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THE POWER OF AUTHORITY
BRIEF SUMMARY
Today, most institutions use democratic methods such as consensus, negotiation and compromise; operates with a “soft” approach to leadership. The problem is that these methods don't work. In the book The Power of Authority, authors Scott Stawski and Jimmy Brown, Ph.D., show that the most successful companies are those that challenge groupthink and break the mold. The leaders of these companies become the epitome of empowerment-driven leadership with the goal of creating or redefining an entire industry.
The book explains the core principles and philosophy of authority-driven leadership, such as creative out-of-the-box and unwavering will to implement vision and strategy. Authority-oriented leadership manifests itself in impressive examples of legendary leaders: How strong leaders turn vision into reality. This way, leaders like you will be
they will be able to learn from the greatest thinkers of our time to shape their own unique path. The Power of Authority will break down your preconceptions about innovation and change the way you think about leading. This book is a must-read for all leaders in the age of disruption.
WHAT YOU WILL LEARN IN THIS SUMMARY
• The main idea of raising effective leaders is
• Advantages and disadvantages of conciliatory leadership,
• Three basic characteristics of Authority-Driven Leaders,
• Creating a culture based on authority
MEETING THE AUTHORITY-DRIVEN LEADER
Most consultants and business schools teach consensus building and management as the primary foundation of leadership. In fact, in many companies, the concept of reaching consensus has acquired a sacred status. But truth be told, consensual leadership is the root cause of many failed businesses. Reconciliation can be defined in several different ways. MBA texts include phrases like “a decision made as a group by the consensus of all participants rather than through the authority of one person.” In other words, consensus means that the decision is made based on the general opinion of the group.
Although consensual decision-making is very popular and tends to make people feel good; It may not be the best approach. It's rarely the right approach for senior executives, especially at a time when technology is causing real business disruption.
Much of our economy today, the digital economy, is now driven by technology. This technological innovation is causing real and long-lasting business disruption. New markets and channels are being created, entire business paradigms are being rethought; Supply and demand channels are being disrupted. So nothing is sacred.
So how can we have all these incredible technological innovations that power our world and allow us to do things that were in science fiction just a few years ago? Simply put, these game-changing companies are driven forward by Authority-Driven Leadership. These leaders don't prioritize compromise and don't care at all who agrees with them when it comes to achieving their vision.
Three Themes for Effective Leaders. . .and One More
Leading literature suggests that leadership qualities and characteristics can be grouped into three common themes regarding what it takes to be an effective leader.
The first theme is that leaders expect the best from themselves and others. If leaders want to be successful, they need everyone to do things right.
Regardless of their goals, leaders stay motivated and motivate others. This is the second common theme. Good leaders know how to get a team to do more than they think they can do.
Leaders are not afraid to announce their successes to the world
The best are even less shy about the third theme: announcing their team's achievements to the world. Empowerment-Focused Leaders understand that recognition drives results and helps teams move toward the vision set by the leader.
What's missing from the literature is the fact that no company today can afford to be run in a status quo environment. Today, we need leaders who can push organizations in directions they may not want to go, in part because they don't realize they need to go. These leaders have a vision and the organization needs to achieve that vision.
they command action in a specific way.
These visionary leaders have such a convincing belief and idea; They have a strategy or tactic that they do not take “no” for an answer. Through empowerment, they take the vision from concept to implementation. Prototype of Authority-Driven Leadership: Steve Jobs Steve Jobs' name will go down in history as one of the most compelling leaders of all time to work with.
Shortly after his death, The Atlantic's Tom McNichol referred to Steve Jobs as "a first-rate douchebag." Biographer Walter Isaacson repeatedly mentions that there was a Good Steve and a Bad Steve. The good Steve inspires those around him to achieve breakthrough innovations the world didn't realize it needed.
While Bad Steve can just as easily destroy people; It could make them hate life and run away.
Steve Jobs is a prototype of the Authority-Driven Leader, which begs the question: Could he have achieved the same thing by adopting a different leadership model? While there are undoubtedly some management gurus who would disagree, the answer is absolutely no.
Jobs' adoption of the Authority-Based Leadership model was integral to his success. As Jobs matured, this became very deliberate as he realized that Authority-Oriented Leadership was required to be “crazy enough to think they could change the world.”
“His grand ambitions rubbed off on Apple employees who believed they, too, could achieve anything,” Susan Kalla, an investment manager, wrote in Forbes. The same traits that made Steve Jobs a “world-class douchebag” were the same traits that allowed him to achieve great things. The same passion that caused him to lose his temper,
it was the obsession that drove him to doggedly push his vision forward. The same lack of self-awareness that made him think the rules didn't apply to him is what allowed him to find ways to provide for things we didn't know we needed.
