Study of a Leader in Business - Essay Example

Study of a Leader in Business TABLE OF CONTENTS 2 1.0 Introduction 3 1.1 Defining the Realm 3 1.2 Building from Scratch 4 1.3 Sir Richard Branson 6 2.0 Leadership 8 3.0 Branson's Leadership Abilities 14 3.1 A Move That Did Not Make Sense 14 3.2 Looking at the Man 15 3.3 The Hidden Gift 15 4.0 Conclusion 17 Bibliography 18 Abstract What is leadership For that matter what is effective leadership The questions that could be asked in consideration of this could well outstrip the answers for it is the context that matters most. It could be said that leadership is when the individual or individuals in charge accomplish the goals, objectives, duties and responsibilities they have planned to achieve and have enlisted other individuals to follow and or join them. It could also be said that leadership is the ability to motivate others to commit themselves to the attainment of a goal. But what is leadership The brutal leadership of Genghis Khan was a polar opposite from the passive and quiet leadership of Gandhi. So is leadership the recognition of how to marshal resources and people at a particular point in time by understanding the mood and temper of the people as well as the critical components inherent in the objectives Or are leadership qualities constant, displaying inherent characteristics that in differing degrees can be found in examples of leadership throughout history Is it something that a person is born with, inherits, or is learned Is there a psychological profile that identifies a leader, and if so are there different psychological attributes that can identify a great leader If these traits can be somehow quantified, are there other qualities which are present in differing degrees that determine a business leader. Is it style, intelligence, insight, a Midas touch, or elements of luck Could it be that the qualities that determine a successful business leader are attributes one is born with, or is it the ability to respond to the demands of the consistently changing business climate by finding solutions which enable one to work through vicissitudes and come out on top One common thread which is obvious in all great leaders, be they revered or scorned, is that they viewed the world, events, history, the present as well as the future in ways that were different from their contemporaries, and in such a manner that distinguished them in their era. What great leadership is, how it manifests itself in certain individuals is a subject which could entail considerable debate, thus the examination shall limit itself to one particular individual and determine if we can understand what and why this person has exhibited and demonstrated the attributes which cause us to view him in such a manner. This study shall look at Sir Richard Branson as an example of leadership in that he represents a contemporary individual who rose from modest means to become one of the world's most successful businessman in a relatively short period of time. 1.0 Introduction 1.1 Defining the Realm There are various institutions which teach leadership. Their theories and courses are rooted in physiological profiles, techniques, examples and traits that have been exhibited by countless individuals throughout history. They dissect the actions of various individuals and then try to understand those factors which are common throughout these samplings to arrive at conclusions that explain the attributes. Webster's Dictionary defines leadership as: "1: the office or position of a leader, 2: capacity to lead, 3: the act or an instance of leading,"1 which does not really provide insight as to what a leader is, in terms of leading. Maxwell (1998)2 refers to leadership as influence. And influence is: "1. A power affecting a person, thing, or course of events, especially one that operates without any direct or apparent effort"3 When analyzing this as a source for leadership it seems to pass the test of time in that Genghis Khan4 influenced the leaders of various Mongol tribes which had been at war for decades. The Mongols numbered approximately 700,000 people and under the leadership of Genghis Khan, whose given name was Temujin, he established an empire that was four times the size of Alexander the Great and lasted from 1206 to the 17th century. Alexander the Great5 (356 to 323 B.C.) ,the son of Phillip II of Macedon, conquered all of the then known world starting with the invasion of Persia using a force of just 35,000 men and defeated the greatest empire of that era. Emperor Julius Caesar Octavianus (better known as Augustus)6 is credited with restoring the Roman Empire to its glory by reinstating old traditions, rituals and moral codes which had been slowly deteriorating. Richard the Lionheart, Winston Churchill, Franklin Delano Roosevelt and the other great leaders identified through history all influenced people to believe in them, which is the core of what Maxwell (1998) states is leadership, "influence". The foundations of great leadership do not rest simply upon this one tenet, there are other attributes, characteristics and dynamics which shall be explored as well as the concept of entrepreneurship in examining what makes Sir Richard Branson an effective leader as well as businessman. 