People: 1. Heart of Leadership 2. Making wise decisions; Team: 3. Influencing others, ethically and fairly; 4.

Synergy: Harnessing diversity and cohesion; Organisation: 5. Leveraging networks and

culture
Topic 1: What does it mean to Lead? Peter Principle: You will rise to your level of incompetence and stay there
 De-rail: problems with interpersonal relationships, dependency on a single skill, failure to persuade others, difficulty building an effective team, dependency on a mentor, difficulty in
transitions. Need to: Develop others, diversify portfolio of talents & contacts, respond to and lead change
 3 features of Inspiring Leader: 1. Visionary who sees the way forward (Positive, meaningful, big picture vision of the future), 2. Exemplar who walks the talk (Courageous, authentic,
passionate, confident, competent, and consistent), 3. Mentor who cares about you (Empowering, generous, empathic, inclusive)
 Leadership is the capacity to motivate, enable, and integrate a collection of individuals toward the success of a common goal or shared purpose. Leadership: behavior that positively
influences the group to achieve its goals What words are noticeably absent from this definition? Rank, position, authority;
 Lead by Commitment (Create ownership; Direction comes from anywhere; Takes time, but Energy expanding; Give you more than you ask for; Intrinsic motivation; Expands social
connections) not by Compliance (Command; Direction comes from above Time efficient, but Energy depleting; Give you only what you asked for; Reactance motivation; Diminishes social
connections). Skill variety, task identity, task significance, autonomy (freedom), feedback, these characteristics cultivate motivation
#1: Inspiring. Leadership involves setting a shared purpose (Flying kite/ Doing Laundry example) e.g. Offering a positive vision of the future; Finding a Meaning /Purpose
 Causes of failure: Don’t have a goal or indecisive, illusion of transparency, hoarding information, waiting for a definitive answer.
 Solution: Choose specific goal, explicit about intentions and expectations, involving others, frequent updates
#2: Motivating. Knowing what motivates ppl in general and for each person.
General: passion, meaning or purpose, choice/voice, fairness. motivates each person in particular: perspective-taking; feel in control; voicing over decision; fair process
#3: Enabling. Open Channels: Create an environment that allows people to reach their full potential. Close Channels: Make undesired outcomes harder to achieve.
Fines may eliminate guilt but they don’t generate the behavior you want. E.g. Casinos: Create the right channel and environment for desired behaviors.
 Make it easy for people to go in the right direction (amazon buy now button). Opt-out (increased participation) vs. Opt-in (enthusiastic participation)
#4: Integrating. Combining the disparate talents, ideas, knowledge of others; Managing teams, culture, and diversity; Understanding the dynamics of social networks. Great teams: better ideas &
decisions, energy, buy-in, fun.
 Unifier & Conductor: Setting goals and norms, Inventor & Explorer: Idea generation; Evaluator & Mediator: Evaluation and decision making, Driver, Completer & Ambassador:
Implementation
 The Best Leaders Integrate Diversity, The Best Leaders Integrate through Organizational Culture (Artifacts/Symbols, Norms, Rituals, Values and Mission),
#5: Self Awareness. Recognizing your thoughts and behaviors and their impact on others, Knowing your strengths and weaknesses. Managers rated as ‘High Potentials’ have a smaller gap
between self & other ratings compared to average managers. Three zones: panic zone (defensive; stuck; tense) ; learning zone (excited / curious/ open/ wiling to take risks); comfort zone
(easy/bored/stable)
Three mistakes we make when interpreting the motivations of others: 1. They are just like me; 2. They are all just like each other; 3. They are just like they were yesterday. Successful Change: A
Case Study of Firefighters: 1. Started with pilot houses: Advocates become credible because they are just like me 2. First target Houses open to change – those with younger members/ high-status
members/ well- connected people (Brokers); Implemented in each pilot house only after effective training 3. Made spritzing macho(“the swat team”); Changed the device to look better 4.
Incorporated change within existing practices: Kept the head of the hose as the leader who steered the spritzers and coordinated the entire efforts.