The same traits that made him a tyrant to work for also made him a Power-Driven Leader. Steve Jobs was crazy enough to change the world.
For the sake of consensus, groups may sway all members toward what is acceptable to everyone rather than basic or original thought.
HISTORY AND HIDDEN DANGERS OF CONCONCILIATIVE LEADERSHIP
The principles that constitute consensus-based decision-making and consensus management can be traced back centuries. Five Native American peoples, the Cayuga, Mohawk, Oneida, Onondaga, and Seneca, formed the Haude-Nosaunee Confederacy. This confederation, which continues its activities today, is based on the principles of consensus. In Europe, many governing bodies and associations, such as municipal councils and guilds, have operated on consensus principles of governance for hundreds of years.
More recently, social and political activists have found consensus management principles essential to their work. According to the organization Seeds for Change, many current social and political movements believe that the methods of achieving change must match their vision and goals of a free, non-violent, egalitarian society.
The principles of consensus management first entered the business world through the cooperative movement. The cooperative movement began in England and France in the 19th century. The industrial revolution is transforming society; The workplace was becoming increasingly mechanized, threatening the livelihoods of a large portion of the worker base.
This gave rise to many labor and social movements, including the cooperative movement. The cooperative movement allowed workers to unite around a common economic goal, with leadership as well as equal sharing of the cooperative's economic output.
The idea of consensus building, involving or connecting all stakeholders in the decision process, has become popular. This has evolved from the recognition that people who give their voluntary consent are more likely to stand behind the decision and be accountable and take responsibility for its implementation.
Thus, by the mid-to-late 20th century, consensual decision-making was the norm de rigueur in business schools and corporate management.
Disadvantage of Compromise
Although compromise management can contribute to everyone's positive emotions, as is often the case, it is damaging and counterproductive when applied incorrectly. Often consensus is misinterpreted to mean or portray unanimity in the context of decision-making.
The misinterpretation of consensus as unanimity is being imposed on other members who may have valid questions or doubts; People are forced to consent because of the group's desire to reach a unanimous and strong decision. Group members may decide not to take any action unless there is unanimous agreement and each member of the group consents.
Another trap occurs when there are naysayers; however, these individuals are ignored to ensure that a unanimous agreement is reached. Therefore, the opinion of the minority is neither heard nor discussed.
In fact, most organizations today reward likeability. This trait can be encompassed in the terms collaboration, consensus building, and team orientation; but at the end of the day, many organizations reward people whose thoughts and actions do not conflict with the mainstream.
Additionally, for the sake of consensus, groups may sway all members toward what is acceptable to all rather than basic or original thought. This leads to a sparseness of ideas that would have had their own merits and benefits had they been pursued. The ideas in question are ignored or softened in order to comply with the majority and build consensus when making decisions.
Hewlett Packard is a classic example of how radical industry changes combined with a culture of compromise can lead to disastrous results. Bill Hewlett and Dave Packard established a set of business principles summarized in "The HP Way." These principles helped establish a legacy of consensus management within the company that is often referred to as the ideal state.
In the early years, Hewlett Packard's engineering acumen enabled the company to grow and prosper. Unfortunately, its well-established culture of consensus management proved disastrous for the company in the age of digital disruption. The lack of directional leadership required in these times resulted in a series of unsuccessful strategies and acquisitions, including Compaq, EDS, and Autonomy. The once largest technology company was finally liquidated.
As a result, consensual leadership is about involving and connecting everyone, where the process is seen as more important than the outcome; It is a management approach in which creating an atmosphere of participation and consensus is seen as more important than the goal of change.
DEFINITION OF AUTHORITY-DRIVEN LEADERSHIP
How to define an Authority-Driven Leader and, more importantly, how can each of us become this type of leader? How does the Authority Driven Leader model differ from transformational, transactional, servant, authentic, or other leadership approaches featured in everything from blogs to academic peer-reviewed journal articles?
Successful Authority-Driven Leaders have a vision; They focus on an outcome and do not give up until it is achieved.
A clear vision of the future. Authority-Driven Leaders do not settle for what they have. In essence, the Authority-Driven Leader understands that survival begins with a vision of a better future. For a leader, the future vision can be a new product. It could be a better business process. It can also be a completely new business paradigm for an industry.
In a presentation he gave in 1999, when Amazon was four years old, Jeff Bezos was asked about Amazon's vision. “Customers are the ones who help customers make purchasing decisions. This is what we call community…businesses cannot create community. “The only thing businesses can do is help build community.” Bezos'
His vision wasn't to create the largest online bookstore or retailer. It was creating a community marketplace powered entirely by the community members themselves, their reviews, rankings, search results, and in many ways, product mix and prices. Bezos still weaves that vision into everything Amazon does.
