Module I September 2018

1. CALA Group
Leading Strategic Change
Senior Business Leader Programme
17th September 2018
Professor Susan Elaine Murphy
Professor John Amis

2. Day I – Agenda
2
9.00 Welcome and Programme Orientation
Opening Remarks: Kevin Whitaker, Chief Executive CALA Group
9.30 Leadership at the Next Level: What does it Take?
11.00 Coffee and Tea
11.15 You as a Strategic Leader: The Roles and Responsibilities of Strategic Leaders
1.00 Lunch
1.45 AGILE: A process for strategic change projects (Stephen Hughes, PA Consulting)
3.30 Tea & coffee break
3.45 Expectations and Plans for Project Development
5.00 Concludes
Dinner 6.15 on University of Edinburgh campus in Old College, Raeburn Room

3. • One of the top 1% of Business Schools
world-wide to be triple accredited by the
three largest and most influential
associations: AACSB, EQUIS and AMBA.
• 21 undergraduate programmes, 14 MSc
programmes, 2 MBA programmes and a
broad portfolio of Executive Education.
• 100 faculty from 28 countries. Students
from 88 countries.
• Particular strength in strategy, strategic
leadership, resilience, accounting and
finance, service management and
sustainability.
3
Influencing the world since
1583
One of the largest universities in
the UK
Over 30,000 students, more than
20,000 undergraduates, 10,000+
postgraduates
Ranked 4th for research excellence
in the UK Research Excellence
Framework (REF), 2014
Ranked 18th in the QS World
University Rankings 2019
15 Nobel Prize winners in areas
such as Physics, Medicine,
Economics
Welcome

4. 4
Looking
toward
today and
beyond

5. CALA Group Programme Objectives
• Prepare individuals for increasing role responsibility by providing
cutting edge management and leadership tools
• Build a ‘future-proof’ CALA, around a common set of values, priorities
and prepared leaders
• Identify ways to effectively manage change throughout the business
• Provide a forum for leaders at CALA to learn and work collectively and
deliver with a common language
5

6. 6

7. I. Leadership at the next level:
What does it take?
7
The what, why, & how

8. Leadership Themes in the Programme
Leadership as alignment
around strategy,
structure, processes,
lateral coordination,
reward and performance
management, and
people practices.
Leading through change
to find ways of unlocking
innovation and
performance through
empowerment.
Leadership as
sophisticated thinking
and doing required by
complex problems.
Not a one size fits all
approach – leadership
guided within an
organisations but people
find what works best for
them. And leading from
authenticity.
8

9. 9

10. What do CEOs do with their days?
• 25 percent of their work is spent on people and relationships
• 25 percent on functional and business unit reviews
• 16 percent on organization and culture
• 21 percent on strategy
• Only 3 percent on professional development, 1 percent on crisis
management, 4 percent on mergers and acquisitions, and 4 percent on
operating plans
• 72 percent of their work time is spent in meetings, compared to 28
percent alone time. About 1/3 of the meetings lasted about an hour,
with 1/3 longer, or shorter than an hour
• CEOs value face-time: 61 percent of their communication was face-to-
face, while only 24 percent was electronic (like email), and 15 percent
by phone and letter
https://hbr.org/2018/07/the-leaders-calendar#how-ceos-manage-time

11. Background
• Serendipity that he stumbled upon this style…since he
lacked the knowledge he needed to run the Santa Fe, he
had to rely on his people and listen to them
• The Leader-Leader difference [not based on control]
• Worker knowledge was essential – COMPETENCE
throughout the organisation, therefore push authority to
information
• The crew varied in its readiness to be led:
1. Eager for new leadership style
2. Untrained to do well with new style
3. Unmotivated or sceptical
11

12. Key Messages from Intent-based Leadership
• Simple messages around empowerment:
• Control, Competence, & Clarity
• But layers of changes needed in the way in which people led and were led including:
• Leaders need to adapt their communication pattern when using empowerment: Giving orders needs to be replaced with
open-ended questions and active inquiry
• Turning followers into Leaders: Empowerment can work many places, but might not look the same
• Reluctant to accept Intent-based leadership because:
• Rigid hierarchical structure
• Punitive organizational culture
• Lack of self-confidence
• Benefit of a given framework in which duties are specified
12

13. Table Activity
• Why does the approach detailed in
Turn the Ship Around!, resonate with
what CALA is trying to accomplish
going forward?
• What will facilitate this approach?
• What might some of the barriers be
to implementing this approach?
13

14. Four unexpected
essentials for leadership
across many levels who
excel in inspiring people
14
Vulnerable and approachable
Work on timing of action
Manage with tough empathy, but care
Reveal differences and capitalize on these
differences
We will come back to this next Module and determine whether you
have made your case.

