Innovative Leadership
Innovative Leadership
Nigar Sultana*
Mohammad Anisur Rahman**
L.0Introduction
Innovative leadership is the demand of all time for any organization. Innovation gives
competitive edge over the competitors. But organization needs an innovative leader who
can do the miracle. This paper tries to state what innovative leadership is and what is the
process of innovative leadership. Firstly, the paper tries to give a brief impression on the
creativity, innovation and leadership that will help us to understand what is innovative
leadership. Secondly, the paper explains in detail about innovative leadership followed by
twoexample of best and worst practices in innovative leadership.
L.1 Objectives
leadership' The
The main objective of this paper is to develop a model for innovative
processes that make an
auxiliary benefits would be to identify the different elements,
innovative leader.
1.2 Nlethodologl
on secondary
This paper gives a conceptual framework of innovative leadership based
books, white papers and conference
information. The sources include scholarly articles,
papers. Internet has been used extensively to gather these resources.
2.2Innovations
Innovation with the organizational process and tools translate ideas into new
pl'ocesses,
products, services or b'usiness (Isaksen & Joe, 2006, pp' 54-55)' The literal meaning of
the innovation is "something new or different introduced" ([Link], 2011)'
Ho*"r", not all ideas see the face of the implementation. According to Peter Drucker'
Innovation is the effort to create purposeful, focused changed in an enterprise's economic
and social potential (Druck5r, f q^gSi. Ideas that are relevant to time, need, purpose
of the
organization and feasible taken to the innovation process. For example, Leonardo de
Vinci had the idea of the helicopter but with the previous technology it was not
implementable thus innovation did not take place. In Apple Inc' one idea may go through
from
innovation process while thousands are killed. However there are certain areas
which creative ideas translated into innovations'
peter Drucker identified seven sources of innovations from inside (first four) and outside
(last three) of the company (Drucker, 1998, p. 4). These sources are: unexpected
occurrences, incongruities, process needs, industry and market changes, deruographic
changes, changes"in perciption and new knowledge. lrcespective of the sources,
Innoiations ,ttuy U" inciemental or radical in nature and may bring the change in the any
of the dimension of business: people, process, plant, product and service' Creative
Innovative Leadership (People) 39
thinking in these areas may lead to new ideas, however Innovation is not the automatic
consequence of "creative thinking" (Levitt, 2002). To make successful innovations
certain principles needed to be followed.
Innovator needs to be focused, diligent, persistent and committed; he must have
knowledge of market, relevant discipline, and entrepreneurial management to make the
innovation successful. Moreover, if innovations do not aim at leadership from the
beginning, it is unlikely to be innovative enough (Drucker, 1998).
2.3 Leadership
Leadership is the process of influencing people or a society towards a goal. Study of
leadership theories reveals that a lack of consensus on the idea of leadership divides
experts, business organizations, and government organizations in their opinions. Bolden,
Gosling, Marturano, & Dennison (2003) tried to manifest this division of opinion in their
studies (see Appendix-1 ).
Leadership theories stafi with the "Great Man" theory that states leaders are born with
leadership quality - they are destined to lead. Great Man theory virtually leads to traits
theory of leadership, which identifies a list of qualities and skills that make a leader.
Some of these traits include: technical skill, friendliness, task motivation, application to
task, group task supportiveness, social skill, emotional control, administrative skill,
general charisma, and intelligence. Stogdill (1974) identified such thirteen traits and rrine
skills. See Appendix-2 for the list. Over time, different experts concentrated on different
traits and skill sets in formulating their theories. For instance, Thomas Teal (1996) states
that great leaders require imagination, integrity, respect for others. and attempt tc)
empower subordinates. On the other hand, Daniel Goleman (1998) stresses that
"Emotional Intelligence" makes an effective leader. Emotional Intelligence includes: self-
awarenes s, self-regulation, motivati on, empathy, and social skills.
In absence of a consensus, expefts later moved their concentration to behavior. Behavior
school of thought concentrates on leadership style. Notable behavioral theories of
leadership include: McGregor's (1960) Theory X & Theory Y Managers, Blake and
Mouton's (1964) Managerial Grid, Fiedler's Contingency Model, The Hersey-Blanchard
Model of Leadership, Tannenbaum& Schmidt's (1958) Leadership Continuum,
Adair's(1973) Action-Centered Leadership Model. One way or another all of these
theories concentrate op autocratic, democratic, participative, or consultative styles and try
to match those styles to specific situations.
