Tag Archives: leadership

“Who are we – and why are we here?” Corporate Purpose, and why it matters.

Profile of Prof. Sue KonzelmannProfessor Sue Konzelmann explores the history of corporate purpose and its potential to support small business growth.

Ever since the Limited Liability Act of 1855, UK companies opting for that status have effectively owned themselves, and in the process, acquired a legal identity of their own. This of course, begs the question of what sort of identity – or personality – that should be, an idea that underpins the concept of organisational branding, and the wider question of corporate purpose.

People who are obsessed with money, tick-box checking or espousing values that they do not – or cannot – live up to, tend to have rather limited popularity. It’s not so very different for businesses, with the likely effect of having a negative impact on customer retention and the ability to recruit the best talent, not to mention damaging effects on the environment in which they operate.

Corporate purpose encompasses many of the same questions; but it takes a wider perspective than organizational branding, including questions such as “what are businesses actually for; and how should they relate to society and the environment?”

Corporate purpose is not a new idea. The purposes of early companies were typically public, such as building cathedrals and universities and developing much-needed economic infrastructure including transportation and finance.  But by the turn of the twentieth century, for most businesses of the time, corporate purpose had shifted decisively from public to private.

Following the First World War, however, the question of whether companies should serve a public purpose was reawakened by the huge uncertainty accompanying a world depression, recurring financial crises, rapid social change, growing inequality and, of course, a devastating pandemic. If any of this sounds familiar, it’s hardly surprising that the question of corporate purpose is now firmly back on the agenda. It also strongly suggests that we didn’t get the answers right the last time we thought about it – and that we should do better this time round.

So, if it’s not about having a laser-like focus on money and doesn’t refer to window dressing, then what exactly is corporate purpose?

What it’s not may be easier to define. It’s certainly not a rigid ‘one size fits all’ approach; and perspectives often vary with role. The CEO of the world’s largest asset management company, BlackRock’s Larry Fink, for example, in his 2019 Letter to CEOs, suggested that:

“Purpose unifies management, employees, and communities. It drives ethical behavior and creates an essential check on actions that go against the best interests of stakeholders. Purpose guides culture, provides a framework for consistent decision-making, and, ultimately, helps sustain long-term financial returns for the shareholders of your company.”

In the same year, the Business Roundtable published its own perspective – a “new Statement on the Purpose of a Corporation”, signed by 181 CEOs. In it they declared that companies should serve not only their shareholders, but also deliver value to their customersinvest in employeesdeal fairly with suppliers and support the communities in which they operate.

What then does all this mean, and why does it matter to SMEs? Well, with confidence in both politicians and businesses shakier than it’s been in at least half a century, defining how your business fits in is a great way to maintain the confidence of your customers, people and the places where you operate. That will do long term sustainable development no harm at all. And with SMEs often being more agile than their larger corporate counterparts, as well as contributing massively to both employment and the UK’s economy, this is clearly an area where smaller businesses can take the initiative, and drive forward positive change.

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Five ways to focus your growth as a small business

Dr Pamela Yeow is Assistant Dean (External Engagement) in Birkbeck’s School of Business, Economics and Informatics and teaches on the Help to Grow: Management Programme. She shares five tips for SMEs to accelerate their growth.

People make your business, and this is even more true for small businesses, where people are your business. In the midst of the great resignation prompted by the COVID-19 pandemic, with more than half of businesses that are reporting a worker shortage unable to meet demands (ONS, 2021), it is getting increasingly difficult to find the right employees for the right positions.

While the idea of trying to grow your business in the midst of our post-Brexit, post-lockdown, cost of living crisis might seem daunting, there are steps you can take today to start moving in the right direction. Here are five suggestions on where to begin.

1. Authentic leadership

Leadership is crucial in all businesses. Positive leadership is not just for those right at the top of the tree, but relevant to all positions at all levels. People look to leaders for direction, for strategy, and for reassurance when things are uncertain. Employees want to know that they are respected and appreciated, and also heard. Consider how you can develop clear, consistent communications to support and reassure your teams.

2. Develop partnerships and networks

Partnerships, relationships and networks are important for business growth and development. It is important to continue creating and renewing industry relationships, but have you considered developing partnerships and establishing networks in the wider community? Universities and colleges, for example, can work with businesses to develop internships or knowledge transfer partnerships.

3. Knowing your strengths

Most of us cannot be everything to everyone (we do try!). Having a clear understanding of what your business stands for is always a strength. Try asking your colleagues what they think their strengths are. Sometimes these can come as a surprise to the senior leadership team.

