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999THEHIGHER
AMBITION LEADER
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Chan Kwan Hang Kate Tai Hui Kwan Herbert Ma Hoi Yan Heidi Hung Kai Fai Kelvin Liu Heng Lynette Chan Ryan
Wu Jia Yi Roger
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Outline
Overview
Higher Ambition
leadership (HAL)
How HAL Influences
Management
Food for
Thought
Conclusion
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HIGHER AMBITION LEADER…
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999 Management ’s Next
Higher Ambition Leader
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999 Management ’s Next
Higher Ambition Leader
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999 Management ’s Next
Higher Ambition Leader
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Wait a minute…
Successful Leader =
Higher Ambition Leader?
Econ value generated?
Corporate Social Responsibilities
???
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Leader & Leadership
Someone who can influence others and who has managerial authority
LeaderThe process of leading a group & influencing that group to achieve its goals
Leader ship
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Leader(Original)
Do Right Things
Promote Idea Generation
Inspire
Pursue & Create
Opportunities
Create Vision
Synergy
Effectiveness
Employee Innovation
Teamwork
Accomplishment
Empowerment
Manager
(Copy)Do things right
Provide Structure
Coordinate
React to Situation
Provide Resources
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Leadership is an Evolution
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FILMTIMELINE
1960s-70s
• Early Leadership theories• Personalities
1970s-90s • Contingency theories
21st century
• Transformational leadership
NOW!
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Transformational Leadership
Idealized influence
Inspirational motivation
Intellectual stimulation
Individualized consideration
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THEHIGHER AMBITION LEADER
Transformational Leadership
2.0
CONCEPT MAP OF TRANSFORMATIONAL AND HAL
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Produce significant benefits for the wider community
1 Build robust social capital within their organization2 Create long-term economic value3
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Background • Founded in Sweden
(1943)• 301 stores operating
in 37 countries• International home
products company• Fortune 100 Best
Companies to Work For
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BackgroundHigher Ambition Leader in Ikea
Anders Dahlvig• Join in 1984• Became CEO in 1999
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BackgroundHigher Ambition Leader in Ikea
• Anders DahlvigUS Foreign Policy Association’s Global Social
Responsibility award in 2006
Oslo Business for Peace Award in 2009
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Background
• Anders Dahlvig in others’ eyes“Ikea and Mr. Dahlvig have an extraordinary influence in the world. He has participated in building a business of a size and character where all stakeholders are winners.”
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Background
Under leadership of Anders Dahlvig:
Growth from 7.3 to 21.5 billion Euros
Reduction in sales prices by 20%
Over 565 million visitors dropping in to one of 296 stores in 36 countries
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Vision
Strategy Culture Personal Leadership
Evolution of leadership
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Vision Transformatio
nal Leadership
Higher Ambition
LeadershipWhat? Mainly company
economic performance
Integration of economic and social values
Whose? Leader, followers Company’s beliefs,
employees, community
ALL stakeholders
Envisioning!
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IKEA’s vision
To create a better everyday life for the many people
Customers
Employees
Communities
Econ. Value
Social Value
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Vision
Customers
Employees
IKEA
Communities
Sustainability
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Strategy Development
Transformational
Leadership
Higher Ambition
Leadership
How? Strategies tied with vision thoroughly
for achievement
(Yukl 1994)
Strategic Identity
BEYOND STRATEGIES!
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Leader developing a challenging
vision
Understanding market
conditions
Incorporating vision into strategies
Transformational Leader
Strategy Development
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Strategy Development
Transformational Leader
• Market Share• Competitors
Leader developing a challenging vision
Understanding Market conditions
Incorporating into strategies
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Forging sustained
vision
Comprehensive view of
organization’s Competitive Advantages
Strategic identity
Higher Ambition Leader
Strategy Development
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Strategy Development
Forging sustained vision
Comprehensive view of organization’s competitive advantages
Strategic identity
Identify competitive advantages with a meaningful purpose that could underpin a successful economic model
Capitalize strengths to create distinct values
Higher Ambition Leader
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Strategy Development
Higher Ambition Leader: IKEA’s Competitive advantages
Unique characters
Family approach
Passions and capabilities of
people
Staff commitment
Organizational capabilities
Customer loyalty
Key Performance Indicators (KPIs)
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Strategy Development
Forging sustained visionComprehensive view of
organization’s competitive advantages
Strategic identity
Defines company’s vision and core values
“Who” the company is Beliefs of the leaders, the employees, and the
company's strategy were aligned
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Strategy Development
Forging sustained vision Comprehensive view of organization’s competitive
advantagesStrategic identity
Companies capabilities
Marketopportunities
Passion of People
“Who” the
company is
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Strategy Development
Forging integrated vision Comprehensive view of organization’s competitive
advantagesStrategic identity
Anders Dahlvig:
“Company's reason for existence should be to contribute to a better
society."
