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Case Studies

The High Cost of a loose sense of Integrity | Corporate Business Ethics | Case studies

It is a fact that we live in a culture where Integrity is not Black and White. It is several shades of Grey. Individuals and corporates begin to think that minor “adjustments” to integrity are OK, as long as it helps one to meet personal or corporate goals. But there is a serious problem with this approach to Integrity. You never know when you go from white to light grey to dark grey to black. Servant Leadership requires leaders to have the highest sense of Integrity, where integrity it black and white. You either have integrity or you don’t. The following corporate case studies will convince you of this fact. ENRON SCANDAL : Founded in 1985 by Kenneth Lay, Enron was an intermediary between the natural gas producers and their customers. Enron started incurring losses as competition increased over the years. To cope with the shareholders, the company started relying on dubious accounting practices like ‘market-to-market accounting’; and it even started over-using ‘special purpose entities’ (SPEs) to dump troubled assets. In mid-2001, analysts began to dig into the details of Enron’s financial statements. This led to the revelation of accounting frauds. The damage to the company’s finance and reputation was irrevocable, leading to an eventual dissolution of the mammoth enterprise.  https://www.wsj.com/articles/SB1023409436545200 SATYAM SCANDAL (also known as the Enron Scandal of India)Satyam Computer Service was started in 1987 by Ramalinga Raju and his brothers. In January 2009, Satyam was banned from doing business with the World Bank on claims that Satyam was involved in illegal practices. On investigation, it was found that the company showed falsified accounts to its company board, regulators, investors, and all other stakeholders: https://www.financialexpress.com/industry/what-was-satyamscam-which-toppled-indias-fourth-largest-it-company-from-thetopslots/1010389/ The Volkswagen Diesel gate incident  In September 2015, the Environmental Protection Agency (EPA) found that many VW cars being sold in America had a “defeat device” – or software – in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results. The German car giant has since admitted cheating emissions tests in the US. https://www.bbc.com/news/business-34324772 Peanut Corporation of America: In 2009, ore than 700 cases of salmonella poisoning were linked to contaminated peanut products. Nine people died. Investigators traced the contaminated food to a factory in Georgia operated by the Peanut Corporation of America. What came out was that the company leaders allowed the shipment of food products even when no testing was done, and when they know that there was a problem. https://www.npr.org/sections/thesalt/2015/09/21/442335132/peanut-exec-gets-28-years-in-prison-for-deadly-salmonella-outbreak Theranos and Elizabeth Holmes: Holmes founded a start-up that promised to revolutionise blood testing. She soon became the darling of the investors but despite having some great people in the board, succeeded in cheating thousands of consumers, because her machines did not work, and the test results were all fake. Investigations revealed lies to board members, a culture of intimidation and secrecy, technology that repeatedly failed quality assurance and crucially, results sent to real patients that were fundamentally incorrect, upon which life-changing medical decisions were being made. In 2022, Holmes was sentenced to prison.  https://www.panmacmillan.com/blogs/literary/theranos-elizabeth-holmes-john-carreyrou# One of the DEEP BHC Servant Leadership behaviours, which is a part of our 3-7-10 framework of Servant Leadership Implementation is Behaving Ethically. We help Servant Leaders shake off the notion that Integrity is an adjustable commodity. _____ ____________________________________________________ The Author Dr. Madana Kumar, PhD is a Servant Leadership Evangelist at Leadyne. You can connect with him here or contact him here.

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Corporate Case Studies | Servant Leadership Implementation | Dr. Madana Kumar, PhD