15. Summary so far
• Leadership at the next level requires:
• New ways of thinking and doing
• It appears as more agenda setting and proactive, and less reactive
• Requires important time management
• Keeping in mind that leadership is often described as:
• Results
• A process
• A set of personal characteristics
• A style
Important to consider all aspects to work to improve
15

16. www.business-school.ed.ac.uk
Leveraging
Leadership
Development

17. Three main Areas of Leader Development
17

18. Leveraging Leader Development Experiences
• Challenging assignments; stretching
• For assessment key is self awareness and identity
• Reflect on one’s on self evaluation of outcomes and processes,
and impact
• Also gather feedback from others to help overcome blind spots
• Build your own leadership model
• Support: Who? Networked approach, mentors, coaches, sponsors
Center for Creative Leadership
18
Working from a Growth Mindset

19. 19
Learning
Practices
Observe and
Learn from
others
Approach new
experiences with
openness to
experience
Seek and use
feedback
Understanding
your strengths
and
developmental
needs
Ask Great
Questions/
CuriosityListens
transformatively
Actively
Experiment
Observe and
Learn from
others
Active reflection
and mindfulness
Take
responsibility
1. In looking at these different
practices, take a moment to
think about the way in which
you learn.
2. Think how you will
structure your learning from
this programme.

20. General Path to Learning
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Mistakes, Failures, Pressure
Self Awareness
Actual Leadership Experience
Coaches, Role Models, Mentors
Learning from Other Specific Experiences
Teaching Others
Learning from negative role models
Time in the Job
Training
Source of Important
Leadership Experiences
Murphy & Harrison 2014
500 Scottish Managers
Percentage
20

21. 20
1. Recall the experience – Choose one:
▫ What happened to you during this experience?
▫ What were your feelings, your reactions, your observations?
2. Process the experience
▫ Look over your reactions and see if you can find any repeated
patterns, or themes using the habit loop.
3. Generalise the experience
▫ What learning can be used in the future?
4. Apply new lessons to next project
Processing Developmental Experiences

22. Ingredients for your Model of Leadership
• Be - Your values, characteristics,
purpose/worldview [takes a good level of self
awareness], and identity.
• Know – Analysing what leaders do and how. How
they act, how they think, and what appears to lead
to success.
• Behaviours [Do] - What you do to lead and
inspire others and accomplish work.
22
Neuroplasticity
Brain agility
Growth mindset
Mindfulness -- Thinking in the moment

23. II. You as a Strategic Leader: The Roles and
Responsibilities of Strategic Leaders
23

24. Leading the Organisation:
Defining Strategic Leadership
• Strategic leadership is defined as a person's ability to anticipate, envision, maintain flexibility,
think strategically, and work with others to initiate changes that will create a viable future for the
organization.” (Ireland & Hitt, 2005; reprint from 1999)
Generally, Strategic Leadership is needed to:
1. Develop and communicate a vision
2. Build dynamic core competencies
3. Emphasize and effectively use human capital
4. Invest in the development of new technologies
5. Engage in appropriate strategies
6. Build and maintain an effective organisational culture
7. Develop and implement balanced organizational controls
8. Engage in ethical practices
24

25. Views on strategic
leadership
• Table Activity:
• Take a few minutes to think about an effective
strategic leadership action you have witnessed
that has impressed you.
• Introduce yourselves to your table members and
share your example.
• Report back as to the what impresses the group
about strategic leaders.
25

26. Strategic Leadership in a VUCA World
Long term
vision
Responsible
In practice
Financial
Social &
Natural Capital
Global in
mind-set
Entrepreneurial
in action
Build dynamic
competences
Collaborative
stakeholder
perspective
Stewardship
Leading Change
Strategic Thinking
Spot opportunity
Make choices
Where to play
How to engage
How to win
Generate value
Adaptable
Utilise
technology
Build talent
and culture
Financial stability
& balanced
controls
Innovative
and creative
Flexible
Driven
Resilient
Derived from Ireland & Hitt, 2005; reprint from 1999 and Murphy and Kirkup, 2016 26