Topic 2: Making Organizational Decisions Leadership is about making decisions- 1.explaining why you have chosen that decision; 2. having data to back up your decision (Speed Venture) > You
can never know if a relationship is causal or correlational > restrain instincts so that under pressure, adversity and stress, right instincts emerge
 Sampling on the Dependent Variable: Occurs when you look at only half of the outcomes - inherently flawed e.g. Management book that look at only successful Co.
 Explicit DM process: Identify Criteria > Articulate Options > Weight options by criteria > pick highest scoring option. In reality, this happens infrequently. We are bounded in our rationality;
we create heuristics and use our “intuition” to guide our decision-making.
 “Heuristics” or rules of thumb simplify the decision–Heuristics allow us to navigate a complex world quickly and efficiently, but they can lead to systematic biases in decision-making.
INTUITION: Subconscious pattern detection
Decision Traps #1: Framing Effects: Losses are more painful than gains are pleasurable (leads to risk taking), framing changes the problem (save jobs vs lose jobs) We are risk averse to gains but
risk seeking to losses: In a gain frame, we prefer sure preferences to risky ones, In a loss frame, we prefer risky preferences to sure ones
Strategy: To motivate others towards risk, change & action. To motivate others towards certainty, status quo & inaction
#2: Escalation of Commitment and Sunk Cost: Investing additional resources in the hope of overturning an initial negative outcome. The need for respect and to save face is a driving force of
human nature. E.g. Government projects, Space challenge. A failure to update: Continue to base decisions on initial projections. More likely to commit to a failure when: 1.free choice at
beginning so no one to blame, 2.publicly identified so you’re held accountable, 3.big investment or org commitment so your career at risk. Strategy: Highlight resources already spent, increase
feelings of responsibility, publicly identify others. Protection: 1. Seek outside perspective, 2. have exit strategy, 3. pre-established decision criteria and limits, 4. redefine situation, 5. Figure out
who will make the decision based on decision criteria and process
#3: Availability Heuristic: Events that are vivid, easily imagined, easily processed or consistent with memory structures are judged to be more likely than equally probable events. Examples are
more persuasive than statistics. 60% higher compliance rate with the atypical request! Protection: use documentation instead of recall to make evaluation; don’t rely on the 1st thought
#4: Representativeness Heuristic: We judge the likelihood of an event based on how closely its most salient dimension fits our stereotype without paying enough attention to probability theory.
Stereotypes guide our perceptions. Likelihood judged on fit; ignores base rates: remove biasing associations from evaluations, objective data, model behavior, dress and speech, leverage
regression to the mean. Protection: remove biasing associations from evaluations; rely on and begin with objective data; avoid strong conclusion based on small sample size
#5 Anchoring and Adjustment: People fix on an initial anchor and then adjust from it bc adjustments are often insufficient, we focus on reasons why the anchor is a reasonable response. First
moves, actions, and defaults lock in impressions, preferences, and values. However, going first in serial competitions might hurt you. Fail to sufficiently adjust from initial starting values.
Protection: Write down estimates and first offers, put effort into first introductions, go first to anchor negotiations, sellers set high starting value. Consider opposite info.
#6 Confirmation Bias: We only seek out confirming evidence for our hypotheses. We only seek out and pay attention to evidence that confirms our initial expectations and deny the existence of
any disconfirming info. Seeking disconfirmatory evidence. Favoring confirming information. Protection: actively request disconfirming info, refrain from revealing own preferences, assign devil’s
advocate, create environment where ppl feel comfortable speaking up; give ½ group 1 hypothesis, 1/2 opposite
Get all 4 cells: 1. Avoid sampling on the dependent variables; 2. Ask the right questions to get the right data; 3. Seek out diverse data from diverse source; 4. integrate data and intuition of
experts; 5. always consider the opposite Org configurations: 1. Use diverse team and make them diverse source of info; 2. Ensure decision makers have deep expertise; 3. Institutionalize and
reward dissent-assign devils advocate; 4. Reward based on decision-making process
Topic 3: Influencing Behavior and Leading with Ethics
System 1: Automatic, instinctive, and emotional, mental shortcuts. System 2: Slow, logical, and deliberate. Relies on methodical thinking to correct poor snap judgments.