However, follower dimensions of leadership have long been ignored. Experts believe
thele is interdependency between the leader and [Link] 21" century "knowledge
workers" has put a different challenge for the managers in the organizations; they need
reason to work. Peter Drucker suggested these knowledge workers need more leadership
than managing(Giang, 2012). Robert Greenleaf (1970) coined the term Servant Leader,
which refers to a leader who possess a desire to serve, i.e., servant-first mentality. By
expanding this role, he or she becomes leader. Servant-leadership encourages
collaboration, trust, foresight, Iistening, and the ethical use of power and empowerment
(Greenleaf,2010). Katzenbach and Smith (1994) have also suggested some key behaviors
of leadership and state that when individual, team, or organizational performance
demands it, a leader should follow.
40 The Jahangirnagar Joumal of Business Studies, Vol. 2, No. I, June 2012
Later, based on the dimension of interaction and situation, expefts have classified leaders.
(1993) R.M. Belbim also introduced was the term "Solo Leader" as opposed to "Team
Leader". He stated in today's fast moving world, increasing complexity and the
discontinuous nature of modern work, "Team Leadership" is mole suited' A team
leadership style based upon the development of the strengths and the allowable
weaknesses of all of the roles will permit a more holistic, or participative, style of
ieadership where teamwork, problem solving, decision making and innovation can
flourish with heightened teamwork and work performance (Bolden, Gosling, Marturano,
& Dennison, 2003). J.M. Burns (1978) coined the term "Transformational Leadership"
and defined it as "a relationship of mutual stimulation and elevation that converts
followers into leaders and may convert leaders into moral agents." Transformational
leaders are proactive in many different and unique ways. These leaders attempt to
optimize development, not just performance. They want to elevate the maturity level of
the needs of their associates (from security needs to needs for achievement and self--
development). They convince their associates to strive for a higher level of achievement
as well as higher levels of moral and ethical standards (Bolden, Gosling, Marturano, &
Dennison, 2003).
Diverse opinions on the issue lead the private and public organization to develop their
own view of leadership they believe to be successful in the market (Appendix-3 and
appendix-4 gave a list of leadership framework of different private and public
organization respectively.). Today in order to lead the market the top executives
especially CEO per se needs to lead through innovative leadership. This is what we
observe in the innovative companies such as Apple Inc; Google, Facebook, GE etc. 21"
century calls for a new leadership model "Innovative Leadership" to put the companies
ahead of competition through offering innovative business models, products and services.
3 InnovativeLeadership
Innovative leadership is a process of fostering innovation through developing
innovation friendly culture and setting strategic direction that [Link] and build trust
among the employees to innovate. Different experts have given their own view of
innovative leadership. These viewpoints mainly concentrated to one or two aspects of the
total leadership process;'such as Agin & Gibson (2010) stresses on developing innovation
culture and strategic direction through leader's role; Morris (2007) emphasizes on
developing innovating culture;Vitello-Cicciu (2003) emphasizes on emotional
intelligence; Jeong&Keatinge (2004) stressed on holistic view; Hamel (2006) talked
about innovative management andMaxwell (2005), Prestwood& Schumann(2OO2) and
Hodge &Linney (l999)provided some behavioral guidelines on innovative leadership.
Putting these all puzzles together gives a view of four interactive elements of innovative
leadership process.
Emotional Intelligence
Emotional intelligence is the ability or skill to identify, assess and control emotion of
oneself, of others and of groups. Daniel Golemanfirst applied the term emotional
intelligence in business in 1998 as a sin qua non for leadership and Vitello-Cicciu (2003)
identified it as a main quality of an innovative leader. Innovative organizations are often
Innovative Lea$ersliip (People)
.fl
live in chaos from inside and outside, which spur innovations. Employees irr this situatiotr
needs U'ust relationship, communication and support from the leader to excel. Emotional
intelligence could satisfy more than these requirements of the innovative organization'
Study,shows that907o difference in EI when compared with average performet's rvith the
star performers of the 188 world class organization; moreover sc'nior managers with
critical mass of EI could outperform his divisional eaming goal by 2O7o (Goleman. 2004"
p. 84). The elements of emotional intelligence are briefly discussed below;
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innovation the innovative leader looks out for the idea from different stakeholders, such
as customer, suppliers and academia etc.
