Leadership in The 21st Century

Leadership in 21st Century Organizations
Getting Oriented and Assessing Your Team

+
Communication in an Age of Radical Transparency
Robert D. Austin (CBS)

Shannon Hessel (CBS)
Richard L. Nolan (Harvard)
13/09/15
Copyright 2015 Robert D. Austin.
Updates
MOOC not quite ready, probably sometime next week

You can pre-enroll nowwell send you and email about how to
do that
Copyright 2015 Robert D. Austin
Advice
Please realize that a lot of the materials for this course are on the
web, and not handled redundantly in class
Means you should be folloing along on the web every week
Some videos (such as the Dan Geer lecture) are reasonably long
(45 minutes)
Theres quite a lot of the course on the web, and if you dont keep
up, you might find that youve drifted far behind
Reminder about dramatized scenes

As you will begin to notice, the same actors play multiple roles in
different scenes.
So, for example, Linda Kohler is played, in the scene you will watch
in a moment, by the same actress who played Susan Akita in an
earlier scene. And Robert Zealand, external counsel for SMA, will
soon appear played by the same character who plays Krish,
Bartons executive assistant.
Generally the different characters will be dressed differently and will
provide other differentiating cues, but be sure to check who the
characters in a scene are, or you could become confused
Barton and Kohler
Barton gets a lecture from his PR and Communications Director,

Linda Kohler, who thinks he screwed up when he made contact with
Veronica Perez before he started at SMA. Kohler recommends a
strategy for dealing with Perez, and Barton is not so sure about it
Group Discussion
What do you think of Kohler? Is she a keeper?

What do you think of her advice?
Barton Meets Perez at a Charity Gala
Barton encounters Veronica Perez at a charity fund raising gala

event and ends up facing a wider range of options about how to
engage with Ms. Perez than he anticipated
10
11
Group Discussion
What would be your recommendations to Barton

concerning how to manage Ms. Perez?
How should Jim Barton and SMA manage their external
communications in this age of social media and radical
transparency?
12
13
Next Week
Leading Collaboration
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Motivating and Inspiring
14
13/09/15
15
LIVING AND LEADING IN AN ERA

OF

SUPER-TRANSPARENCY
Robert D. Austin

Copenhagen Business School

MARTHA PAYNE, AGE 9

Screen name VEG (Veritas Ex Gustu -- truth from tasting)

NEVERSECONDS

With help from her dad, VEG launches a blog about school
lunches in Western Scotland, April 30, 2012

WHAT HAPPENED HERE?

What did the Argyll and Bute Council fail to

understand when they ordered Martha to stop
blogging about her school lunches?

ra.mpp@cbs.dk

twitter.com/morl8tr


OF

SUPER-TRANSPARENCY
Robert D. Austin


From Data Desert

(with maybe a few puddles)

To Data Flood
Well behaved, controllable flows

Can assume stable boundaries

Easy to construct boundaries

Unpredictable, uncontrollable flows

Overflowing of boundaries

Pressure builds behind constructed levies

Growing threat of more overflow

WHO KNOWS YOUAND

WHAT DO THEY KNOW?

You personally, and your organisation

Who knows more about you (or about certain

things about you) than you do?

What can people learn about you by putting 2 &

2 together?

Changed and changingpermeability of

information barriers information also is
more often leaking past natural barriers
people are accustomed to relying on

Just ask the Argyll and Bute Town Council, the Austin, Texas
police, or Union Street Guest House

The Puddle Fallacy

What happens in

Vegas doesnt stay

in Vegas anymore

Changed and changingpermeability of

information barriers its getting harder
to contain informationit more often
leaks past intentional barriers

Huge investments in firewalls and digital defenses often thwarted
by tiny storage devices, mobile phone cameras, social engineering

Social Engineering

ra.mpp@cbs.dk

twitter.com/morl8tr


OF

SUPER-TRANSPARENCY
Robert D. Austin


Hacktivists - Anonymous

Someone who might know more about your situation than you do

In the next few days, the story makes international headlines;

Facebook page memorial and fathers blog posts go viral

Amid the outpouring of sympathy and dismay are many calls
to Anonymous (especially via Twitter) to take up the cause

At 9:09 PM on April 10, a Twitter response

April 11, 2013

RCMP officials state that the important new information

did not come from an online source.

