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LEADERSHIP IN CONTEMPERORY ORGANISATION HOW SUCCESSFUL LEADERS THINK Presented by: Nguyen Thi Tra My Gilang Ramandha Putra Kathambari Ravichandran Mathiazhagan Mathivanan


INTRODUCTION Successful leaders are not born, they are made. Leaders don’t wait. The bigger the challenge, the greater the opportunity. Leaders do not follow where the path may lead, they go instead where there is no path and leave a trail. The very essence of leadership is its purpose. And the purpose of leadership is to accomplish a task.

THE LEADERSHIP EXPERIENCE fourth edition by Richard L Daft 2008. Published by South Western Cengage Learning. Page 5, figure 1.1 What Leadership involve : 

THE LEADERSHIP EXPERIENCE fourth edition by Richard L Daft 2008. Published by South Western Cengage Learning. Page 5, figure 1.1 What Leadership involve



Slide 5: 

Headquartered in North Carolina – United States. Founded in 1993 by Robert Bob Young & Marc Ewing. Well known distribution software company named RED HAT LINUX – established in 1995. Focus on Customer Software’s services, maintaining & providing data for free. MARC EWING BOB YOUNG


TWO BUSINESS MODELS Classic proprietary – Software model Get huge profits Customers don’t have the source code Free software model Narrow profit, Uncertain revenue Free source code provided to customers


HOW BOB YOUNG DIFFER FROM OTHER He is well organized and committed. He made an effort and figure out the complex relationship between pricing, profitability and distribution channels. “I can do” attitude of Bob Young enabled him to acquire scale and market leadership. Bob Young resolved the tension between two ideas by generating a new one.

Red Hat Solution : 

Red Hat Solution Combine two models: Free software model’s low product price + Proprietary model’s profitable service A new corporate market for Linux operating system (added customers’ services, free download software,…)

Natural Leaning toward Simplicity & Clarity : 

Natural Leaning toward Simplicity & Clarity Avoid complexity & ambiguity Crave certainty of determining between 2 well-defined alternatives: Right or Wrong. Take sides & try to prove our chosen model is better than the other one. Force a choice between two, we disengage the opposable mind before it can seek a creative solution

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Find the trade-offs we have to make if choosing between 2 fixed options. Refuse to settle for an “either - or” choice. Opposable minds allows us to hold 2 conflicting ideas in constructive tension. Use that tension to think our way toward new & superior ideas. Rethink the problem from the ground up. We weren’t going to win if it were an “OR”. Everybody can do “OR” Opposable Mind – Opposable Thumb


HOW SUCCESSFUL LEADERS THINK? Conventional Thinkers Leaders are Integrative Thinkers


CONVENTIONAL THINKER Conventional thinker make either or choices. Consider only obviously relevant factors while weighing options. Break problem in to pieces and work on it. Consider linear relationships- one way.


INTEGRATIVE THINKERS Integrative thinkers embrace complexity ,tolerate uncertainty, and manage tension in searching for creative solutions to problem Integrative thinkers work to see the whole problem, embrace its multi-varied nature , and understand the complexity of its causal relationship They work to shape and order what others see as chaotic


When determining which features of a problem are salient, they go beyond those that are obviously relevant. They consider multidirectional and nonlinear relationships, not just linear ones. They see the whole problem and how the parts fit together. They creatively resolve the tensions between opposing ideas and generate new alternatives. FOUR STAGE APPROACHES


BOB YOUNG’S APPROACHES TO FOUR STEPS OF DECISION MAKING STEP 1 :- Determining Salience Conventional Thinkers: They consider only obviously relevant factors among several options Integrative Thinkers: They seek less obvious but potentially more relevant consideration BOB YOUNG’S Identification: Bob Young disliked the two prevailing business model. Seeking a third choice, he considered CIO’S unwillingness to buy new technology that would be complicated to maintain Thus he found selling software service would be a superior alternative to the existing product based business

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Step 2:- Analysing Causality Conventional Thinkers: They consider one way linear relationship Integrative Thinkers: They consider multi-dimensional relationship Bob Young Analysis: He analysed the complex relationships among pricing, profitability and distribution channels He recognized that a product based on freely available components would soon become a commodity Analysis of these fundamental relationship generated a nuanced pictured of industry’s future

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Step 3:- Envisioning the decisions Conventional Thinkers: They break the problem into two pieces and work on them separately Integrative Thinkers: They see a problem as a whole, examining how its various aspects affect one another Bob Young’s realization: Young held several issues in mind simultaneously, including CIO’S concern, dynamics of individual and corporate markets for system software, and the evolving economics of the free software business Each piece pushed him towards a separate decision By considering the issue as an interrelated whole, Young realized only one player can dominate the corporate market

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Step 4:- Achieving Resolution Conventional Thinkers: They make either or choices Integrative Thinkers: They refuse to accept conventional options Bob Young unconventional business model: In order to purchase market relationship, Young devised an unconventional business model The model related two un adjustable model by combining low product price with profitable service offerings He helped companies manage software upgrades available through LINUX open source platform Thus RED HAT acquired the scale and market relationship to attract cautious corporate customers


CONCLUSION:- Bob Young seeks more relevant considerations and identified a superior alternative Young analysed the complex relationship among pricing, profitability and distribution channels Young realized only one player can dominate the corporate market Young devised unconventional business model and helped RED HAT acquire market leadership

Suggestion: : 

Suggestion: Most people avoid complexity and ambiguity and seek out comfort of simplicity and clarity We crave the certainty of choosing between well defined alternatives and the closure that comes when a decision has been made We were born with opposable mind which allow us to hold two conflicting ideas in constructive, almost dialectic tension As we don’t exercise this capability much, great integrative thinkers are fairly rare


REFERNCES South Western Cengage Learning. Page 5, figure 1.1 What Leadership involve




FACEBOOK STYLE OF LEADERSHIP When Mark Zuckerberg showed up in Palo Alto three years ago, he had no car, no house, and no job. Today, he's at the helm of a smoking'-hot social-networking site, Facebook, and turning down billion-dollar offers. Can this kid be for real? Is he an INTEGRAL THINKER or CONVENTIONAL THINKER?...............Of course INTEGRATIVE……

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