Business Insights

My development as a Future Leader

Leadership development is defined as the expansion of a person’s capacity to facilitate setting direction, creating alignment and maintaining commitment in groups of people working towards a common goal (Ellen Van Velsor, 2010). Nowadays leaders are being chosen in organizations through recruitment processes but without evaluating their qualities as a leader. Leaders are action oriented, strategists, planners and motivate the organization or their subordinates (Tracy, n.d.). In simpler words leaders give a clear vision towards achieving a common goal in the organization.

The Two-Part Model Theory (Ellen Van Velsor, 2010)

This model gives an idea on how we can develop certain traits of a leader.

(Ellen Van Velsor, 2010)

Developmental Experiences: This consists of three elements- Assessment, Challenge, Support (ACS) (Ellen Van Velsor, 2010). Experiences help in the development of a leader and has a major impact. But not all experiences help in the development of a leader. Situations or experiences which provide constructive feedback and support, help in the development than situations which miss out on these elements. These experiences can be a job, internship, training program, a relationship or an assignment. For example, playing in a basketball team with a coach who gives you constructive feedback is more productive than a coach who does not. (Ellen Van Velsor, 2010)
The Developmental Process: Variation of experiences give the ability to learn the motivational factors, personality factors and learning tactics. The developmental processes can vary because of business strategy, purpose, mission ethics, values, economic conditions and population. All these combined together shapes a leader and helps them inculcate qualities of a leader. (Ellen Van Velsor, 2010)

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1)Assessment : Collecting, interpreting the data with variation be it formal or informal is vital. This data can be a feedback from bosses, employees, children, parents, friends and customers or it can also be a feedback to oneself. Formal assessment often includes customer evaluation, performance appraisals, surveys etc. Informal appraisals include a less structured feedback such as observing reactions to others actions or ideas, asking colleagues for advice or feedback. Self-assessment can be formal through psychological inventories and journaling as well as informal by monitoring of internal states and analyzing mistakes and decision-making process. Good assessment data gives clarity on the strengths and weaknesses. Assessment has a varying impact, different people depending on cultural, social and economical differences. (Lynch, n.d.)

2)Challenge: “Growth and Comfort never coexist”- Ginni Rometty (Nusca, 2014)

Challenging experiences force people out of their comfort zones and make them question their skills and approach. This leads them to develop skills and change their views on certain affairs. These challenging situations bring out the best or worst for certain people. Some people crack under pressure, either way the person is going to self-evaluate the mistakes done during the challenging situation and overcome it. So what are the essential elements that develop and motivate a person during these challenges? (Ellen Van Velsor, 2010) Often it’s the clear vision that excites and inspires the person to achieve the goal (Tracy, n.d.).The person needs to discover new ways of completing the task instead of going back to the old ways, they will have to challenge their old behavior. Dealing with failure, disappointment and can also challenge people and push them to reinforce new operational techniques.

3)Support: Adequate support during challenging situations and experiences can take a toll on a person’s behavior. Hence, to bring out the best possible outcome in terms of results as well as development they must include an element of support. Support can differ from person to person. For example, for some people support can be considered as providing resources and freedom for self- initiated goals and for some people providing emotional, positive feedback for their efforts might be considered as support. (Ellen Van Velsor, 2010)

Variety of developmental experiences: Variation provides diversity to the persons experiences and gives them a broader understanding of the task. Broadening the view of leadership is very important in the development of leadership development because it helps the person think in many ways as their sub-ordinates might think and also think of the different outcomes of the challenge. So this leads to development which in turn leads to the ability of learning. (Ellen Van Velsor, 2010)

Relevancy : As per the research of (Ellen Van Velsor, 2010) development of a leader varies on many different factors and has been analyzed in the previous topic. This approach has helped me in analyzing my development as a leader and the importance of evaluating, the different outcomes. The two-model theory has incorporated the importance of (ACS) assessment, challenges and support. I think without one of these factors the development is an impossible task because of their interdependency. Leaders also feel significant make their team also feel important, they appreciate everyone’s quality of work and effort in making the organization successful. Also, Tuckman’s group development framework where the forming, storming, norming, performing and adjourning stages was very relatable during my interaction with my batchmates during my MBA. This frame work basically gives you an insight of different stages of engagement with your colleagues or subordinates.