August 9, 2013

IT SECURITY EXPERTS

A leading provider of innovative technologies and solutions for mission-critical national security
programs for the intelligence community; the Departments of Defense, State, Homeland Security, Energy
and Justice, including the Federal Bureau of Investigation (FBI); the health and space communities; and
other U.S. federal government customers (https://hbgary.com/about_hbgary)
Aaron Barr, CEO HBGary Federal

Clients include US Dept of Defense, Intelligence Services

Pressure building on the levies

YOUR DIGITAL EXHAUST

Your digital exhaust (and that of your company?) is

unique and constantly updated. You may not be fully
aware of it, but it identifies you. Unambiguously.

You cant opt out.

Your face is tagged already, on someones FB page

facial recognition is good at 500 meters

Changed and changinginformation

permanenceits getting harder to
get information to go away

The Streisand Effect: When an attempt to censor information
produces a backlash that instead makes it more available.

YOU CANT TURN IT OFF

BUSINESS IMPLICATIONS?

See through companies? Naked supply chains (who made

it and how?)? How do you manage your companys image?

Can you afford to rely on business strategies that depend

on keeping secrets?

Things that used to work but wont in a super transparent

world (e.g., some sales discounts)

ra.mpp@cbs.dk

twitter.com/morl8tr

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Motivating, Inspiring and Other Ways

that leaders get people moving in a particular direction
Part 1: Introduction
Robert D. Austin
11/09/14
The Problem of Management Control

A Classic Theoretical Formulation
The owner of means of production (land, factories, equipment, or
money that can be used to acquire these) wants to create more
value but needs other people to help
But these other people have their own objectives
The Problem: Convince others to set aside their own objectives and
commit their efforts to meeting the owners objectives
The Notion of Exchange

The owner can offer to share the value created with the others, in
exchange for efforts they contribute on her/his behalf
Chester Barnard, The Functions of the Executive, 1938
Inducements and contributions framework
Inducements (value shared) to each employee must exceed what
the employee is asked to contribute or else cooperation will cease
An exchange: the owner provides the means of production,

workers provides effort, and the value created is shared
Worker gets, for example, a paycheck in exchange for her/his work
The Notion of a Contract
An agreement, perhaps informal, into which the people working

together enter
It specifies what each party will do, and how value will be shared
An organization, in this way of thinking, is a collection of

individuals bound together by a network of contracts
Through design of contracts, common objectives come to be
shared by group members
Verifying Performance
There is a need to assure that people comply with the terms of

the contract how?
In this way of thinking, leaders assure compliance by gathering
information about the activities of the people doing the work
But theres a difficulty: the leader cannot observe in detail the
efforts of every other person (its not practical)
So the leader must rely on summary information, which is not as
good as what the people doing the work know
Economists call this an informational asymmetry
The Incentives Approach

Since the leader cannot observe very person, he/she instead
builds into the contract a way of linking performance information
with rewards to the employee, so that the overall arrangement
will produce more valuable results
That is, the leader provides people with incentives
We see this approach applied just about everywhere in practice
Sales commission systems, management bonuses, etc.
Job design becomes a matter of designing incentives

The incentives approach has been a mainstay of 20th century
management
BIG QUESTIONS
How effective is the incentives approach?

Are there problems with this approach?
Are there alternatives?
Watch the short scene from Glengarry Glen Ross to see an extreme
version of the incentives approarch
11/09/14

Part 2: The Economists Approach
Robert D. Austin
11/09/14
The Employment Contract

The employment contract is a special kind of contract
The worker agrees not to specific terms but to act in a general way
on the owners behalf within her/his zone of indifference (Barnard,
1938) or zone of acceptance (March and Simon, 1958)
The worker is expected to exercise discretion and acquire and use
job-specific knowledge, not just do exactly what a contract says
But this also creates a possibility of opportunistic, self-serving

behavior by the workerthe worker might secretly act in ways
inconsistent with the leaders objectives, to forward her/his own
objectivesand the leader might not find out!
Principal-Agent Theory
The Economists Formulation
Vastly simplified, highly stylized, very mathematical; the organization
modeled as consisting of only two roles
Principal = owner, supervisor/manager, or leader
Agent = worker/employee, follower
The agent expends effort toward fulfillment of the principals
objective(s) in exchange for rewards (typically money)
The motivations of the Principal and Agent are very simple