4. Values and purpose

Increasingly, businesses are expected to have a clear purpose and employees are voting with their feet if their values aren’t aligned with their organization. Knowing your purpose and values enables employees to proactively relate and engage with the business.

5. Flexibility and agility

As a small or medium sized business, one major advantage is your agility and flexibility. With greater accessibility to senior management within SMEs, this means that staff can share new ideas quickly and embed new suggestions even quicker. Consider how accessible your team is today. How could you communicate to staff that you’re open to new ideas?

Keen to grow your business?

The Help to Grow: Management Programme is a 12-week course that offers 50 hours of practical business leadership and strategy training, with 1:1 business mentoring, peer-learning networks in a hybrid (face-to-face and online) format. This programme is specifically for business owners and senior leaders operating in small and medium sized businesses who want to grow.

Register for the Help to Grow: Management Programme and start creating a plan for your next stage of growth!

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Introducing Birkbeck’s Professional Doctorate in Evidence-Based Human Resource Management

Julie Gore, Programme Director, shares the rationale behind the Professional Doctorate in Evidence-based HRM.

Advancing metacognition – the process of knowing, understanding and learning are central features of doctoral education.  Deciding how to decide is central to successful leadership and management.   The challenges of Human Resource (HRM) management in times of uncertainty have never been more apparent, with sociotechnical advancement and change being pervasive features of our working lives.   Bringing together our advanced understanding of cognitive decision making processes and expertise, alongside a scientifically informed process of deciding how to decide, is where evidence based HRM meets informed HR practice.

In short, evidence-based HR refers to adopting a decision making process in which the organization consciously evaluates any decision against multiple sources of data, experience, expert opinions, and other types of information to ensure the decisions most successful outcome.

Notably, examining multiple sources of data is also completed deliberatively, with a critical eye, and questioning the value of the data is part of the method. It takes constant effort to seek multiple sources of evidence to aid decision making and Evidence-based HR aims to actively do this.

Birkbeck’s new doctorate in Evidence Based Human Resource Management provides advanced research skills, a critical approach to thinking and deciding, the opportunity to tackle challenging work based problems and paradoxes, and a vibrant network of opportunities for discussion and reflection with HR professionals.

I anticipate that practitioner and academic discussions will be lively and insightful.

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“The MBA gave me a sense of purpose and the ability to recognise what I wanted when I found it.”

Dan Demilew enrolled on the Central Saint Martins Birkbeck MBA seeking a new direction. Now preparing to start a role in renewable energy, he reflects on the experience that led him to this opportunity.

The Central Saint Martins Granary Square campus.

I had always found my work as a Civil Engineer fulfilling; I enjoy being able to build stuff in my neighbourhood and physically show friends and family what I’ve worked on. Before I’d even considered studying at Central Saint Martins, I was an engineer on the redevelopment of Granary Square, helping to build the entrance bridge, Coal Drops Yard, Kings Boulevard and all around the university.

Back then I had the idea of doing an MBA in the back of my mind because my Dad often talked about how it had benefitted his career, but in my industry it was less clear how an MBA would be useful.

Instead, I moved to take up a new opportunity in Australia. I accepted a senior role working mostly on mine sites, and found the work less fulfilling, as I was working on projects that were mostly temporary in nature. Having progressed onto the project management side of things, I found myself spending an increasing amount of time dealing with the politics and work winning side of the business, which started to wear me down.

It was in my next role in Dubai that I realised it was time for a break. I wasn’t performing as well as I could at work and my wife had just been promoted and had a baby, so it seemed a natural time to take a step back and look after my child so my wife could go back to work.

I worried about my brain going a bit rusty so I thought now is the time to do this MBA that my Dad keeps harping on about!

Choosing a fresh approach

University of the Arts London had been on my radar since working on the Granary Square project, but the main thing that attracted me to the Central Saint Martins Birkbeck MBA was the concept of design-led thinking. The company I worked for in Australia was committed to design thinking and I could see the benefit of this approach when working with clients. In engineering, there’s often one correct way of doing things, so being able to apply an artistic and diverse way of thinking was really fulfilling.

The MBA has core modules like finance and leadership that you find on most courses, but 25% of the content is stuff you don’t find elsewhere, such as entrepreneurship and design-led thinking. After my experience of feeling burnt out in my previous roles, these were the parts of the course that appealed to me the most. Because the programme is part-time, I was able to combine my studies with taking care of my daughter as well.

