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In this part we focus on the structures, systems, and processes that support and encourage the development of leaders in the organization. David Day introduces the theme, exploring the social architecture most conducive to the development of leadership throughout the organization and the role strategic leaders need to play to create such architecture. The next two chapters show how two large organizations have gone about changing their social architecture in order to develop both a broader and a more engaged leadership cadre. Ellen Van Velsor and Patricia O’Connor show how a large US service organization has started to change its social architecture by creatively combining empowerment, learning and performance orientations. Paul Broeckx and Robert Hooijberg show how Nestlé, the Swiss-based global fast-moving consumer goods company, has started to replace the most limiting aspects of the traditional hierarchy to more fully engage the full human capacity of its workforce.

A key distinction, mentioned by Dubin (1979, p. 227), is “leadership at a distance.” When Dubin was writing, there was little research on this topic. More recently, however, there has been an upsurge in leadership-at-a-distance work. We see a major review by Antonakis and Atwater (2002), following an earlier one by Napier and Ferris (1993), along with work by authors such as Shamir (1995) and Waldman and Yammarino (1999).

We propose that institutional actors do not just ceremonially comply with the cultural values in their environment, as institutional theorists have suggested. Instead, we argue that institutional actors can use conflicting cultural values as tools to further their interests and, in doing so, affect significant social problems and cause unanticipated changes in their core goals and policies. To present support for that proposition, we describe an epidemic of work disability that occurred in the Netherlands between 1967 and 1988. The epidemic is examined in light of conflicting Dutch cultural conceptions of the meaning of work and the meaning of economic security in the welfare state. The behavior of key institutional actors, including the government, medical institutions, employers, and labor unions, is examined to identify their roles in the epidemic. We assert that, by pursuing its own interests while upholding Dutch cultural values, each institutional actor produced conditions in which the work disability epidemic could occur.

A key question with which many senior executives struggle concerns the development of future generations of leaders throughout their organizations. Because these senior leaders realize that they cannot personally groom these next generations of leaders, they have started to explore what conditions will make the leaders of the future “emerge.” They face the challenge of creating conditions that simultaneously provide opportunities for people to demonstrate their leadership potential and that keep the current business running well. Day, in Chapter 2 of Part 1 of the book, proposed the social architecture most conducive to such leader development. His social architecture has three main pillars: low power distance, psychological safety, and a learning orientation. The two application chapters in this part of the book presented two ways of building such a social architecture for leader development.

Organizational structures, systems and processes can and do limit the discretionary decision-making space of all involved in organizational life. However, high up in organizations leaders have significant discretion in making decisions. Robert Kaiser and Robert Hogan explore the dark side of what might happen if strategic leaders use their discretionary freedom for personal rather than organizational benefit. Timo Santalainen and Ram Baliga present a real example of discretionary leadership gone bad in an NGO that looks quite healthy on the outside. They refer to the phenomenon of a financially successful company with a sick leader as the “healthy-sick organization.” We juxtapose this chapter with the one by Corey Billington and Michèle Barnett Berg to show how Duncan Covington at computer products, services, and solutions company IQ used his discretionary freedom for the good of the company. Covington inherited a sick organization and introduced key systems, structures, and processes to bring it back to health.

John Antonakis: To SFA, AFA, AFA, BFA, MFA, RFA and the unnamed bunnies.

We explore how leaders get real commitment for their visions. We propose that leaders need to pay significant attention to and get broad involvement in three stages of the vision creation and dissemination process. First, they need involvement in the creation of the vision and buy-in from the senior levels. Second, when cascading the vision further down the organization, they need to allow for real discussion and input. Third, leaders need to seriously track and assess the impact of the vision implementation.

In this chapter we discuss the “Nestlé on the Move” program. The program focuses especially on the areas of leadership and people development and finding ways to better align people with the organization, gain their insights, engage them cooperatively, and stimulate initiative.