4. Conclusion
For some companies innovation is the way of life and for some companies it's a crisis
element. Innovative leadership as a whole is a source of sustainable competitive
advantage which takes a long time for competitors to transcend. However, the innovative
leader should have the common sense when to be innovative and when to not.
5. Best-Practice
A good example of innovative leadership is Nobel laureate Dr. Yunus and his
organization Grameen Bank. He was a big problem and set his way of management and
organization innovatively that conventional banks cannot do. He started to lower the
poverty level of the Bangladesh by landing micro credit ($10-20) to the women. His
organization formed a 5-10 member cooperative society through which he disburses
credits to the poor women. A field officer works for 20-25 cooperatives. His organization
has built trust among the members to staft their own business. The success was immense
it resulted in 9BVo of the recovery and reduced povefty with higher standard of life of the
members.
6 Worst Practice
Health care management throughout the world is a concern for the govemment, citizens
and the providers. In efficient management is constantly rising cost of health care that is
either putting burden on govenrment budget or patients. The problem is more intense in
USA where multiple stakeholders are related in the systems. Both treatment and cost
depends on the insurance coverage. Despite being the world largest economy with higher
per capita income and best medical treatment available, US health care system is one of
the [Link] needsa powerful innovative leader here to do both incremental and radical
innovations.
Reference
Agin, E., & Gibson, T. (2010, July). Developing Innovative Culture. Retrieved February I3, 20i i,
from [Link]: [Link] 2010071a|_
n541 162031
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Blake, R., & Mouton, J. (1964). The managerial grid. Houston TX: Gulf.
Burns, J. M. (1978). Leadership. New York: Harper & Row.
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[Link]: [Link]
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mba-its-no-longer-beneficial-to-manage -people-2} 12'
1 ?utm-source=dlvr. it&utm-medium=soci al&utm-campai gn=warroom
Appendix-I
Theories Brief Description
Great Man Based on the belief that leaders are exceptional people, born with innate
Theories qualities, destined to lead. The use of the term 'man' was intentional since
until the latter part of the twentieth century leadership was thought of as a
concept which is primarily male, military and Western. This led to the
next school of Trait Theories
Transformationa The central concept here is change and the role of leadership rn
t envisioning and implementing the transformation of organizational
performance
Source:Bolden, R., Gosling, J., Marturano, A., & Dennison, P. (2003, June). A Review Of
Leadersldp Theory and Competency Frameworks. Retrieved July 16, 2010, from
www. [Link]: http ://www. leadership-
[Link]/documents/mgmt_standards.pdl p-6
48 The Jahangirnagar Joumal of Business Studies, Vol. 2, No. 1, June 2012
Appendix-2
Stosdill's Lead Traits and Skills
Traits Skills
Source:Bolden, R., Gosling, J., Marturano, A., & Dennison, P. (2003, June). A Review Of
Leadership Theory and Competency Frameworks. Retrieved July 16, 2010, from
www. [Link]: http ://www. Ieadership-
studies. com/documents/mgmt_standards.pdfl p-7
Innovative Leadership (People)
Appendix-3
Private
a Leadershin Framework
mew
Institutions' Leadership Framework Description
AstraZeneca Leadership Capabilities .Provides clarity about strategic direction
. Ensures commitment
. Focuses on delivery
. Builds relationships
. Develops people
. Demonstrates personal conviction
. Builds self-awareness
