLarry King and Ted Turner of CNN, negotiating salaryConference Table Thought Experiment• Does this describe you?

► Situational or dispositional• Why are you this way?

► Influences from your past or present• Does your style serve you?

► Adaptive in your current situation• Do you need to change?

► Other style more effective

X

Role and Effect of Conflict

• Negative► Compete v. cooperate► Misperceptions► Emotions► Hindered communications► Blurred issues► Rigidity► Magnifies differences;

minimizes similarities► Escalation► Infection► Distrust► Absorbs time and energy

• Positive► Compete to higher level► Sharpens perceptions► Enlists emotions► Builds cohesion/trust► Alters/clarifies issues► Fixes priorities► Points our strengths and

weaknesses► Opportunity for learning

Dyad Exercise

PEMBERTON’S DILEMMA

Interdependent Relationships: The Ties that Bind and Liberate

Leave a good name in case you return. -Kenyan Folk Saying

• All relationships, personal and professional, are interdependent

► Contrient: Interests of parties are contrary (zero-sum)► Promotive: Interests of parties are compatible (non-

zero-sum)► Mixed Motive: Interest of parties are simultaneously

contrary and compatible

• Game Theory► Mutual influence and imperfect information, and thus,

the necessity for speculation

Interdependent Exchange

• Dilemma of Honesty► Extent to which you disclose positions and

values

• Dilemma of Trust► Extent to which you believe other party will

honor agreements

• Dilemma of Perceptions► Determining fairness, equity, inputs, outputs,

etcetera…

Trust

• It takes decades to build trust, but only a moment to destroy it

• An ounce of trust is worth 1000 pounds of contracts

• Relationships are between PEOPLE, not firms

Models of Negotiation

Competitive

Contrient

Distributive

Positional

Collaborative

Promotive

Integrative

Principled

Flow of Information Conceal or use strategically

Disclose; free and open

Perspective No effort to understand

Attempt to understand

Commonalities v. Differences

Emphasize departures Emphasize shared interests & goals

Focus on Solutions At the expense of other party

Meets needs of all parties

The Game of Competitive Negotiations

• Distributive or Positional► Contrient interdependence► Resources fixed► Zero-sum relationship► Object is to claim value► View other party as opponent► Game-playing orientation

Exercise

Peach Computers v. Campus Computer Store

Critical Concepts

• Target Point► Desired outcome (CL)► Determined by Subjective Utilities

Importance & priorities (e.g. value attached to outcomes; cost of difficulty or delay

► Sets strategy► Dilemma of Winner’s Curse

Alice: “Would you tell me please, which way I ought to go from here?” Cheshire Cat: “That depends a good deal on where you want to get to.”Alice: “I don’t much care where…”Cheshire Cat: “Then it doesn’t matter which way you go.”

-Alice’s Adventures in Wonderland, Lewis Carroll

Critical Concepts…

• Specific and moderately difficult goals lead to better settlements that more moderate ones

► If too vague, we tend to settle; If too high promotes failure and frustration; If too low promotes apathy and helplessness

• Articulate: Writing down helps to surface tacit, unrecognized desires or assumptions

• Visualize: Assists in triggering psychological striving mechanisms

• Proclaim: Publicly announcing intentions commits one to persevere in the face of adversity

Aiko Morita and Sony in 1955

Critical Concepts…

• Resistance Point► Outer limit or boundary; “Walk away point”► Needs to be firm to prevent being persuaded► Sets strategy

• BATNA► Best Alternative to Negotiated Agreement

(Calt)► Base of power & leverage► Develop assiduously!!

Strategy

You’ve got know when to hold them, know when to fold them, know when to walk away, know when to run…”

-The Gambler, Kenny Rogers

• Assessing the situation, anticipating what will happen, and acting appropriately

Strategic Intentions

• Know the other party’s Subjective Utilities (e.g., homework, interpretation)

• Modify the other party’s Subjective Utilities (e.g., positions, persuasion)

• Manage the other party’s impression of your own Subjective Utilities (e.g., silence, over-emphasis)

The Art of Collaborative Negotiations

• Integrative or Principled► Promotive Interdependence► Resources fluid and can grow► Positive-sum relationship► Object is to create value► View other party as partner► Problem-solving orientation

Dyad Exercise

SALLY SWANSONG VS. LYRIC OPERA

Necessary Conditions

• Potential for mutual gain ► Fundamental motivation

• High aspirations► Laborious & tedious

• Problem-solving orientation► Required to work through issues

• Premised on Relationship► Dilemmas of Honesty and Trust

Keys to Win-Win Negotiations

• Focus on shared goals► bind or are common to parties

• Separate people from problem► Especially if history of animosity or the people are the

problem

• Attend to interests, not positions► All positions have underlying interests

• Be creative► Avoid pre-conceived solutions or singular

interpretations of the problem

Stage 1: Define the Problem & Goal

• Define in mutually acceptable terms► Use consensus► Keep as simple as possible

• Depersonalize► Don’t place blame, don’t make it about people

• Separate problem from solution► Premature consideration of solutions is

counter-productive

Stage 2: Identify Interests

• Substantive ► Objective, tangible outcomes

• Process► Tone or structure of proceedings

• Relationship► Respect, trust, long & short-term

• Principles► Values, precedent

Stage 3: Identify Obstacles

• Identify obstacles that stand between you and your goal

► Things that have to be accomplished or overcome to achieve goal

► Quantify and assign responsibility in a consensual manner

► Don’t entertain problems associated with given solutions

Stage 4: Develop Criteria for Solutions

• Conditions and outcomes of any acceptable solution

► Costs► Benefits► Reputation► Relationship► Synergy

Stage 5: Generate Alternatives

• Brainstorm► Free-flowing and non-evaluative

• Surveys► Solicit broad input

• Be prepared to:► Expand resources► Log-roll► Cut costs of compliance► Seek bridge solutions

Stage 6: Evaluate and Select Alternatives

• Narrow range of alternatives using criteria

• Use quality and acceptability as standards

• Justify subjective utilities

• Use sub-groups, caucuses and time-outs

• Keep decisions tentative and conditional until final agreement

X