Principal Maximize valuable output while paying as little as possible
Agent Get paid as much as possible while expending as little effort
as possible
A contract, that includes performance based pay, aligns incentives,
giving the worker a reason to work hard (or at least harder)
Principal-Agent Theory
Conclusions
Recommended payment schedule calls for payments to agent
that increase as a measure of performance measure does
Pay
`performance measure
This provides a theoretical justification for what is often called
pay for performanceor merit pay
This justification has had a major impact on practicepay for
performance and merit pay systems are widely used
But this hasnt always worked as

advertised
Sociologist Peter Blau (1955) in a study of public bureaucracy (an
employment office)
Except for the information provided by direct observation, the number
of interviews complete by the subordinate was the only evidence the
supervisor had for evaluating him. The interviewers interest in a good
rating demanded that he maximize the number of interviews and
therefore prohibited spending much time locating jobs for clients. This
rudimentary statistical record interfered with the agencys objective of
finding jobs for clients in a period of job scarcity.
Fixing Incentivesor maybe not

Office managers fixed the system by replacing interview counts
with eight separate indicators, such as percentage of interviews
that result in job placements
The result:
[Employees] engaged in outright falsificationby destroying at
the end of the day those interviewing slips that indicated that no
referrals to jobs had taken place.
Further enhancement of the system (adding more indicators)

made it harder to decide what performance meant and led to
even more subtle dysfunctional behaviors
People frequently game or outsmart incentive systems
Perverse Incentives Across the Years

Clearance rates in police departments in the 1960sagents
worked easy-to-solve cases first, or waited to post crimes until they
are solved already (Skolnick, 1966)
The 2008 financial crisis (New York Times, Sep 18, 2014)
The computer is supposed to monitor the temperature of the party and drain the
punch bowl as things get hot. And just as drunken revelers may want to put the
thermostat in the freezer, Wall Street executives had lots of incentives to make sure
their risk systems didnt see much risk. There was a willful designing of the systems
to measure the risks in a certain
Research on Problems with Incentives

Ridgway (1956, in Administrative Science Quarterly):
quantitative performance measurementshave undesirable
consequences for overall organizational performance
Steven Kerr (1975): On the Folly of Rewarding A, While Hoping
for B Academy of Management Executive
Measured performance
Actual performance
time
Economists efforts to adjust PA theory address

this problem: Holmstrm and Milgrom
Primary change: Agent allocates effort to multiple tasks, not just
oneand performance in some of these is not measurable
The value of the agents work is determined not only by amount of
effort but also how he/she allocates it across multiple tasks
If no effort is allocated to some tasks, no value can result (e.g., in
Blaus employment office, if agents dont spend any effort looking
for jobs for clients, no jobs will result, no matter how much effort is
applied to other tasks)
Such a task might also be unmeasureable
Also, adjust the motivation assumption for the agent: He/she is not
completely lazy, will do some work
Holmstrm and Milgrom Fix

Conclusions
As long as the agent finds it pleasurable to expend some effort that
provides value to the principal, the principal is better off offering
the agent a salary that does not depend on measured performance
When a critical dimension of performance cannot be measured,
an incentives approach can result in no value produced
PAY FOR PERFORMANCE IS NO LONGER RECOMMENDED!
But this fix has had little impact on leadership practice:
Pay for performance is still widely used, though its theoretical
basis has arguably been undermined in many situations
Balanced Scorecards (Kaplan and Norton, 1992) and their like are
everywhere
10
Big Questions
So where does this leave us in thinking about 21st century

leadership?
If 20th century leadership was often about design of incentives,
what will replace this in the 21st century?
What are the alternatives?
Watch the short St. Crispins Day Speech video
11/09/14
11

Part 3: Other ways to motivate
Robert D. Austin
11/09/14
Revisiting Motivational Alternatives

Barnard (1938), a practicing executive:
The unaided power of material incentivesis exceedingly limited.
Other important motives: Feelings of fulfillment for a job well done,

gratification from sharing in an organizations success
Arguably, this is where the real essence of leadership kicks in!
11/09/14
A Broader Approach to Motivating Others

