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In 2011, Maruti Suzuki India Limited (MSIL), India’s largest car manufacturer, had three strikes in its new plant in Manesar, India. Although workers wanted recognition of a new union along with improved working conditions, MSIL insisted that workers be represented through the existing union that operated at a nearby plant. Tensions escalated to the point of violence and the matter caught the attention of national media, political parties, national trade unions, and central and state governments. Due to these strikes, MSIL struggled in terms of reputation and market share, and its component suppliers stockpiled inventory. After a series of hectic parleys and stressful episodes, the two parties reached an agreement. However, there were serious doubts as to its longevity and whether Suzuki’s Japanese management style was suitable in an Indian context.<br><br>See B case 9B14C048.

Ford Motor Co. develops and commercializes a green technology that replaces a traditional and scarce resource with an abundant bio-material. The pilot project becomes hugely successful, and, within the company, the idea of expanding the use of bio-material gains considerable momentum, but implementation and customer acceptance prove to be a challenge. Two members from the company’s research and engineering division work together to overcome these obstacles and move the company toward a vision of sustainability that involves more than just fuel economy and cost reduction.

Carborundum Universal Murugappa International (CUMI) was a leading abrasives manufacturing company based in India with global operations in Russia, South Africa and China. In the global abrasives business, China held 50 per cent of the raw materials for the industry. China was also the largest market for abrasives worldwide and was expected to contribute to one third of the global demand for abrasives. CUMI had the vision to become a global leader in the abrasives industry within 10 years. It had successfully expanded operations in Russia and South Africa, where it was seen more as a partner than a conqueror in its acquisition strategy. In 2006, the company entered China through a joint venture with a Chinese state company but subsequently bought out the partner. However, the company was facing several problems with its stand-alone operation there, especially in terms of maintaining its workforce and hiring local managers. It was clear that winning market share in China was necessary, but the complexity of the Chinese market had proven to be a challenge. The managing director had to present a strategy for working successfully in China to the board.

The founder and CEO of Veranda Brands, a designer and marketer of home furnishing products, is preparing to coach three department managers so that they are ready to work well in a growing organization. Through staff layoffs, the company (founded in 2002) survived the 2008 financial crisis and actually increased the founder’s personal investment. The company has since grown to $8 million in sales and its staff has grown to 50 employees (2012). To continue this growth and progress to the next level, the company’s top employees need to function at a higher level which can be reached through targeted coaching.

The managing director of a multinational company turns a loss-making business into a profit-making venture by using his unique brand of leadership to change the organizational culture and develop a responsible proactive attitude in his employees. Throughout this process, many difficult personnel decisions must be made, including the decision to remove some senior employees who resist the necessary changes.<br><br>Once under the new leadership team, recruitment and talent development become essential to the future growth of the company. The managing director wonders how to manage this challenge.

East Solutions was a successful business process outsourcing (BPO) provider based in Bangalore, India. Although salaries for Indian IT professionals were about half of those of their counterparts in the United States, the board of directors at East Solutions recognized a worrying trend: if salaries in India continued to grow at a fast rate, they would soon erode the cost advantage of sending work to India and potentially threaten the entire Indian BPO industry. As a solution, East Solutions repositioned itself by leveraging technical, industry and process expertise to form a partnership with clients based on value added in addition to cost savings. This plan required East Solutions to refocus on fewer geographic and sector groups. It also required transforming the role of the company’s IT managers, who needed extensive training, additional resources and a new compensation strategy. On an average year, the new compensation plan increased the IT managers’ incomes by 4 per cent, so it was expected to be popular, but IT managers rejected the new compensation plan and it was abandoned after 18 months. The chief executive officer (CEO) in charge of the new plan for East Solutions was unsure why it had failed.

Greg Popovich, head coach of the National Basketball Association’s (NBA) San Antonio Spurs (Spurs), decides to rest his three aging star players during a highly-anticipated game against the NBA champion Miami Heat (Heat). Miami fans have paid a premium for tickets to the game. Many intend to bring their children to see the young, upstart Heat face the much older, but still highly-competitive Spurs. This is a Thursday night game, nationally-televised by the important sponsor of the NBA, TNT. Not to have the Spurs’ stars in the game is very disappointing to fans and to the NBA itself. Popovich needs to decide whether it's right to rest his players, and what to say to the fans and to the NBA.

