Life Skills / Case Analysis pp. 344 - 345

Your Life Skills/Case Analysis assignment is based on chapter eleven (11).

This is a chapter that deals with "Leadership Effectiveness", among other elements of leadership, it gives focus and explains the characteristics of transformational leadership, and how transformational leaders get involve and influence followers through a complex and interrelated set of behaviors and abilities.

"

1.What specific statements in this case appear to reflect individualized consideration, a core component of transformational leadership, by Branson?

2.What specific statements in this case appear to reflect intellectual stimulation by Branson?

3.What specific statements in this case appear to reflect inspirational motivation by Branson?

4.What specific statements in this case appear to reflect idealized influence by Branson?

5.Would you like to work for one of the Virgin Group companies? Explain.

344 Part 3 Leadership and Team Behaviors Case: Change Competency Sir Richard Branson, Chairman, Virgin Group, Ltd. 37 Branson is frequently on the road to visit Virgin bus Sir Richard Branson, founder and chairman of the London- nesses, talking with employees and customers. He is know based Virgin Group Led., has turned a lifelong disdain for conventional business wisdom into a multibillion-dollar for his ever-present notebook and pen, which he pulls on whenever he chats with employees and customers. Branglit able brands. The Virgin Group has ventured into many insists that things down, he creates a reputole as chranson global conglomerate and one of the world's most recognize ties of business such as retail stores, air travel, financial By writing things .He reads e-mail from quist of iterman. services, books and music, and telecommunication. The immediate action. He reads e-mail from employees ever. Virgin Group consists of approximately 200 companies that morning before he does anything else. This habit, which " operate in numerous countries. Virgin has approximately started in Virgin's early days, influences company-employer 50,000 employees and more than $20 billion in annual dynamics. Employees do not hesitate to air their grievances directly to him. Branson has proved with his actions that he sales. Some have suggested that Branson and the Virgin brand actively listens. beer only about 5 09000 empathe attract almost a cult following, and it works both ways-many around the world, he gets only about 50 e-mails or letters people admire Branson, but some detest him. Many find it each day from nonmanagerial employees. They . They vary from refreshing that Branson is willing to candidly reveal setbacks small ideas to fru Headdresses every onanagement torom in his business career. Branson reflects: "Virgin has gotten nificant proposals. he come action the by answering Sig- it right when we've taken on a Goliath and offered a much- sonally or by initiating some action. Branson states, "Instead better-quality product at good value. We've gotten it wrong of needing a union when they have a problem, they come to when we've taken on a giant with a product or service where me. I will give the employee the benefit of the doubt on most we can't differentiate." Three of the significant setbacks, occasions." among others, that he discusses openly are: For Branson, retaining the standards he has instilled as Virgin tried launching a portable MP3 player (the the company grows is his major task. He states, "You've got to Virgin Pulse). It was a total disaster-they were crushed treat people as human beings-even more so as the company by the Apple iPod. It was a $20 million write-off. gets bigger. The moment I start to think "I've made lots of Branson ignored his top management's advice and insisted on holding onto the Virgin Megastore retail money, I'm comfortable. I don't need to bother with these things anymore,' that's when Virgin will be at risk." outlets for too long. When he finally agreed to sell them, they lost the Virgin Group a "lot of money." David Rooke, a managing consultant at Harthill Consultants, Branson tried to take on the Coca-cola company with states: "Branson is the consummate people's man. He is not a Virgin Cola. Coca-cola sent a SWAT team to the smooth operator that people may feel inclined to distrust, but United Kingdom to systematically destroy Virgin Cola. a genuine strategist, who thinks outside the box, who achieves, Coca-cola succeeded. Again, big losses for Virgin. and given some of his crazier pastimes, someone who manifestly Virgin Cola is "still the number one cola drink in enjoys life." In an article entitled Integrity to What Matters Most, Bangladesh!" three leadership experts make this comment, among others, One aspect of Branson's philosophy is centered on finding about Branson: "Steadfast integrity to his unique sense of per- the best people to run the diverse businesses in the Virgin Group. sonal meaning has always been one of Branson's values." He is not as much concerned about industry-specific expertise as In a recent visionary commitment, Branson pledged as much as $3 billion during the next 10 years (through 2017) he is with recruiting employees with strong communication to tackle global warming. The money is an estimate of his and teamwork competencies that mesh with the Virgin culture. Branson states, "What makes somebody good is how good they anticipated personal profits from his airlines and rail com- are at dealing with people. If you can find people who are good pany, so the amount is not precise. But anything close would be a dramatic investment in a cleaner environment through at motivating others and getting the best out of people, they are developing new and cleaner sources of energy. Branson states: the ones you want. There are plenty of so-called experts, but not as many great motivators of people." Virgin tends to promote "We must not be the generation responsible for irreversibly from within. The desired profile, not surprisingly, is someone damaging the environment." like Branson-someone who gets charged up when told that Branson has other ideas on leadership: something cannot be done; someone who is unafraid of industry barriers and will not take no for an answer. Many executives devote their attention primarily to Ultimately, the entrepreneur will only succeed if he or serving customers and shareholders. Branson thinks that the she has good people around them and they listen to correct pecking order is employees first, customers next, and their advice. My colleagues know me as Dr. Yes because I then shareholders last. His logic is this: If your employees are always find it hard to say "No" to new ideas and propos- happy, they will do a better job. If they do a better job, the als. I rely on them to guide me but ultimately, I'm also customers will be happy, and thus business will be good and prepared to trust my intuition, as long as I feel it is well the shareholders will be rewarded. informed. It is impossible to run a business without tak ing risks. Virgin would not be the company it is risks had not been taken.End L Alt Fn Ctr O nsert Chapter 11 Leadership Effectiveness: New Perspectives 345 I think one of the reasons for our success is the core values which Virgin aspires to. This includes those that the general public thinks we should aspire to, like pro- businesses, so a setback is never a bad experience, just a viding quality service. However, we also promise value learning curve. Loyalty means a lot to me. Working with people I know and trust makes me feel secure. I guess for money, and we try to do things in an innovative way. that's why I prefer to promote from within. People who in areas where consumers are often ripped-off, or not join Virgin know that there are plenty of opportunities to getting the most for their money. I believe we should progress in their careers. do what we do with a sense of fun and without taking ourselves too seriously, too! If Virgin stands for anything, Questions it should be for not being afraid to try out new ideas in 1 . What specific statements in this case appear to reflect new areas . individualized consideration, a core component of trans- Whenever I experience any kind of setbacks, I formational leadership, by Branson? always pick myself up and try again. I prepare myself 2 . What specific statements in this case appear to reflect to have another stab at things with the knowledge I've intellectual stimulation by Branson? gained from the previous failure. My mother always 3 . What specific statements in this case appear to reflect taught me never to look back in regret, but to move on inspirational motivation by Branson? What specific statements in this case appear to reflect to the next thing. The amount of time that people waste idealized influence by Branson? on failures, rather than putting that energy into another 5 . Would you like to work for one of the Virgin Group project, always amazes me. I have fun running the Virgin companies? Explain