Consider the leader you described in 1.a. What challenges and issues does this leader face? Recommend strategies to resolve the issues they face that will still ensure they maintain strategic business relationships.
This paper is based on leadership concept and how to become a good leader. It is simply an ability of a person to lead and guide the followers. The leaders are responsible to attain the mission and vision of the concern and to motivate the other employees to perform as per the same.
For my paper I have chosen David McLean CEO of Westpac Banking Corporation NZ. He is an active leader as well as the supporter of innovation and creativity to take the organization to new heights. He performs wide range of functions for the success of the Bank.
Westpac Banking Corporation an Australian Bank headquartered in Westpac Place, Sydney established in 1817 with the name of Bank of New South Wales (BNSW) as the first bank in Australia. During the 19th and 20th century, the Bank has opened branches throughout Australia and other parts .In 1861 the Bank of New South Wales opened has expanded its business in New Zealand by opening seven branches. It offers a whole range of consumer and corporate services to clients throughout New Zealand. It is one of the dominant banking services providers to various customers and is also known as the banker of the New Zealand government.
It is the second largest bank in New Zealand, after the merger of ANZ and Zealand">National Bank of New Zealand. It has an extensive network of 193 branches and 628 ATMs. It has more than 645,000 registered online banking users. It offers a complete range of retail, commercial, and wealth management products and services to its consumer throughout New Zealand. It operates under three brands in New Zealand like ‘Westpac New Zealand’, ‘Westpac Life New Zealand’ and ‘BT New Zealand’.
The vision of Westpac is to be one of the world’s great service companies, helping our customers, communities and people to prosper and grow. (www.westpac.com.au/about-westpac/westpac-group/company-overview/our-strategy-vision/)
The bank is committed to provide superior returns to its shareholders, building deep and enduring customer relationships, being a leader in the community and being a place where the best people want to work.
In order to meet the challenges of the present environment and to work as per its strategies the various objectives of Westpac Banking Corporation are listed below in the categories like Performance discipline, Service Leadership, Digital Transformation, Targeted Growth and Workforce Revolution:
To be the region’s best performing bank
To manage the business in a balanced way in terms of strength, growth, return and productivity
To enhance funding and liquidity position,
To maintain a high quality portfolio of assets, coupled with strong provisioning.
Seamless customer experience across all channels
Deepen relationships through context-based customer experiences
Attracting new customers by making process simpler, easier and better for people .
Simplify products and processes by digitising end-to-end
Drive efficiency opportunities from digitisation.
To hunt for growth opportunities
Main Focus on growth in small to medium enterprises and Asia.
Focus on a customer service, high performance workforce and culture
Strengthen the skills of staff for better serving customers
Encouraging innovation, new and improved ways of working
Describe how strategic objectives enhance organisational efficiency and effectiveness.
Strategic objectives play an indispensable role in enhancing the efficiency and effectiveness of any organization. Effectiveness is the efficiency of the organization to attain its strategic objectives. It the concern has properly defined objectives will help each individual working in the concern to identify his responsibilities and finding the way doing it well. In simple words organizational efficiency is the capability of a concern to achieve the desired results with a minimum wastage and expenses on time, money, human and material resources etc. The properly established objectives make organization to display strengths in the areas like leadership, decision making, people, work processes and culture. For any organization attaining and sustaining success is possible only with
Strategic objectives framed to bring the effectiveness.
David McLean: CEO
By profession David McLean is lawyer from Victoria University of Wellington and is also a Solicitor of the High Court of New Zealand. Then he joined the Capital Markets Group of Southpac National Bank in 1988
He joined Westpac in 1999 to lead the Debt Capital Markets group in New Zealand. In 2004 he was appointed Head of Westpac Institutional Bank New Zealand. He was given the responsibility of GM for Private, Wealth and Insurance of the company in 2009. In 2012 he was shifted to New York Branch as Managing Director of the Westpac. In 2014 he was given the post of Chief Executive Officer.
Roles and Responsibilities
David Mc Lean
He is also a general manager for private, wealth and insurance
He acts as a managing director of the New York branch of Westpac Group.
