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HELSINKI UNIVERSITY OF TECHNOLOGY
Department of Industrial Management
Laboratory of Work Psychology and Leadership
INTELLIGENT LEADERSHIP AND LEADERSHIP
COMPETENCIES
Developing a leadership framework for intelligent
organizations
Pentti Sydänmaanlakka
Dissertation for the degree of Doctor of Philosophy to be presented with due
permission of the Department of Industrial Management, for public examination and
debate in Auditorium Luna, Spektri Duo Building, Metsänneidonkuja 6 at the Helsinki
University of Technology on the 31st of January, 2003, at 12 o´clock noon.
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Sydänmaanlakka, Pentti. Intelligent leadership and leadership competencies. Developing a
leadership framework for intelligent organizations.
HUT Industrial Management and Work and Organisational Psychology
Dissertation Series
No 4
ISSN 1459-1936
ISBN 951-22-6283-5
KEYWORDS: Leadership, intelligent leadership, competence, leadership competence, management
development.
ABSTRACT
The purpose of this study was to develop a leadership framework for intelligent organizations. This
was done by analyzing the future working environment of managers, leadership as a phenomenon
and as a process and leadership competencies. How leadership is typically learned and trained and
how we could improve these activities, was also studied. One of the contentions of this thesis is that
as the world is shifting from an industrial paradigm to a post-industrial paradigm, it is necessary
that we understand the consequences of this shift vis-à-vis leadership culture and practice.
In my study I have tried to apply a methodological approach, which I have termed as “science by
doing”. It can be seen as belonging to a certain school of action research. In this approach, I have
tried to combine a practical approach and a scientific approach. Moreover, through practical follow-
up management development projects the idea has been to create new, personally experienced,
tested and interpreted knowledge. This orientation is underpinned by a balance between direct
personal
experience
and
indirect
intellectual
abstraction.
It
is
an
approach
that
goes
beyond
fragmented theories and that could possibly point a way towards a new school of leadership.
I have used the research design with three layers: 1. personal skill map research; 2. leadership
development in practice; and 3. the new framework for leadership.
1.
The objective of personal skill map research was to apply and develop the method of
analyzing and developing personal key skills. Personal key skills (e.g. decision making and
stress management) are that kind of general skills (altogether 14 skills), which we need to be
effective and to create a sense of well-being in our normal life. This research was my
licentiate dissertation and has formed an important basis for this research in which I have
continued the same theme but focused on leadership competencies.
2.
Leadership development in practice means that I have documented five case studies
concerning management development at Kone and Nokia during the nineties. All these cases
are different kind of leadership development projects which give us a lot of practical
experience about our topic.
3.
The main purpose of this research has been to define the new framework for leadership. This
has been done on the basis of my own experiences and extensive theoretical research in
which I have tried to go through all the relevant leadership theories. I have grouped those
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theories into 14 clusters and analyzed what they could give to leadership in the 21 st century.
I believe that we need a radical paradigm shift in our thinking about leadership; a move from
an industrial to a postindustrial paradigm. We don´t know exactly what this new paradigm
will look like, but I have outlined ten cornerstones for this new framework
Based on this framework I have developed an intelligent leadership model. The model itself is
based on the system theory and it tries to describe the leadership process as a whole with the ten key
elements that belong to it. One of the main premises I make is that intelligent leadership is shared
and collaborative and therefore significantly different from the way leadership has been addressed
in mainstream models. Moreover, leadership is seen as a process, not a position. It therefore goes
without saying that the proverbial followers are actively involved in this model and that they are
also engaged in the phenomenon of leadership, not “followership”. It is also important to state that
purpose and vision give the justification for leadership. Leadership is always based on universal
principles and values.
Future leaders are living in a turbulent and chaotic environment, where the real power to act comes
from recognizing the pattern of change and sensing and seizing windows of opportunity. In this
kind of environment they will need a lot of competencies to survive. I have defined a competence
tree of a leader or leadership, which consists of six clusters and altogether 26 competencies. This is
based on the personal skill map research (the skill tree of a life), a comprehensive summary of
previous competence research in the leadership area and some examples from practice (e.g. Nokia,
Ahlstrom and ITU). I have also developed a Leadership Self-Assessment Tool, which consists of
160 items.
The leadership competence framework and the self-assessment tool was tested with sixteen
executives (“successful people managers”) from Ahlstrom, Fortum, Kone and Nokia. This group
considered the competence tree of a leader comprehensive, practical and useful. Also the self-
assessment tool was considered useful, and it gave a lot of self-reflection impulses.
People usually learn leadership best by doing. Good self-reflection competencies and awareness
about your own learning obstacles are needed for this. Also management and leadership training is
useful when its timing is correct and it is tailored to the company´s situation. It should always start
with self-leadership.