Lack of candour stems from avoidance of difficult or uncomfortable situations. However, what begins as an attempt to avoid difficulty often turns into a series of bad decisions and bad consequences. Candour allows organizations to have better idea generation, faster problem solving through avoiding “beating around the bush,” and more efficient processes. The authors argue that candour requires character and that with character comes the judgment that ensures the appropriate expression of candour. Their research has shown that candour requires depth of character across eleven dimensions. <br><br>To understand candour in practice, the authors have interviewed General Rick Hillier, former Chief of the Defence Staff of the Canadian Forces. Hillier defines positive candour as that which focuses on a leader’s charges. He refers to leaders making comments for personal gain — such as in the case of certain whistleblowers — as an example of negative candour. He explains that if a leader acts candidly, then they must expect their subordinates to be equally candid and must not punish them for doing so. Arguably, being candid is the best way to treat people fairly. However, Hillier clarifies that candour is culturally bound and that leaders must be patient and polite in their interactions with foreigners in order to ensure effective communication.

Autonomous teams — work groups granted the organizational latitude to establish their own internal goals and work practices — have surged in popularity. This article discusses findings from a recent study that revealed a unique set of organizational dynamics that can be nurtured to fuel powerful autonomous teams. Three distinct dynamics were found to prevail in organizations with strong autonomous teams. 1. Firstly, an organization must be committed to using autonomous teams. Weak support from management can precipitate failure. Members of autonomous teams desire the ability to make decisions without significant managerial interference. However, too much autonomy can negatively influence team outcomes and result in increased stress levels in team members. 2. Secondly, strong teams require steady, upfront commitments to allocating resources for team use. Stating an upfront commitment to providing resources can be more significant in motivating team members than actual resource availability. 3. Finally, autonomous teams benefit from frequent face-to-face feedback from organizational leaders. While a plethora of team dynamics, ranging from internal conflict levels to demographic composition, influence the effectiveness of autonomous teams, the power of organizational dynamics to shape the implementation of these teams must not be underestimated.

Canadian businesses have fallen far behind their foreign counterparts in competitiveness. Private-sector enterprises should increase internal efforts to be more productive and compete internationally. But before this happens, managers must ensure that the organizational factors that nurture productivity growth are aligned. The Three Pillars of Productivity (3POP) framework presented in this article uses strategy, operations and technology as three pillars that stand upon a base of solid organizational culture. <br><br>Strategy, the first pillar, is usually given minimal attention by SMEs, who focus instead on tactical operations. However, SMEs that follow strategy-execution processes almost always outperform those that do not. After clarifying a company’s mission and performing strategic analysis, a firm should execute its strategy through its operations. This pillar is more flexible and open to continual adjustment, especially in smaller firms. Finally, using technology and collecting quantitative and qualitative data to support decisions is critical, but the wrong investment can make or break a business. While aligning the three pillars is key, the first step to significant productivity improvements is creating a supportive culture. Willingness to change, tolerance for failure and acceptance of calculated risk are almost always needed to realize strong productivity gains. Ultimately, culture characterizes a firm more than any other part of the framework.

The Wits Reproductive Health and HIV Institute (WRHI), a South African non-government organization, played a crucial role in turning the tide in the fight against HIV/AIDS in Africa. The organization significantly influenced the national response to the HIV/AIDS epidemic through its credibility, research output and multiple stakeholder engagement. The collaborative multiparty relationships between WRHI's stakeholders were a key component of the organization's success. However, WRHI’s sustainability faced serious challenges in the rapidly changing operating environment, particularly since the organization was totally dependent on funders. What strategic initiatives should WRHI pursue?

