Business Leadership, Prince Bin Talal - Essay Example

Running Head: BUSINESS LEADERSHIP: PRINCE AL-WALEED BIN TALAL Theoretical Background From a theoretical perspective, business leadership refers to the process of exerting a social and economic influence on an organization. It involves providing a systematic direction through which a group of people in the society should follow in order to achieve some predetermined objectives. According to Miller (2011), a business leader act as the arrowheads providing a direction to all the human resources working for any given organization. In this case, a business leader provides guidance as well as direction to subordinate employees regarding the desired course of actions. These leaders draw their authority from various attributes including charisma, formal power or even behavioral or reverence power. The leader influences occupational behaviors of individuals and groups through systematic structures, which facilitates communication within an organization. Miller (2011) adds that leadership, especially business leadership, requires some inherent social and professional skills in order to facilitate execution of responsibilities. In this case, different business leaders possess different leadership skills, which directly influence the success level of their practices. Leaders with comprehensive and positive leadership skills have high chances of achieving greater goals compared to those with the minimum requisite skills. Acquisition of requisite leadership skills depends on factors like social and economic background of an individual. In this regard, we will illustrate the application of leadership skills by examining one successful business leader within the Islamic business context. Al-Waleed’s Bibliographic Information In the essay, we feature an influential business leader from Saudi Arabia called Al-Waleed bin Talal. Al-Waleed, who belongs to the Saudi Royal family, is a business leader and an investor. He was born in Jeddah on March 7, 1955. He derives his roots from Arabs most celebrated personalities, King Abdul-Aziz Alsaud, who was the founder and leader of Saudi Arabia. In addition, he is the grandson of Raid El Solh, the iconic figure behind Lebanon’s drive for independence. His father, who is a member of the royal family is Talai bin Abdilaziz Al Saud and his mother Princes Mona El-Solh. His father remains influential in Saudi’s governance up to date, especially on matters relating to the rule of law and national constitution the society. Al-Waleed resides in the Saudi Arabia’s city of Riyadh with his wife Princess Deborah and his two children. Being a member of the Royal family, Al-Waleed manages vast personal and family wealth across the Islamic world. He is the Chief Executive Officer for the Arabia’s Kingdom Holdings Company. Apparently, the prince seats as the company’s chair in the board of directors and hold 95% of the organization’s total shareholdings. According to Mayo and Nohria (2012), Arabian Business Journal ranks Al-Waleed as the richest and most influential Arab in the world. On March 3, 2013, Forbes magazine listed the prince at 26-th position in the ranking of the richest people in the world, with his gross wealth estimated at US $20 billion. Academic Background In his early life, Al-Waleed attended conventional academic programs within the post-modern society. Among them is his attendance and graduation from a military school in Riyadh where he learned strict personal discipline. At the age of 25, he graduated with a Bachelor of Arts degree in Business Administration from Menlo Business College in California. In addition, he enrolled for a Masters of Arts degree in Social Science and graduated with an honors degree from Syracuse University in New York. Apart from academics, the prince received substantial religious education on Islam and general sociology. In his personal life, Al-Waleed agrees that he spends a lot of his time reading and meditating on the Qur’an. As a result, the prince remains a conservative Muslim. However, he practices liberal faith with respect to contemporary issues concerning cultural and social aspects of the Muslim world. In this context, the prince has appeared on several occasions on the frontier supporting recognition of women rights in the Arab society. In this regard, Al-Waleed integrates both academic and religious knowledge in making decisions concerning his day-to-day activities. Consequently, this brings us to the section covering on elements of his personality traits, both as a business leader and as a social icon. Personality Traits With respect to his social standing as a member of Saudi’s Royal family, Al-Waleed remains the most renowned Arab in the world. His positive reputation extends beyond the Middle East into Asia, Europe, and America. Despite his state of influential social and economic wealth, the prince remains humble and understanding to members of any society. His position made it possible for him to travel to approximately 150 nations around the globe. Consequently, he met over 250 presidents and renowned world leaders in his journeys. According to KHC (2013), Al-Waleed holds on to strict philosophical