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Explore the nuances of leadership & management in social entrepreneurship, the challenges faced, and how executives balance reactive tasks with proactive strategies. Understand the impact of effective leadership on driving change and success in social enterprise settings.
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What Executives Do • Functions of a “manager” (Henri Fayol, 1916) • Plan • Organize • Coordinate • Control • Is this leadership or management, or both?
Outline • Basic leadership principles • Leadership styles
A typical pattern • A successful entrepreneur looks to the future—and other ventures • The organization is “led” by a follower, who is most likely a manager, not a leader • Leadership gap develops • Organization becomes far less entrepreneurial—or begins to fail • Social entrepreneur must provide or find leadership for the organization
Questions • How does leadership differ from management? • And how do both relate to social entrepreneurship? • What are the special leadership challenges faced by social entrepreneurs?
Executives Are Often Reactive Data say… • Executives are usually thrown from activity to activity (“putting out fires”) • Executives often seek interruption from subordinates (“keeping my ear to the ground”) • Executives prefer over written communication (“updating”) • Most executives ignore “scientific” management techniques (“going with my gut”) Mintzberg, Henry: "The Manager’s Job: Folklore & Fact". Harvard Business Review, July/Aug 1975: 353-377.
Executives Are Often More Involved in Management than Leadership • The difference between managers and leaders Bennis & Nanus (1997) Leaders : The Strategies for Taking Charge Kotter, John P. "What Leaders Really Do.” Harvard Business Review (1990)
What Do Managers and Leaders Do? Lessons • In a stable, high-competition environment, good management is paramount • In a dynamic, uncertain environment, leadership is key Kotter, John P. "What Leaders Really Do.” Harvard Business Review (1990)
Too Much Management, Not Enough Leadership? • A managerial culture maintains and relies on stasis • Leaders know that your only opportunity to fix something is before it’s broken • Leadership relies on vision and the ability to effect change • “Most U.S. corporations today are overmanaged and underled.” Zaleznick, Abraham. “Managers and Leaders: Are They Different?.” Harvard Business Review (1977)
Preliminary Conclusions and Trailing Questions • Management and leadership are different • Effective leadership is important • Change is a key concept for effective leaders
Where Are Social Enterprise Leaders? • Founder • ED/President/CEO • Super-volunteer • Catalyzing a community • Active trustee • Marshalling a large funding jump • Venture philanthropist Frumkin, Peter. On Being Nonprofit: A Conceptual and Policy Primer (Harvard University Press, 2002)
The Special Challenge of Social Enterprise Leadership • For-profit leadership literature assumptions • Power • Autonomy • Social entrepreneurs must lead from above, but also from below • Persuasion vs. coercion
Characteristics of High-Performance Leaders • What do employees admire in a leader? • Honesty (88%) • Forward-looking (75%) • Inspiring (68%) • Competent (63%) • According to nonprofit executives, high-performance leaders are • Honest • Faithful to employees • Decisive • Trusting • Charismatic Light, Paul C. Pathways to Nonprofit Excellence (Brookings Institution Press, 2002) Kouzes, J. & Posner, B. (1995). The Leadership Challenge
What is the Right Nonprofit Leadership Model? • Percent of nonprofit executives that believe in each model Light, Paul C. Pathways to Nonprofit Excellence (Brookings Institution Press, 2002)
Change Is Inevitable • Leadership’s role as a steward of change • Empowering new talent • Helping people to adapt • Sources of change • Society (audience and donor wishes) • Markets (competitors) • Technology • Government
Successful Change • Impediments • Executives tackle change alone • Employees expect execs to solve all problems • Elements • Clear goals • New strategies • New modes of operation Where are we going? Figuring out how to get there Getting there
Principles for Leading Change • Keep the big picture in view • Recognize what needs to be changed (and what doesn’t) • Manage the distress from change • Give people real responsibility • Get the Board on your side • Keep key donors in the loop Heifetz, Ronald A. & Donald L. Laurie. "The Work of Leadership." Harvard Business Review (1997)
Conclusions • Seek the right balance between management and leadership… • …but don’t confuse them • Effective change is the nexus of management and leadership • Effective nonprofit leaders navigate special waters • Focus on key personal qualities: courage, skill with people, and vision
Outline • Basic leadership principles • Leadership styles
Leadership Styles • Coercive leadership • Authoritative leadership • Affiliative leadership • Democratic leadership • Pacesetting leadership • Coaching leadership Goleman, Daniel. "Leadership that Gets Results." Harvard Business Review (2000)
Coercive Leadership • Demands immediate compliance • Can achieve short-term results • Positive shock to a moribund environment • Key in emergencies • Can create long-term damage • Defection • Creativity and initiative • Non-financial rewards • Coercive leadership can lower employee compensation Goleman, Daniel. "Leadership that Gets Results." Harvard Business Review (2000)
Authoritative Leadership • Characteristics: vibrant enthusiasm and clear vision • Encourages people to follow • Motivates people by showing them how their work fits into larger picture • All evaluation keys on adherence to vision and mission • Can be ineffective with senior staff Goleman, Daniel. "Leadership that Gets Results." Harvard Business Review (2000)
Affiliative Leadership • “People come first” • Strives for happiness and harmony • Results in fierce loyalty, workplace trust, and a revered leader • May lower overall effectiveness • Poor performance may be tolerated • Tendency to “groupthink” • Rudderlessness occurs when clear direction is needed • This style is best when accompanying another Goleman, Daniel. "Leadership that Gets Results." Harvard Business Review (2000)
Democratic Leadership • Everybody has a say in the process • Opposing viewpoints are protected and respected • Builds trust, respect, and commitment • May be counterproductive • Can lead to endless meetings • Inhibits efficient decisionmaking • May lead go-getters to defect Goleman, Daniel. "Leadership that Gets Results." Harvard Business Review (2000)
Pacesetting Leadership • Nobody works harder than the ED • Pitches in and sets an example • Can create moral problems among less-able employees • Organization is in trouble if pacesetter leaves Goleman, Daniel. "Leadership that Gets Results." Harvard Business Review (2000)
Coaching Leadership • Counsels employees • Highly values human capital, and looks for individual strengths • Delegates in order to develop employees • Can be extremely time-consuming Goleman, Daniel. "Leadership that Gets Results." Harvard Business Review (2000)