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WHARTON LEADERSHIP DIGEST 

January, 2007, Volume 11, Number 4

CONTENTS 

Developing Leadership Talent:  How Organizations Prepare Their Present and Future Leadership  

Finding Your Moral Compass: Reflections from General Peter Pace, Chairman of the Joint Chiefs of Staff 

Research Review:  Does Leadership Behavior in Teams Matter?


Developing Leadership Talent:  How Organizations Prepare Their Present and Future Leadership

The 11th Annual Wharton Leadership Conference, Philadelphia, June 7, 2007  

This one-day intensive conference is devoted to exchanging ideas about how managers and organizations can best build their present and future leadership.  Presenters draw upon their own organization’s experience to find, identify, recruit, prepare, and train their talent for positions of responsibility.  Where are the best sources of talent?  What are the best development experiences for building leadership capacities?  When is the time to invest in leadership development?  Who has the best programs for fostering leadership – and what are the secrets of their success?  The presenters bring not only the developmental methods of their enterprise but also their own personal developmental experiences into active dialogue with conference participants.   
 

FINDING YOUR MORAL COMPASS: Reflections from General Peter Pace, Chairman of the Joint Chiefs of Staff 

Serving as the Chairman of the Joint Chiefs of Staff since his appointment in September, 2005, General Peter Pace is currently the highest ranking member of the Armed Forces and the principle military advisor to the president and secretary of defense. Gen. Pace, who graduated from the United States Naval Academy and earned an MBA at George Washington University, began his military career by serving as a platoon leader in Vietnam. Since then, he has held command positions at nearly every level of the service.  

As he has in past years, Pace spoke on November 28, 2006, to two sections of Professor Michael Useem’s “Managing People at Work,” a course required of all first-year Wharton MBA students. What follows is an edited version of Pace’s opening remarks to both classes.  

GENERAL PETER PACE:  My first piece of advice is to ask yourself two questions: Who are you today, and who do you want to be at the end of your career? I’m not talking about being the head of a corporation. I’m talking about your moral compass – what you will and will not allow yourself to do. 

When I first started out, I thought I knew exactly what I would let myself do. But the test came for me in combat. I learned quickly that the emotions of the battlefield make you think about doing things you would never consider doing in a quiet moment.  The same thing happens, I believe, in the corporate world. It certainly happens in Washington, D.C.  

When you’re walking into a room full of very important people, whether it be in government or in business, you need to know what you will allow yourself to do and not do. If you’re sitting there, as a person with kids, a mortgage, responsibilities, and the company you’re working for starts talking about doing something you think isn’t right, or your boss asks you to do something you don’t think is right, what will you do?   

You don’t get the opportunity to think when those challenges to your moral integrity arise. You’ve got to have an anchor already out there. Sitting in these classrooms, getting this great education, is the perfect time to think about who you are and what you’ll allow yourself to do. Because you will be challenged at times when you least expect it and are least prepared to deal with it. If you don’t have a moral foundation, then the winds assaulting your integrity can blow you off course.

My guess is you all are going to be enormously successful; you are going work in businesses that earn huge amounts of money. I cannot think of an environment where your integrity and moral compass would be tried more often. 

In combat, I learned to appreciate the courage of individuals who took personal risk. Since that time, I have also learned to appreciate individuals who have the courage of their convictions in group settings. In combat, if you make a mistake, you might die. In business, if you are sitting with your bosses and you put your opinion on the table, you don’t get to die; you have to live with what they think of you. 

I am often involved in senior meetings in which the conversation among many powerful people is going in a certain direction. I have enormous respect for someone who has the temerity to say, “I see it differently.” How you stand up for your ideas depends on your own comfort level. But if you are known as a person who unemotionally states your facts, who tells the truth as you know it, you will always be welcome at meetings, and your counsel and advice will always be sought. You will not always be right, you will not always carry the day, but you will always be respected as someone who will speak your mind as honestly and truthfully as possible.  

Just this past Sunday I went to a meeting, and I knew in advance what the topic was going to be. Before I went, I took a piece of paper and wrote down: these are the things I want to have happen as a result of this meeting; these are the things I do not want to have happen; these are the things I am going to say; these are the things I am not going to let myself say yes to. I took a quiet moment to just sit down and think it through.  