1.2 Building from Scratch Genghis Khan, Alexander the Great, Emperor Augustus, and Richard the Lionheart were empire builders. They evaluated the circumstances inherent in their eras and molded kingdoms from scratch. In business terms, which is the concept of fiscal reward in the realm of commercialism, one who builds from scratch is termed an entrepreneur. An individual who displays this trait exhibits:7 1. the ability to take the initiative, 2. undertakes organizing as well as reorganizing economic aspects to cause resources and situations to result in practical commercial uses, 3. accepts the risks and potential failures associated with such an undertaking The entrepreneur takes diverse elements and materials and increases their value through innovation, change, and foresight. From a psychological perspective the entrepreneur is a person who typically is driven internally whereby they need to create and or to establish or accomplish something is usually to ensure that they remain independent of others. These 'drives' cause the entrepreneur to look at and take risks, however they view this as an opportunity to test their mettle and succeed by working harder, faster and smarter than their rivals. One advantage of being an entrepreneur is that traditional business enterprises have organizational structures which do not lend themselves to fast decision making, risk taking, or quick adjustments. The analogy is akin to a tractor trailer and a sports car, one can just not maneuver or change directions as effectively as the other. In fact this very reason is why traditional businessmen dislike entrepreneurs, as they are threats representing aggressive approaches to the market. The scorecard of an entrepreneur begins with establishing the enterprise which in itself is an accomplishment given the propensity to take on risks, competition and brave new ground. The essential attributes attributable to the successful entrepreneur8 are: 1. Leadership, 2. Success driven, 3. Perseverance, 4. Effective decision making, 5. Consistent learner, 6. Masters time and change management, 7. Good listening skills, 8. Cash management abilities, 9. Effective utilization of humor, 10. Honesty and integrity These traits blend into an engaging personality which is the hallmark of a successful entrepreneur as they frequently navigate through un-chartered waters. In terms of pressures, challenges and work ethic, the entrepreneur's life is more stressful and demanding that the typical executive as they are directly hitched to the lead of the pack train whereby the successes or failures fall directly upon their shoulders as opposed to the corporate executive whose successes and failures are team driven.9 1.3 Sir Richard Branson Born in 1950 in Easteds Richard Branson attended the Stowe School where his entrepreneurial career, although he would not know it at the time, began.10 In reality, Branson's dyslexia wound up being an asset which would later aid him because when he was in school the work was nightmarish. In order to obtain passing grades he had to memorize and recite things word for word.11 The misunderstanding which accompanied his condition at that time caused him to seek and find ways to accomplish tasks which came easier to others. Dyslexia has nothing to do with intelligence, it is a condition whereby the individual reverses the letters12. Other individuals with this condition include Walt Disney, Albert Einstein, Leonardo da Vinci, August Rodin, Winston Churchill and General George Patton, Jr.13 all known for their ability to look at conventional things from a different perspective. The student newspaper he started was a function of his frustration with school rules and his internal drive as well as the activism of the late 1960's. The venture is notable because it involved a number of schools and focused on the students.14 More importantly, the newspaper sold advertising and in those pre-computer days putting together a venture such as this required layout and past up by hand as well as type setting and other skills as there were no word processing programs. The paper's first issue featured a drawing of Peter Blake who granted an interview15. Blake had designed the cover for the Sergeant Pepper Beatles album and this coup got the paper off to a rousing start. The next break for Branson came in 1970. The government eliminated a piece of legislation known as the "Retail Price Maintenance Agreement"16 which meant that stores could discount record prices, but none of the retail establishments elected to do so. The readership of his student newspaper afforded Branson a built in record buying population that was just the right age and he began running mail order ads. The idea was an outstanding success and he was overwhelmed with so many orders that he entered the " discount music business."17 In fact business was so good that he opened a store and named it 'Virgin' because one of his associates said "we're complete virgins at business."18 Hence, the conglomerate, which he was not aware it would become, was born! And the rest as they say, is history. The store prompted Branson to open a recording studio and his first huge hit was a recording by Mike Oldfield whose "Tubular Bells" album sold five (5) million copies19. And since nothing succeeds like success the company went on to sign artists such as Genesis, Phil Collins, Janet Jackson, Carlisle, the Rolling Stones as well as others.20 1992 saw Branson sell the Virgin Music Group to THORN EMI for $ billion USD.21 The 'Group' now consists of gigantic music stores, mobile, internet, retail hotels travel and leisure as well as airlines and consists of over 200 companies. But none of this happened just because of the timing of the 1970 government change in Retail Price Maintenance legislation, it all happened as a result of the savvy, perseverance, charisma and entrepreneurial skills of Richard Branson. 