The focus of this assignment is the Chairman as the leader. He has to manage his Board well such that he does not overstep the boundaries yet sufficiently challenge the management to get better results and returns. The case study outlines many of the challenges and dilemmas faced by the company and the leadership. In addition, the shareholders KhazanahNasional has issued the Green Book as a guideline to Enhancing Board Effectiveness.
Questions to be answered in this individual assignment:
a) What are the Leadership behaviours, traits and skills portrayed by the Chairman? What additional behaviours, skills and traits not demonstrated that he may require to successfully lead the company’s Board of Directors and why?
I believe good leaders should know how to apply various kind of leadership behavior in every difference situation. Good leadership in the modern age more importantly requires attitudes and behaviors which characterize and relate to humanity.Traits alone, will not deliver the same value to the organization, as would a leader’s behavior; since behavior is manifested through actions rather than words on a memo, slide, or in a speech. Behaviors are visible manifestations of one’s true character (toxic or nontoxic), and can be infectious. The message should be clear, that this process is not a one afternoon meeting; it cannot be accomplished in a vacuum, and requires input from all stakeholders if the final product is to be sustainable. Therefore in this case study Tan Sri Dr Leo Moggie the Chairman of TNB had imposed the good participative style of leadership.
Participative leadership is a style of leadership that involves all members of a team in identifying essential goals and developing procedures or strategies to reach those goals. From this perspective, this leadership style can be seen as a leadership style that relies heavily on the leader functioning as a facilitator rather than simply issuing orders or making assignments. This type of involved leadership style can be utilized in business settings, volunteer organizations and even in the function of the home.TNB board of members was lead by an effective and good chairman, it is more or likely that the members will be able to fulfill their as well as the organizations goal and objectives successfully. He involves all board members in terms of identifying important goals as well as developing strategies and procedures to achieve the goals.
From this point of view, participative style of leadership can be perceived as a leadership style that rely primarily on functioning as facilitator that the one who simply issues commands or orders or making assignment for each member of the team. Capitalize on the strengths of those around you. Leo Moggieunderstands that their success is directly related to those around them. Leader is not a one person show. Support is needed from many people. Heknow this and are willing to use other strengths to help obtain their vision and goals such as the CEO. The first thing he decided was that all information to and from the Board and Board Members was to be channel through the CEO. As a result, heknowshis areas of weakness and supports it with others who shine in these areas without feeling threatened.
Leo Moggiehad some characteristics of a trait and leadership skilllikedesire to lead: He has a desire to lead the Board Members. Honesty and Integrity: He was very honest to organization, to his goal and to the CEO. It is very essential to a leader to have honesty towards his goal and the work. He was very confident while taking the charge to drive the implementation of the new and high Corporate Governance Standards in the framework of the Government-Linked Companies (“GLC”) Transformation Initiative launched in 2005 which was very big challenge for anyone but he was very confident to handle it and follow the guidelines in Green Book.
Beside this there are some leadership behaviors and skill that not demonstrated by him which is important to help him successfully lead the organization such as transformational leadership. As I mention earlier good leaders need to know when to change or apply various kind leadership behavior in difference situation. In transformational leadership the elements that important for him to adopt like inspire positive changes in those who follow, energetic, enthusiastic, and passionate. Not only are these leaders concerned and involved in the process; they are also focused on helping every member of the group succeed as well. As Leo Moggie laid away the Green Book and compared the new ambitions with the progress TNB`s Board has made so far, he was easily coming to the conclusion: “Building High-Performance Boards is indeed a never-ending story.” He should act as a role model, deliver strong results in the right way, build, develop, and lead empowered and diverse teams; and motivate others with a vision for the future that can be implemented.
b) The case does not mention the thinking and traits of the CEO. In order for the CEO to be successful, given the situation illustrated, what are the Personality Traits does he need to have? Assuming that he does not sufficiently have them, what are the right Leadership Developmental Activities that need to take place and why?
There are many types of traits that are important for CEO. Firstly, honesty.Whatever ethical plane you hold yourself to, when you are responsible for a team of people, its important to raise the bar even higher. Your business and its employees are a reflection of yourself, and if you make honest and ethical behavior a key value, your team will follow suit.
Beside that in order for the CEO to be successful he must know how to motivate people and maintain their involvement in the organization. Individuals are not permanent fixtures within the organization. More over CEO provides meaning and purpose by creating a vision of where the organization is going. Focus on the big picture and understand how the work your team performs fits into the productivity, image and overall success of the company.This ability to inspire and motivate others and transform them into committed contributors to the organization is the function of successful CEO.Confidence and know yourself. Recognize your strengths and work on your weaknesses. Never be afraid of asking questions or taking additional training. You don’t need to know everything or be the best. If you’re weak on detail work, make sure you have people on your team who excel in that. Surround yourself with people who make the company look good, not “yes men” who only say what they think you want to hear. Listen, always take an interest in hearing others’ opinions. Learn what policies or problems are hindering your team from doing its job effectively, efficiently and enthusiastically. Listen carefully to better understand quality of life and work/life balance issues and then encourage employee-driven solutions. Be flexible, a good CEO doesn’t always want or need to be right. Be open to dissenting opinions, other ideas and new initiatives. If your staff feels comfortable offering suggestions and are involved in developing and implementing some of them, they will actively look for opportunities to improve the company.Be supportive, show empathy and patience, and work through frustrations regarding people who are less dedicated and driven than you. Always treat your co-workers and staff with courtesy and respect and take an interest in them as individuals. Remember; how you interact with people impacts how you are perceived as a leader. Motivation skills, encourage people where a good CEO has the ability to inspire, motivate and energize. Be a mentor. Concentrate on bringing out the best in people, developing their talents and encouraging them to use their initiative and judgment.Solve problems, As a leader, you’ll need to make difficult, sometimes unpopular decisions. You’ll need to manage conflict and helppeople accept change. Communication is the key. If you are committed to your career, your duties and your work group, you’ll find innovative ways to resolve problems. Lead by example,always show your ability to work well with others, no matter how much you might personally dislike them. Be fair and don’t play favorites. Keep negative comments and frustrations to yourself. Maintain a positive attitude, no matter what.
What are the right Leadership Developmental Activities that need to take place. I believed that for CEO the Executive coaching is probably the best activities to take place because executive coaching is increasingly recognized as one of the most effective ways to create dynamic, focused organizations and foster executive development. Executive coaching gives people the freedom to use their talents, skills and experience, while at the same time ensuring clear goals are in place and outcomes are achieved. Specifically, executive coaching can assist CEO in becoming more effective leaders of their people and helps significantly progress their executive development. Beside the executive coaching the personal growth programs also need to take place. This program are designed to improve self awareness and overcome inner barriers to development of leadership competencies. The effect of this programs will help the CEO to find better balance between their work and personal life may be to reduce commitment to the organization.
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Colin B. Carter and Jay W. Lorsch, ‘Back to the Drawing Board: Designing Corporate Boards for aComplex World’.
Putrajaya Committee: GLC High Performance:http://www.pcg.gov.my/trans_manual.asp
TNB: Official Website:http://www.tnb.com.my/