Being a CEO the most crucial position in any organization. He is an executive having overall responsibilities to conduct the whole organizational affairs smoothly. He has to perform variety of responsibilities and role as well to meet the needs of employees, customers, investors, communities, and the law. This is a good summary of his roles
Describe the roles and responsibilities. In particular, how does this leader participate in the development of strategic goals and objectives and direction of the organization?
The CEO is an executive responsible for the performance of the working of organization. The responsibilities are enhancing in today’s world of elaborated culture of organizations. CEO can be held responsible for internal and external affairs of the company such as acquisitions, government relations etc. (Sydney Finkelstein, 2009)
Setting strategy and direction
CEO is responsible in Setting strategy and vision for any business organization. Even though senior management team develops strategy but it’s the CEO ultimate responsibility to set the direction:
- The market to enter
- How to fight against each competitor
- The product lines
He defines budgets and hires a team to guide the company as per the plan. Mc Lean took the business to new heights by entering the bank in partnership with Moven – a New York startup that offers a budget tool. He also gave licensing rights in New Zealand to bring new and better ideas of holding market share.
Setting the culture, values, and behaviour of an Organization:
The other responsibility is building culture, values. He is responsible to develop a culture by setting his example. As work is done through people, and people are deeply affected by culture. And a great place to work attracts and retains the very best employees. And values outline the behaviour that is acceptable. The CEO always conveys values through actions and reactions to others.
Building the senior executive team
CEO hires, fires, and leads the senior team of management. So it is the biggest responsibility of CEO to hire the right person for the right job and fire the under or non – performer.
Allocating capital to the priorities
The CEO sets budgets within the firm to support the strategy or not. This is the biggest responsibility on the Shoulders of CEO even if he is not a financial person to allocate the capital as their decisions determine the financial fate of the company.
What style, attributes and behaviours to they demonstrate? Justify you answer.
The leadership styles, attributes and behavior differ from person to person as well as from organization to another. It includes autocratic, democratic, strategic, transformational etc. A successful and effective leader have different attributes, behaviors and styles such as self confidence, honest, enthusiasm, ethical in approach, energetic etc. The leaders are required to e have a deep sense of responsibility to present oneself as role model to inspire and motivate the team members to face the difficult situation.
David McLean is a leader with vision who is actually working in an Australian organization as the representative of New Zealanders. He really appreciates the contribution of females in Banks. He knows that the methods, steps and processes of leadership are all obtained with and through people so he decided to shift his office to stay near to his team members. He is really a believer of team building to achieve success. Very good justification
Identify what kind of leadership is demonstrated by the person.
David Mc Lean is a Visionary leader as he is dynamic in his approach to bring changes in the business environment to engage his team members to accomplish the vision. He inspires and motivates those around him. He is ready to perceive changes in the form of technological advancements in banking sector and ready to join hands with new ideas in form of partnerships. (www.pwc.co.nz/publications/nz-ceo-survey-2016/interview-with-ceo-david-mclean/)
Describe the characteristics of charismatic and visionary leadership. Contrast this with the characteristics of poor leadership.
The visionary leadership has following characteristics to attract people to their style of working:
- Effective Communicator
A visionary leader has good communication skills to motivate the team to perform better as well as listen to their suggestions to improve. Visionaries always involve others in accomplishment of their milestones as well as encourage and help the followers to achieve their personal goals.
- Magnetic Leader
Visionary leaders also have charisma to attract others as well as to dominate their decisions. Actually it is a personal magic of someone.
Visionary leaders are willing to gamble on something they believe in, but the risk is always measured one. They are creative and innovative to take the initiative with the suitable action.
- Tactical Planner
Visionary leaders create an action plan with a particular strategy in mind. His strategies are designed in a way to lead him to final vision.
The following are some of the prominent characteristics of charismatic leadership.
Skills to Communicate
Such leaders have amazing skills in communication that helps them to motivate employees through hard times.