Fire captains have only a few short minutes to pull together their team, develop an action plan, and communicate the situation to all team members. This article outlines some basic principles of firefighting and reveals lessons that business leaders can draw from firefighters regarding how to mobilize teams to address dynamic problems. 1) Simplicity: While problems are complex, the teaming process should be simple and the structure should provide all team members with a shared mental model. 2) Flexibility: This allows adjustments to a changing environment. 3) Standardization: Having a common approach to and understanding of team functioning is critical. 4) Modularity and Scalability: Allows leaders to add or scale down resources. 5) Unity of Command: One person takes on the leadership role. 6) Information Management: Business teams need to continuously collect information relevant to the problem. 7) Accountability: All functional areas and team members remain responsible for their actions. 8) Critique and Debrief: All team leaders must report on their performance, underline success factors, and reveal areas for improvement. 9) Interoperability and Integrated Communication: Allows team members from multiple levels and functions to work together on large-scale problems.

Innovative, high-performing workplace cultures enable business success. This article uses interviews with executives, researchers and authors to identify obstacles, enablers and solutions for workplace culture. Key obstacles to healthy workplace culture include poor leadership, employees’ selfish ambitions, and years of ingrained culture. Enablers of winning culture include employees believing firm success to be related to their own success, as well as open dialogue between leaders and employees. Leaders should define and share a clear picture of what the desired workplace should look like. They should also establish trust and embrace management training, while aligning culture, goals and performance. As this article explains, CEOs should understand the existing workplace culture and evaluate the tolerance for change; create a clear, shared vision of what they want the new culture to look like; be honest about why they are changing the culture, and about their own leadership abilities; take care of their team and ensure that team members feel connected; and build a strong management system and framework.

If leadership is important to performance, then followership must be too, yet followership is a comparatively neglected concept. This article defines followership as the ability to take direction well, adhere to a program, be part of a team and deliver what is expected. In fact, how well followers follow is almost as important as how well leaders lead. The article identifies eight qualities of followers. 1) Judgment: The key is knowing the difference between a directive that a leader gives that is questionable and a directive that is truly wrong. 2) Work Ethic: This includes diligence, motivation, commitment, attention to detail, and effort. 3) Competence: Followers must be competent, although leaders are obligated to assure this. 4) Honesty: Followers owe leaders honest and forthright assessments, especially when a leader’s agenda seems flawed. 5) Courage: Followers need the courage to be honest. 6) Discretion: Gossiping and speaking inappropriately about work matters is unhelpful and often harmful. 7) Loyalty: This is particularly important when problems exist with leaders. 8) Ego Management: Followers need to remember that they are team players.

Though the leadership deficit in India is widely recognized, few companies have successfully addressed it. The challenge manifests itself in a quantity deficit, where few qualified candidates for managerial positions exist and leaders do not retire soon enough; an experience deficit, where young, inexperienced managers are launched into senior positions; and a talent war, where competition for talent is intense and companies realize that leaders they have cultivated could be hired by rival firms at any time. The main causes of India’s leadership challenges are a) demographics: India is a young nation lacking a large supply of experienced leaders; b) the booming economy: the pace of growth has placed great demand on the supply of talent; and c) a technology mindset: Indian business leaders have focused on developing technology rather than people. Building leaders from the bottom up involves five steps: 1) Invest in senior management effectiveness; 2) Set up feeder roles and successor pools among the next tier of leaders under the top team; 3) Manage the technical ladder; 4) Identify and promote high-potential employees; and 5) Build quality cadres at the junior level.

Are leaders born or made? The answer is both. Indeed, good leaders are the product of a never-ending process of skill and character development. This article reveals ten pathways for learning to lead: 1) performing: excelling in a role; 2) risking: taking chances to lead and learn; 3) stretching: going beyond one’s own comfort zone; 4) learning: reflecting on past events to discern lessons; 5) self-awareness: seeking to know one’s strengths and weaknesses; 6) trusting: relying on one’s abilities and those of others in order to build a reputation of trustworthiness; 7) adapting: acting appropriately in different situations; 8) mentoring: learning from other leaders; 9) observing: watching in order to gain a better understanding; and 10) integrating: seeing the “big picture.” <br><br>This article shows that many leaders lack an early desire to be glorified as a leader and that good leadership can be learned by anyone with basic intelligence and a strong commitment to ongoing development and collaboration. Making time for continual learning and avoiding arrogance or closed-mindedness is crucial. One tech-sector billionaire reveals how he frequently cleans the family lavatory after work, as a reminder that all contributions are valued. Ultimately, CEOs must create channels for feedback, and “command and control” should make way for sharing control over decision making.