guidelines derived from the Qur’an and other Islamic sacred texts. In this regard, his applies friendly social principles both in his business leadership and as an entrepreneur. As a manager, his main aim is to promote social justice by improving the lives of employees working under his leadership. In addition, his selfless and humble personality allows him to cater for the needs of the less fortunate, regardless of race or social background. Employment of these personality traits, coupled with a comprehensive knowledge on business administration places him at an advantageous position as both an entrepreneur and a business leader. Career History The Prince’s financial journey was easily facilitated by the commendable achievements of his family line in their social, political, and economic undertakings. Because of the opportunity filled environment, the prince ventured into creating and developing his own commercial empire. Al-Waleed started his successful career back in 1979 when he founded a company named Kingdom Establishment for Commerce and Trade. In 1996, the company changed its name to the Kingdom Holdings Company, with Al-Waleed as the primary shareholder. Mayo and Nohria (2012) agree that Al-Waleed acquired most of his wealth during the 1990’s when he ventured into Saudi’s banking industry. In 1991, Kingdom Holdings, under the guidance of Prince Al-Waleed, completed an acquisition of Saudi’s financial giant, Citibank. With determination and smart work, the prince managed the organization into becoming one of the world’s leading financial institutions. Consequently, the economic returns of his investments in the bank represent the largest percentage of his personal wealth. In the recent past, the prince diversified from the banking industry into other areas including real estate, information technology, retail marketing, and health. Currently, Kingdom Holdings Company comprises of numerous portfolio of holdings falling under different industrial sectors. Al-Waleed’s Management Skills a) Mission Implementation Al-Waleed developed his business empire through informed and effective management skills. In addition, development of his personal fortune has proven that he is one most competent business leaders in the world. Al-Waleed acquired Citibank when it was at the brink of collapse. In 1990’s Islamic financial institutions assumed low status compared to other leading financial institutions at the time. However, Al-Waleed’s guidance propagated the growth of Citibank into a leading financial institution, within a period of one year. As a business leader, this indicates that Al-Waleed employs effective management skills in his entrepreneurial undertakings. One instance illustrating his unique skills falls under the category of mission implementation. KHC (2013) ascertains that the prince sparked creation and adoption of a coherent and strong mission strategy meant to lead the company’s current and future investment plans. As an entrepreneur and a social activist, Al-Waleed believes that there is a need of identifying and sourcing investment opportunities from undervalued assets across the globe. In this case, Al-Waleed adopts elements of value-based management in selecting investment opportunities. As a manager, his mission is to realize and invest in undervalued assets and resources in the society. Such assets span across various industrial sectors including banking, consumer goods, energy among other investment opportunities. In this regard, Al-Waleed emphasizes the need of objective analysis in identifying potential business opportunities characterized by a potential value and growth. As part of mission implementation, Kingdom Holdings Company, under the stewardship of the prince recognizes the need of investing in long-term and sustainable business opportunities. In this case, the prince believes in continuous business development through diversifications and geographical expansions. Mayo and Nohria (2012) assert that KHC focus on the aspect of potential growth over a long time and not on short-term gains from investments. In this case, any value-promising project proves feasible as an investment opportunity. In his early years, Al-Waleed identified the banking industry as one of the potentially valuable industry in the market. As a result, he acquired Saudi’s Citibank into KHC. Through the years, the bank’s financial returns remain as the considerable wealth generator for the prince. This serves as an indication that Al-Waleed’s mission strategy concerning value based opportunities gives substantial returns. Apart from investing in one sustainable industry, the prince also acknowledges the need of developing his business through diversification. The prince appreciates the use of scientific research methods in determining the best investment opportunity. Under the prince’s guidance, KHC evaluates business opportunities with respect to elements of domestic and global market dynamics. Miller (2011) agrees that in this way, the company can objectively identify opportunities that hold promising returns in the long-term. As a result of careful scientific analysis, KHC has initiated diverse investment projects in sectors like