They are matured enough to use wisdom and knowledge which they have acquired in their life and experiences. They behave in a mature and responsible manner.
They believe in sense of humility. So they value each employee working under them.
Charismatic leaders are truly confident.
Charismatic leaders are good listeners too who leader pays attention to what is being said even by the followers.
Other characteristic of charismatic leaders is that they often tend to monitor themselves to set example for their followers who are watching them constantly.
Charismatic leader knows that he has certain qualities that make him different from others. So he tries to improve himself.
- Other Charateristics: Compassion, integrity, honest etc. are also the qualities of a successful charismatic leader.
Poor Leadership; On the other hand poor leadership have several negative effects on the company and staff as discussed as follows:
- Poor Financial Position
Poor leadership results in poor financial results as the leaders fails to inspire workers to deliver their best performance.
- Lack of Synergy
Poor leadership leads to fragmented departments and work roles. This leads to ignorance on the part of employees to adjudge the importance of their work in achieving company objectives.
- Low Morale
Low morale is another possible consequence of poor leadership.
- High Turnover
It also results in high turnover of employees due to lack of motivation and feeling of being connected. Comparison well discussed
Describe how charismatic and visionary leadership contribute to motivating and developing others to improve engagement and productivity.
Charismatic and visionary leadership knows that the motivation is must to improve engagement and productivity in any organization. So they are well aware that they can motivate their subordinates by giving them appreciation and involvement in the decision making processes. Successful leader always present themselves as the mentors and guide to lead the team members with use of effective communication skills. Visionary leader’s usually share the vision and target in their mind with their team to have their feedback and reactions where as charismatic leaders use their maturity to engage the followers. So success or failure of leadership depends upon the vibrant and clear thinking of the leaders. In order to develop others to improve engagement and productivity they follow following strategies:
Ensuring engagement by building and development of team-
For this leaders encourage the participation of each member of the group in team building process. The leaders know the requirements of training to develop them. So he has to guide the team towards clear goals. Each team member is expected to accomplish the goals as set by the organization. The team development by training will also add to the productivity of the organization
Encouragement for Innovation to add to productivity
Being an effective leader one has to be committed to support and facilitating the followers to create a healthy environment where the employees are free to innovate the best possible way to achieve the targets.
Leadership plays a crucial role in constructing and communicating the positive culture in any organization. Both culture and leadership go side by side complementing each other in enhancing and building the performance of the concern. Culture is nothing but the values, beliefs and attributes of an organization and they need to be communicated to each and every person working in it.
Leadership traits and skills are very useful in promoting a healthy organizational culture. Knowing that a healthy organizational culture is linked to a healthy leader, below is a list of leadership traits from different leadership’s styles that contribute to maintaining and communicating culture to the followers:
- A leader should give a clear scope of work and responsibilities along with clarifying organizational policies, rules, and procedures to all the followers.
- By building a friendly and psychologically supportive work environment where the employees are given equal opportunity of being listen.
- Participation of subordinate in decision making process will lead to healthy culture.
- Encouraging performance superiority by setting challenging goals, seeking improvement, and giving confidence to the followers that they will accomplish high standards of performance. Very good
Evaluate the role of strategic leadership in leading and implementing change within an organisation.
Strategic leadership– Strategic Leadership is the capability of influencing others to make decisions that ensures the long-term success of an organization while maintaining its financial stability .The strategic leadership have direct impact on the vision and the potential success of the concern.
The main objective of leadership is to inspire the employees by communicating them the organizational values and goals. This will help them to achieve their targets.
Role of leadership in Implementing Change – Introduction of change in well established organization is not an easy task. It the responsibility of leadership to align the employees to make them ready for such changes that are must for the survival of the business. So the leaders have to manage the alignment of people for implementation of change. They need to ensure that the people in the organisation understand the change and align their actions accordingly. The role played by leadership in implementing change is as follows:
- Aligning employees for change implementation by making them understand the need of such change.
- To frame a clear and well defined strategy to bring change in the company
- Communicating the change to ensure people know what the change means for them and their job profile so that they can support it.