Looking to the future

I knew that the MBA was a path to something different, but I wasn’t sure what was available to me. I thought I would be more motivated in my studies if I had a specific goal in mind, so I focused my energies on the Minderoo Foundation, an organisation funded by Australian philanthropist Andrew Forrest which looks to solve global challenges. Before enrolling, I set myself a metaphorical goal to work for Minderoo, and it was through following them on social media that I learned about Forrest’s new green energy fuel venture, Fortescue Future Industries. They advertised my dream job in January 2021, just as my daughter was starting nursery and I was starting to look for jobs.

I’ve just returned to Australia to take up a Program Management role for a portfolio of clean energy projects. The company is looking to build a global clean energy supply chain spanning more than 25 countries – the scale is breathtaking! I’m thrilled to be able to work on something that I know I can be proud of.

I don’t think I would have applied for the job had it not been for the MBA, and I’m certain that the MBA contributed to my success. It helped me differentiate myself at interview and was a great discussion point to enable me to articulate my skills and value. Above all, the biggest compliment that I can give to the work of Birkbeck and Central Saint Martins is that before I was struggling to know what I was looking for, but the MBA gave me a sense of purpose and the ability to recognise what I wanted when I found it. I’m excited about my future again.

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Community development: fostering dialogue and connections

The Community Leadership Programme for Newham Residents is run by the Access and Engagement Department and the Community Development and Public Policy BSc in the Department of Geography.

Funded by the National Lottery Community Fund, the project aims to bring learning to community spaces and is part of the Access and Engagement department’s aim to bring education and learning opportunities to groups underrepresented in higher education.

In this blog, David Tross, Associate Lecturer in the Department of Geography, talks more about the course and the Newham citizens it’s worked with over the last 13 months.

Community is strength on a billboard

Community is strength on a billboard

One extraordinary aspect of this extraordinary year was what has been called the ‘largest peacetime mobilisation in UK history’, the 1 million-plus individuals who volunteered as part of the community response to COVID-19. These included NHS responders, volunteers for local charities, the 4000 mutual aid groups that sprung up in neighbourhoods across the country and those who spent lockdown making PPE equipment for key workers. Not only this, a demonstrable upsurge in community spirit was observed during the first wave of the pandemic, with large increases in the numbers of people agreeing that their neighbourhood was a place where residents looked out for each other and over half of those polled indicating that they had checked in on their neighbours in the past week.

The Birkbeck Community Development programme has now worked with over 100 active citizens in Newham over the last 13 months. We call the course Community Leadership, not because the participants necessarily have any formal leadership role, but because they all, in various ways and through various roles, are making a contribution to their local area, demonstrating how local people can instigate change because they have a passion or will to do so.

David Tross adding ideas to a board

We have worked with a resident who works for a local community organisation providing foodbanks and delivering youth projects. He’s so good at using digital platforms and social media to market and fundraise that he’s now helping us deliver the learning and resources on this aspect of Community Development. Then we have the resident who starts conservations and spreads awareness about mental health by taking a sofa to public places and chatting to local people about their experiences, signposting to agencies who can help. One of our last cohort was working with Muslim groups to alleviate a particular local consequence of the crisis — international students whose part-time jobs, often in the hospitality industries, disappeared overnight and were then unable to access public funds, leaving them destitute and without enough food to eat

The four-week course is structured around particular themes: leadership approaches, project management, community engagement and wellbeing. We bring in ideas and resources from the degree course we run at Birkbeck, while also calling upon the local resources and contacts developed through Senior Access Officer Hester Gartrell’s work in east London with the Access and Engagement Department.

Unlike other London boroughs, Newham has no Council for Voluntary Service, local infrastructure organisations dedicated to help local community groups access funding, resources and training, and there is a need for community projects to access this support. However, the key success of the course is what participants share and learn from each other. In this sense, our job is to facilitate dialogue and connections which will sustain and strengthen the projects people are doing, often in relative isolation, and to get great ideas off the ground.

A key activity of every course is the ‘Resource Exchange’, where we simply let participants meet and share resources and information, ask each other for help and provide advice and support. These mutual connections are a part of developing the social capital- networks of mutual support and trust- that are key to Community Development activity in a locality.

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What can organizational psychology tell us about the calibre of our political leaders?

Organizational psychology provides substantial evidence about the characteristics of a successful leader, yet as Dr Almuth McDowall explains, this knowledge is not consistently used when considering the suitability and capability of our political leaders in the UK.

