My master’s research focused on content of leadership models. In a nutshell, I can say that these are comprehensive descriptions of how leaders behave. Since we know several of them, we can label them as approaches to leadership. In some other usage we refer to them with a different term: philosophies of leadership. This one emphasises that behind each model there is a particular way of thinking and understanding the role of leadership. In my defence of the master’s thesis, head of the committee commented that leadership in Slovenia (i.e. in Slovenia in general and in the public sector in particular) is highly arbitrary. It is not defined and it is practised (and interpreted) in each person’s own way. What is important here is that there is a lack of professional approaches to an implementation of this role.
Why do we need a new understanding of leadership?
In addition to advances in science and expertise in this field, there are many changes, innovations in our lives, which have, after all, also stimulated the development of leadership. These important switches include social media, globalisation, mobility, geopolitics, climate change, smart devices and more. Complexity of work and tasks carried out by companies is increasing, creativity and innovation are becoming more important, or in other words, the value created is more important. I think there is one good insight from the marketing literature in this sense. I will present it in following four points.
Philip Kotler, often called the “father of (modern) marketing”, described general evolution of approaches in economic activity in his work as follows:
- First (organised and recognisable) form was artisanal orientation. At a time when agrarian activity was taking its first steps towards systematisation, crafts developed. Individuals made various products, which were then exchanged (in a barter fashion) for other goods. Products were made by hand and could be customised.
- A big turn came with production orientation. Industrialisation has radically changed the productive or manufacturing capacity of world’s economy. At that time, there were huge numbers of people wanting these and other products. The only question and challenge was how to produce that quantity (efficiently, i.e. at an affordable price). In production orientation, quantity of products is important, industrial conveyor belt develops (origins at Ford), management generally imposes strict rules on workers, and organisations operate like a ‘well-oiled machine’ (as Charlie Chaplin, for example, critically pointed out in his film Modern Times).
- Third form is the sales orientation. At this point, industrialisation has already made strong inroads. There are enough products, but the problem now is how to sell them. Field of challenge and competition now turns towards sales. It is about which company will come closer to the customer, either by setting up shop in the right location or by winning the battle through advertising, visibility and recognition and various promotional campaigns. This is a period when massive and intense advertising takes off.
- Fourth form is marketing orientation. What does marketing mean? Essential challenge (in general terms, of course) is now no longer to produce sufficient quantities, nor to have the best sales. Essence of a marketing orientation is to know and understand the customer and to create what the customer needs. So it is important to make the right product and the focus is on what we have made (not more how much). Today, a customer who needs a watch does not go into a shop and pick up the first watch he or she sees, but looks for the right watch. What matters is how it looks, what functionalities it has, either the ones that customer expects and wants or additional ones that exceed those expectations. What matters is the quality of the product, the value of product and, in an organisation, the ability to be creative and innovative.
Stay tuned for part two
I’ve borrowed some insights from marketing body of knowledge into how world economy evolved. With it, I hope, you get a general feeling about how demands for organisations and leaders made a profound turn. In next post we will move to the very content of what was expected from a leader in a traditional sense, and what is expected now.
Paradim 