Persuasion Tactics: better than deception, coercion, or compensation (Kidney, Fairness Criteria: Need vs. Merit) 1.Scarcity (message): People value what’s scarce or becoming scarce / 2.Liking
(source): People like, believe, comply with those who like them, Warmth $ Competence, Disgust CI, Envy CC, Pity WI, Respect WC/ 3.Authority (source): People defer to experts w/specialized
skills or info / 4.Social Proof (audience): People follow the lead of similar others / 5.Reciprocity (timing): People repay in kind, including concessions, comply more after receive / 6.Consistency
(timing): People seek consistency with prior commitments / Identify End Users!
Commitment and Consistency: Make it concrete and public, recognize sunk costs
 4 Provinces of Influence: The message, the source, the audience, the timing. Influencing Others: Identifiability: Names and Photos, emotional appeals, principles and values, expertise,
statistical arguments, negative advertising. Influencing Yourself: Advocacy effect: Having more positive attitudes toward whatever one advocates than to whatever or whomever others
advocate, Structures that Influence: Order effects, In serial competition (figure skating, American Idol) the last shall be first in the rankings.
 Leadership is the responsible use of Influence, Control, Persuasion, Social Networks, Motivation, Power
 Allocating scarce resources: Distributive justice (How much each person gets?) and procedural justice (How was this distribution determined?) Satisfaction (FF), Disquiet/Anxiety (FU),
Displeasure (UF), Infuriated (UU)
 Why fairness is hard? Egocentric Bias: I’m more aware of my contributions than your contributions; I think I’m above average. Fundamental Attribution Error: I interpret my own failures as
situational, but interpret your failures as dispositional. Criteria for Fairness: We strategically rely on different definitions of fairness. Must have transparent and consistent procedures. Must
be objective and well-documented.
 Making the right decision: 1. Needs – those with the most pressing needs, 2 past rights – those with an entitlement should be favored (time in queue, seniority), 3. Past social value (equity)
– those who have made past contributions or sacrifices should be favored, 4. Future social value (utilitarian) – those who can make more effective future contributions should be favored, 5.
Future use of resources (efficiency) – those who will most efficiently use the resource should be favoured
 Principles of fairness: equity: past contributions, social value: future contributions, efficiency: most effective use of resource, Rights: fairness, Needs: urgency
 Leadership is about developing fair processes and procedures that enable those around you to give and receive constructive feedback. Fair process that incorporates 1.voice in the creation
of process; 2. Transparency and consistency in administration of the procedure; 3. Candidness and sensitivity when delivering news to people
 Feedback: voice was heard, specific and candid, future-oriented, problem-solving, channels for success. 1. Set a trusting tone for the meeting, ask questions and get their perspective,
provide positive feedback first, provide negative feedback second, end with actions that can be taken. Focus on the positives going forward.
Class 4: Achieving Collective Intelligence and Harnessing Cohesion and Diversity
 Ethical Leadership is the responsible use of the leadership toolkit towards constructive goals (channels, commitment, and consistency, accountability, motivating goals.
 People tend to defend their publicly stated positions commitment/consistency. People are motivated to reach group consensus. People stress information in line with their preference, don’t
reveal positive info about non-supported options and put more weight in information that confirms their view (confirmation bias). You don’t want group to reach consensus prematurely.
 Temporal Trends: Early in conversation common information is over-represented. The likelihood of unique mentioned increases later in the conversation. Need to get all the information on
the board so you can evaluate its quality. As the leader (or decision process manager) You must help others share relevant information! You must think about fostering healthy dissention.
 Good Team: Decide how to decide, Get information on the table before people vote or commit to a preference. Rank versus eliminate early in conversation. Frame the task as the problem-
solving; discourage people from focusing on only on consensus. Give equal “air time” to unique information.