2.0 Leadership The most definitive book on leadership is Maxwell's (1998) "The 21 Irrefutable Laws of Leadership"22. It clearly lays out, with examples, the characteristics attributable to leadership in a manner that is missing in university curriculums and other source materials. Maxwell states that the following are the means via which to understand leadership as well as be able to evaluate leadership qualities23: 1. The Law of the Lid 2. The Law of Influence 3. The Law of Process 4. The Law of Navigation 5. The Law of E.F. Hutton 6. The Law of Solid Ground 7. The Law of Respect 8. The Law of Intuition 9. The Law of Magnetism 10. The Law of Connection 11. The Law of the Inner Circle 12. The Law of Empowerment 13. The Law of Reproduction 14. The Law of Buy-In 15. The Law of Victory 16. The Law of The Big Mo 17. The Law of Priorities 18. The Law of Sacrifice 19. The Law of Timing 20. The Law of Explosive Growth 21. The Law of Legacy These 'Laws" describe specifics which one can utilize to look into the leadership characteristics of an individual and determine those strengths which provide them with this trait. Examination of other sources indicated that they contained varied elements of the information in this book, naturally the terminology was different, however this one source was deemed to contain all these divergent elements in one locale. The following will explore these realms and equate them to Sir Richard Branson 1. The Law of the Lid This opening chapter states that one's "leadership ability"24 is indicative of their effectiveness. Maxwell explains that the lower one's ability to lead places a 'lid' on their effectiveness, and thus the impact one has on others. Richard Branson's "lid' rating, based upon his historical performance, must be scored high as he convinced his Board, and then countless others to finance his entry into the airline industry. 2. The Law of Influence The degree to which an individual can 'influence' others to their way of thinking, even when they are not 100% committed, is a major accomplishment in gaining a mandate and thus causing others to follow. Branson managed to accomplish this at an early age when he convinced Peter Blake to grant an interview for his first student newspaper issue. 3. The Law of Process Simply stated, leadership is a 'process' one builds upon daily. One's decisions and handling of events on prior days, as well as learning from mistakes, builds this within the minds of others. Being a leader is a position which others must see you in all of the time. Branson's early start, age 17, made this a habit for him and as natural as getting up in the morning. 4. The Law of Navigation The title of this chapter is pretty much self explanatory. A leader maps out, or causes to be mapped out the plan(s) of action for his followers, or in this case company. It does not mean that the course will not be changed, but rather that the destination(s) is clear and attainable. The diversification of Virgin into over 200 companies is a clear instance of navigation skills and ability. 5. The Law of E.F. Hutton The famous advertising slogan "When E.F. Hutton speaks, people listen"25 speaks volumes in this context. The establishment of 200 companies means a lot of individuals both within and outside of the Virgin Group have been listening. 6. The Law of Solid Ground 'Trust'. If people believe that you are being truthful, then you have their attention and commitment which is extremely important in those times when circumstances might be less than optimum. Trust means that the company can galvanize its staff to rally and thus snatch wins from the jaws of defeat. The battle which Virgin Airways encountered with British Airways that consisted of 'dirty tactics' is testament to having 'solid ground' from which to operate. 7. The Law of Respect The law of the jungle also applies to people as well. It was true for Genghis Khan as well as Alexander the Great and General Patton. People follow those whom they perceive to be stronger than they are. Be it in force of will, intellect, mind, spirit or whatever measurement one elects to employ. Branson's business experience at the early age of 17, which has continued uninterrupted, is a strength in this sense. 8. The Law of Intuition It is that sense of knowing when to strike, when to stand pat, and where the strengths or weaknesses of opponents and or allies are. It is a sixth sense which works for rather than against you most of the time. Branson's shift into airlines is a prime example of this trait. 9. The Law of Magnetism In order to lead one must be able to attract those people and forces to oneself that aid in achieving one's goals. Alexander and Genghis Khan did this as have other leaders. Randolph Fields was somehow either attracted or drawn to Richard Branson when he proposed the airline deal and this singular instance must have repeated itself numerous times in order for the Virgin Group to have grown to over 200 companies. 10. The Law of Connection Leaders must be able to communicate on many levels. They also must be able to win others over not just by power or position but a because others want to be won. Branson's legendary reputation with women, as well as his success in the music industry where personality matters, proves this. 11. The Law of the Inner Circle If one is not surrounded by loyal associates then one might suffer the fate of Julius Caesar. It seems obvious that Richard Branson has mastered this trait as only one of the thirty five directors associated with the Virgin Group has left the company since its inception. 