Leadership Plan Addendum & Finance
Many companies and organization these days continues to find best and effective ways on how they can achieve optimal performance in their organization and at the same time anticipate and contain the different organizational challenges around them. Organization these days aims on studying how they can provide easy and efficient services for their customers as well as with their staffs. This can also be observe in manufacturing industries, where the production units are being look into by companies on how they can efficiently produced products fast and efficient but also safe. This is mainly the trend now for most companies.
Innovativeness has become the main competitive edge for most companies and this changes the global economy. Most managers these days do not anymore stick with the old and traditional process, which most of the time the main reason of their downfall. Today, companies invest more on efficiency, security and innovativeness, and no matter how cost it may incur them during the initial stage, it doesn’t matter. Because, for these companies, they would know that reaping the benefits through the use of this advancement will soon come and stability in their process and more efficient organization will be achieved.
That is why in this trying times middle managers, which they are the main person who are in close interaction with the staff and at the same time directly reporting to top level managers. Middle managers are those who are expected to be the one effectively implementing the process and at the same time provide efficient feedback to the top managers are expected to produce better results. But this has to be done carefully and it needs to have a lot of study and observation as well as compassionate feeling in order to effectively do the task.
In this paper it will provide all these effective actions and initiatives that mangers do and form it in a formal leadership plan that will address political, management, environment as well as leadership issues within the organization. II. Transformational Leadership Plan, a key to Optimal Financial Strategy In this part, it will cover some of the highly performing global companies on how they apply transformational leadership and the plan they apply provided them constant stability.
This part will also cover these specific topics: (1) Current evaluation of the organization, (2) financial performance, (3) its impact to global environment, and (4) and the personal leadership ways they applied as well as management style. These are the important ingredients that should cover any transformational leadership plan which are the main keys for sustainability in any business. But before going into what leadership transformation plan, we should look first on some of the leadership theories applied in the organization.
First, it should all start by understanding the difference between leaders and managers and what are expected on them. Leaders are those unique individuals that can immediately motivate people to produce better results. They are charismatic in some ways that they can easily be followed by their subordinates. While for managers, they are more expected to be implementer of requirements and would always make sure that everything is taking at the right place at the right time.
But, what really are the important roles or the basic concepts about leadership roles in an organization. First, the main driver for leadership and leadership roles in an organization is mainly focuses on quality. In the global economic perspective, quality is more known as TQM (Total Quality Management), this is actually the main focus for most leaders in the organization, and specifically how they can perform and apply the right processes on it.
There are actually three main principles of quality management: (1)customer focus, which simply means that companies should always look at the concern of their customers in order to improve their process and service, (2) teamwork and participation, this however means that companies knows that it should not only customers that needed to be focus on but more importantly the men and women in the organization as well, most specially they are the one facing the customers and issues starts from them.
Lastly, (3) continuous improvement, and this is the most important of all, because for leaders also needs to understand that business never stops looking for better ways how they can improve their process in order to continue be competitive in the industry where they belong. (See Figure 1). Figure 1. Theoretical Framework for Leadership for Quality. (Lakshman, C, 2006, p. 7) In this basic theory of leadership, it shows that leaders must focus mainly on achieving total quality in all their efforts in order to facilitate work within the organization effectively.
After discussing this theory of TQM, we can now proceed on evaluating an organization on how they apply transformational leadership plan. Going into the leadership strategies and plan that were applied by companies in order to resolve some future issues involves understanding its customers or its clients. For Nevada State College, they studied that their annual growth of approximately 8% a year with 12,000 new residents every year which gives them high potential enrollment for the school. The school has established a strategy that focuses on how they can attract these high potential enrollments in their organization.
With these analysis and research, they have formulated a strategy that leaders within the school must apply and this is what the school called as The Iron Triangle at NSC. This strategy has helped the school attract more and more students in their school. (See Figure 2). Figure 2. The Iron Triangle at NSC. (Thomson, G, 2007, p. 4) In the leadership practice ad well as management style that applied by the school, each unit or group within the school evaluate the achievement of each goals and sub-goals of the teams.