My development as a leader

Through the feedback, I have received my leadership style is strategic because I strategise before making a decision as well as taking everyone’s opinion into consideration. My ability to listen and being supportive as a leader is considered my strength. The Johari Window also helped me identify my strengths and weaknesses so that I can work on them. As I mentioned earlier in the Two-Part Model theory (ACS) assessment, change and support are the essentials of leadership development. To conclude I need to work on my leadership qualities and it is always an ongoing process to learn from experience. I aim to these theories in order to grow a leader overall, also to communicate and build a strong bond with my team members.

Conclusion:

Being able to lead was not a skill that I had in me before my (MBA) Masters Of Business Administration. The module Leading in a changing world has taught me to lead with ‘ethics’ which is a huge part of leadership in the society because of the corruption that is present in the society nowadays. Who is a good leader? Well, each individual has their own perspective. But there are many other skills that I need to improvise on in order to be a better leader and I will continue to do so through out my career.

References :

Tracy,B.(2019).[online]Availableat: https://ebookcentral.proquest.com/lib/coventry/reader.action?docID=1390902 [Accessed 9 Dec. 2019].

Lynch, M. (2019). [online] ebookcentral.proquest.com. Available at: https://ebookcentral.proquest.com/lib/coventry/reader.action?docID=958337 [Accessed 9 Dec. 2019].

Nusca, A. (2019). IBM’s Rometty: ‘Growth and comfort don’t coexist’. [online] Fortune. Available at: https://fortune.com/2014/10/07/ibms-rometty-growth-and-comfort-dont-coexist/ [Accessed 9 Dec. 2019].

https://fortune.com/2014/10/07/ibms-rometty-growth-and-comfort-dont-coexist/Velsor, E., D. McCauley, C. and N. Ruderman, M. (2019).

https://ebookcentral.proquest.com/. Available at: https://ebookcentral.proquest.com/lib/coventry/reader.action?docID=484823 [Accessed 9 Dec. 2019].

https://ebookcentral.proquest.com/lib/coventry/reader.action?docID=484823 Mulder, P. (2019). What is the Johari Window Model? Theory, example & template | toolshero. [online] toolshero. Available at: https://www.toolshero.com/communication-skills/johari-window-model/ [Accessed 9 Dec. 2019].

The EU classifies Britain as one of the 28 member states to function as a single trading entity without any tariffs or border checks and a combined VAT system. On 23 June 2016, the UK electorate voted to leave the European Union. The withdrawal agreements have been postponed three times and is currently 31 January 2020.

I put money on Brexit , The EU Financial Commissioner, Jonathan Hill from Britain, still owes me a pound.- Jean Claude Junker, President of the European Commission (2014 -2019) (Baker, 2019).

What are the consequences of Brexit on the Banking sector?

Lloyds is a financial institution providing personal, business, private and international banking solutions. Lloyds being founded in the UK has a huge customer base and has acquired Halifax, Bank of Scotland and Scottish Widows. (bank, n.d.)

Brexit will have serious implications on the banks in the UK and EU because of change of regulations and operations. Lloyds bank has always strategized with acquisition and in order to prepare for Brexit Lloyds has secured the Berlin license. Hard Brexit being the likely outcome, banks need to cover European client coverage and Lloyds is acquiring banks with a reach in the EU. (Sinead Cruise, 2019)

How is Lloyds planning on tackling Brexit?

Lloyds being an organization which is more than 250 years old in the business, having its origin and history in the UK, has been forced to rethink strategies on how to manage to sell their products in Europe. Lloyds being Britain’s biggest mortgage lender and having an experience of being in the business for decades is following a trend of scattering their post- Brexit resources among many cities rather than basing all their operations in a single city. The new British regulations have forced the UK banks to run three continental units so that balance sheets are individually capitalized “ringfenced” and “non-ringfenced” entities. Lloyds has a non-ringfenced euro bonding business and thus to comply with the new regulations it is setting up a second subsidiary in Frankfurt and the third subsidiary at an unconfirmed location to back its Scottish Widows “closed book” insurance business. Lloyds employs human resource staff, finance, risk and a full management team which has around 300 people in Berlin. (Sinead Cruise, uk.reuters.com, 2018)

(Roberts-Phelps, 2001)

Brexit will result in the customers and client’s dissatisfaction because of economic crisis. So, Lloyds will have to change its organizational structure and utilize the reach of the banks or subsidiaries its acquiring. Robert Graham Phelps came up with the customer interaction cycle which explains how Lloyds can retain customers. Lloyds can build a targeted set of questions for each and every department like (Roberts-Phelps, 2001) :

Does the EU have any suppliers from the EU 27 states and from where?

What are the tariffs for the goods received from the EU and what are the quotas for free tariff?

What private data received from the EU is reliable?

