14 October, 2010

The evolution of a leader

There are three types of work which get done in an organization:
  1. Transactional work such as; Administrative and Order taking, and which benefits individuals.
  2. Tactical work which is  Solution focused and benefits employee work groups.
  3. Strategic, or long term work which is:
    • Linked to one or more business goals
    • Solution-neutral in early stages
    • Requires multiple solutions or tactics to be implemented
    • benefits business units or perhaps the entire enterprise
The emphasis of an individual on each type of work shifts as he rises from an executive position to a managers position and finally becomes a leader. While executives are focused on the Transactional, the emphasis of activities shift to more of the Tactical when he becomes a manager. And finally, when he rises to the leadership position, his focus moves to strategic activities which are long-term in nature.

The activities define the evolution of  an executive to a leader. However what happens, and this is more so with entrepreneurs, the nature of activities are more often than not, restricted to the first two - the Transactional and the Tactical. Why is this so? In my experience with my clients, it is because the entrepreneur/leader does not want to move away  from the activities which he likes to do, or else finds himself comfortable doing. There is the risk of failure lurking somewhere in his mind.

Leaders could take a lesson from the leadership style of Kumaramangalam Birla. He leaves all day-to-day operations to his professional managers and focuses only on Strategic thinking and activities. Except when the occasion demands - which is when he has to prove a point, or show his people that something they believe cannot be done, can be done. As happened when Birla overruled his managers  and took the risky decision to buy Novelis for $6billion. Since the decision was his, he took it upon himself to prove to his managers that it was right. 

The Economic Times has a very interesting  account of the turnaround story

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