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Strategy Development
Social initiatives:
Environment
Forging integrated vision Comprehensive view of organization’s competitive
advantagesStrategic identity
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Strategy Development
Social initiatives
Children
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Strategy Development
Social initiatives:
Extending CSR to Supply Chain :
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Strategy Development
Potential True
Hollow Aspirational
Internally rooted values
Externally perceived
and appreciated
values
HIGH
HIGH
LOW
LOW
Strategic identity
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Outcome:
Strategic Identity
Long-term beneficial relationships and commitment
Among ALL stakeholders!
True &
Authentic Brand image
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Cultural Development
Transformational
Leadership
Higher Ambition
Leadership
How? Strong Organizational
Culture
• Motivating and Inspiring
employees
Building Community of
Shared Purpose
• Aligning with employees and
society
• Building Community of
Diversity
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Cultural Development
Organizational
Culture
Transformational
Leadership 1. Community of
Shared Purpose
Higher Ambition Leader
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Cultural Development
A diverse and highly qualified workforce helps corporations maintain a competitive edge
Reasons of community of shared purpose
Community of
Shared Purpose
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Cultural Development
IKEA’s Shared Purpose
Core ValuesTogetherness Cost-
consciousness
Simplicity Creativity
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Cultural Development
HOW?Job Enrichment
Job Rotation
Job Sharing
Understand of ALL employees to the company as a WHOLE
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Cultural Development
Examples: Life Balance Employees Benefits
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Cultural Development
Key of Success: Consistent focused
attention on generating shared values
Strong emotional attachment
High level of mutual trust and respect
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Cultural Development
Barriers
Law
Culture
Values
Language To build community of shared purpose: People must feel comfortable
working directly with others They need to be able to
appreciate colleagues from different background
Why Diversity?
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Cultural Development
IKEA’s Diverse Community• 131,000 co-workers in
41 countries
• Diversity transcends races, gender and ethnic
IKEA’s Motto: Dare to be YOU!
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Cultural Development
IKEA’s Diverse Community
• Family approach
• Identifying people’s needs
• Optimizing people’s ambition and capabilities
HOW?
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Cultural Development
A full press diversity drive program (2000)
Yearly evaluation ethnic composition of work forces
Substantially increased the no. of women and minorities in management
47 % of the company’s 75 top earners are female
Examples:IKEA’s Diverse Community
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Outcome:
• Staff turnover has decreased (76%36%)
• Substantially lowered the company costs in recruiting and training replacements
• Totally revenue in the US increased from 1.2 billion to 1.4 billion
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Personal DevelopmentTransformationa
l Leadership
Higher Ambition
Leadership
How?Leading with
Idealized influence
(Charisma) &Inspiration
Leading with Sisu
• Finnish as “guts”
• Collective Leadership “Charisma is not a necessary character trait for effective
leadership.” Anders Dahlvig
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Personal Development
Leading with Sisu
Guts and
Courage
Doing things
differently to gain
real competitiv
e edges
Move into Russia during Russian
Crisis
Political and economic turmoil
Persistence to prevail in this
type of environmentIKEA: Dare to be
different
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Personal Development
Leading with Sisu
Collective Leadershi
p
Welcome input and
feedback from all levels
Promote employee
empowerment
Encourage open discussions and
questioning
Encourage staff to rate
managers on different issues
IKEA
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Personal Development
Leading with SisuHigher Ambition Leader needs:
• Keep price low while not damaging stakeholders’ interests
To maintain a constant focus
• “UK experience is not what we would like it to be"
• Admits the need to scale back the expansion plan in 2009
To admit mistakes
• Encourage sharing on open forum• Communication via the Intranet
To directly engage with people at different levels
IKEA
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How influences ManagementA trip back to everything……
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Higher Ambition Leader
• Ability to build strong corporate cultureCulture
• Strong analytical ability• Far-sightedStrategy
• Active engagement with all levels• Attention to feedbackCommunication
• Ability to nurture mutual trust and cohesiveness within the teamGroups and teams
• SimplificationOrganizational structure
• Ability to motivate people by self-actualizationMotivation
Higher Ambition Leader’s abilities and qualities:
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Strongculture
WeakCulture
Characteristics of Strong Culture:• A community of shared purpose• Leader’s values deeply and widely held
Benefits of Strong Culture:• Strong staff commitment• Higher working incentive• Distinctive company image
• Ability to build strong corporate cultureCulture
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“The value of some companies is just
to make money and you cannot talk about broader issues there because you would come across
as odd.” Anders Dahlvig
• Ability to build strong corporate cultureCulture
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• Set long-term and sustainable strategies• Strategic identity
• Strong analytical ability• Far-sightedStrategy
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“... spend more time in the boardroom looking at long-term issues and
build a sustainable business with a good reputation.