Focus on the outcome rather than the process. Once the vision of the end state is established, the Authority-Driven Leader moves toward the outcome. Burnout from the process is thus actively prevented. For an authority-driven leader, the expected outcomes from the team, the organization, and sometimes society; Make sure everyone on the team agrees on the strategy at hand.
priority over ensuring it arrives. Authority-Driven Leaders question and discuss the many details necessary to make the vision a reality.
There is no problem with individuals. They even demand such people. But this is different from questioning or blocking the vision.
Jack Welch, a consummate Authority-Driven Leader, was CEO of General Electric from 1981 to 2001. He quickly acquired the nickname "Neutron Jack". It earned this nickname because GE withdraws from any business in which it is not a market share leader and lays off employees in the bottom 10 percent during each review period.
Various strategies he implemented, such as removing
In a short period of time, Welch laid off more than 100,000 employees and exited businesses worth billions in revenue. As a result, he turned the then-in-crisis company into a global powerhouse, generating record revenues and profits while increasing the company's market value by more than $300 billion.
Relentless focus and determination to achieve the end state. Authority Driven Leaders do not take “no” for an answer. They don't accept excuses. They hold individuals accountable. Finally, they do not stop progressing relentlessly until they reach the final state. Some people believe that Authority Driven Leaders and their relentless focus and determination; narcissist,
It is not uncommon to confuse them with bad team builders and pure mean-spirited leaders.
But business leaders who are tyrants and dictators are not leaders who direct for the good of all; They are in this for their own selfish interest. Such leaders may claim to be defenders of the people; Some even start this way and quickly enrich themselves. One of the clearest examples of this is the Enron scandal. Ken
Lay and Jeff Skilling are reported to be very difficult and demanding; but their orders were of no use to anyone but themselves. And finally they were tried.
Authority-Driven Leaders, on the other hand, add value to those around them and the world in general. Whether that's easy to work with or challenging; It makes people want to be around them and work with them.
Aside from the three main themes, Authority-Driven Leaders, unlike other leaders, are surprised when others do not see the value in their vision; are determined to achieve that vision: do not accept failure in themselves or others, think they are in control; They put customers/stakeholders first and employees second and do not allow anyone to be selfish.
EFFECTIVE LEADERSHIP STYLES AND THE AUTHORITY-DRIVEN LEADER
Well, Empowerment Based Leadership, Dr. How does it fit into the servant and transformational leadership approach used by someone like Martin Luther King? How can it be integrated into a directive leader like Jack Welch?
Microsoft founder Bill Gates was definitely an Authority-driven leader. At its birth, Microsoft was focused on transforming how society could use technology, particularly the desktop computer, thereby transforming the world and making it better. This isn't just Bill Gates' vision; at the same time
It was his duty. And in those early days, Gates was determined to carry this vision forward. As time passed, Gates was able to allow Microsoft to operate without him.
should look at the culture in their institutions.
Unlike a culture based on quick decision-making and financial performance, HP; engineering had a culture based on process and compromise. When HP entered the software and technology services business, where rapid innovation and decision-making and financial performance are key, the result is; There was declining market share, failed acquisitions and poor financial performance. Culture ate strategy.
Field of Dreams Fallacy
So why is this important for an Authority-driven leader? Authority Driven Leaders know they want to avoid the Field of Dreams fallacy. This is a false belief that “if you create something of value, people will naturally gravitate towards it.”
Authority-Driven Leaders know that you can't just throw out an idea and expect people to embrace it. No leader can disrupt the market alone. You need to create a compelling vision and environment for people to follow you.
Additionally, given that Authority-Driven Leaders do not control processes down to the smallest detail; They must create a culture where everyone buys into the mission and motivates others to do the same. All members of the organization must understand that they have only two options: get in the boat and row or go out.
go out and swim to another shore. So how do you create such a culture? How do you guide everyone to strive?
Authority Driven Leaders understand and accept that some people in that organization will not like the change and may need to leave.
Of course, this means “Ask the team what they think,” “Get everyone involved,” etc. It is very different from the consensual approaches that are often encouraged, such as. Authority Driven Leaders know they are working against the clock. Additionally, although no culture changes overnight, if you are going to change the culture, you must change your behavior. Even though you want to change behavior; You should start by changing management systems, including processes, metrics, and accountability.
One of the most important things Authority-Driven Leaders do is develop a culture that challenges and prevents groupthink. Some people confuse this with group unity, but they are actually very different from each other. The difference is that in groupthink, maintaining group cohesion becomes more important than making good decisions. The fact that the term originally comes from George Orwell's novel 1984 is a pretty good indicator that it's something to avoid. Authority Driven Leaders understand and accept that some people in that organization will not like the change and may need to leave.