Class 5: Leveraging Social Networks and Motivating with Incentives & Culture
 What is Culture? A pattern of beliefs, values, and behavioral expectations shared by the organization's members. How to get culture? Socialization or “Learning the ropes.” Motivation/
Control/Coordination/Competitive Advantage Device. Can be success (i.e. how you see the world) or failure in competitive industries – can be a source of inflexibility that prevents adaption.
 Key elements of org. culture: Artifacts (visible: stories, language), values (invisible: beliefs, attitudes). Limitations of a strong culture: less diversity, inclusivity and adaptability >>> focus on
DEI Tools for managing culture: Ceremonies: Celebrate everything to foster cohesion and morale, Create a status hierarchy with an equal opportunity reward structure. Special
Environment: role-taking that is consistent with organizational objectives, Sealed off from the outside world. Stories & Scripts: Narratives that make ordinary (but organizationally desirable)
actions and actors into extraordinary heroic acts and role models. Symbols: Objects that reinforce and communicate quickly and economically the values and ideology. Jargon/ Language:
The Specialized language that “insiders know….”. Communicates assumptions, values, ideology. Costumes: Reinforce the collective organizational identity and the shared values of all
members of the organization.
 How to lead through culture? 1. Set a meaningful mission statement supported by a value system congruent with the mission,2. Build consistency and intensity through selection/retention,
socialization, leading by example, 3. Create artifacts, stories, costumes in line with assumptions and values, 4. Create a sense of autonomy in how culture is enacted; 5. keep personal values
in mind.
 BofA / ML case - Separation left as separate organizations, Assimilation: acquired firm takes on acquirer's culture, Integration: hybrid culture created.
 Culture 1. can be an effective mechanism of control (provides simple decision rules; creates habits/codes of conduct that affect ppl even when acting in private); creates shared goals that
facilitate coop; 2. Creates shared goals that facilitate coop, reduce transaction costs; 3. Creates value for both employees and customers; 4. Can be a powerful intrinsic motivator; 5. Offers
strategic positioning and differentiation
Class 6: Negotiating Effectively and Our Leadership Journey Negotiation is a decision-making process by which two or more people agree on how to allocate scarce resources. Take, gain, acquire
information from another party. Get what you want and determine how to satisfy their needs.
 Decision-making heuristics: anchoring, availability, framing / Interpersonal tactics of influence: Commitment and consistency, reciprocation, liking, authority, social proof, and scarcity
(Cialdini) / Teams: Planning, managing conflict, decision-making processes, goal setting / Ethics: Bluffing, misrepresentation
 Distributive: Competitive, zero-sum: parties’ interests are directive opposed; the more your partner gets, the less you get. Compatible: both want the same. Integrative: cooperative,
expand the pie for mutual gain. >>> Trading priorities is the engine of value creation.
 Pareto Optimal Frontier: A solution such that improvements to one party’s payoff cannot be made without reducing the other party’s payoff. Pareto Improvement: A move that makes at
least one party better off and none worse off. “No money left on the table”
 7 steps to effective negotiation: 1. Establish interests (lemon ex.) 2.Develop a Scoring System Step 3. Establish your bargaining points (Batna, reservation price, target price) 4. Consider the
other Side’s Interest and Bargaining Position (Why to What) 5. Plan and practice, 6.Make an offer Step; 7. Close the deal
 Key sources of power in negotiation: BATNA (best alternative to a negotiated agreement) Zone of Possible Agreements (ZOPA)
 Ask for information, ambitious goals, not aggressive behavior, make trade-offs, how negotiations end matter
TechPulse
 Positive of TechPulse:
 1) teams/networks;
 2) culture
 Negative: Did not know TechPulse’s LT strategy or how the layoffs fits this strategy; Lack of 360 feedback across broader organisation limited opportunity for more well-rounded and
frequent feedback.
 How to fix the issue of layoff at TechPulse?