Simon (1991): People identify with the organizations where they
work as they do with their families or a favorite sports team,
experiencing feelings of exhilaration and dismay as the fortunes
of the group rise and fall
Dawes (1991) conducted experiments that put people in
situations that place individual and group interests in conflict; he
found that the most thinly constructed forms of group identify can
cause people to forego individual self-interest
11/09/14
Ouchi: Theory Z
Ouchi proposed clan mechanisms (1979) for influencing people
toward objectives in conditions of low measurability of
performance and imperfect understanding of processes
The problem of organization is the problem of obtaining
cooperation among a collection of individuals with only partially
congruent objectives. When a team of individuals collectively
produces a single output, there develops the problem of how to
distribute the rewards
Markets precise measure and reward for individual contributions
Bureaucracies close evaluation and socialized acceptance of
common objectives, despite goal incongruence
Clans leadership and socialization eliminate goal incongruence
all take up the common cause
Ouchis Framework
Social and Informational Prerequisites of Control

Type of Control
Social Requirements
Informational Requirements
Market
Norm of Reciprocity
Prices
Bureaucracy
Norm of Reciprocity
Legitimate Authority
Rules
Clan
Norm of Reciprocity
Legitmate Authority
Shared Values, Beliefs
Traditions
Adapted from Ouchi, 1979
Inspiration
It is evident that people can be inspired to put their own interests
aside in quite extreme conditions
See St. Crispins Day speech in Shakespeares Henry V; although
fictional, the events were realsoldiers inspired to go into battle
where many would be killed, even though they did not really
believe in the cause
How does this work?

Can it work in an ongoing manner, or does it work only
occasionally, in extreme circumstances?
Crowding Out
Lepper and Greene, 1978; Deci and Ryan, 1985
Extrinsic reward systems might actually harm intrinsic motivations
Two effects:
Cognitive dissonance You are offering me a reward for
something I believe Im doing out of my own goodness insulting
Locus of control When I am intrinsically motivated, I am directing
my efforts, but when you impose an extrinsic reward system, the
locus of control has moved outside me the system is directing
Frey (e.g., 1996) has done extensive research suggesting that

people are most likely to be willing to cite NIMBY projects in their
neighborhoods when they are not paid compensation
Amabiles hydraulic principle: People become less creative
when working under extrinsic reward systems
Barnard as a Source of Practical

Leadership Inspiration
Leavitt and March (1990) summarized Barnards proposed practical
approach for executive leaders this way:
Barnard proposed that an executive create and sustain a culture of
beliefs and values that would support cooperation. The appeal is not to
exchanges, Pareto optimality, or search for incentive schemes; it is to
the construction of a moral order in which individual participants act in
the name of the institution not because it is in their self-interest to
do so, but because they identify with the institution and are prepared to
sacrifice some aspect of themselves for it.
Simply stated
Its said that US President John F. Kennedy, when he visited NASA

during the Apollo space program, arrived late in the day to find only
a janitor mopping the floors still at work. When Kennedy, chatting
casually, asked him what he was working on, the janitor is reported
to have responded: Were working on putting a man on the moon,
Mr. President.

Leading Change
Effective Governance

01/10/15
Announcements
MOOC is live! Please

enroll if you havent
Anka Wittenberg, SAP,
next week
Be alert for possible
room changes
Group Work How is Barton doing

leading changeKanters Framework
1. Show up
2. Speak up (name the problem, give people ideas for action)
3. Look up (at some higher principle or visionelevate peoples
eyes)
4. Team up (establishing links with partners who believe)
5. Never give up (Kanters Law everything can look like failure in
the middle)
6. Lift others up (share success and credit)
Give him a grade on each!12, 10, 7, 4, 2, 0, -3


leading changeKotters Framework
1.
2.
3.
4.
5.
6.
7.
8.
Establish a sense of urgency

Create the guiding coalition
Develop a change vision
Communicate the vision for buy-in
Empower broad-based action
Generate short-term wins
Never let up
Incorporate changes into the culture
Give him a grade!12, 10, 7, 4, 2, 0, -3

Episode 16Barton and Akita discuss

some problems in engineering
Episode 15Barton tries again to forge

an alliance with Ace

leading change?Kanters Framework
1. Show up
2. Speak up (name the problem, give people ideas for action)
3. Look up (at some higher principle or visionelevate peoples
eyes)
4. Team up (establishing links with partners who believe)
5. Never give up (Kanters Law everything can look like failure in
the middle)
6. Lift others up (share success and credit)
Give him a grade on each12, 10, 7, 4, 2, 0, -3


leading change?Kotters Framework
1.
2.
3.
4.
5.
6.
7.
8.
Establish a sense of urgency