KSOIL has a project that bills customers on units of documents delivered. The productivity of employees is evaluated on the same basis. The output of the home-based team has increased two to three times compared to its previous office-based performance. As a result, the rewards and compensation for the home-based team have doubled compared to office-based employees. The head of HR is convinced home-based workers are using unfair means to achieve such high output. She is against the decision of the project manager to increase the size of the home-based team. She believes this will only increase the unrest among office-based workers. The general manager needs to make a decision soon, while keeping in mind the profitability, employee welfare and ethics of the firm.

Google has been ranked as the best place to work in the United States. It practices a time allocation method of 70-20-10, with 70 per cent of employees’ time devoted to Google’s core business of search and advertising, 20 per cent to off-budget products, and 10 per cent to ideas based on personal interests and competencies. Luxury perks and generous rewards for employee innovations improve the likelihood that employees stay at Google instead of forming competing ventures. The firm is notable for its employee loyalty and investor confidence; the two founders and the CEO, Eric Schmidt, even took an annual salary of $1 just before the initial public offering in 2004. Schmidt’s leadership practices can be summarized as follows: 1. Get to know your employees. 2. Create new ways to reward and promote your high-performing employees. 3. Let your employees own the problems you want them to solve. 4. Allow employees to function outside the company hierarchy. 5. Have your employees’ performance reviewed by someone they respect for their objectivity and impartiality. This article concludes with the eight qualities of Google’s leader-managers, which relate to coaching, empowering, well-being, productivity, communication, career development, vision, and technical skills.

Corporate directors should look for three criteria in executives: competencies, commitment, and character. This article focuses on leadership character, the least understood of the three criteria. The authors met with over 300 business leaders on three continents, who identified character weaknesses or defects — including overconfidence, lack of transparency, and lack of accountability — as central to the Global Financial Crisis. The authors posit 11 dimensions of character — integrity, humility, courage, humanity, drive, accountability, temperance, justice, collaboration, transcendence, and judgment. They examine why character has not been studied extensively, given its relation to the crisis, and point to the lack of resources that the private and public sectors have spent on studying character (in contrast to competencies), as well as the common misperception of character as a “soft,” non-quantifiable construct. Character is revealed by how individuals behave in particular situations, and a full character assessment requires a deep and wide-ranging examination of a person’s life and work history over an extensive time period. Directors can influence character development in their organizations by discussing dimensions of character during appraisal processes, developing formal leadership profiles, and introducing character-focused discussion into their own board assessments.

With the leaders of global organizations increasingly unable to individually grasp the full complexity of firms’ worldwide operations, the task more than ever falls to groups of leaders at the top. These groups of leaders must be diverse in expertise and experiences and yet also synchronized in directing global organizations. These two imperatives often lead to conflict, but leaders can overcome difficulties by forming “leadership ensembles.” Effective leadership ensembles are characterized by foresight and preemptive change, agility rather than fixed governance roles, and the application of synthetic intelligence. Research on top executives has yielded four blueprints for decision making that successful ensembles follow. “Incubators” value a cohesive corporate culture and emphasize cultural fit with any new addition. “Diplomats” allow flexibility between local businesses and headquarters. “Engineers” try to optimize organizational structures and processes and tie their firms together, as well as foster a single culture. “Directors” want decisions to be made by those closest to the operations. Global leadership ensembles can improve their decision making significantly by understanding which blueprint leaders prefer; continually assessing how their preferred blueprint helps or hinders the organization’s goals for global expansion; and understanding the connection between the blueprint and how the ensemble operates.