Transformational Leadership – Team Yellow May 16th, 2012

AGENDA A B C D E F G Transformational Leadership Theory History: origin of the concept of Transformational Leadership in the early 80s Core Elements: The “4I”: Idealized influence, Inspirational Motivation, Intellectual Simulation Individual Consideration Why transformational leadership – how applicable is it today? Value and benefits of following this approach at GL Challenges of following this approach at GL Real situation & day 2 day business Case Study Questions & Answers A B C D E F G 2012-05-16 Transformational Leadership - YELLOW TEAM v02.ppt | 17/02/2019 | No. 2

A History: origin of the concept of Transformational Leadership in the early 80s James MacGregor Burns (1978): establishes two concepts: “transforming” and “transactional” leadership redesigns perceptions and values of employees based on leader’s personality, traits and ability to make a change through example by articulation of an energizing vision and challenging goals transforming leaders work towards the benefit of the team Bernard M. Bass (1985): extends the work of Burns with analysis of psychological aspects introduces term “transformational” instead of “transforming” explains how transformational leadership can be measured measurement criteria: influence on the followers like trust, admiration, loyalty and respect for the leader as well as intellectual stimulation and individual consideration 2012-05-16 Transformational Leadership - YELLOW TEAM v02.ppt | 17.02.2019 | No. 3

B The “4I”: Idealized influence, Inspirational Motivation, Intellectual Simulation Individual Consideration Transformational leadership is based on transactional leadership (exchange of staff's output and reaction of the leader). Transformational leadership goes one step beyond and includes four core elements in addition: 1 Idealized Influence The leader provides a role model for his behavior. He gains respect and trust. (In simple terms: He is heard, his attitudes are generally considered to be worthwile, useful, interesting, important etc.) 2 Inspirational Motivation The Leader is able to transport his visions, their meaning and purpose to his followers. Good communication skills support leader's ideas that followers are willing to invest more of their abilities and efforts. He brings higher levels of personal commitment amongst followers to organizational objectives. Intellectual Simulation The leader supports his followers in their own creativity, he listen to their ideas, their critisism, their suggestions how to improve their tasks 3 4 Individual Consideration The leader acts as coach and mentor. He reacts on individual needs of his followers; their strength and abillitis are developed further 2012-05-16 Transformational Leadership - YELLOW TEAM v02.ppt | 17/02/2019 | No. 4

Why transformational leadership – how applicable is it today? Company’s environment is increasingly dominated by fast changes, reduced product life cycles and uncertainty increasing competition war for talents and higher employee expectations Environment Vision Changing environment requires frequent / continuous transformation of company Clear vision providing a coherent and clear framework for transformation and entrepreneurial behaviour of individuals – which is activated by transformational leadership Transformational leadership enables the company to respond to today‘s challenges 2012-05-16 Transformational Leadership - YELLOW TEAM v02.ppt | 17/02/2019 | No. 5 Source: Internet research, BCG report on „Leading Transformation“ (October 2011)

What might be the value and benefits of following this approach at GL? Company: Entrepre- neurial thinking Improved results by improved prioritization Increased adaptability to changes of the environment (market, customer, …) Improved processes Stronger ownership and responsibility Best possible output (effectiveness) Client orientation Change processes can be implemented easily (and will be initiated by staff members) Individual: response on personal needs Happiness of staff is increased (improved results of Great Place to work study) Motivation by welfare (not only monetary) Long term profitibiability 2012-05-16 Transformational Leadership - YELLOW TEAM v02.ppt | 17.02.2019 | No. 6

What might be the challenges of following this approach at GL? Lack of trust, bad experiences Unsuccessful transformational projects in the path General pessimism / negative thinking Lack of authenticity Close relationship to staff members handicap succession - > Number of TFL at GL Lack of visions (change agenda), resistance to change Lack of breakdown of targets - visions must be understandable and applicable; you must get a chance to implement it Is there a general agreement on the vision/targets ? GL organization organized around instructions, bureaucracy and routines – less around leadership and change. Leaders need to be considered as such by staff members Lack of focus on (overall) results Thinking in details, less abilities to abstract / think in the “big picture” 2012-05-16 Transformational Leadership - YELLOW TEAM v02.ppt | 17/02/2019 | No. 7

F Can you identify a real situation where you could use it in your respective leadership roles? Change of organisational structure – new teams, new leaders (Antje) Explaining of benefits Developing of „own“ theory, communication Master Data Management (Carsten) Shifting from administrative/concept oriented working to vision/objective/entrepreneurial way of working… long way to go And many more … 2012-05-16 Transformational Leadership - YELLOW TEAM v02.ppt | 17/02/2019 | No. 8

G Questions to be answered regarding the case study Transformational Leadership Questions Answers What is it about Rachel's leadership style that clearly suggests that she is engaged in transformational leadership? In what ways has the growth of ICCR had an impact on Rachel's leadership? Given the problems Rachel is confronting as a result of the growth of the company, what could she do to re-establish herself as a transformational leader at ICCR? Vision/objective driven, Give people freedom as well as encourage/enable them Act as a role model Due to growth she has lost the direct connection to “the people” She needs to shift here way of “leading” from “leading people” to “shape leaders”, who lead the people Identify new channels to communicate here style (role model) 2012-05-16 Transformational Leadership - YELLOW TEAM v02.ppt | 17/02/2019 | No. 9