- Aligning of the organisation to implement the strategy
- The way to achieve change implementation is not just by telling people what to do but it’s by communicating the change in a way that everyone can understand and ready to support the same. This is a good point in implementing change
(bendelta.com › News)
Stakeholders are person who have interest in the performance of concern or are directly or indirectly affected by the same.
Internal Stakeholders include directors, employees, managers, workers and shareholders.
External stakeholders includes
(www.boundless.com › … › Overview of Key Elements of the Business)
Stakeholders are the people who have an impact on the success or failure of a concern. It includes both internal and external stakeholders with different interests, attitudes and priorities. Communication is must to provide information as per their needs to build a positive attitude in the company. It helps the organization in following ways:
It creates understanding
All stakeholders need to be informed to have an environment of understanding to know the objectives of the organisation. Communication with employees is must to keep them aware of vision, mission. And with shareholders it helps to attract the funds. It will help to have the positive image in the eyes of community and government too.
Influence on stakeholders
Communication helps to build positive relationships with people and organizations like media or other interested groups, who can manipulate other stakeholders easily.
Regular communication with different stakeholders helps in creating a positive understanding to build long-term associations with key groups. Communicating with customers can put the company in a strong position to persuade their buying decisions. Supplier communications help to build a supply chain that is aligned with organizations needs.
Westpac has proper system of communicating with its stakeholders through stakeholder’s engagement framework.
(www.westpac.com.au/about-westpac/sustainability/the-way-we-work/listening-to-stakeholders/). So it is committed to best practice, transparent and regular reporting to enable stakeholders to compare its performance over time. (www.westpac.com.au/about-westpac/sustainability/the-way-we-work/approach-to-reporting/)
All the organizations have a well defined code of ethics that guide the organization in its policies and decisions regarding business. The ethical values of an organization can affect the status, efficiency and bottom line of the business.
So the ethics used by the leaders in an organization to manage employees have direct effect on their morale and loyalty. The code of ethics leaders use defines the acceptable behaviour of all workers in an organization. The leaders with high ethical standards encourage their followers to meet that same level. Ethical leadership enhances the company’s reputation in the financial market and society. A solid reputation for ethics and integrity in the community may improve the company’s business.
Ethical leader always leads to positive and healthy corporate culture that improves the morale among workers to increase productivity and employee retention. Higher levels of productivity improve the efficiency of the company.
Describe how effective leaders engage in ethical and socially and culturally appropriate decision-making.
Effective leaders are those who make decisions not for himself but for his team keeping in mind the ethical, social and cultural values. So he has to motivate and encourage his followers to perform as desired for the success of the organization. He has to make them follow the Code that describes the standards of conduct expected from the employees of any organization .Even the leaders in Westpac has to follow these codes while making decisions like:
- We act with honesty and integrity
- We comply with laws and our policies
- We do the right thing by our customers
- We respect confidentiality and do not misuse information
- We value and maintain our professionalism
- We work as a team
- We manage conflicts of interest responsibly.
It is the leaders who have to be socially and culturally acceptable must have the feeling that he directly or indirectly accountable for everything happening in the organization.
Identify how the person you identified in (a) demonstrates ethical, and socially and culturally appropriate decision-making
David McLean is considered as good and successful leader in terms of winning in the market and delivering good outcomes to customers. Being a New Zealander his act reflects the values and ethics of his country. McLean always advised and mentored his followers without any distinction. He always favored the role of women leadership in banking institution as he thinks they are more capable of performing their duties.
He advocated the technological changes to meet the need of customers. He is keen to fulfill the stakeholder expectations. Under his guidance the bank is contributing to control the global warming. The bank decided it won’t bank people who are payday lenders means the exploiters of the poorest people in society.
Make appropriate recommendations for ethical and socially and culturally appropriate decision-making.
All the leaders are well aware of the fact in decision making all the three ethics, social and cultural elements play a crucial role. They together define the morality of the organization. It will help the outsiders to easily adjudge the principles of the company. To ensure this all the employees are monitored by their leaders and they perform as per the directions of the leader. So it is responsibility of the leaders to make use of cultural values while making decisions. So the decision taken by him should include ethics and cultural values like integrity and honesty. Cultural values and personals traits play very important role in decision making process.