Rt Hon Theresa May MP, Home Secretary, UK (23261468319)

By Chatham House (Rt Hon Theresa May MP, Home Secretary, UK) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

It never fails to astonish me that much of what we have learned from applying the science of the mind to the context of work does not seem to have made much of an impact on the world of politics. Politicians, by definition, are leaders – so we should apply leadership theories to our assessments of their performance. Politicians’ day job is politics, but surely they need to bring the right knowledge, skills and attitudes (KSAs) – things that we would measure in any other job to see if people are suited to what they do.

In 2007, Jo Silvester and Christina Dykes published a longitudinal study of prospective political candidates. The  researchers conducted a job analysis, which is the first step in organizational psychology for a range of activities including selection and training, to draw up a competency framework – what do politicians need to be good at? The resulting competencies (KSAs) looked very much like those we would expect to find in other organisational contexts, including ‘intellectual skills’, ‘relating to people’ and ‘leading and motivating’; the only politics-specific competency was the level of ‘political conviction’. Performance, as measured in this way, predicted political performance, but so did their critical thinking capacity as measured by psychometric tests. So what can we learn from this study? Political performance can be measured, and surely it should be transparent to both politicians, but also voters, what marks ‘good’ performance in this context. This study found no evidence for any gender differences either.

So how do Theresa May and Jeremy Corbyn fare when measured against aspects of this framework, based on what we have observed of their leadership during the general election campaign? I remain unconvinced that either displayed critical thinking capacities if we take the election manifesto of either party as a performance output. The conservative manifesto was ill judged, alienated core voters (the dementia tax….) and overall just did not convince enough people that the Tories were worth re-electing. The Labour manifesto scored higher on political conviction, but had almost no suggestions for how any changes might be funded, putting strategy before any references to feasibility of implementation.

What about each party leader’s capacity to lead and motivate? Corbyn and his party clearly succeeded in mobilising grass roots support and also mobilising the young electorate which had absented itself from the Brexit referendum.

‘Communication skills’ and ‘intellectual skills’ are another aspect of the model of political performance. Taking reactions to the recent terrorist attacks as an example, May failed to show any human reaction to what were two sets of tragic events in short sequence, at a time when the general public is in great need of reassurance and support. Corbyn, on the other hand, attributed the happenings as a reaction to the UK’s involvement in war in Muslim countries; not a correct inference, as neutral countries have also been subject to attacks.

In terms of leadership, Theresa May seemed uncertain during what political commentators unanimously refer to as a disastrous and misguided election campaign. Her chief aides have now resigned, which throws into question her judgment on which advisors to surround herself with. Good advisors and teams are crucial to any political role. Modern life is so fast-moving, complex and, as recent events have demonstrated, unpredictable that no one person can lead a party, let alone a country, on their own.

In organizational psychology terms, there is a substantial body of research which demonstrates that ‘shared leadership’ across teams and organisations leads to better performance and better outcomes all around. Yet, in politics as well as in corporate life, we tend to pin our hopes on the one person at the top. Surely the time has come to change this, and make political leadership a more balanced, fair and transparent process than is currently unfolding in front of our eyes.

I grew up in Germany, learning in English textbooks about the Anglosaxon culture, about the power of the voice of the people and the unique British democratic process. Yet, recently, I no longer feel so certain that the current political system is serving us well and reading the political press in my home country, it seems other voices in Europe agree.

The time seems to have come to rethink politics and democracy to instil fairer and more transparent processes to ensure that a) politicians are up to their job and b) voters can make informed decisions.

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Theresa May: leaking leadership capital?

Ben Worthy, Lecturer in Politics at Birkbeck, and Mark Bennister explore Theresa May’s leadership capital. They conclude that although she may gain capital after an election win, her strained relations with her Cabinet and the ongoing crises of Brexit, Scotland, and Northern Ireland may eventually diminish her reputation.theresamay

Measuring leadership is a tricky business. Our work has experimented with the concept of ‘leadership capital’ to analyse a leader’s ‘stock of authority’. Journalists and commentators often talk about political capital as a sort of ‘credit’ stock accumulated by and gifted to politicians. Leadership capital is, we argue, made up of three attributes:

  • Skills: personalised ability to communicate, present a vision, and gain popularity
  • Relations: with the political party, the voting public, and colleagues
  • Reputation: levels of trust, ability to influence policy, and get things done.

