Leadership System Design_Assignment 2, Assignments of Business Systems

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Assignment #2: Leadership System Design

University of Fredericton: MBA

Prof. Todd Johnson

January , 2024

Contents

• Part 1: Purpose and Requirements..............................................................................................................
• Part2: Nature of the System........................................................................................................................
• Part 3: Theories and Concepts.....................................................................................................................
• Part 4: Inspiring Examples...........................................................................................................................
• Part 5: Unique Context................................................................................................................................
• Part 6: Design Principles..............................................................................................................................
• Part 7: System Integration...........................................................................................................................
• Part 8: Design..............................................................................................................................................
• References...................................................................................................................................................

organizational resilience, fosters stakeholder satisfaction, and champions sustained excellence in

organizational practices (Latham, 2019). As highlighted by McKinsey & Company (2022), a

leadership system serves as the linchpin for executing organizational priorities, facilitating

communication, and steering decision-making processes. Leaders, armed with a profound

understanding of organizational capabilities and stakeholder demands, can create a leadership

culture that empowers individuals to assume responsibility for their tasks, contributing

collectively to the organization's achievements (Latham, 2016).

Part 2: Nature of the System

A profound understanding of system operations is essential for leaders to effectively

manage them. Lantham (2016) categorizes systems into four primary types: physical,

information-based, creative, and bespoke. Physical systems involve mechanical components and

are subject to stringent regulations, requiring leaders to carefully consider the potential for

automation and its impacts on overall efficiency. In contrast, information plays a critical role in

decision-making across all systems, necessitating documentation like knowledge bases and

manuals. Leaders must actively seek ways to automate the retrieval and distribution of vital

information to optimize efficiency.

Creative systems, focused on generating novel concepts and advancements, require

leaders to create environments fostering creativity while ensuring alignment with organizational

objectives (Lantham, 2016). Balancing innovation with strategic goals is crucial. Additionally,

adaptability, referred to as the "tailored nature" of the system, is essential for responding to

dynamic consumer demands and environmental shifts. Leaders must navigate the tension

between standardization, automation, and the need for flexibility when designing and

implementing processes (Lantham, 2016).

The nature of a leadership system extends beyond traditional classifications, embracing

social processes, information exchange, creativity, and bespoke elements. Unlike physical

systems governed by natural laws, leadership operates within the social realm, requiring a

tailored approach (Latham, 2012). In the context of a leadership system, the information nature is

inherent, emphasizing the need for efficient data flow to support informed decision-making. The

creative nature encourages leaders to foster innovation aligned with organizational goals. The

bespoke nature underscores the adaptability of the leadership system to the organization's unique

culture and operational intricacies. Recognizing these facets is crucial for designing a leadership

system that aligns intimately with the organization's particularities while meeting the demands of

effective leadership.

Part 3: Theories and Concepts

In the grand symphony of leadership, two distinctive melodies resonate—the

transformative cadence and the harmonious notes of servant leadership (Farnsworth et al., 2020;

Souza & van Dierendonck, 2017). The rhythm of transformation orchestrates four essential

movements, where leaders, like maestros, embody idealized influence, provide personal

attention, inspire collective action, and motivate intellectual stimulation. In contrast, servant

leadership extols virtues of humility, portraying leadership as a service fostering harmony, trust,

and care for the well-being of all (Souza & van Dierendonck, 2017).

Harmony in Fusion: Yet, within this musical landscape, a crescendo emerges through

the fusion of these leadership melodies. Combining the uplifting tones of transformational

leadership with the calming notes of servant leadership creates a harmonious ensemble. The

humble servant leader authentically guides the orchestration of transformational objectives,

altering the very structure of leadership dynamics (Farnsworth et al., 2020; Souza & van

Dierendonck, 2017). This synergy transforms leadership into a symphony where dynamic

strength harmonizes with the caring embrace.