BAE Pertbrmance Centered Leadership .Achieving Hi gh Perfbr mance
. Focusing on the Customer
. Developing Others
.Continuously Improving
. Working Together
Federal Express Leadership Qualities .Charisma
. Individual consideration
. Intellectual stimulation
. Courage
. Dependability
. Flexibility
. Integdty
. Judgment
. Respect for others
Shell Leadership Framework .Builds Shared Vision
. Champions Customer Focus
. Maximizes Business Opportunities
. Demonstrates Professional Mastery
. Displays Personal Effectrveness
. Demonstrates Courage
. Motivates, Coaches & Develops
. Values Diffelences
. Delivers Results
Philips Leadership Competencies .Shows determination to achieve excellent results
. Focuses on the market
. Finds better ways
. Demands top performance
.Inspires commitment
. Develops sell and others
Source:Bolden, R., Gosling, J., Marturano, A., & Dennison, P. (2003, June). A Review Of Leadership
Theory and Competency Frameworks. Retrieved July 16, 2010, fiom [Link]:
http:/[Link]/documents/mgmt_standards.pdf', pp. I 8-20
50 The Jahangirnagar Journal ofBusiness Studies, Vol. 2, No. I. June 2012
Appendix-4
lc Sector Leadership Framework
Public mewo
lnstitutions' Leadership Framework Description
UK Senior Civil Service Competency .Giving purpose and direction
F ramework . Making a personal impact
. Thinking strategically
. Getting the best from people
. Learning and improving
. Focusing on delivery
UK Department for Education and Skills .Interpersonal Attributes: Making a personal
impact, Giving purpose and direction
. Delivery Attributes: Focusing on delivery,
Thinking strategically
. Improvement Attributes: Getting the best
from people, Learning and improving
MoD Senior Civil Service Competency .Leading and working together: Working
Framework together, Providing the lead, Enabling
others to give of their best
. Being personally effective: Striving to
achieve results, Promoting change and
continuous improvement, Communicating
and influencing, Solving problems and
taking decisions, Taking a wider
perspective
. Delivering results: Focusing on customers
and service delivery, Developing and
delivering effective policies and
programmers, Managing work and
resources to achieve results, Exploiting
information and knowledge
Source:Bolden, R., Gosling, J., Marturano, A., & Dennison, P. (2003, June). A Review Of
Leadership Theory and Competency Frameworks. Retrieved July 16, 2010, from
www. [Link]: http ://www. leadership-
[Link]/documents/mgmt_standards.pdf, pp. 20-26
Innovative Leadership (People) 5r
Appendix-5
Distinction between conventional culture and innovation culture
Status Qno Culture l:nnovatian Cu[ture
,1,
Prerli,*tahilitt' t-.1 n - rr*cJ i cta:L: il itv
2. "$eek .[Link] S*ek ft*l/elt!
Focus o{1 cilt€ c{fxlln*ien[e Foct-rs orr er:ltle c(]m t.-Elerl{:e
4. FJicrh gucc*ss rate l-li,uh fsilLrre r*te
E
Reinforce the r:rgarliziltianff I Eei nfn rc* rl rgfi nizilt ione I
lrlerirnr:tru {tB,t}#firk$
fr. Fe*r the hirrarch,v Fsrus iln Gre"rtivt ten*irr-l
n. Avc:ir-l sLl'Fdsec Erllbrace .surDriseg
E
rJ. F*c;lrs *n irrside krr*v,ilec*ge fir:rllttine inslrl* i]n{l rjlrtsirj*
ilsrrCIwledo,le
o Easv ta live witlr Hnrd trl live ir;itlr
10. C t: rp,ru rE1€: pu I iti*s hdr:vinu ihe r;i-r*e**
11. Effi *[* n*y ttr ro Lr,q h Effici*rrcy tlr rorrg h in nlvnti*rr
stanciarrdizotin:n
12. Ext*xrt the atatus cLrn At-rnnd*l-l the *tatj-rs qLlD
13. Avoirl *ha{lfic Erttl-rrace chilnr:e
14. lv{eirsrrre stahiIitv F;leasr-rre nrr*vstri*n i
15. l-ook fcir" cl*ta trt csnfirm Lcck frr dcta to *r:rrtrariici
existilru firnEa{lenlerrt mocjsls exisiirru rl'rillto{:t*{r e rrt rtr*de Er
16. Lonk for certair'ltv Errbrace aml:ritr u[h,
Source: Morris, L. (2007). Creating the Innovatiott Cuhtte: Geniuses, Champions, Leaders. Retrieved
February 1 4, 20 I 1, from [Link]:
[Link] page-6