When I went to the meeting, I got across every point I wanted to in the two-hour meeting, not in the order I had them, but just as they fit into the conversation. As others came up with ideas that were on my no-thank-you list, I was prepared to say why I didn’t want to do those things. That does not mean everybody in the room was happy to hear the no-thank-you parts of my message. But I walked out of that room saying to myself, “I am walking out of here as the guy I wanted to be when I walked in.” 

That opportunity happens to me every day as I work in government. It will happen to you more often as you become more senior, but it will certainly happen. 

General Pace: "I have enormous respect for someone who has the temerity to say,
'I see it differently.'"   (Photo by Tommy Leonardi)

My second piece of advice concerns integrity. You are coming into this game with your name and your integrity. Nobody’s going to change your name, and nobody can take your integrity away from you. Only you can give it away.   

All of you in this room are going to be enormously successful. You did not just fall off of the turnip truck and find yourself sitting here. You’ve worked hard and earned the opportunity to come to this room. I can think of nothing sadder than the idea of you at age 50 or 60, at the end of a successful career, looking in the mirror and not liking the person you see there because you know you got where you are by selling pieces of your soul. A lot of people allow themselves to fall into that position, and the results are very sad.  

Would you allow yourself or your company to receive predated stock options?  That’s just one small example of the kind of decisions that may seem minor at the time but that challenge the core of your own integrity and the integrity of the group with which you work.  

If you can walk into every meeting knowing who you want to be when you walk out, you will walk out being that person. If you know fundamentally the extent of your personal integrity, then when the opportunity comes for you to do something that isn’t quite right, you’ll at least have something to hold on to. 

My third and last piece of advice is, take care of your people. You may have one person working for you; you may have a hundred; you may have a thousand. In whatever way is comfortable for you, let the people who look to you for leadership know you care about them. You can do that by just walking around and talking to them. When they need something, try to help them. It doesn’t have to be work-related, as long as people know you care about them. Being a human being to them will make a lot of difference.

Looking back on my own career, it’s evident to me that because people I worked with believed I cared about them as individuals, they took things I did imperfectly and cleaned them up and got them going in the right direction. If you don’t like your boss, and he or she does something stupid, you would just as soon watch them fall. If you like them, you don’t want them to fall. If you believe they care about you and where you’re going, you want them to be successful so you can all be successful.  

What kind of person do you want to work for? Try to be that person yourself. When you are facing a decision, stand back and ask yourself, “If I was my employee, what would I expect me to do? If I was my boss, what would I expect me to do?” Take yourself out of your body, as it were, and look at the problem from the perspective of a subordinate, a peer, and a superior. Armed with that thought process, make the decision with which you are most happy. Ninety percent of the time you’ll be just fine. If you are right 90 percent of the time, I, as your boss, will gladly take the 10 percent of the time you are wrong.



General Peter Pace shakes hands with students after class
(Photo by SSgt D. Myles Cullen, USAF)
 

RESEARCH REVIEW: Does Leadership Behavior in Teams Matter? 

By Mark Hanna 

Yogi Berra, the fabled manager of the New York Yankees and the New York Mets, once said, “The other teams could make trouble for us if they win.” If Yogi’s wisdom is valid, a reasonable next question is: What makes a team win, or at least function well?   

Leadership researchers could refine the problem further by asking: Do leadership behaviors contribute to functional team outcomes, and if so, by how much? These are some of the issues C. Shawn Burke of the University of Central Florida and others explored in a June, 2006, Leadership Quarterly article titled, “What type of leadership behaviors are functional in teams? A meta-analysis.” By statistically analyzing fifty empirical studies on leadership behavior in team situations, the study yielded insights beyond what could be achieved with any single study.  

Leadership behavior and outcome variables 

The researchers first had to specify what was meant by “functional team outcomes” and “leadership behaviors.” For outcome variables, they looked at perceived team effectiveness, team productivity, and team learning. For input variables, they specified leadership behaviors in terms of “task-focused” behaviors and “person-focused” behaviors. They also looked at a moderator variable of task interdependence, which could modify the relationship between the input leadership behaviors and functional team outcomes.  