Create the guiding coalition
Develop a change vision
Communicate the vision for buy-in
Empower broad-based action
Generate short-term wins
Never let up
Incorporate changes into the culture
Give him a grade12, 10, 7, 4, 2, 0, -3

Episode 9: Bartons 1st meeting with the

board of directors since becoming CEO
10
Small Group Work

Work in groups of 3 to 5 people. Discuss the following
questions. Appoint someone to report out from your group.
1.What is your assessment of how this meeting went? How well is
this board functioning? Does this board have what it takes to
oversee SMAs planned transformation?
2.What do you think of the recommendation to liquidate the
company that some members advocate? What is the argument in
favor of that?
3.What actions would you recommend to Barton to improve SMAs
governance situation?
11
12
Episode 10: Perez offers an ideaand help
13
Episode 12: Reconfiguring the Board
14
Episode 13: Reconfig Difficulties
15
Episode 14: Reconfiguration Achieved
16
17
Week 41
Module 11. Innovation
Module 12. Execution
Shannon Hessel
she.mpp@cbs.dk
10/9/15
Copyright 2015 Shannon Hessel
Module 10. Leading in Crisis (recap)
Episodes 19-23 Recap

Bartons plan for transformation was not approved by the board;
short one vote
Goldman, Bartons mentor, voted against his plan
Rumors flying news story
Customers cancelling orders
Investors withdrawing funds
Barton contemplates resignation
10/9/15
What should Barton do? Recommendations from literature, e.g.:

- Expect constant pressure and learn to thrive in it
- Stay focused on the larger purpose; stray true
- Anticipate the worst and get out in front of it
- Face reality head-on, discuss openly
- Dont go into hiding; gather your team
- Make sacrifices that cost you
- Use the crisis to make big change
10/9/15
What should Barton do?

Resign? Maybe funding will come back
Revise the plan; compromise?
Develop a new strategy?
Convince one member of the board to change his/her vote?
Engage his leadership team to solve with him?
Other?
What do you recommend???
10/9/15
Ends up being saved by friends, Jenkins, Landis and Jackson.

Reaches an agreement with Jackson and the unions. Agrees to give
up his golden parachute and take a 30% pay cut, to have skin in
the game. Jackson and Barton prepare to talk to investors together.
10/9/15
Module 11. Leading Innovation
How can a leader encourage innovation?

When should innovation come from within a company, and when
should innovation emerge from co-creation with external partners?
10/9/15
Leading Innovation
Group discussion: How can a leader encourage innovation?

Sources:
Module on collaboration (IDEO, Live Music, great groups)
Module on Managing Talent (diversity, inclusion, motivations)
Todays videos/readings, including Moonshine shop
Your knowledge from other courses/experiences
10/9/15
Collaborating with Clients for Innovation
To what degree do we wish to invite our client, customer or end-user

into our innovation process?
When is one approach is more appropriate than another?
10/9/15
Leading Innovation at SMA
CEO Jim Barton meets with SMA head of engineering Susan Akita
to discuss progress on the design of the new cargo plane. She
presents a dilemma her design team faces in choosing between
designs that emerged from two different approaches to customer
involvement: user-driven and design-driven (RT: 10:39)
As you watch, consider the benefits of each approach.
10/9/15
Group Discussion
Discuss with your group (10 min):

Which approach should Akita choose?
What are the strategic implications of her choice?
Should Barton leave this decision to Akita?
10/9/15
10
Collaborating with Clients for Innovation
Source: INSERT
10/9/15
11
Design-Driven Innovation
Shift in an objects or services meaning; dramatic break
from previous products; game-changing
Can we give customers a new reason for buying?
Can we use this new technology to create more
meaningful products/services/experiences?
Anticipate socio-cultural developments; point to a new
way of living
Customer cant anticipate/ask for
Design/-er is king
Outcomes tend to have longer commercial lives and
enjoy high margins
10/9/15
Alessi: Kitchen tools