12. The Law of Empowerment A leader must be able to delegate and to do that he must empower others to act upon their own. With 200 companies Branson has obviously mastered this important tenet of leadership. 13. The Law of Reproduction If a leader empowers others then he must also be able to select them as well as mentor them. The establishment of 200 companies which Branson has stated he leaves his managers to run indicates this. 14. The Law of Buy-In If one can not get others to share one's objectives (buy-in), then one can not accomplish one's objectives easily. When Branson looked for his Board to support his airline vision he encounter resistance and then later won them over. The examples of his student newspaper, music business and 200 companies indicates a lot of "buying-in" to his visions. 15. The Law of Victory Finding a way to win is a characteristic of a great leader. Napoleon, Alexander, Genghis Khan, Churchill, Patton, Eisenhower all found ways to win when it counted. And so has Sir Branson. His running of Atlantic Airways has garnered the respect and accolades of the industry in the 200 plus awards bestowed upon it since its inception. 16. The Law of The Big Mo Consistently referred to in sports as a defining intangible, 'momentum' is that certain something which a leader can give his followers through force of personality, enthusiasm, plans and other means. Vince Lombardi had this intangible as does Branson, as one does not and can not build an empire without it. 17. The Law of Priorities Establishing a plan of action to achieve successful ends is a key component of any business. Surely the multitude of tasks, legislation, regulations, schedules and related activities in getting an airline off the ground as well as implementing over 200 companies qualifies Sir Branson in this regard. 18. The Law of Sacrifice Being a leader does not mean that one can ride roughshod over everyone else as there are others with more power, connections or money which can result in formidable foes. And even if one is bigger than one's peers, one would not want to risk those lesser individuals banding together to combine their power against you. Julius Caesar found that this tactic can be devastating. There are times when a leader needs to enlist the aid and support of others. Asking for assistance is a position which the rich and powerful need as much as the person who has little to nothing. 19. The Law of Timing A given. Knowing when to lead, when to stand pat, when to act, when to wait, when to do just about anything is a critical component of life as well as leadership. Branson's conglomerate is a testament to timing. 20. The Law of Explosive Growth In order for a leader to develop multiple growth opportunities, he needs more leaders. 200 companies provides the Virgin Group with this arsenal. 21. The Law of Legacy A leader one day has to understand that he will no longer be able to lead. The Roman Empire understood this concept and this is why they became the world's first superpower. Branson has amply prepared for his succession. Although one source was utilized to define the characteristics of leadership, it is believed that this source contains all of the elements needed to establish this point, thus its selection as the source. 3.0 Branson's Leadership Abilities 2.1 A Move That Did Not Make Sense Why would a music industry mogul whose shoestring start wound up becoming a highly successful business in one of the toughest industries in the world decide to enter a completely new industry which he had absolutely no experience and where the cost of entry almost exceeded his personal fortune which he could easily lose That long winded question is exactly what Richard Branson decided to when he embraced the idea of Virgin Airways. Randolph Fields approached Branson in 1984 with the idea of entering into a proposal for British Atlantic Airways26. Contrary to the advice of his Board and almost everyone associated with his successful Virgin Group he decided to say yes. Given his lack of any experience in the airline business as well as the extremely high cost of entry the proposal seemed like insanity, except that Branson understood one thing, it was a consumer driven business just like all the other businesses Virgin was engaged in. Within days Virgin Atlantic was born. Branson took on the majors by understanding the principle of giving your customer more than they expect and they will come back for more. He retained his discount pricing strategy and pioneered innovations which garnered the airline awards from its inception and every year it has been in business. Virgin Atlantic has won such titles as; Best Transatlantic Airline in 1984 - 85 - 86 -87 -88- 89 - 90 - 91 - 92 - 93 - 94 - 95 - 96 - 97 - 99 - 2000 - 2001 - 2001 - 2003 - 200427 As well as over 200 other awards ranging from service to in-flight entertainment and best cargo carrier by focusing attention on the reason why the airline exists in the first place - its customers. 