Symphony Score for Leadership System: Drawing from Farnsworth et al. (2020) and

Souza and van Dierendonck (2017), this harmonic convergence serves as a symphony score for

the leadership system. It encapsulates the dynamic strength of transformational leadership

intertwined with the caring embrace of servant leadership. This integrated approach forms the

basis for designing a leadership system that not only inspires positive change but also prioritizes

the well-being and harmony of the individuals within the organization.

Integration into Leadership System Design: Aligning with these leadership theories,

the nine interrelated components of a leadership system, as outlined by Latham (2016), play a

pivotal role in informing the system's design. Stakeholder engagement, visionary direction,

targeted strategy, empowerment and engagement, system redesign, performance evaluation,

organizational review, behavior encouragement, and continuous enhancement collectively

constitute the symphony of a well-designed leadership system. Each component is interwoven to

provide value to stakeholders and align with the principles of both transformational and servant

leadership (Latham, 2016; Farnsworth et al., 2020; Souza & van Dierendonck, 2017). This

known as [Re]Design Systems. A scorecard compares the system's performance to the defined

goals of the targeted strategy to see if progress is being made. Comparable to a formal report

card, an organizational performance review verifies if the system's results are in line with its

objectives. Motivating actions that produce positive outcomes is crucial from a human

perspective. The mission and values can be enhanced through learning from these events, which

in turn opens doors to growth.

Part 4: Inspiring Examples

In the realm of effective leadership systems, K&N Management shines as a beacon of

excellence, exemplifying the principles of the Baldrige Award in 2010. The orchestration of their

leadership system revolves around cultivating a happy workforce and fostering a robust

organizational culture dedicated to guest satisfaction. K&N's approach involves meticulous

surveys to pinpoint areas of improvement, ensuring a continuous cycle of refinement in their

plans. Noteworthy is their commitment to best practices in welcoming and training new hires,

providing a foundation for staff to perform at their best.

Taking a page from K&N's symphony, the leadership system actively guides employees,

offering pathways for personal growth and career advancement. Clear communication is the key,

as they maintain an open dialogue and encourage anonymous feedback, fostering a sense of

inclusivity among all members. The systematic approach extends to their staffing system,

documented with clarity and defined goals. K&N not only collects feedback but also earnestly

translates it into action, showcasing a commitment to continuous improvement driven by

leadership's dedication to specific, trackable goals.

Similarly, Stellar Solutions (SS) resonates in the symphony of effective leadership,

emphasizing employee engagement as a key melody. SS conducts surveys to gauge their

performance and dives deep into understanding their team's preferences and aspirations, echoing

the principles of the Baldrige Award. The leadership system at SS listens to the desires and

dreams of their employees, unveiling the motivational factors that drive engagement and proper

reward mechanisms.

Harmonizing Key Characteristics:

Adapting these inspiring examples into our own leadership system design involves

embracing the commitment to employee satisfaction and engagement. Like K&N, we will

integrate meticulous surveys to identify improvement areas and employ best practices in

welcoming and training new members. The emphasis on personal growth, career advancement,

and transparent communication will be embedded into the fabric of our leadership system.

Furthermore, taking a cue from SS, our leadership system will prioritize regular surveys

to understand the team's dynamics, preferences, and aspirations. This data-driven approach will

guide us in tailoring our leadership practices to motivate and reward effectively. The

commitment to active listening and understanding the motivational drivers within the team will

be instrumental in fostering a culture of continuous improvement and employee satisfaction. Just

as K&N and SS have orchestrated their success, we aim to compose a leadership symphony that

resonates with the principles of the Baldrige Award and elevates our organization to new heights.

Part 5: Unique Context

Navigating Complexity: Adapting Leadership to Unique Context

In the intricate landscape of our leadership system, the primary focal point lies in

managing information, with an overarching goal of fostering creativity and innovation. Despite a

consistent organizational mission and values, the recent acquisition of customer relationship

management software and a significant restructuring of the organizational chart have ushered in

transformative shifts. These changes have led to a strategic reevaluation, necessitating a

recalibration of leadership practices to align with the evolving dynamics of the organization.