become objects of
affection
12
Motivations for Involving Client

When important expertise lies with the user or client
When client involvement is critical to success (e.g., implementation of
new innovation platform, strategy, service or organizational process)
When there is demand: the client is willing to purchase (at a higher
cost) the experience or opportunity to co-create
When clients have the time, motivation, knowledge or expertise to
collaborate fully (Hussain, 2010)
When there exists a large gap in world view between designers/
engineers and users (Ibid)
Hussain, Sofia. (2010). Empowering marginalised children in developing countries through participatory design processes.
CoDesign: International Journal of CoCreation in Design and the Arts, 6:2, 99-117.
10/9/15
13
Benefits of collaborating with clients/

users
Access the situated expertise of the people whose work is to be
impacted by the innovation (Sanders and Stappers, 2008)
Provide clients with resources and processes to act in their
current situation (Ibid)
Achieve client buy-in and investment
Reduce the risk of acceptance
Increase likelihood of organizational change/transformation
Sanders, E. B.-N. & Stappers, P. J. (2008). Co-creation and the new landscapes of design. CoDesign 4(1): 5-18.
10/9/15
14
Reflection
Should Barton leave this decision to Akita?
10/9/15
15
Module 12. Leading Execution
Episode 25.
As you watch, consider:
Whats at stake? How bad is this problem?
How should Barton/SMA approach its manufacturing partners
about this issue? Who should be responsible?
What should Bartons strategy be in relation to investors and
other external stakeholders? How can he manage this set-back?
10/9/15
16
Group Work
As Barton, formulate your strategy for how to address this execution
problem (which potentially puts the whole transformation at stake).
Consider what your to-do list should be in regards to the following:
1. What should be my strategy in relation to investors?
2. What should be my strategy in relation to customers?
3. How should I approach our manufacturing partners? Who takes
responsibility?
4. Which other key stakeholders or groups should I worry about?
Press? Board? SM Engineers?
5. Is the strategy flawed? Should I revisit it?
10/9/15
17
Next session, Week 43 (23 Oct)
We will focus discussion on Module 13, Public Life/Private Life and

watch Episodes 27-31 in class (all short)
Guest speaker: Professor Lynn Roseberry, CBS, expert on legal,
political and sociological theories about the significance of race and
gender in orgs, and on business ethics.
Will also touch on topic of Culture from Module 14 see series of
videos on Culture by Prof. Richard Nolan, in advance.
10/9/15
18
Week 43
Module 13. Public Life, Private Life (in class)
Module 14. Culture (online lectures & vids)
Shannon Hessel
she.mpp@cbs.dk
10/23/15
Todays Guest Expert
Lynn Roseberry, PhD

Equal Opportunities Officer & Associate Prof, CBS
Former Head of Department of Law at CBS
Former Trial Lawyer, USA
Master of Laws degree, Harvard Law School
Areas of expertise include:

Labor law: Danish, EU and American
Comparative labor law
Human rights
Legal theory
Discrimination law
10/23/15
Plan
Disclosure vs. privacy in the case of Steve Jobs

Break
Public vs. private life in the case of Jim Barton
Videos & discussion
10/23/15
Disclosure vs. Privacy: Case of Steve Jobs

o October 2003: Jobs diagnosed with pancreatic cancer; board notified,
no public announcement made
o August 2004: Jobs sends email to employees: "This weekend I
underwent a successful surgery to remove a cancerous tumor from
my pancreas I will be recuperating during August, and expect to
return to work in September.
o August 2006: Jobs appears gaunt; rumors run
o June 2008: Jobs appears emaciated; investors worry. Apple reps
report as a common bug; exec says: "Steve's health is a private
matter.
10/23/15
Disclosure vs. Privacy: Case of Steve Jobs

o Jan 2009: Jobs absent for Macworld Keynote, calls it a hormone
imbalance; takes medical leave of absence
o June 2009: Reported that Jobs had liver transplant; he returns to work
o January 2011: takes a medical leave of absence to focus on his
health; says to employees: "my family and I would deeply appreciate
respect for our privacy.; also states "I will continue as CEO and be
involved in major strategic decisions for the company.
o August 2011: Jobs steps down as CEO, can no longer meet my
duties and expectations as Apple's CEO
o October 5, 2011: Jobs passes away
10/23/15
Group Discussion
Should Jobs have disclosed
details about his illness, or did
he have a right to privacy?
What information does a
company's CEO owe
stockholders about his or her
health?
10/23/15
US Securities and Exchange Commission
while there is no SEC rule requiring disclosure of a CEOs health