Also, in this approach each functional units needs to perform quality and will be evaluated carefully by leaders with the use of business sound metrics. The school even provided a specific guideline on how this approach is effectively implemented and followed and it involves behavioral concepts that will keep leaders and their staff in achieving its vision and mission for the school. (See Table 1). Table 1. Alignment of NSC Organizational Behavioral Factors. (Thomson, G, 2007, p. 7)
In these behavioral patters, each and every group and business have clear guidelines on how they will perform better in their respective duties within the organization. Leaders will help also in facilitating these behavioral guidelines in making sure that everything is followed accordingly. Another known global company that continues to focus on how leadership impacts its performance is GE (General Electric), for them managing its HR or Human Resource is the most important key and strategic approach to address issues in transformation.
Yearly, the company carefully evaluates how they manage its human resource, what important actions need to take like what benefits, performance evaluation and even career management must be look into. Particularly in the Healthcare side of their business, they implemented a yearly program; the company provides a yearly human resources leadership program that will help their leaders and staff in preparing leaders to achieve organizational excellence.
The main agenda includes: (1) Healthcare and the changing roles of human resource management team, (2) Changing HR roles based from the current implication and changes in the organization, (3) Focus on health leadership competency and self assessment, (4) HR change leadership, (5) Some of the strategic HR alignment and its assessment, (6) Action Plan, (7) Importance of constant team reporting, (8) Identifying future roles of HR, (9) Strategic HR Application and Important action plans, (10) Talent management, (11) Importance of change management and achieving organizational excellence, lastly (12) Importance of Team within the organization.
These factors for continuous change particularly for the healthcare business of GE have helped them be consistently be on the top and have provided batter results of its financial performance. It provides them not only stability but also respect in the global business world. (Strategic Human Resources Leadership Program, 2008).
In fact these can be evident on the revenue reports that GE business continues to achieve as they have sustained the business over the last three years and continues to grow more and improved more in its financial standing. (See Table 2). Revenue – Quarterly Results (in Millions) FY (12/08) FY (12/07) FY (12/06) 1st Qtr 42,273. 0 39,200. 0 35,808. 0 2nd Qtr 46,891. 0 42,384. 0 37,745. 0 3rd Qtr 47,234. 0 42,512. 0 37,874. 0 4th Qtr 46,213. 0 48,533. 0 41,277. 0 Total 182,611. 0 172,629. 0 152,704.
0 Table 2. GE Quarterly Revenue. (General Electric Co: Highlights, 2009) With the report presented above, it can only show that GE has responded to the challenges that go into its company and continue to work hard achieving and providing highly effective business and services to its clients and its own people. This also shows that leadership transformation are not just mere presented papers that are only given to its people but more importantly it is leadership by actions that is most needed.
In the global impact of these strategies and leadership transformational plan and approach that were applied by both organization above, clearly the management style that was applied focuses mainly first in understanding both the internal strategies is needed as well as learning the external opportunities are important. Companies must not focus only on the opportunities but they should be more enlightened about how they can improve their own system in order to be successful in their business or organization.
Global impact indicates that high ethical standards are important. Ethical practice is one of the most difficult aspects of learning and development for human potential, most specially these days where diversity are increasing. There are actually three basic approaches applied when it comes to ethics: first, there should respect one another within the organization, secondly, ethical behaviors may be characterized by virtues of justice, charity, and generosity. And last is ensure that company achieves greatest happiness.
For company to carefully address this issue, like what happen to GE and NSC provided above, there are learning and development activities that concerned with ethics that they have applied and these includes: companies should be aware of the compliance of law regarding equality and non-discrimination, always promote good practice, ensure equality of access to all trainings and development opportunities, and lastly, contributing to affirmative action activity where necessary.
There are also many factors that affect diversity which contributes to the pressures forcing action in managing diversity. But these issues and concerns can closely be performed effectively through eight stages on how they facilitate in planning and learning activities and events. (See Figure 3). Figure 3. The Wheel of HRM and the Business. (Harrison R, 2005, p. 11) In these seven stages it shows that in this global trend in business, where companies are continuously expanding and typically local businesses are already a thing in the past.
The competition these days is to go global, these globalization trend has made companies to assert themselves to stay in the business and be prepared in the very competitive level of business which nor only quality and costs are important. In order for this globalization to be achieved, companies must apply these factors as the main sources of competitive advantage from a global strategy.
In this study, it shows that most companies are starting to look into the future where more and more companies are performing business off shore and having to work with multi-diverse people are necessary in order to contain the financial challenges in our present times. The way you communicated and address personal issues and leadership styles in the business is essential and highly necessary because it keeps the business from working smoothly and with respect.