The essence of our leadership context is underscored by the management of information,

with an emphasis on driving improved system performance. However, recent events have

introduced two pivotal shifts - the adoption of new customer relationship management software

and a comprehensive restructuring of the organizational chart. Previously, administrative staff

held diverse responsibilities and possessed extensive product knowledge. In the wake of these

changes, they have transitioned into specialized roles crucial for supporting all products.

To address these challenges, the leadership system must be recalibrated. Drawing

inspiration from transformational leadership, the aim is to review the changes and provide clear,

written instructions to the staff regarding their roles. Transformational leadership principles will

guide the leaders in inspiring and motivating the team through the transition, ensuring a shared

vision and commitment to success.

Simultaneously, embracing servant leadership principles becomes paramount in mending

and fortifying connections with the staff. The leadership system will prioritize supporting the

review and continual improvement, fostering ongoing development. utilizing feedback loops and regular evaluations to evolve and grow. Sustainability Maximizing current stakeholder value without sacrificing future interests, ideally enhancing future stakeholder value. We'll ensure that our decisions and actions prioritize both short- term gains and long-term benefits, aiming for sustained growth and value creation.

Part 7: System Integration

Investors hold significant sway within Alberta Blue Cross, deeply concerned about

financial growth and returns.

System Connection Input/Output Purpose and Influence Employee Performance Review Input: Individual and collective performance data Align leadership strategies with personnel performance, ensuring that leadership practices contribute effectively to the workforce's capabilities and overall organizational goals. Strategic Planning System Input: Vision, mission, and strategic objectives Shape the organization's strategic direction, ensuring that leadership practices align with overarching goals and contribute to the realization of the organizational vision and mission. Performance Measurement System Input: Quantifiable metrics for system evaluation Provide feedback on leadership efficacy, enabling continuous improvement and refinement of strategies and activities based on measurable outcomes. Organizational Learning System Input: Insights and experiences for continuous improvement Facilitate the incorporation of lessons learned from successes and challenges into leadership practices, fostering a culture of continuous improvement and adaptability.

Part 8: Design

References

Edds, D., & Edds, D. (2021, March 2). The Leadership System: Definition. Daniel Edds, MBA.

https://danieledds.com/2020/12/01/the-leadership-system-definition/

McKinsey & Company (2022, August 17). What is leadership? Retrieved from:

https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-leadership

Latham, J. (2016). Chapter 6 [Re]Design Systems. In [Re]Create the Organization You

Really

Want!: Leadership and Organization Design for Sustainable Excellence.

(Kindle).

Organization Design Studio, Ltd.

Latham, J. (2019). Setting the Example at the Top. Wisconsin, MA; Wisconsin Center for

Performance Excellence. Download at:

https://www.drjohnlatham.com/wpcontent/uploads/2020/12/Latham_Leadership_System_Prez_

90514.pdf

Sousa, M., & van Dierendonck, D. (2017). Servant leadership and the effect of the interaction

MBA 5031 Leadership System Design Instructions between humility, action, and hierarchical

power on follower engagement: JBE JBE. Journal of Business Ethics, 141(1), 13-25. doi:

http://dx.doi.org/10.1007/s10551-015-2725-y

Latham, J. R. (2016) (Re)Create the organization you really want! Leadership and organization design for sustainable excellence. Organization Design Studio Ltd. ISBN: 9780998149110 Latham, J. R. (2012). "Management System Design for Sustainable Excellence: Framework, Practices and Considerations." Quality Management Journal, 19(2) 2 Download at: http://www.drjohnlatham.com/management-system-design/ Latham, J. R. (2013a). "A Framework for Leading the Transformation to Performance Excellence Part I: CEO Perspectives on Forces, Facilitators, and Strategic Leadership Systems." Quality Management Journal, 20(2) Download at: http://drjohnlatham.com/wp-content/uploads/2013/12/2013_QMJ_P1.pdf Latham, J. R. (2013b). A framework for leading the transformation to performance excellence part II: CEO perspectives on leadership behaviors, individual leader characteristics, and organizational culture. Quality Management Journal, 20(3), 22. Download at: https://www.drjohnlatham.com/framework- leading-transformation-part-2-paper/