status, the agency does require disclosure when a CEO is unable to
perform his or her responsibilities for a significant period of time, or,
on a quarterly basis, when a company becomes aware of a risk that
could materially affect operating results
10/23/15
Additional sources on Jobs
http://articles.chicagotribune.com/2011-10-27/opinion/ctperspec-1027-ceo-20111027_1_apple-shareholders-appleboard-apple-stock
http://abcnews.go.com/Health/CancerPreventionAndTreatment/
steve-jobs-pancreatic-cancer-timeline/story?id=14681812
10/23/15
Break
10/23/15
Videos
View episodes 27-28-29
10/23/15
10
Group Discussion
Did Barton screw up? If so, where was his mistake?

What do you believe have been Perezs motivations for
engaging in this affair? Is she telling the truth now, or how do
you understand her attack on Barton now?
Is a private life a luxury? Should Barton, and other leaders in a
position to impact the lives of many, live by other rules?
10/23/15
11
Videos
View episodes 30-31
10/23/15
12
Reflection
How do these two cases differ? Jobs got sick, Barton willingly had
an affair with someone hed been warned was trouble.
10/23/15
13
Reflection
How can we, as leaders, understand when events or actions in our

private life will affect the well being of our employees? Or the
financial health of our organizations?
10/23/15
14
Reflection
Should organizations like SMA have clear disclosure principles in

place?
10/23/15
15
Next session, Week 44 (30 Oct)
Module 15: Modern Theories of Leadership

Module 16: A Study in Leadership Failure, part 1
Guest speaker: Berit Svendsen, Executive Vice President and Head
of Telenor Norway
10/23/15
16

Leadership in the Financial Crisis

04/11/15
A Brief Explanation
Leadership Topics Weve Covered
Taking on a New Leadership Role/Getting Oriented

Communication in an Age of Transparency
Leading Collaboration
Motivating and Inspiring
Leading Change
Effective Governance
Managing Talent
Leading in a Crisis
Fostering Innovation
Leading Execution
Public Life, Private Life
Vision and Culture
Today: We look
closely at a major
failure, to try to
understand how
leadership plays
into it
Todays Questions
Form into your small groups now. Appoint some of you to watch for
examples of leadership failureothers of you to watch for reasons
for leadership hope
Make two lists:
Disappointing signs
Hopeful signs
In examining a major crisis, there will likely be more of the former
than the latterbut were ultimately trying to build something here,
to come up with a new conception of leadership. So the hopeful
signs are very important
Trying to save Lehman Brothers (without

a government bailout)
After Lehman Fails
Trying to Unfreeze Credit Markets
Small Group Work

Work in groups. Appoint someone to report out from your
group.
1. Compare and compile your lists
2. Discuss: What are the reasons for the signs you see that are
disappointing...the real, systemic reasons (not the too-easy
ones)?

Leadership in the Financial Crisis

18/11/15
Todays Questions
Form into your small groups now. Appoint some of you to watch for
examples of leadership failureothers of you to watch for reasons for
leadership hope
Make two lists:
Disappointing signs
Hopeful signs
In examining a major crisis, there will likely be more of the former than
the latterbut were ultimately trying to build something here, to come
up with a new conception of leadership. So the hopeful signs are very
important
Impacts in Europe
http://youtu.be/QVU2jUFb3Q8?start=27m6s&end=37m10s
Small Group Work

Work in groups. Appoint someone to report out from your
group.
1. Compare and compile your lists
2. Discuss: What are the reasons for the failures...the real reasons
(not the too-easy ones)?
And Again
Disappointing
Hopeful
The Warning
http://www.pbs.org/wgbh/pages/frontline/warning/view/
Last Years Exam

Drawing on these materials, assess John Brownes leadership effectiveness with
respect to the following sub-topics addressed in the course (these are taken from the
course syllabus):
Establishing and communicating a corporate vision
External communication in an age of radical transparency
Nurturing and maintaining an effective corporate culture
Leading in crisis
Business execution (and risk management)
Public life, private life
In addition, at the end of your exam, in brief, answer the following: In your view, to what
degree does Lord Browne achieve the status of an effective 21st century leader? In
what ways does he fall short?
18/11/15
Exam (continued)
In making your arguments, please draw, as appropriate, on readings, videos,

class discussion, and any theoretical or framework materials from the course
conveyed within these.
You may draw on materials related to John Browne and BP beyond those listed
above, but that is not required or recommended, and you should think carefully
about whether that is a good use of your time and limited space; if you do use
materials beyond those listed above, please so indicate with a citation.
18/11/15
10
18/11/15
11
Module 19. Final assessment of Barton /

