Leadership Strategies Leading A Virtuous Organization Edward Lawler says seven principles are necessary for organizations to develop a spiral of virtuous behavior in which one ethical action or policy leads to another and builds a culture of integrity. 1. Lead people right. Leadership at all levels affects both individual and organizational effectiveness by determining the type of relationships that people develop with organizations, their degree of motivation, their loyalty in terms of tenure, and the way they treat clients and other employees. 2. Develop a leadership brand. The wisest course is to develop a leadership brand based on general principles that are universally applicable to all leadership situations, such as General Electric’s “4 Es” of leadership—the personal energy to deal with change, the ability to create an energizing atmosphere, the edge to make difficult decisions, and the ability to consistently execute. Another “E”—ethical behavior—has been implemented at Motorola. 3. Build leadership capability. The traditional top-managementfocused approach identifies a group of high-potential people who exhibit the skills and competencies needed at high levels. They are trained throughout the organization to gain experience in all aspects; a few are then chosen for senior management positions, and ultimately one becomes CEO. Building leadership in this way clearly is the right model for highly centralized, hierarchically structured organizations. This approach is not right for all organizations, however, especially those that want to develop a virtuous spiral by developing leaders at all levels. In essence, this shared approach encourages people at all levels to 12 Nurse Leader
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develop leadership skills and assume leadership roles and responsibilities. Rather than identifying and grooming a select group from the top, the organization use corporate structure, work designs, and development programs to open the way for leaders at all levels. Identify and hire potential leaders. Review employees’ careers to assess whether they have demonstrated leadership along the way. Use the interview process to identify the scope and nature of potential leadership. The start of someone’s career as a manager is a particularly critical period in which to develop her as a leader. Maintain leadership development. Although formal classroom training is helpful in developing leaders, research suggests that the most effective learning arises from experience. Overall, the best leadership development efforts combine classroom education, coaching, and strategically timed and designed job changes Assess managerial performance and behavior. For management development to be credible, organizations must regularly assess managers against leadership, behavioral, and performance criteria. Clients, employees, peers, and bosses should all be asked to offer their input; this breadth of measure creates a far more useful appraisal of someone’s leadership behavior and skill than is derived from a single appraisal. Organizations must avoid the hypocrisy of espousing a people-focused style while giving rewards based solely on financial and operating results. Focus on the competitive environment. Some managerial behaviors that are appropriate in a booming economy are not appropriate in a downturn. Although leaders need to do things differently when the
economy is high than when it is declining, they must remain true to the basic leadership brand of their organization. Leader to Leader, Spring 2004
Staying Motivated despite Failure Nancy Hutson, senior vice president of global R&D at Pfizer and the director of Groton Labs (the world’s largest drug development facility), leads a creative cadre of researchers who are doomed to failure again and again as they search for new medicines. How does she keep the troops—and herself—going when they’re facing impossible odds? According to Richard Leider, Hutson’s executive coach, she has a 4-part plan. He says this leader: • Offers support. She holds an active commitment to mentoring and changed performance reviews to focus on strengths. • Puts people first. From interior design and employee comfort (she put a Starbucks in the main building), she signals that people matter. • Celebrates small victories. When a researcher publishes a paper, the rest of the organization knows about it. When a lab gets some positive results on a new therapy, the news is announced in a sitewide forum. • Instills leadership. “Despite the inevitable setbacks, we are doing important work. We are engaged in a common purpose; if we pull together, we will succeed.” Fast Company, June 2004
Retaining Older RNs A study last year by nursing researcher Peter Buerhaus showed that much of the 9% increase in the nursing work force from 2001 to 2002 was a result of nurses older than 50 returning to the hospital and the recruitment of foreign-born nurses. August 2004