So what kind of culture should Authority-Driven Leaders create? It depends on what kind of culture they want to create. The culture at Facebook is very different from the culture at Netflix or Amazon. It would not be wrong to say that the culture at Apple is nothing like the culture at Airbnb.
If there's one thing all Authority-Driven Leaders know, it's: You either manage the culture, or the culture manages you. All these cultures must be compatible with the strategy that the organization wants to realize and the vision that the leader demands to be realized. This may be a culture of pure innovation; culture of quick adaptation or culture of competition it could be.
Airbnb CEO, Brain Chesky
A model of a 19th-century sailing yacht sits on a coffee table in the president's office at the headquarters of online home-sharing platform Airbnb. The model may be the key to the president's office and the backbone of the Chesky operation; because the sailing ship serves as a metaphor for Chesky's leadership style.
“If you think about it, Airbnb is like a giant ship,” Chesky told Fortune magazine. "And as the CEO, I'm the captain of this ship. But I actually have two jobs: My first job is to worry about anything below the waterline, anything that could sink the ship. Apart from that, I have two or three areas that I'm extremely passionate about, the things that are below the waterline.
but I need to focus on what I focus on because I can add unique value; I'm really passionate about these. “If they go well, they can really transform the company.”
These three areas of focus above the waterline for Chesky are product, brand and culture, which are very important components outside of the technical aspects of an internet operation. Chesky demonstrates his Authority Driven Leadership style in these three areas.
Chesky understands that his role as the ship's captain is to determine the destination and course and move the ship toward that destination. Captains do not sail by unanimous consent. As captain, Chesky understands that leading an organization to achieve a vision requires directive management.
AUTHORITY-DRIVEN LEADERSHIP AND DIGITAL ECONOMY
Disruption is everywhere, powered by digital technology and the digital economy. It impacts every industry, every geography, and every business. Heather Simmons, former VP of marketing at Dell, once said: "There's no use in knowing an asteroid is going to hit the earth unless you're planning to launch a missile to destroy it. You have to work overtime to have the belief that innovation or major change will happen."
For today's leaders, this consideration is critical because business disruption will continue. Although Uber is still less than a decade old, it has arguably disrupted the taxi rental business in less than five years from its inception. Even though Airbnb is now the largest accommodation company in the world, it doesn't own a single hotel.
Instacart hit $1 billion in value in 795 days. While it took just 396 days for Facebook to reach a value of $1 billion, it is now worth $513 billion.
Today, a startup has access to world-class technology providers that only the largest US businesses had access to just a few years ago. Cloud-based computing and software as a service; Now, entrepreneurs and established businesses can use technology without large up-front hardware or licensing fees.
It allows them to use it on a consumption basis. This allows a startup to compete against any well-established company anywhere in the world if its leaders have the right vision. Technology and infrastructure are no longer an obstacle to change; It is a factor that accelerates change.
Authority-Driven Leader: Elon Musk
Although he can be classified as an “Authority-Driven Leader,” Tesla co-founder and CEO Elon Musk has also received his share of negative press. Musk told many listeners; He said friends, family and business partners tried to talk him out of both Tesla and SpaceX. He told USA Today that launching SpaceX and Tesla are probably "the stupidest thing you could do" for a startup.
But Musk proved his naysayers wrong by starting a revolution in the auto industry. Electric car sales are growing at more than 50 percent annually and will rise from 3 million units in 2017 to more than 125 million units in 2030. Now every car manufacturer is trying to catch up. When Elon Musk was asked why he started Tesla and SpaceX if they were truly “the stupidest thing to do,” he replied, in typical entitlement-driven leader fashion, that he “believes in the ability of companies to make the world better.”
The upheaval of yesterday and even today is just the beginning. We are on the cusp of an even greater cycle of upheaval. We will see tremendous shifts in value and supply chains in healthcare, manufacturing, insurance, finance and consumer packaged goods, faster than many companies realize.
Established companies need transformational leaders with a future company vision to ensure they thrive rather than simply try to survive in the age of digital disruption. Transformational leaders, through directive leadership, will enable established companies to become game changers, not disruptors.
ABOUT THE AUTHOR
Scott Stawski is the Global Director of Revenue for Applications and Business Process Services at DXC Technology. A trusted advisor to CEOs, CFOs and CIOs across America, Scott is a recognized expert on digital, analytics and data management, technology strategy, outsourcing and next-generation application transformation to the cloud. Jimmy Brown, Ph.D., is a senior consulting executive with over 20 years of experience providing practical strategies for improving business performance. Most recently he has been focusing on leadership development, strategic planning and change management.