This may not be as clear as for NSC but it actually applies just the same, because in every year as they have studies there are an increase population in their state and they need to understand the character of these new markets and that is definitely what GE also does, most especially as a global company they have to find ways and continue to study and research how they can actually work with extremely different employees and customers worldwide. III. Impact to Finance, Management, Political, Community and Human Capital on Effective Leadership Transformational Plan
In the study that was conducted above, it shows that effective management of its people and not just its customer is important. Working with improving the process based from customers and its own people is necessary in order to achieve high standards and stability in the business. Financially, it shows above that GE experienced better financial standing because of its commitment to achieve excellent service and understanding to the needs of its people is the main ingredient to succeed in the business.
Leaders on the other hand for NSC has found out that in order to gain financial success is however not only to look into the quality of service is important but in fact it should also be understanding the potential opportunity around them and that was identified by learning the population or customers is necessary as well. Politically, there will always be needed actions to do as well, like learning the potential business trends and policies for GE when performing business off shore is important.
The main reason behind that one is that for them to globally adopting the processes that are politically accepted in that location. This is not that far if you also study community and environment, the main reason however is that environmental standards also follows policies and companies and its leaders must also address in order to gain more confidence in performing business and in return gives confidence for leaders in performing business. Lastly, human capital, there are some trends and policies that are also important to be conducted in order to completely perform the leadership transformational plan.
This must include understanding the needs of its people, specifically helping them how they can perform at a high level that in return will give the organization stability. In the global business trends, that would definitely help middle managers and leaders in performing transformational leadership plan, here are some of the important competitive actions that needs to take in order to achieved competitive advantage: (1) Efficiency, where company must have access to more customers and greater markets.
This can also be seen to other companies who made their presence to more countries abroad and has seen operational flexibility and better production cost; (2) Strategic, always aims in providing the most unique and effective product to the market which gives clear advantage; (3) Risk, have formulated strategic approach in analyzing and managing risks, which carefully applied through the different locations where they operate; (4) Learning, continues research and development is applied in the organization, most especially doing study on how to produce more quality product and more efficient service, and lastly, (5) Reputation, which will help the company or organization gain respect over its competitors. (See Figure 4). Figure 4. Source of Competitive Advantage. (Global Strategic Management, 2007)
In the figure that was presented above, it shows how a company they can apply their global competitive advantage over their competitors using the three most important strategic objectives. These also assist companies to better implement their process according to the objectives, with company exploiting and focusing only on their main edge and further enhancing that advantage with their competitors will make their business achieve stability and better productivity. IV Conclusion As a conclusion of this paper, it clearly presented that for a company to achieve in this very challenging times of the business, there are many aspects and factors that needs to be addressed carefully.
Like in the featured organization provided in this paper: Nevada State College and General Electric Company, learning not just the opportunities that lies ahead is important but more importantly what these company has prioritized as well is learning how they can improved their internal human resource management as well as finding ways on how they can work with it based from their current financial standing. In this paper it also provides detailed guides and steps before performing transformations leadership plan, which includes: careful evaluation of the company performance, learning the financial performance, their current impact to environment, and lastly, what personal leadership and management styles applied and what should be done in order to perform effective transformational leadership plan.
Lastly, this paper also tackles the common impacts in business that needs to be look into before performing transformational leadership plan like political, financial impact like performing only based from its capacity, management, community and human capital factors and issues. With these factors, this paper has provided some effective actions and remedies that would definitely help organization achieve stability in their business and organization as a whole.
Works Cited GE Quarterly Revenue. (2009). General Electric Co: Highlights, MSN Money. Retrieved January 30, 2009, from http://moneycentral. msn. com/investor/invsub/results/hilite. asp? Symbol=ge Global Strategic Management. (2007). Quick MBA, Retrieved January 30, 2009, from at: http://www. quickmba.com/strategy/global/ Harrison R, (2005).
Learning and Development. US: CIPD publishing Lakshman, C. (2006). “A theory of Leadership for Quality: Lesson from TQM for Leadership Theory. “ Total Quality Management, Vol. 17, No. 1, 41-60, Routleged Strategic Human Resources Leadership Program. (2008). National Center for Healthcare Leaders. Retrieved January 30, 2009, from http://www. gehealthcare. com/usen/service/performance_solutions/docs/StrategicHRInvitation. pdf Thomson, G. (2007). Paradigm Shift in Organizational Behavior and Leadership Plan. Retrieved January 31, 2009, from http://works. bepress. com/cgi/viewcontent. cgi? article=1018&context=grace_thomson