In an earlier blog, I spoke about the academic research I did to establish the fact that Servant Leadership does positively impact the performance and community citizenship behaviour of employees in the organisation. My doctoral research was done in Indian NGOs Many of us work in for-profit organisations. So the question remains, does Servant Leadership work in for-profit organisations. To find an answer to this question, I studies the leadership philosophy of companies listed in the “Fortune 100 Best companies to work for” list, compiled by the  Great Place to work Institute. I chose the Fortune list, because it ensures that the companies we are looking at are financially sound. My studies revealed that nearly one third of the companies in this list followed some form of Servant Leadership. This might not be the ideal form of Servant Leadership, but they acknowledge some key elements of Servant Leadership. Apart from this list, I also studied some companies that I have had the privilege to consult. The short list of such companies is given below. This list is only indicative and not exhaustive. I look forward to adding to this list often. Chick-fil-A :  an American fast food chain, created a Servant Leadership model that now yields them successful results. Read more about it in the book ‘Servant Leadership in Action’ by Ken Blanchard and Renee Broadwell (Pages 34 – 37) Southwest Airlines : According to Herb and Collen Barrett, the founder and President of Southwest Airlines respectively, a Servant Leader’s philosophy should be: “Treat your people right, and good things will happen.” Read more about it in the book ‘Servant Leadership in Action’ by Ken Blanchard and Renee Broadwell (Pages 183 – 188) Google : “The manager has been stripped of all powers”-Work rules by Lazlo Bock, the previous CHRO of Google. Google fosters a culture that is conducive to employee development, inspiring creativity and innovation is aligned to servant leadership culture. Click on this link to read further: https://www.linkedin.com/pulse/how-google-gets-servant-leadership-right-4-steps-your-michael-flynn/ “Compassion Builds Better Companies”:: LinkedIn CEO Jeff Weiner emphasized on the importance of compassion and how it can change one’s career path and life. Click on this link to read further: https://knowledge.wharton.upenn.edu/article/linkedin-ceo-howcompassion-can-build-a-better-company/ “Be a ‘Servant’ Leader”: Send Grid: Sameer Dholakia believes that the role of the founder or the CEO is not at the top of a pyramid structure but rather an inverted pyramid. You can read his perspective on Servant Leadership here: : https://www.entrepreneur.com/article/313475 Marriott: “Take care of associates and they will take care of the customers.“ Read The Spirit to Serve: The Marriott’s way by JW Marriott Jr. and Kath Ann Brown. See their values at https://www.marriott.com/culture-and-values/core-values.mi# TATA Group: The Tata philosophy of management has always been and is today more than ever, that corporate enterprises must be managed not merely in the interests of their owners, but equally in those of their employees, of the customers of their products, of the local community and finally of the country as a whole.” – J. R. D. Tata : https://www.tata.com/business/tata-sons and the book “The Tatas – How a Family built a Business and a Nation” by Girish Kuber. Ayayla Corporation, Philippines: To become Servant Leaders in these challenging times, I encourage young people to be authentic… : Jaime Augusto Ayala. https://ayala.com/press-room/press-releases/push-for-change-mayor-vico-urges-nations-young-leaders H&R Block : We believe in the power of people helping people. Line by line, and block by block. https://www.linkedin.com/feed/update/urn:li:activity:7065193612644405250/ ESAF Bank, India: Servant Leadership is the most important core value here. https://www.esafbank.com/values-brand-pillars/ UST:  UST started the formal implementation of Servant Leadership as the overarching philosophy in 208. Ever since, UST has significantly improved their standing as a great employer, as certified by Great Places to Work institute, Top Employer Institute, reviews in Glassdoor etc. All this while doubling their revenue in 5 years. Read about the UST story at https://ustservantleadership.com/live/ The lessons learned from these case studies is simple. Profit is not a four letter word for Servant Leaders. Results and Relationships can be balanced and the best way to balance it is to embrace Servant Leadership. _______________________________________________________________ The Author Dr. Madana Kumar, PhD, is the Servant Leadership Evangelist and Chief Consultant at Leadyne. You can connect with him here or contact him here.

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Power : Three Case studies to Establish the right use of Power in Leadership

