In performing this work, groups apply the Servant-Leader model, described by R.K
ID: 2422782 • Letter: I
Question
In performing this work, groups apply the Servant-Leader model, described by R.K. Greenleaf in his essay, The Servant as Leader.
Research studies indicate that public companies (in a variety of industries) whose managers adopted the Servant-Leader model have achieved higher long-run ROCE, greater free cash flows, and higher credit ratings than those achieved on average by the S&P 500 and the S&P Global 100. (Companies that have adopted the Servant-Leader model include FedEx, Marriot International, Inc., Southwest Airlines Co., Starbucks Corporation, and Toro Co.) Of course, statistical correlation does not necessarily mean that the leadership model used by a company’s managers necessarily caused its better-than-average financial performance or condition.
Identify a characteristic or practice of servant-leaders, as described in Greenleaf’s essay. How might that leadership characteristic or practice lead to superior investment returns and credit ratings?
Explanation / Answer
Following are the characterstics of servant leaders , as described in Greenleaf's essay.
1. Service to Others. Servant-leadership begins when a leader assumes the position of servant in their interactions with followers. Authentic, legitimate leadership arises not from the exercise of power or self-interested actions, but from a fundamental desire to first help others. Greenleaf wrote that this “simple fact is the key to [a leader’s] greatness” (1970, p. 2). A servant-leader’s primary motivation and purpose is to encourage greatness in others, while organizational success is the indirect, derived outcome of servant-leadership.
2. Holistic Approach to Work. Servant-leadership holds that “The work exists for the person as much as the person exists for the work” It challenges organizations to rethink the relationships that exist between people, organizations and society as a whole. The theory promotes a view that individuals should be encouraged to be who they are, in their professional as well as personal lives. This more personal, integrated valuation of individuals, it is theorized, ultimately benefits the long-term interests and performance of the organization.
3. Promoting a Sense of community. Greenleaf lamented the loss of community in modern society, calling it “the lost knowledge of these times” (1970, p. 28). Servant-leadership questions the institution’s ability to provide human services, and argues that only community, defined as groups of individuals that are jointly liable for each other both individually and as a unit, can perform this function. Only by establishing this sense of community among followers can an organization succeed in its objectives. Further, the theory posits that this sense of community can arise only from the actions of individual servant-leaders (Greenleaf, 1970, p. 30).
4. Sharing of Power in Decision-Making. Effective servant-leadership is best evidenced by the cultivation of servant-leadership in others. By nurturing participatory, empowering environments, and encouraging the talents of followers, the servant-leader creates a more effective, motivated workforce and ultimately a more successful organization. As phrased by Russell (2001), “Leaders enable others to act not by hoarding the power they have but by giving it away” (p. 80). The organizational structure resulting from servant-leadership has sometimes been referred to as an “inverted pyramid”, with employees, clients and other stakeholders at the top, and leader(s) at the bottom. Exemplary followers, a product of delegated decision-making, are a further example of servant-leadership’s inverse nature, “another type of leader turned inside out” (Sarkus, 1996, p. 28). Because servant- Smith 5 leadership breaks away from the classic organizational pyramid and promotes flexible, delegated organizational structures, many behavioral scientists see it as a forward-looking, post-industrial paradigm for leadership
Servant-leadership, therefore, emphasizes core personal characteristics and beliefs over any specific leadership techniques. This is seen throughout the writings of Robert K. Greenleaf, from his first, seminal essay on servant-leadership to his posthumously published writings. Behavioral theorists have identified 10 major leadership characteristics, or ‘attributes’ in Greenleaf’s writings (Russell & Stone, 2002, p. 146):
1. Listening – A critical communication tool, necessary for accurate communication and for actively demonstrating respect for others. According to Greenleaf, “Only a true natural servant automatically responds to any problem by listening first” (1970, p. 10)
2. Empathy – The ability to mentally project one’s own consciousness into that of another individual. Greenleaf wrote, “The servant always accepts and empathizes, never rejects” (1970, p. 12), and “Men grow taller when those who lead them empathize, and when they are accepted for who they are…” (1970, p. 14).
3. Healing – Greenleaf defined healing as “to make whole” (1970, p. 27). The servantleader recognizes the shared human desire to find wholeness in one’s self, and supports it in others.
4. Awareness – Without awareness, “we miss leadership opportunities” (Greenleaf, 1970, p. 19).
5. Persuasion – The effective servant-leader builds group consensus through “gentle but clear and persistent persuasion, and does not exert group compliance through position power. Greenleaf notes that “A fresh look is being taken at the issues of power and authority, and people are beginning to learn, however haltingly, to relate to one another in less coercive and more creatively supporting ways (1970, pp. 3-4). Servant-leadership utilizes personal, rather than position power, to influence followers and achieve organizational objectives.
6. Conceptualization – The servant-leader can conceive solutions to problems that do not currently exist (Greenleaf, 1970, pp. 23-25).
7. Foresight – “Prescience, or foresight, is a better than average guess about what is going to happen when in the future” (Greenleaf, 1970, p. 16).
8. Stewardship – Organizational stewards, or ‘trustees’ are concerned not only for the individual followers within the organization, but also the organization as a whole, and its impact on and relationship with all of society (Greenleaf, 1970, p. 31).
9. Commitment to the growth of people – A demonstrated appreciation and encouragement of others. Per Greenleaf, “The secret of institution building is to be able to weld a team of such people by lifting them up to grow taller than they would otherwise be” (1970, p. 14).
10. Building community – The rise of large institutions has eroded community, the social pact that unites individuals in society. According to Greenleaf, “All that is needed to rebuild community as a viable life form…is for enough servant-leaders to show the way” (1970, p. 30).
A leader’s personal values are known to have great impact on the resulting culture and performance of an organization. Russell (2001) notes, “Organizational cultures consolidate the shared beliefs, assumptions, goals and values of their members” (p. 78). In particular, senior leaders infuse their personal values throughout an organization through the process of modeling (demonstrated, observable actions). Leaders who exhibit their values through deeds, as well as words will instill those values over time into the organizational culture; this in turn initiates organizational change. Thus, a leader’s personal values can be seen as a major source of influence for bringing about change.
A Change is required for good performance and this lead to superior investment returns and credit ratings.