Organizational Development and Responsible Leadership
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1 International Conference Management Makes the World Go Around. Learning for the Future in Management and Organizations 1 4 December 2010/ Vienna Organizational Development and Responsible Leadership Univ. Prof. Dr. Ralph Grossmann
2 Multi-Stakeholder Approach 2
3 RESOURCES OF MONGOLIA Mongolei 3
4 POORNESS IN AUSTRIA 4
5 ENVIRONMETAL AND SOCIAL DISASTER IN HUNGARY 5
6 ENVIRONMETAL AND SOCIAL DISASTER IN HUNGARY 6
7 ENVIRONMETAL AND SOCIAL DISASTER IN HUNGARY 7
8 FINANCIAL CRISES IN IRLAND AND THE EURO-ZONE 8
9 The question is how these dimensions can also be formed conceptually. What theory do we need to hone the understanding of leadership and management, taking these dimensions into account? What kinds of skills and support systems do leaders and managers need to get out of their roles in order to appropriately take these stakeholder perspectives into consideration? 9
10 ecological resources culture business company MAs knowledge national political system internat. political system competition organized civil society ( The People ) The system with it s relevant environments is meant to be a survival unit. 10
11 ecological resources culture business company MAs knowledge national political system internat. political system competition organized civil society ( The People ) 11
12 ecological resources culture business company MAs knowledge national political system internat. political system competition organized civil society ( The People ) 12
13 ecological resources culture business company MAs knowledge national political system internat. political system competition organized civil society ( The People ) 13
14 ecological resources culture business company MAs knowledge national political system internat. political system competition organized civil society ( The People ) 14
15 ecological resources culture business company MAs knowledge national political system internat. political system competition organized civil society ( The People ) 15
16 WHY SHOULD SHAREHOLDER VALUE-DRIVEN COMPANIES DO THIS? PHILANTROPIC Be a good Corporate Citizen Contribute Ressources to the community; Improve quality of life. ETHICAL Be ethical Obligation to do what is right, Just and fair, Avoid harm. Rest. LEGAL Obey the Law Law is society s codification of ist right and wrong; play by the rules. Economic Be profitable The foundation upon which all others rest. Carroll, A. (1991) 16
17 Politics Organizations contracted out Private enterprise Public Administration Public Services Community Groups Non Profit Organizations NGOs 17
18 Core Competences for Responsible Leadership versus Streamlined Business like Programs of Management Education. 18
19 IFF-STUDY LEARNING FOR THE FUTURE IN MANAGEMENT AND ORGANIZATIONS Knowing how to develop distance to the immediate issue at hand, to the immediately urgent decision needs, as well as to gain inner distance, in order to make better decisions. To not only have social responsibilities, but to collectively enable social responsibilities and to anchor them in a management team of a company. Simply skills that arise such as to learning to ask and listen and to be be able to individually and collectively make a connection to the external perception of other related groups. To develop the necessary measure of self-reflection 19
20 From the perspective of managers, the following qualifications are primarily: Understanding of the importance of developing rules of the game and to be able to contribute to the development of culture-fostering rules. To make decisions as a core operation of a company and as a core responsibility of management, namely the tension between complexity and uncertainty, between the opening and closing of the discussion in the direction of balancing it towards a decision, and also to successfully endure this tension as a person, as a team, and as a management system. The ability to make observations and to process. The ability to cooperate in order to respond adequately. 20
21 The ability to set themselves apart from external environments, for example, from different professional languages, different stakeholder groups, and different cultural settings. To allow learning and development processes in the organization that strike a difference to themselves, that is, to their own perspectives as a manager, to the the management system, and to organizational routines and structures, in order to gain development impetus for personal development, but particularly for the organizational development of the company. (Kurt Mayer, Christian Neugebauer et al, iff-study Learning for the Future in Management and Organizations, 2010) 21
22 22
23 23
24 ROOTS OF CRITICAL REVIEWED PROGRAMS It is the result of European Anglo-American tradition of dividing cognitive knowledge and other dimensions of personal development and of social development. The academic, instrumental knowledge is advanced based on research that is artificially separated from the reality of companies and society. The streamlining of the programs as part of a company-form, business-oriented organization of management education. This streamlining means selling MBAs worldwide according to the same model. And these, so organized that the programs are sold in hubs of management education programs with minor corrections and deviations, and if possible, with a radical modularization in the organization of "learning". 24
25 FROM CALCUTTA TO CANADA Organized: in the same format comparable worldwide to formal standards, in cooperation with a global business of learning technologies and forced by a globally organized certification business that maintains these standards and is driven by such. We have to apply responsible leadership and the involvement of different stakeholder perspectives on the Business of Management Education. 25
26 SOCIAL COMPETENCE AS ADD ON OR CORE COMPETENCE OF LEADERS AND MANAGEMENT The self as instrument 26
27 Business Ethics as add on or Ethics Embedded in Professional Concepts and Organizational Patterns. 27
28 As long as it is an addition, it must be essentially borne alone by individuals and groups will. For this reason, you need a way to implement ethical practice in a company that proceeds maybe very differently than the organizational form and the professional orientation of the company itself. Thus ethics as a guideline for behavior remains something that is very fragile, that is connected to the fate of the person and that can rapidly go to the dogs during harder. Ethical behavior in daily operations is always a personal question of value, because we, as professionals, as managers, as consultants, and as experts are always faced with the task of deciding for or against something. 28
29 At the same time, for responsible leadership to be lastingly effective, it requires that the ethics of the processes, structures, and strategies of the company is integrated. Ethics, which are also considered to embody the attitude of employees, executives, and is a constituent element of corporate culture, cannot be split off from the normal business day and loosely combined into related CSR projects, but only by anchoring them in the central processes of the company And this also means that it must be in line with the interests of the company's prospects. 29
30 30
31 Anton Paar - Leading with Values
32 OWNERSHIP STRUCTURE / TO BE AND TO HAVE Ownership: Charitable Santner Foundation Aim of foundation: Support of natural science applied for public utility and prevention as well as treatment of addiction Turnover of Anton Paar GmbH is re-invested into the company for job security; what the company doesn t need is poured into foundation Employees contribute to charitable cause Independence for corporate decisions Family enterprise is preserved To be and to have
33 WHAT IS IMPORTANT TO US? Responsibility We are committed to our customers around the world and realize our social responsibility for our employees, society and the environment. Innovation We are constantly working on developing new products and improving our portfolio in close cooperation with the scientific community. Tradition Decades of experience, a love of the craft, the training of apprentices and consistent trust in the successful cooperation of all our employees these elements are the basis of our company. Sustainability Reliability... regarding our products, infrastructure, relationships with employees, customers, suppliers...