27. Source: Harvard Business Review, Jan 2014
ASIDE: Today’s
environment facing
strategic leaders is
volatile, uncertain,
complex and ambiguous.
What is the environment
for your business?
27

28. More complexity requires advanced leadership
capabilities – one example of increased push for
thinking differently
• How did LEGO engage with competing strategic demands as it faced a downturn in profits? By valuing
paradox as ingredient of high performance
• Proactively identify and raise tensions
• Avoid traps of anxiety and defensiveness
• Consistently communicate a “both/and” vision
• Separate efforts to focus on different sides of a paradox
Lewis, Andriopoulos, & Smith 2014, California Mgmt Rev.
28

29. Boiling down Elements of
Paradoxical Leadership
(1) combining self-centeredness with other-centeredness;
(2) maintaining both distance and closeness;
(3) treating subordinates uniformly, while allowing individualization;
(4) enforcing work requirements, while allowing flexibility; and
(5) maintaining decision control, while allowing autonomy.
29

30. Six Dimensions of Strategic Leadership Skills
From Schoemaker P., Kupp S., & Howland S. (2013). Strategic leadership: The essential skills. Harvard Business Review. 30

31. 0
1
2
3
4
5
Anticipate* Challenge Interpret* Decide* Align* Learn*
Frequency
Strategic Leadership Dimensions
By Management Level (Murphy & Harrison, 2014)
Non Scottish Executives
Scottish Executives
Scottish Mid-Level Managers
Scottish Lower Level Managers
31

32. Am I Thinking Strategically?
What longer term
challenges should I be
planning/mitigating
for?
What longer term
opportunities might
come our way?
What are my direct
competitors working
on? What will the
impact be?
Have I clearly
articulated the vision
for my team?
What innovative
strategies am I working
on to differentiate my
business?
What new technology
could offer a further
competitive advantage?
Where is the next
potential revenue stream
for my part of (or the
whole) business?
How am I exploiting or
learning from practice
elsewhere in the world?
Who are my talent-
differentiators?
How do I know
these people are
content?
What skills/talent
are missing and
how could the gaps
be plugged?
What are my
stakeholders
thinking about my
business?
What tensions or
conflict exist and is
this beneficial or
harmful?
What success story
could I write-up and
celebrate?
Who am I
networking with?
Who (or what
organisations)
should I be
connecting to
strategically?
How am I helping
the organisation
improve its social
impact?
How am I helping
the organisation be
net positive in
environmental
terms?
How am I
developing talent to
exploit my team’s
goals?
32

33. Table Activity
• Use previous slide and pick two
questions for yourself and
discuss at your table.
• Also discuss [if time], what helps
a person, in your opinion, think
more strategically?
33

34. Conclusion
• New strategies require strategic
leadership skills throughout the
organisation and at the top.
• They require the ability to deal with
paradox.
• They require cultivating an
organsational culture where strategic
innovation can occur.
• And a focused cultural change to
support a new strategy that
includes all stakeholders.
34

35. III. Expectations and Plans for
Project Development

36. 1. New UK Region - when, where and
how do you design the structure to
make it fit for future?
2. Margins and true value add – how
do we improve our margins group
wide?
3. Capability-Technology & People -
what should we do to equip
ourselves to deliver our plans in the
most effective, efficient way through
people & technology?
4. Bespoke Vs Standard Product –
What is the vision for the future in a
competitive market?
36

37. Activity: Practice using
the Lean Canvas
1. Think of a project you led in the past.
2. Break down that past project into as many
areas in the canvas as possible.
3. Share your work with a partner in the room.
Tomorrow you will begin to work on Strategic
Project using the Lean Canvas.
37

38. 38

39. Opportunity for
Developmental Data
• Will be available next week.
• You will receive a link to
complete the assessment.
• Takes 45 minutes to complete.
• Will run individual feedback
sessions for those completing
the assessment.
39
Korn Ferry
Assessment of
Leadership
Potential
Your
capacity and
interest to
develop the
qualities required
for effective
performance in a
significantly
more challenging
leadership role.

40. Day 2 – Agenda
40
8.30 Continental Breakfast
9.00 Reflections and Overview of Day
9:15 Mental models and the context of strategic change leadership at CALA
11:00 Coffee and Tea
11:15 Getting to know CALA: Values and vision in an age of global disruption
12.45 Lunch
1.30 Leading change at CALA: Levers and opportunities for change
3.00 Tea & coffee break
3:15 The Application of AGILE at CALA
4:00 Concludes