media and technology, hotels and hospitality among other lucrative industries around the globe. Diversification of portfolio reduces the element of risk associated with investment in a given industry. This means that KHC can still remain economically stable in the event that one business industry suffers some economic predicaments. In this regard, Al-Waleed seeks to develop a sustainable business empire adopted from scientific research knowledge, through expansion and diversification of portfolio. b. Communication Strategies Communication remains one of the most salient aspects in managing an organization. Most professional duties conducted by a company’s workforce depend on the directions provided by top management. In this case, success of business undertakings depends on the ability of directions and instructions to travel from one party to another. As a business leader, communication remains inherent in passing ideas and information from top to bottom. In addition, communication process facilitates the acquisition of feedback from customers and employees. This ensures that all stakeholders share ideas and concerns concerning their commercial relationships. In this regard, Kingdom Holding Company utilizes effective communication channels in decimating information from the board team to subordinate managers. According to KHC (2013), Al-Waleed utilizes the services of an investment committee in transmitting the company’s information to all involved stakeholders. The first team comprises of an audit committee, mandated to prepare and communicate objective reports concerning risk management, operational procedures, and financial policies of the company. The committee facilitates the flow of financial information from the company’s board to departmental and regional managers. Such financial information helps managers in planning and executing their responsibilities, which include advertisements and other marketing practices. Apart from communication committees, KHC adopts the use of technology in achieving its communication needs. As the company’s chair, Al-Waleed commissioned the development of electronic modes of communicating board’s decisions to middle-level and subordinate managers. The electronic mode comprises of video conference halls where managers and board members engage in deliberative evaluation of investment opportunities. Managers from the research and development department present their findings and recommendations to the chair and board members through this channel. In return, board committee enlightens the managers on the financial possibilities of conducting a given investment project. In the process, both managers and board members share ideas on investment opportunities aimed at propagating the company’s mission on sustainable business growth. Miller (2011) agrees that such communication instances allow participation of employees in making the company’s decision. Therefore, the middle-level and subordinate managers feels appreciated and recognized in their duties; hence achieving a desired level of motivation. This translates to improved productivity within the workforce. Al-Waleed also employs appropriate communication strategies aimed at updating employees on the company’s progress in mission development. In this case, KHC, under the prince’s leadership have formulated mechanisms meant to link between the management’s reaction on investment outcomes and the employees’ participation in realizing these outcomes. Al-Waleed has another investment committee dubbed nomination and compensation committee. In addition, Kingdom Holdings have an effective human resource management department, which acts as a link between employees and the management. Within the department, there is a body mandated with implementing employee reward schemes and compensation programs. On the other hand, the section conducts employees’ performance appraisal. In case an employee’s performance exceeds the expected standards, the body awards proportional monetary or non-monetary compensation to the employee. In this context, both the investment committee and the human resource department works together to ensure employees are awarded accordingly. According to Miller (2011), the compensation awards serves as a way of showing appreciation to exemplary performance within the workforce. Continuous appreciation of employees enhances motivation and productivity. In the end, the company achieves a competent and motivated workforce committed to ensuring economic sustainability of their employer. c. Management Styles In the process of executing their leadership duties, managers use different management styles in influences employees. Mayo and Nohria (2012) say that these management styles influences the relationship between subordinate employees and the leader. In this case, a leader’s personality traits play a pivotal role in determining the nature of management style adopted by an individual. From a theoretical perspective, management styles fall under two broad categories namely; autocratic and permissive leadership styles. Autocratic leadership esteems all decision-making activities to the manager. On the contrary, permissive leaders allow