The two input variables – along with their subgroup variables – and the moderator variable were defined as follows: 

Task-focused behaviors: 

o  Transactional: praising, rewarding, and withholding punishment from a subordinate who complies with role expectations;

o  Initiating structure: assigning tasks, specifying methods, and minimizing role ambiguity and conflict;

o  Boundary-spanning: collaborating with others outside the team, scanning the environment, and negotiating resources for the team; 

Person-focused behaviors: 

o  Transformational: providing followers with a sense of purpose and values, demonstrating concern for followers, providing intellectual stimulation, and articulating a inspirational vision along with a displayed optimism that the vision will be achieved;

o  Consideration: maintaining close social relationships and group cohesion;

o  Empowerment: coaching, monitoring, providing feedback to followers in a participative, consultative style to develop their self-management and self-leadership skills;

o  Motivation: promoting team members exerting continued effort, especially in times of difficulty; 

Moderator variable:  

o  Task interdependence: the degree to which team members must depend on one another to perform tasks and achieve goals. 

Method 

The authors conducted electronic searches of computerized databases using keywords relating to team leadership or group leadership going back as far as 1900 and including up to August, 2004. After applying various criteria for relevance, they identified 231 published and unpublished studies for potential inclusion in the meta-analysis.  

The authors then developed a coding scheme to quantify the study characteristics and results. Two industrial/organizational psychologists with high inter-rater reliability were used to rate the studies, and any disagreements about whether to include a study were resolved by consensus.

After all the coding and selection criteria were applied, the authors came up with a final data set of 50 empirical studies with 113 different effect sizes. The pooling and analysis of the study findings was aided by the computer program Comprehensive Meta-Analysis. In order to aggregate findings across all 50 studies, all test statistics were converted to an index of effect size, which is designated with the letter “r.”   

Results 

Does leadership behavior in teams matter? Results suggest the use of task-focused behaviors is moderately related to perceived team effectiveness (r = .333) and team productivity (r = .203), accounting for 11 percent and 4 percent of outcome variance, respectively. The relationship between task-focused behavior and team learning could not be determined because the sample size was too small. Person-focused behaviors were related to perceived team effectiveness (r = .360), team productivity (r = .284) and especially team learning (r = .560), accounting for 13 percent, 8 percent, and a whopping 31 percent of variance, respectively. All of these results were statistically significant at the p<.001 level, which means the chances of getting a test statistic as extreme as or more extreme than that observed by chance alone, if the null hypothesis H0 is true, was less than 1 in 1,000. 

As far as the subgroup variables were concerned, perceived team effectiveness was most closely linked to leadership boundary-spanning behavior (24 percent of outcome variance) and empowerment behavior (22 percent of outcome variance). Team productivity was most closely linked to leadership empowerment behavior (10 percent of outcome variance) and motivational behavior (9 percent of outcome variance). Team learning was most closely associated with person-focused leadership behavior (31 percent of outcome variance) and empowerment (31 percent of outcome variance). 

The results on task interdependence were less clear due to small sample sizes and effect sizes, but the authors suggest that:  

“Leadership in teams is relatively more important in achieving efficacious team performance outcomes when task interdependencies are higher. Therefore, as the dependencies between team members increase, so too apparently does the importance of leadership in orchestrating the adaptive coordination required to achieve effective team outcomes.” (p. 299) 

Final Observations 

The results of this meta-analysis show that leadership behaviors – both task and person-focused—do matter in team outcomes, though they tend to account for only a small-to-moderate portion of the variance. Nevertheless, every factor counts in the final outcome. The lessons for leadership educators and trainers interested in improving team performance outcomes are evident. For perceived team effectiveness, pay more attention to boundary-spanning and empowerment behaviors. For team productivity, emphasize empowerment and motivational behaviors. For team learning, emphasize person-focused behaviors, and especially empowerment behavior – coaching, monitoring, giving feedback, encouraging participation, and providing a strong sense of self-worth and self-efficacy. 

These results lead us back to Yogi Berra, who observed, “In theory there is no difference between theory and practice. In practice there is.”
 

Note: Mark Hanna is a freelance business writer based in Cedar Rapids, Iowa. He can be reached at markhanna@mchsi.com. The article’s complete reference is: C. Shawn Burke, Kevin C. Stagl, Cameron Klein, Gerald F. Goodwin, Eduardo Salas, Stanley M. Halpin. “What type of leadership behaviors are functional in teams? A meta-analysis.” The Leadership Quarterly 17 (2006): 288-307. To obtain the article, click here.

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