Our Leadership Capital Index tracks the trajectory of leadership capital over time. The general tendency is for capital to be high when a leader gains office (because they win an election, are popular etc.) and to inevitably decline over time as mistakes, scandals, and inability to solve ‘wicked’ public policy problems diminish it. High capital leaders tend to be transformative, pushing change, and presenting bold policies. Low capital leaders struggle to have an impact and are often consumed with fighting off threats to their leadership, both at elections and with internal challenges. We apply this approach in a new edited volume published by Oxford University Press, using a range of case studies. So how does Theresa May’s leadership capital look so far?

leadershipTheresa May seemingly accumulated high levels of leadership capital when she assumed office in July 2016 in the wake of the EU referendum result, even though, like many prime ministers before her, she came into power by ‘taking over’ rather than winning a General Election. May arrived after a vicious and very public internal party war, to become the unifier for both the Conservative party and the country in the grip of uncertainty and division.

In terms of skills, May championed a clear, if rather succinct, vision of Brexit (‘Brexit means Brexit’) while her forthright and direct style offered a contrast with Cameron’s slick and rather too smooth rhetoric. She entered power with high poll ratings and levels of trust and, perhaps most remarkably, a relatively united party after the civil war over Brexit. Her experience as Home Secretary was seen to demonstrate both firmness and a mastery of details.

In policy terms, May blended a wider policy agenda of reforming capitalism with a populist agenda pitched on the side of working families. Her uncontested party leadership coronation left no rivals with only Boris Johnson in the ‘gilded cage’ of the Foreign Office where he could do no harm. May was the candidate who could and would ‘get things done’ with plenty of leadership capital to do it.

Jump forward to June 2017 and May’s capital looks a little different. It is still high. May retains her high poll ratings and trust: May is much more popular than her party while the reverse is true for Corbyn. Perhaps most remarkably, the Conservative party has fallen into line behind her stance on Brexit. The General Election of 2017, and with campaign emphasis on May herself, has hinged on these positives. This election, in a sense, is a leadership capital election as this Populus party leader polling shows. The strategic, personalised focus on her leadership was a deliberate approach to contrast with her opponent.

But there have been signs of fraying capital. Her communicative style has been derided as robotic, under the intense media scrutiny of a campaign. Meanwhile her firmness and mastery of detail have been exposed as less positive attributes, once her tendency towards secretive and closed group decision-making became evident, and after some less than certain public performances. The Brexit process has seen White Papers and speeches that appeared less than detailed, while electioneering slogans have glossed over a lack of depth of policy planning. The reformist agenda so far has been a little underwhelming.

When a leader’s communication and policy control falters, leadership capital – gifted to them by supporters, commentators and electors – declines. May’s problems are exemplified by the U-turn on social care policy, an embarrassing volte-face during an election campaign. As a poorly thought through policy, it apparently by-passed Cabinet and so damaged her relations, not only with colleagues, but also the grassroots members busy knocking on doors. May’s attempts to defend the policy left the party rather unhappy and less convinced by her competence. As Janan Ganesh argued:

“Her self-image as a firm leader hinged on her fidelity to this brave, contentious idea…Colleagues who defended her proposal in public, lobby interests who fought it and any EU negotiators tuning in from the continent will infer the same lesson: this prime minister is strong and stable, until you test her.”

The social care climb down has not been an isolated incident. It follows a series of mistakes and retreats from National Insurance rise to the fundamental decision to hold a snap election. There is also a tendency towards blaming others in a crisis – whether the EU for leaking or her own Chancellor for the aborted National Insurance rise. Recent headlines perhaps tell us the reputational damage. George Osborne’s London Evening Standard editorial described May’s campaign as an ‘abortive personality cult’ that, after the ‘self-inflicted wound’ of social care, could be summed up as “Honey, I shrunk the poll lead.” The Times ran with the headline ‘Mrs May has been rumbled as not very good’ and Paxman, with a phrase that could haunt May, suggested she was a blowhard who collapses at the first sign of gunfire.

May appears set for a convincing win, if not a landslide. Her polling and personal ratings mean she retains more than enough leadership capital to make this victory her win – though expectations may make a smaller win rather Pyrrhic. Framed as the Brexit election, she can still present herself as the leader with the capital and mandate to see it through, but her personalised campaign has been dented under close scrutiny and in the face of an unexpectedly resilient opponent.

She may gain capital on the back of an election win, but expect her to lose capital in her relations with her own cabinet: collegiality has been with her own Chancellor, tension between her team and the Cabinet, muttering in the party over U-turns and mistakes. Aside from the deep rolling crisis that is Brexit, many other problems will still loom large on June the 9th: from Scotland to the too long neglected divisions and stalemate in Northern Ireland. May’s leadership capital could well diminish swiftly after her election victory. As she faces the huge complexity of Brexit, her skills are not so evident, her relations are frayed, and her reputation dented.

Worthy and Bennister are co-authors, with Paul ‘t Hart, of The Leadership Capital Index, available from Oxford University Press.

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