My studies reveal that there are four tenets that differentiate the good, the bad and the ugly of leadership. These four tenets are, Power Purpose Values Significance In this blog, we will focus on Power. Power and Leadership  have almost always been associated with each other.  Leaders have a choice to use power to make a difference to the world and to their followers, or to use for self-aggrandizement. TS Eliot had said “Half of the harm that is done in the world is caused by people who have power and want to feel important”. This is so true. We live in a world where special “entitlements”. But there are people who take the entitlements to the extremes. I keep studying different global companies and I have several case studies which show such misuse of power in leadership.  Let us look at three case studies  that I have compiled. Case Study 1 : Stanley O’Neal Stanley O’Neal’s story is a true rags to riches story that Ivy League Management Schools drool over. He did make it really big. He made it to the top position at Merrill Lynch in 2002. In his own words “Whatever I have achieved in life has been the result of the unique combination of luck, hard work, and opportunity that can only exist in this country. My grandfather, James O’Neal, was born into slavery in 1861.” In the same year that he took over the CEO position at Merrill Lynch, O’Neal was named the “Most Powerful Black Executive in America” by Fortune magazine. Further instances show that he used the power in a very interesting way. He had his own private elevator to go to the 32nd floor and he restricted the entry of employees to the floor. He used his power to feel important and thereby became secluded. This infiltrated into the leadership culture of the organisation. The New Yorker reports that some staffers were referring to the firm’s leaders as “the Taliban” and to O’Neal as “Mullah Omar.” Stan is known to have kept away from the employees and was in touch with only a handful of “faithful” ones. Many analysts believe that this was one of the major reasons for his downfall. He was forced to retire in October 2007, due to the pathetic performance of the company. The legacy that he left was not pleasant.  Jim Cramer, the host of “Mad Money,” on CNBC,  wrote  “This man was Wall Street’s Wicked Witch, a much-feared, totally unrespected hatchet man who appeared to be beloved by his troops but in reality didn’t have a friend in the joint. . . . I swear you could hear the cheering from downtown after he left.” Case Study 2:  Herb Kelleher Herb Kelleher, who founded the Southwest Airlines, had a very different idea about Power. He said “Power should be reserved for weightlifting and boats, and leadership really involves responsibility.” And several analysts agree that he was not faking anything. Terry Maxon of Dallas Morning News reports “Whether it’s hugging and kissing co-workers at a meeting or making a 2 a.m. visit to a maintenance hangar, Mr. Kelleher is not happy unless he’s talking with employees.” He is even known for putting on his shorts and sneakers, ride his Harley, and go to the nearest airport on  Thanksgiving Day to help the baggage loaders in their work, because he knew that many were on vacation and the employees could do with some additional hands. And what legacy did he leave? Apart from leaving behind the worlds’ most profitable airline company, he also left several thousand employees raving fans of himself. And that legacy did live on in Southwest. Collen Barret , another rags to riches story, and the first woman to have headed a major airline company, took over the President role from Herb. Colleen says “85% of my time is spent on employees and delivering  pro-active customer services to employees Case study 3: J R D Tata Here is how Jehangir Ratanji Dadabhoy Tata , more popularly known as JRD saw Power. One of the first actions that JRD did was to take away the special privileges of officers in Tata Steel Plant at Jamshedpur. This included the special reserved lift for the Managing Director, Special dining areas for officers, and special toilets for officers. If you think this was no big deal, think again. This action was taken in the early 1940’s, when such privileges’ were considered absolutely normal. It was the time of British Raj and sahibs in India. JRD used his powers to make everyone equal, instead of seeking importance for himself or the others in office. And what legacy did such actions leave on the corporate culture? There are several eye witness accounts of Ratan Tata (who took over the reins of the TATA Group from JRD) standing in que to get into the elevator in Bombay House, the head quarters of TATA group. A Harvard Business Case on the response of  Employees of the Taj Mahal Hotel in Mumbai, India ( A TATA group company) on the terrorist attack known as 26/11 explains this well. When terrorists attacked the Indian city of Mumbai in 2008, employees of the Taj Mumbai hotel displayed uncommon valor. They placed the safety of guests over their own well-being, thereby risking—and, in some cases, sacrificing—their lives. This behavior was not merely a crisis response. It was instead a manifestation of the Taj Group’s deeply rooted customer-centric culture , that they call Tajness. The lessons from the three case studies above is simple. All of us have power. And all of us have a choice on how we use that power. Servant Leaders use power to make it better for their followers. What will you choose? ______________________________________________________________ References Case study 1 Compiled by Dr. Madana Kumar, PhD, referring to  “Leaders Eat Last” by Simon Sinek and several other web resources Case study 2 Compiled by Dr. Madana Kumar, PhD, referring to  “Servant Leadership in Action” by Ken

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Global IT Services Company

Global IT Services Company A mid-size IT services company based in the US with operations in about 25 countries started the S.L.A.M journey. In one year, close to 400 middle level managers ranging from Project managers to delivery managers went through the SLAM program. The program caught the attention of the Leadership and the employees and currently they have covered more than 2000 mangers/ team leads in the program. The race from 0 to 400 took an year, but the race from 400 to 2000 was done in less than one year, thanks to the Champions program that organisation put in place. Today , they have a team of more than 40 internal champions who manage the program. Some of the results are given below:    

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