2.2 Looking at the Man The steady string of successes that Sir Richard Branson has achieved must be attributed to his personal leadership and entrepreneurial business style, specially in light of his decision to form Virgin Atlantic. It represented a business he did not have any expertise in and one where the risks, financial investment and doing battle with entrenched major competitors would even make Genghis Khan, Alexander the Great, and Winston Churchill wince. So, was it dumb luck, great timing, or lady luck camped on his doorstep that enabled him to succeed where he could have very well failed, or was it something else Looking at his formative years and family does not reveal any events that could not be found in any one of tens of millions of households throughout the world. A loving mother, aunts, grandmother, sisters, father28. Surely, his 'Leave it to Beaver' youthful years do not hold any hidden clues. So, delving further beneath the surface must hold some answers. However, there is one small thread which tends to indicate that Sir Branson was predisposed to doing what he did, and that was the fact that his mother, Eve, was an airline hostess after the second World War29, not much to go on but nevertheless the slim connection is there. 2.3 The Hidden Gift In the instance there is one other variable which helps to explain how Sir Richard Branson has managed to create an empire within his lifetime in a relatively short span of time. Corporations have risen to great heights over the passage of time, but relatively few accomplish this in a few decades. Examples such as Microsoft, Oracle, Dell, Amazon, Yahoo all come to mind along with Virgin. So, what is it that has enabled Sir Richard Branson to accomplish that which happens ever so rarely In his case it was something he was borne with. A condition which is shared by a select few of which even fewer manage to utilize to maximize their potential - 'dyslexia! A condition, to name a few, shared by Walt Disney, Albert Einstein, Leonardo da Vinci, August Rodin, Winston Churchill and General George Patton, Jr., as well as Ted Turner, and Henry Ford.30 Described as "The mother of learning disabilities" dyslexia causes individuals with this condition to substitute visual thinking skills to compensate for the appearance of letter that is either changed, reversed or seems upside down31. As a result individuals with this condition tend to be more creative, curious as well as intuitive than the average person. Having to compensate for this condition at an early age causes individuals to develop other skills and the difficulty of learning any subject takes on a more profound experience due to the deeper association caused by this. Once an individual with dyslexia has learned something they understand it on a deeper level and thus can do things intuitively. The "gift" resulting from dyslexia is that individuals are able to think multi-dimensionally. The effort developed at an early age as a result of this handicap heightens creativity and helps to develop brilliance. Albert Einstein's theory of relativity came to him while he was imagining "himself riding on a light wave."32 The condition has also been credited with a highly developed sense of perspective as they can " manipulate objects"33 mentally in a faster mode than other individuals. This added dimension is a hidden component that provides Sir Branson with highly developed skills in areas that are extremely beneficial. 3.0 Conclusion The unique skills that distinguish successful individuals from others has always been a source of discussion and examination. Post success analysis has always accompanied the actions of noteworthy events as well as individuals. Sir Richard Branson is an individual with the unique combination of leadership, charisma, intelligence, and timing. The preceding has attempted to analyse and provide a factual foundation via which to assess the reasons behind his successes based upon his leadership and entrepreneurial abilities. Bibliography American Heritage Dictionary. Definition of Influence. 2008. http://education.yahoo.com/reference/dictionary/entryid=i0132800 AskMen.com. Sir Richard Branson Biography. 2008 http://www.askmen.com/men/december99/6c_richard_branson.html Dyslexia the gift.com. Famous People with the Gift of Dyslexia. 2008 http://www.dyslexia.com/qafame.htm drlwilson.com. The Gift of Dyslexia. 2008. http://www.drlwilson.com/Articles/dyslexia.htm Glasscock, John . The Importance of Leadership. 2008. http://www.glasscock.us/html/leadership.html Hisrich, PhD, Robert D., Michael P. Peters, PhD and Dean A. Shepherd, PhD. Entrepreneurship. McGraw-Hill . 2005 Maxwell, John, Ziglar, Zig. The 21 Irrefutable Laws of Leadership. P. 11. Nelson Impact Publishers. 1998. Nelson, David. The Emperor Augustus: 27 BC 0 14 AD. 2008. http://campus.northpark.edu/history/WebChron/Mediterranean/Augustus.html Popovic, John. Alexander the Great. 2008. http://1stmuse.com/frames/index.html Shepler, John. Richard Branson's Virgin Success, The Incredible Triumph of an Enigmatic Entrepreneur. 2008. http://www.johnshepler.com/articles/branson.html Snowling, M.J. In Dyslexia. P. 14-28, Blackwell, Oxford, United Kingdom. 2000 The Saguaro Institute. Until You Have Lived It The Life of an Entrepreneur. 2008. http://www.saguaroinstitute.com/Until_You_Have_Lived_It.htm virginatlantic.com. 2002. Press Information Kit. http://www.virgin-atlantic.com/pdf/vaa-press-kit.pdf#search='history%20of%20virgin%20atlantic' virgin.com.. Richard's autobiography. 2008. http://www.virgin.com/aboutvirgin/allaboutvirgin/richardsautobiography/default.asp Virgin.com. Who's Richard Branson. 2008. http://www.virgin.com/aboutvirgin/allaboutvirgin/whosrichardbranson/default.asp worldhistory@fsmitha.com. Genghis Khan and the Mongols. 2008. http://www.fsmitha.com/h3/h11mon.htm Read More