Leadership Strategies (continued) Recognizing this trend, hospitals are starting to think about how to make the work environment more supportive for older workers. Some formerly retired nurses are volunteering or working only 20 hours a week, so flexible schedules may be the most attractive perk. Other incentives include smaller patient workloads or lighter physical requirements. Many retired nurses also are attracted to roles as mentors or preceptors. To that end, nurse managers should put more effort into pairing up younger and older nurses so they can learn from each other. What about the older nurses still on the units? Many industry experts have said hospitals should put more emphasis on rewarding long-term employees rather than handing out sign-on bonuses. Older employees should earn higher salaries, salary bonuses for long tenure, even better parking spots or preferred holiday schedules. Unfortunately, too many facilities talk a better game than they play: one survey found that 97% of hospitals wanted to keep their older workers, but only 3% had any programs in place to do so. Nurse Zone, June 28, 2004
Valuing Retention more than Recruitment Jo Manion, RN, PhD, has conducted insightful research on the culture of retention, and her work indicates hospitals should expend most of their energy on what—or who—they already have. Speaking at the annual meeting of the Association of periOperative Registered Nurses, she explained that excellent nurse managers are an enormous factor in retention. These managers create an environment of respect, trust, and expectation that encourages everyone to work at their peak. To create such a culture, Manion recommends putting staff first, forming strong bonds, creating partnerships, coaching, and focusing on results. People who care about their colleagues and their workplace in August 2004
turn will provide unparalleled patient care. Nurse leaders who genuinely believe in their jobs and their people are the best solution to shortages. Pennsylvania Nurse, May/June 2004
Leading with Competence Diana Contino has written a lengthy, highly detailed overview of nurse leader competencies, running the gamut from operational concerns to staff interaction to organizational vision. She groups leadership skills into 4 categories: organizational management, communication, analysis/ strategy, and creation/vision and further breaks down the skills necessary to excel in each. Organizational—leaders must manage time, information, human resources, collaboration, change, revenue and expenses, technology, and budgets. Communication—leaders must disseminate and interpret information quickly and accurately; convey goals and objectives and the plans to reach them; promote respect and integrity; set and meet personal, career, and educational goals throughout the organization; and communicate change effectively. Analysis/strategy—leaders must be able to evaluate internal operations, look for solutions and new opportunities, think and execute plans decisively, and anticipate and implement change. Creation/vision—leaders should create opportunities for each employee, form and orchestrate an organizational vision, create value for customers, update improvement processes, and form strategic partnerships with peers and businesses. She concludes, “To foster organizational cultures that strengthen nurse leaders, job descriptions should include leadership skills and expectations. Leadership education and training should be one of many initiatives related to process improvement that incorporate research, best practices, and methods that inspire.” Critical Care Nurse, June 2004
Playing Follow the Leader In its April issue, General Electric’s Jeff Immelt gave Fast Company his 10 keys to great leadership. 1. Take personal responsibility. 2. Simplify constantly. 3. Understand breadth, depth, and context. 4. Recognize the importance of alignment and time management. 5. Learn constantly and learn how to teach. 6. Stay true to your personal style. 7. Manage by setting boundaries with freedom in the middle. 8. Stay disciplined and detailed. 9. Leave a few things unsaid. 10. Like people.
Asking Smart Questions to Create Innovation William Hunter, president and CEO of Vancouver-based Angiotech Pharmaceuticals, encourages employees to ask unusual and probing questions to generate new ideas. His efforts began with questions he asked about how standard drugs might be used in nontraditional ways. When he was a medical resident, he wondered whether drugs that are potent, even lethal, in large doses might be used against a variety of diseases if prescribed in much smaller doses. He also questioned why drugs were rarely added to devices surgically inserted into the body. Years later, his company enjoys a pioneer reputation in the science of adding drugs to medical devices to improve their performance, such as a coronary stent coated with a cancer drug that prevents scar tissue from growing over the stent and reblocking the artery. He says, “You have to celebrate the failures, too. If you send the message that the only road to career success is experiments that work, people won’t ask risky questions or get any dramatically new answers.” Wall Street Journal, April 12, 2004 1541-4612/2004/$ - see front matter Copyright 2004 by Elsevier Inc. 10.106/j.mnl.2004.07.004
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