34 LEADERSHIP AT ANTON PAAR Leadership from a technical standpoint Leadership requires the incorporation and management of resources, as efficient as possible, high reliability at low cost Leading people Leadership does not mean power / being at the top It means incorporating the existing forces, talents and skills and leading them in the right direction Creating a work environment in which employees can realize their potential Leadership as a task instead of a position
35 THE SOURCES FROM WHICH SUCH ETHICAL ORIENTATION IS DRAWN Firstly there is a biographically mediated, familial, cultural background, which itself can feed from a religious, spiritual background and from a political background. The second source is life experience. Life and professional experiences in which people are suddenly confronted with the impact of their actions, on the environment, and on their employees causing a turnaround in their orientation. And the third source is certainly creative connections made when searching for economic success and the necessary connections to the company and to customers. One of the keys are persons who have a broad awareness, who are socially oriented. The average MBA program is distinguished precisely by a narrowing of perspective, and indeed on instrumental knowledge and on pre-defined case studies 35
36 Learning Context for Responsible Leadership 36
37 There are two learning locations that have special meaning in the future: The company, business processes Society, other industries, other society areas than the cooperation itself. 37
38 The company In the way a company is organized, how it is managed, how it is run, how cooperation is achieved there, all play a part in strong awareness-raising that is largely underestimated in their importance to the viability of the people, for their fostering of awareness, their social perception, their management of competence building, and their training. But the company is also the place of learning, because within the organization, working can be well connected with learning. 38
39 Society as learning Context companies that attempt to move towards responsible leadership, its staff do not adjust only to the direct professional knowledge, and to the immediately applicable skills in the operation, but they feel obliged to confront social experiences in other sectors; they work in NGOs, and they help shape social programs, so that they can get better personally acquainted with the important environments as well as the stakeholder perspectives with which they will face their operational function. 39
40 The success of the company and the opportunities to incorporate responsible leadership in business structures is becoming more dependent on the ability to think in terms of organizational alternatives. To develop imaginative organizational structures, in dealing with customers, in dealing with partners, in connection with organized civil society, but also within the company, is gaining in importance, because companies are themselves in constant processes of change and must find new viable organizational solutions It is becoming particularly important because while the complexity is increasing, the organization needs to be represented in relation to the environments it confronts. It is this shift that can be described with the slogans of the hierarchy within the network or quite well as a model with vertical and lateral relations. 40
41 Concept and Practises of Responsible Leadership 41
42 f (Individual, Organization, Collective) THREE VECTORS OF RESPONSIBLE LEADERSHIP f (Economics, Politics, Ecology, and Morals) Mirvis at al (2010): Responsible Leadership Emerging 42
43 PUBLIC VIEWS OF BUSINESS RESPONSIBILITY Companies Held Completely Responsible for, average of 25 countries GlobeScan (2007): CSR Monitor 43
44 SOCIETAL VIEWS OF LARGE CORPORATIONS Around the world 60-70% 10-20% GlobeScan on expectations, Wirthlin, Edelman on trust 44
45 f (Individual, Organization, Collective) THREE VECTORS OF RESPONSIBLE LEADERSHIP f (Economics, Politics, Ecology, and Morals) Mirvis at al (2010): Responsible Leadership Emerging 45
46 Responsible Leadership as a progressive development to anchor this at the level of individual action, at the level of the organization and in relation to other organizations. Responsible Leadership is allways a process of collaboration between Organizations. 46
47 Gouvernement & Administration International Organizations Leaders Collaborating Partners Organized Civil-Society Leaders Customers Parlament Universities 47
48 Gouvernement & Administration International Organizations Leaders Collaborating Partners Organized Civil-Society Leaders Customers Parlament Universities 48
49 Gouvernement & Administration International Organizations Leaders Collaborating Partners Organised Civil-Society Leaders Customers Parlament Universities 49
50 Focus on level of Land Focus on level of district Know-how Transfer Events Electronic Know-how Platform Scientific system iff Consultancy system iff Transfer Body NSM Steering Committee of the Land Project Team of the Land Cluster Steering Committee A Cluster Steering Committee B Cluster Project Team A Cluster Project Team B Districts Cluster A Districts Cluster B Other districts 50
51 Thank you for your Attention and Enjoy the Following Sessions! 51
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