We would do a better job for shareholders if we were concentrating
more on the long term.”
Anders Dahlvig
• Strong analytical ability• Far-sightedStrategy
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• Different communication networks: Chain Wheel Organic
• Direct and efficient Reduction of noise
• Active engagement with all levels• Attention to feedback
Communication
Medium
Receiver
Decoding
Message
Feedback
Sender
Encoding
Message
NOISE
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“We encourage people to move around and
interact, walls segregate people and keep them
apart.”Nick O’Donnell
IKEA Project director
• Active engagement with all levels• Attention to feedback
Communication
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• Ability to nurture mutual trust and cohesiveness within the team
Groups and teams
• Do not focus on the professional knowledge, but collaboration skills
• Family approach• Mutual trust and respect• Cohesiveness
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• Ability to nurture mutual trust and cohesiveness within the team
Groups and teams
“I'd say energy and being able to work with other people were the
most important. You can learn everything else.”
Anders Dahlvig
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• SimplificationOrganizational structure
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• Different types of structure: Functional Geographical Market Matrix
• Depends on company’s nature and objectives
• So far as communication is facilitated
• SimplificationOrganizational structure
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• SimplificationOrganizational structure
• Highly functional with a global market strategy Maintain centralized control
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• Motivate people according to their needsMotivation
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“IKEA pays in the mid-range of salaries because we want people to
come to IKEA for other reasons than money.
You want a decent salary but beyond a certain level it does not
matter any more.
Anders Dahlvig
• Ability to motivate people according to their needsMotivation
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Culture
Strategy
Groups and Teams
Communication
Organizational structure
Motivation
How influences Management
Leadership
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Food for thought
Food for thought1. Is successful leader equals Higher Ambition Leader?
2. Can Higher Ambition Leaders exist in every company?
3. Why are there so few Higher Ambition Leaders?
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Is successful leader equals
higher ambition leader?
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Short term
Economic Success
Successful Leader
What Our Society Thinks:
77Case Example: IKEA India
Fast-growing country of 1.2 billion people 51% restriction on foreign direct investment in 2010
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Case Example: IKEA India
Case Example: IKEA India
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Case Example: IKEA India
Keep 100% Ownership
Strategic Identity
Aim for long term and sustainable
return
Not Ready to develop reliable supply chains &
customers relations
Consider social value with
expansion in India
High ambitious leader
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Can Higher Ambition Leader
exist in every company?
Why can’t exist in every company
Never align with a
positive social value
Negative Impact on
society
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Some company products and business make it a destiny that a high ambitious leader can never
exist.
Why can’t exist in every company
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Why are there so few of these
higher ambition leaders?
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Why are there so few of these higher ambition leaders?
Focus on short term economic
value
Focus on shareholder’s
value instead of
other stakeholders
Boards and business
school focus on how to earn high profit
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Conclusion
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999 Management ’s Next
Higher Ambition Leader
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Higher Ambition Leader?
• Focus on Short term economic value
• Not focus on social value
SUSTAINABILITY?
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Higher Ambition Leader?
Charity Talk at Hospital
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Higher Ambition Leader?
MTR’s Caring for life's journeys
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Higher Ambition Leader?
NOT CONSISTENT
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Higher Ambition Leader?
NOT CONSISTENT
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Society
Employees
Vision
A Higher Ambition Leader
Sustainable & Consistent
A Higher Ambition Leader
StrategyDevelopme
nt
• Strategic Identity
Cultural Developme
nt• Building a community of shared purpose
Personal Developme
nt
• Leading with Sisu
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Management Lesson No. 1 “Manage yourself first!” Be
Visionary! 95
Focus on Long Term. Be
Sustainable. 96
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Who Can Be Higher Ambition Leader?
YOU
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Q & A Session