Consider the leader you described in 1.a. What challenges and issues does this leader face? Recommend strategies to resolve the issues they face that will still ensure they maintain strategic business relationships.
Changing Scenario: The customer preferences and expectations are rapidly changing due to technology. So it is another issue for David to deal with to win the confidence of its customers in banking.
Global Issues like competition from other banks.
High Rate of Mortgages
High Property Rate
High Rate of Interest
All the above mentioned challenges and issues are the threat for the existence of bank. So the CEO has to handle them to sustain the strategic business relationship with bank customers. He can use the following recommended strategies:
1. To overcome the problem of poor financial capability of New Zealand people they have to gather information and sharing it with others businesses, and community groups and government to find the solution and to increase the employment opportunities in the country.
2. To meet the expectations of changing Scenario of the customers he has to frame strategies for both the technical demanding customers and the others who still believe to visit the branch to solve their problems. He needs to train his staff accordingly.
3. He has to make the banking simpler and better in tune with the customers to survive the big challenge of globalization.
The leadership Styles may include autocratic, democratic, transformational and cross cultural etc. Each style has its own benefits and limitations so their applicability varies from organization to other. So we have following types of leaders suitable in different situations and make them effective:
Telling leader – The leader actually tells the followers what to do and least concerned about the relationships within the group. This approach is used when members are new, inexperienced, and need direction in order to get the job done.
Selling leader – Selling leader often persuade the members to buy into a job. The direction and guidance by the leader is still needed at all the levels but the group is a little more experienced.
Participating leader – The leader and the members participate in the decisions making. The leader puts emphasis on the group relationship than on the task. They support and praise the members.
Delegating leader – The one who trusts the group to decide and carry out the responsibility on its own. The members are experienced and capable of doing the job. The members can direct themselves.
Attributes and behaviour of effective leaders:
- Honest: The leaders are credible so they have trust and confidence of their people.
- Committed: They keep their promises and follow through on their commitments.
- Consistent: Their actions are consistent with the wishes of the people they lead.
- Believe in Others: They believe in the inherent worth of others.
- They admit their mistakes. They never blame others for failure.
- They create a trusting and open climate.
- They help others to be successful and to feel empowered.
- They encourage members to do more but not much.
- They do not act as the decision maker. But also ready to work alongside the team.
Other Attributes are:
- They are good listener
- They are good delegator
- Ready to handle the odd situations
After study the attributes and behaviour of effective leaders I come across the following qualities of myself that are must to become a successful leaders:
● Hard worker
● Goal oriented
No reference in case of my personal qualities.
- I am ready to face challenges and competition: I am staying far from my home country and family.
- I am optimistic: I am a positive thinker that believes that nothing is impossible.
- I am desperate to learn new things: My keenness to learn new things make me ready for future that is ever changing.
- I am Hard Worker: I can work round the clock to achieve my targets.
As mentioned earlier I already have some attributes to become an effective leader but still I need to work on the development of following:
I am not a good delegator as I prefer to work alone and single handedly.
I am quite reserve and hesitant to communicate with others.
I have to work on my limitation of overburdening myself with unnecessary work.
To develop the attributes and behavior of becoming an effective and successful leader I will apply SMART criteria it means Specific, Measurable, Achievable, Relevant, and Time-Bound.
To look at leadership development like a SMART goal, consider starting with the goal that you want to accomplish – such as to become a better or more practiced leader, and think about how you can apply SMART criteria. What is your development plan set a goal and make a plan
Specific: I have clear goal in my mind to develop my communication skills the absence of which leads to many problems.
Measurable means I have to keep a check on my achievements. For this I take feedback from my seniors, peer group and subordinates to know my limitations. It will help me work on them.
Achievable: I first try to work on my communication by attending short courses on communication and personality development program. As I have one year of time to do all this.