These types of questions can be framed for all departments such as finance, ops, HR and customer services so that the company can identify the drawbacks (Perera, n.d.).

On the event of a no-deal Brexit the UK will start following the WTO (World Trade Organization) rules and trade with the EU as a MFN (‘Most Favoured Nation’) tariff basis will end. The WTO rules state that there will not be any preferential treatment for any country and hence the tariffs will still be applied . (Lloyds, n.d.) (Lloyds, Lloydsbank.com, n.d.)

The Goal Setting Theory :

Edwin Locke came up with the Goal Setting Theory which states that with appropriate feedback it leads to increase in task performance. This theory proposes that a company’s (Edwin A. Locke, 2012) employees must be provided with a clear, measurable, realistic and challenging goal which in turn will lead to directing the focus towards achieving the goal. The more challenging the goal is the better the reward and drive to achieve it. Lloyds needs to set clear goals on how to dominate in the EU market and promote growth of the company. The limitation of this theory is that goal setting increases job satisfaction and complex goals promote unusual behaviour. Brexit is going to stimulate doubt in the employees as well as the customers. Hence Lloyds needs to motivate employees which will promote efficiency in turn the company will make a good image in the EU market which will result in a loyal customer base. (Edwin A. Locke, 2012)

(Edwin A. Locke, 2012)

“An important part of our focus is therefore to anticipate the shifting trends across the main UK trade corridors globally and to make sure we are able to offer trade finance to solutions to our clients into the key markets for them.” – Chris Spedding, Managing Director, Head of FI Trade, Global Transaction Banking, Lloyds Banking group (Chris Spedding, n.d.)

Will Brexit make fraudsters more active?

Another serious problem with Brexit is fraudsters increasing their activity to take advantage of the EU exit situation. The scams might vary from emails with EU exit content containing malicious software to phone calls, mails and texts to disclose personal details as a reason to take action against the EU exit situation. This can cause a serious threat to the company’s brand image while trying to expand their company across the UK border and trying to dominate the market. There are campaigns that Lloyds is associated with like the Take Five campaign which gives advice to people. There are also fraud guidance brochures online on the official website. Lloyds will need a dedicated team for fraud and the company has provided different toll free numbers where the customers who think are victims of fraud can call immediately which provides a great sense of assurance and reliability to customers (Lloyds, lloydsbank.com, n.d.).

Value of Online banking fraud losses in the UK from 2010 to 2018 (Cherowbrier, 2019) :

Conclusion:

Change management and leadership is a process that needs to be initiated from the top-level leaders who will provide a direction to all their subordinates. There will always be room for improvement and the banking sector (Lloyds Banking Group) will be able to overcome the implications of Brexit over time provided there must be productive efforts from the company itself. Lloyds Banking group have been making efficient efforts towards expanding the firm in the EU as well as retaining the brand image of the company.

References:

Baker, T. (2019, November 5). Juncker repeats claim that Johnson told ‘so many lies’ about Brexit. Retrieved December 8, 2019, from https://www.standard.co.uk/news/uk/brexit-latest-jeanclaude-juncker-repeats-attack-on-boris-johnson-as-he-says-pm-told-so-many-lies-in-a4278651.html

Our Heritage. Retrieved December 8, 2019, from https://www.lloydsbankinggroup.com/our-group/our-heritage/

Cruise, S. (2019, January 17). Lloyds secures Berlin bank licence as part of Brexit preparations – source. Retrieved December 8, 2019, from https://uk.reuters.com/article/uk-britain-eu-lloyds/lloyds-secures-berlin-bank-licence-as-part-of-brexit-preparations-source-idUKKCN1PB1ZA

Cruise, S. (2018, July 17). Exclusive – Lloyds Bank plans three EU subsidiaries after Brexit: sources. Retrieved December 8, 2019, from https://uk.reuters.com/article/uk-britain-eu-lloyds-exclusive/exclusive-lloyds-bank-plans-three-eu-subsidiaries-after-brexit-sources-idUKKBN1K71MO

https://uk.reuters.com/article/uk-britain-eu-lloyds-exclusive/exclusive-lloyds-bank-plans-three-eu-subsidiaries-after-brexit-sources-idUKKBN1K71MO

Personal. Retrieved December 8, 2019, from https://resources.lloydsbank.com/insight/tariffs-explained/

Personal. Retrieved December 8, 2019, from https://resources.lloydsbank.com/insight/kpmg-quantify-your-brexit-risk/

Personal. Retrieved December 8, 2019, from https://resources.lloydsbank.com/insight/brexit-related-fraud-scams/