 Data: needs to set more objective standards for creating evaluation data
o Feedback: need 360 feedback about not only direct manager, but also peers and subordinates; also need across divisional manager review.
o Goal setting and tracking process:needs to separate the reviewer from conselling to prevent unfairness of certain employees who “poured out their souls” – as it mixed
with non-work related characteristics.
o Year-end evaluation data: create systematized standards for incorporating upward feedback into year-end evaluations, rather than discretion of supervisors. Having
multiple managers reviewing to avoid confirmation bias. A360 review would provide more objective data that avoids concerns over considering just one voice. Checking
in with employees throughout the year, to avoid escalation of commitment.
o Data is explicitly a within-employee comparison. Lacked objective metrics that allow for between-employee comparison, therefore poorly designed for deciding who to
terminate.
 Decision making process:
o First, Crain should not pre-determine who should attend the Monday meeting. For example, one Product Directors were excluded in the meeting. Cooper Lin was lft
out because Crain and Chaudhuri had already decided that he would be a casualty of the lay-off. >>> avoid confirmational bias
o During the meeting, her role as a leader is not to anchor others opinion, but rather set up guidelines to allow assessment, also encourage everyone to speak up
o Make the voting anonymous as public format could exacerbate the sunk cost fallacy some manager have towards their employees.
o Data needs to be reviewed by someone from other division who does not know the affected personnel to provide unbiased opinion.
o Needs a diverse panel to make decisions, to incorporate a wide range of perspectives
o Needs multiple years of consistent data to have better assessment of the consistency of employee’s performance
o Need more than 2 days to review all the performance data to avoid representativeness / availability bias.
 Ways to make the outcome more fair
o Objective criteria: objectivity considering factors such as job performance, skills, experience, and relevant qualification. Avoid subjective or arbitrary criteria that may
lead to bias.
o Transparency: communicate openly about the reasons, the criterias used for selection, and overall decision-making process.
o Inclusive decision-making: involve multiple stakeholders in decision-making process. i.e. representatives from different departments, HR, employee representatives. A
diverse group can provide different perspectives and contribute to a more well-rounded decision.
o Consider alternatives: such as reduced work hours, furloughs, voluntary leave. This allows employees to have some control over their situation and mitigate needs for
permanent job cuts.
o Skills assessment and internal mobility: assess the skills of each employee to identify those with versatile skills that may be valuable in other roles and put into good
use. Provide training to facilitate internal transfer.
o Seniority and performance: seniors gets treated equally as juniors. No one gets automatic retention.
o Communication plan: explain the reasons, provide support services, and offer resources for finding new employment.
o Severance packages: Provide appropriate compensation, healthcare benefits, and career training for new roles

 How to fix the whole organisational issue at TechPulse?

 Culture:
o More adaptive to change. Encourage employees to embrace new technologies, methodologies, and ways of working.
o Customer-Centric Focus: Instill a customer-centric mindset across the organization. Ensure that every employee understands the importance of meeting customer
needs and expectations.
o Inclusivity: Promote an inclusive culture that values diversity. This can lead to a broader range of perspectives, ideas, and approaches, fostering innovation and
competitiveness.
 Motivational:
o Appropriate rewards and recognition – ensure rewards system align with performance and innovation. Performance-based bonus.
o Career development opps and skill development to motivate employees excel in their roles and contribute to team’s competitiveness.
o Innovation / trial: foster a culture that encourages new ideas and initiatives. Allow failures
 Team dynamics:
o Diversity: assemble a team with diverse background. This can lead to creative solutions and a more competitive edge.
o More collaboration: promotes open communication and collaboration.
o Better communication: foster an environment where ideas can be shared freely, and diverse perspectives are valued.
 Network structure:
o Sales and marketing: Establish strong networks for market intelligence. Stay informed about industry trends, competitor activities, and emerging opportunities.External
Partnerships: Explore opportunities for strategic partnerships with other firms, startups, or research institutions. This can bring in new capabilities and access to
emerging technologies.
o Supply Chain Optimization: Optimize supply chain networks to improve efficiency and reduce costs. Strengthen relationships with key suppliers and explore alternative
sourcing options.
o It's important to note that these changes should be implemented strategically and with a focus on long-term sustainability. Regular assessments and adjustments may
be necessary as the competitive landscape evolves.