Relevant: Without communication skills I won’t be able to achieve my goal of becoming good leader. So by joining crash courses I can develop my skills.
Time-bound: I have one complete year to achieve my goals. It indicates a deadline.
1. Communication skill development- Through crash courses on communication- 5 months
2. Personality Development By attending such workshops and motivational programs-6 months
- Development plan simple but workable
The thing I learned about leadership is that it is the toughest job because it is not an easy task for this one needs to have courage and capabilities to come out of the odds. Moreover this paper help to analyze the various skills like motivating and communicating the team members is must for an effective leadership. It helped me to see the qualities of Charismatic and visionary leaders. It also motivated me to overcome my weaknesses to become a good leader.
As leaders I have to face the certain challenges so I need to have some strategies to handle the situation as follows:
By setting mine example to inspire my followers to work hard.
By motivating others work hard to reach their personal targets
By having free flow of information and face to face talk I will develop my team members.
Before introducing any change first I take them in confidence to analyze the need and importance of change then motivate them to accept the change.
To handle the ethical issues as a leader I will follow the principles:
I will set clear guidelines and norms for ethical behavior in their organizations.
Open communication and Transparency
Consistency in my core values
I will try to follow my own ethical standard to inspire my employees as an indication I always stand by my core values. For inculcating the habit that workers should treat everyone with respect, I have to show it for them by not disparaging them at all.
I will frame clear policies in the terms of mission statements, rules, regulations and practices. And I will make sure to convey all these policies to all the employees in black and white.
By providing them a free workplace culture to give suggestion and introducing innovations with the support of top management. I will ensure this.
No Discrimination: By following the policy of non discrimination on basis of language or sex I will introduce an atmosphere of fair and equality.
smallbusiness.chron.com/characteristics-visionary-leadership-31332.html. (n.d.). Retrieved from Characteristics of Visionary Leadership: http://smallbusiness.chron.com/characteristics-visionary-leadership-31332.html
Sydney Finkelstein, D. C. (2009). Strategic Leadership. Oxford university press.
ww.nacada.ksu.edu/Resources/Clearinghouse/View-Articles/Values-and-culture-in-ethical-decision-making.aspx. (n.d.). Retrieved from Values and culture in ethical decision making: http://www.nacada.ksu.edu/Resources/Clearinghouse/View-Articles/Values-and-culture-in-ethical-decision-making.aspx
www.pwc.co.nz/publications/nz-ceo-survey-2016/interview-with-ceo-david-mclean/. (n.d.). Retrieved from Interview with David McLean: http://www.pwc.co.nz/publications/nz-ceo-survey-2016/interview-with-ceo-david-mclean/
www.researchgate.net/post/What_is_organisational_effectiveness_How_an_organisation_could_achieve_it . (n.d.). Retrieved from What is organisational effectiveness: https://www.researchgate.net/post/What_is_organisational_effectiveness_How_an_organisation_could_achieve_it
www.sterling-resources.com/docs/RolesAndRespCEO.pdf. (n.d.). Retrieved from Role and Responsibilities CEO: https://www.sterling-resources.com/docs/RolesAndRespCEO.pdf
www.stuff.co.nz/business/better-business/65668629/david-mclean-gets-dream-job-heading-westpac-nz. (n.d.). Retrieved from David McLean gets ‘dream job’ heading Westpac NZ: http://www.stuff.co.nz/business/better-business/65668629/david-mclean-gets-dream-job-heading-westpac-nz
www.westpac.co.nz/who-we-are/about-westpac-new-zealand/our-executive-team/david-mclean-ceo/. (n.d.). Retrieved from David McLean, Chief Executive Officer: https://www.westpac.co.nz/who-we-are/about-westpac-new-zealand/our-executive-team/david-mclean-ceo/
www.westpac.com.au/about-westpac/media/media-releases/2015/2-february-2/. (n.d.). Retrieved from David McLean appointed as Chief Executive Officer, Westpac New Zealand: https://www.westpac.com.au/about-westpac/media/media-releases/2015/2-february-2/
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