Intelligent leadership widens the area of influence from individuals to teams, to organizations and to
societies. Intelligent leadership should help individuals to develop themselves comprehensively as
human beings. It should support working individuals in becoming self-directed teams. It should
support organizations in becoming intelligent. And in addition to this, it should support us in
building intelligent societies, where we can integrate economy, ethics and ecology. This is the
ultimate goal of all leadership training.
During the last twenty years a huge amount of studies and books on leadership have been published
both by academics and practitioners. I have a strong belief that today there is a momentum, and we
have enough leadership knowledge that enables us to achieve the intellectual breakthrough and go
beyond fragmented theories towards a new school of leadership; “a new scientific management” for
the 21 st century. I hope this research can support that progress in a tiny way.
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CONTENTS
1.
Introduction…………………………………………………………….. 9
2.
The purpose of the research……………………………………………..13
2.1. The objectives of the research ……………………………………..13
2.2. Research methodology……..………………………...………….…14
2.3. Research design and process.…….………………………………...20
2.4. Research validity and reliability……..……………………………..21
3.
Leadership development in practice ……………………………………23
3.1. The Kone Management Education System…….…………………...23
3.2. The Navigator Management Training Program at Nokia……..…....27
3.3. Performance management as a leadership process……..…………...31
3.4. Mentoring as a management training method……..………………..33
3.5. Learning by doing as a method of becoming a leader……..………..34
3.6. Summary and conclusions……..……………………………………36
4.
Leadership in theory and how it has been described…………………….37
4.1. The big picture……………………………………………………...37
4.2. Leadership theories and models…………………………………….39
4.2.1.
Ancient approaches…………………………………….....40
4.2.2.
Classical approaches……………………………………...42
4.2.4.
Style approach…………………………………………….45
4.2.5.
Contingency theory ………………………………………47
4.2.6.
Situation approach ……………………………………….48
4.2.7.
Path – Goal theory (Motivation theories)………………...50
4.2.8.
Management by objectives……………………………….52
4.2.9.
Leader – member exchange theory……………………….55
4.2.10.
Tranformational leadership……………………………….57
4.2.11.
Team leadership…………………………………………..61
4.2.12.
Psychodynamic approach…………………………………64
4.2.13.
Value management and ethical leadership………………..66
4.2.14.
Self-leadership…………………………………………….67
4.2.15.
Summary and conclusions………………………………...72
5. The new framework for leadership……………………………..…….…73
5.1. An Intelligent organization……..………………………………….73
5.2. The definitions of leadership……..………………………………..74
5.3. The intelligent leadership model…….……………………….…….76
5.4. The application example of the model…….……………………….84
5.5. Summary and conclusions: leadership in intelligent
organizations……...…………………………………………….….87
4.2.3.
Trait approach…………………………………………….43
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6. Leadership competencies in intelligent organizations .………………………90
6.1.
The working environment of the 21 st century leaders…………….....90
6.2.
The different roles of leaders………………………………………...93
6.3.
The personal skill map theory and approach ………………………...95
6.3.1.
6.3.2.
Personal skill map research………………………………...95
6.3.3.
The test analysis and factors of personal key skills……..…99
6.3.4.
Conclusions……………………………………………….104
6.4.
The competence model as an approach……………………………..106
6.4.1.
The definition of competence……………………………..106
6.4.2.
The development of competencies and personality……… 109
6.4.3.
The earlier attempts to define leadership competencies…..110
6.5.
The competence tree of a leader……………………………….…....116
6.5.1.
The competence areas……………………………………..116
6.5.2.
The self-assessment tool…………………………….…….121
6.5.3.
The roots of a tree…………………………………………122
7.
Testing the leadership competence tree and the self-assessment tool…….…124
7.1.
The objectives ………………………………………………….……124
7.3.
The content of interviews……………………………………………125
7.4.
The results of interviews……………………………………….……127
7.4.1.
Career related themes……………………………….….…127
7.4.2.
Self-assessment tool related themes (the doing)……….…130
Themes connected to the roots: the being behind
good leadership……………………………………………131
7.5. Implications for intelligent organizations…….……………………...137
7.4.3.
8.
Summary and conclusions…………………………………………………..138
8.1.
Key results of the research and their evaluation…………………….138
8.2.
The evaluation of research validity and reliability………………….147
8.3.
Areas for further study……………………………………………....148
8.4.
The implications for management training and development……….149
9. List of References………………………………………………………….151
Appendices:
1.
2.
The Model for planning management training at Kone………………..161
3.
A summary of the course evaluations of the Navigator program……...163
4.
The Leadership Self-Assessment Tool…………………………………164
5.
How to become a leader Research project –letter………………….…..171
6.
The list of interviewed persons…………………………………………172
7.
The curriculum vitae of a leader………………………………………..173
8.
The questions of theme interviews connected to the roots……………..177
9.
From industrial to postindustrial paradigm in organizations…………...180
The skill approach………………………………………….97
7.2.
The research sample…………………………………………………124
A list of management competencies at Nokia Telecommunications…..162

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