Synthesis
Shannon Hessel
she.mpp@cbs.dk
11/18/15
Today
Wont introduce new theory

Evaluate Barton as a leader & reflect on what criteria matter
Relate learning to own experiences of leadership
What else matters?
What happens when we consider insights from different contexts?
(e.g. smaller firms, start-ups, arts orgs, sports teams, etc)
Synthesis of leadership framework: individual group
11/18/15
Episode 33: Maiden Flight
11/18/15
Episode 34: Barton Removed
11/18/15
Group Discussion
On a scale of 1-5, how would you assess Barton as a CEO, and

his accomplishments at SMA? On what kinds of criteria do you
make your assessment? What matters to you (more/less)?
Has the board made the right decision about Jim Barton? Is this
outcome fair?
11/18/15
Leadership heroes
Access what it means to experience good leadership in other

contexts.
Describe a personal experience of good leadership (or bad).
What made it good/bad?
What criteria for evaluation do these examples suggest?
(listen to colleagues and help them identify criteria)
11/18/15
Break
11/18/15
Synthesis: Individual level
Create 3 post-its that complete the sentence 21st Century

Leaders should ___________________
Create 2 post-its that complete the sentence 21st Century
Leadership should not ___________________
11/18/15
Synthesis: Group level
Find your group by number

Share, cluster
Find points of agreement
Find points of disagreement and find a way to resolve that is
inclusive
Create a 1-minute presentation that synthesizes your groups

view on 21st Century Leadership
11/18/15
Next session, Week 48
Course Wrap & Exam Preparation with Rob
11/18/15
10

Leadership in The 21st Century

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Leadership in 21st Century Organizations

Getting Oriented and Assessing Your Team

Robert D. Austin (CBS)

Copyright 2015 Robert D. Austin.

MOOC not quite ready, probably sometime next week

Copyright 2015 Robert D. Austin

Copyright 2015 Robert D. Austin

Reminder about dramatized scenes

Copyright 2015 Robert D. Austin

Copyright 2015 Robert D. Austin

Barton and Kohler

Barton gets a lecture from his PR and Communications Director,

Copyright 2015 Robert D. Austin

Copyright 2015 Robert D. Austin

What do you think of Kohler? Is she a keeper?

Copyright 2015 Robert D. Austin

Copyright 2015 Robert D. Austin

Barton Meets Perez at a Charity Gala

Barton encounters Veronica Perez at a charity fund raising gala

Copyright 2015 Robert D. Austin

Copyright 2015 Robert D. Austin

What would be your recommendations to Barton

Copyright 2015 Robert D. Austin

Copyright 2015 Robert D. Austin

Copyright 2015 Robert D. Austin

Copyright 2015 Robert D. Austin

LIVING AND LEADING IN AN ERA

MARTHA PAYNE, AGE 9

WHAT HAPPENED HERE?

What did the Argyll and Bute Council fail to

LIVING AND LEADING IN AN ERA

From Data Desert

Well behaved, controllable flows

Unpredictable, uncontrollable flows

WHO KNOWS YOUAND

You personally, and your organisation

Who knows more about you (or about certain

What can people learn about you by putting 2 &

Changed and changingpermeability of

The Puddle Fallacy

Changed and changingpermeability of

LIVING AND LEADING IN AN ERA

In the next few days, the story makes international headlines;

April 11, 2013

RCMP officials state that the important new information

Aaron Barr, CEO HBGary Federal

Pressure building on the levies

YOUR DIGITAL EXHAUST

Your digital exhaust (and that of your company?) is

You cant opt out.

Your face is tagged already, on someones FB page

Changed and changinginformation

YOU CANT TURN IT OFF

See through companies? Naked supply chains (who made

Can you afford to rely on business strategies that depend

Things that used to work but wont in a super transparent

Motivating, Inspiring and Other Ways

Copyright 2014 Robert D. Austin.

The Problem of Management Control

Copyright 2014 Robert D. Austin

The Notion of Exchange

An exchange: the owner provides the means of production,

Copyright 2014 Robert D. Austin