employees a chance to participate in structuring workplace decisions. With respect to the two categories, KHC’s chairperson adopts permissive style in providing business directions. Al-Waleed employs permissive democrat style in guiding the workforce. In decision-making rooms, the prince allows his committee members and other managers to participate in decision-making processes. According to KHC (2013), the prince gives subordinate managers freedom to carry out their occupational mandate, as long as their undertakings remain within the company’s objectives. Such instances enhances employees’ motivation; hence translating to improved performance. Apart from being a permissive leader, Al-Waleed remains one of the most visionary business managers across the globe. His commercial success results from a strict adherence to the company’s visionary goals. The goals, discussed earlier, include a sustainable business growth, value based investments and continuous business expansion. The Citibank Group, under the prince’s leadership, achieved an excellent status as a chief financial institution in the Middle East. The prince acknowledged the fact that the Saudi’s banking industry was undervalued. As a result, he developed a value-based strategy of reviving the financial sector for the long-term course. Mayo and Nohria (2012) agree that Al-Waleed inspired the bank’s employees into realizing existence of new and visionary dreams within the Saudi’s banking industry. The prince recognized that employees need new dreams of how the banking industry can help them realize their career goals as well as their financial needs. Al-Waleed also demonstrates an affiliate management style when coordinating the efforts of employees within their work places. According to Miller (2011), affiliate leadership entails the process of emphasizing the need of team work and coordination between employees working in various departments. Therefore, leaders strive to create harmony by establishing connection mechanisms that bring subordinates close to one another. KHC’s chairman emphasizes the need of developing a motivated workforce within all sectors of its investments. Al-waleed prefers the use of appropriate communication strategies that seeks to heighten harmony and build trust among stakeholders within the organization. In this regard, such affiliate leadership enhances morale and facilitate repair of broken relationships among professionals in their respective duties. This achieves the long-term goal of maintaining a sustainably productive workforce in the organization. In addition, the prince also adopts a coaching responsibility as a business leader. Through his involvement in Citibank, Al-Waleed structures systems that facilitated career development within the company’s workforce. Such initiatives included mandatory training sessions and advanced academic programs for senior managers. This process was meant to ensure development of professional and skilled managers. Mayo and Nohria (2012) emphasize that Al-waleed created a system, which helped employees to develop a link between their individual goals and the organizational goals. In this context, Al-Waleed enabled employees to improve their skill-set; hence boosting their performance at their respective duties. In addition, the prince facilitated educational programs for employees who showed interests in wanting to proceed with their professional developments. In this regard, employees felt appreciated and included in the company’s corporate mission. The coaching programs provided by the prince in Citibank and other affiliate financial institutions witnessed increased productivity and professionalism among the employees. In this regard, the prince’s coaching management style plays a significant role in facilitating realization of the KHC’s business objectives. Leadership Awards As appreciation and recognition for his exemplary leadership as an entrepreneur, Al-Waleed has received numerous awards from different sectors in his portfolio. The prince’s venture into the hotel and hospitality industry seems to be gaining successful progress in the recent past. In 2012, Al-Waleed’s investment in Saudi received the “Best Five Star Hotel” awards for four consecutive seasons in recognition of the Saudi’s excellence in recreational tourism. In the same year, the prince received the First Order medal award in Bahrain, which is the nation’s highest honorary award, for recognition of his role in business innovation and strategic leadership. KHC (2013) says that in 2007, Kingdom Holdings Company, under the stewardship of Al-Waleed received an award as the most admired Arab investment company in the world. With these few recognitions, Al-waleed remains the most popular and successful Arab business leader of all times. Reference List Kingdom Holding Company. (2013). KHC Chairman: HRH Prince Alwaleed bin Talal. Retrieved from http://www.kingdom.com.sa/hrh-prince-alwaleed-bin-talal Mayo, A. J. & Nohria, N. (2012). In Their Time: The Greatest Business Leaders of the 21’TH Century. Pittsburgh: Havard Business Press. Miller, K. (2011). Organizational Leadership: Approaches and Processes. New York: Cengage Learning. Read More