Week 2-Discussion 1

For this Discussion, imagine the following scenario:

You are part of a team at the organization where you are currently employed (or at an organization with which you are familiar). This team is made up of members of the different departments at the organization. The executive director has tasked each member of the team to independently assess the following two questions:

What theory of leadership most closely aligns with our current practice within our organization, and do you think it is most appropriate, or would another serve us better?
What leadership theory would you recommend that might be more effective, and why? (Note: If you think the current leadership theory is a good fit and is effective, explain why you think it is working and should remain in place.)

You cannot believe your luck. The very week that you are given this task happens to be the very same week that leadership theory and frameworks are being discussed in the first class of your master’s program at Walden.

To prepare for this Discussion:

Review the leadership theories and frameworks presented in this week’s Learning Resources.
Then, think about your current organization (or one with which you are familiar) in light of the leadership theories/frameworks you have examined in this course so far. In particular, consider the leadership of that organization and whether it seems to align with a particular leadership framework/theory. If it does not (or if you think the organization could use a change in approach), consider which theory/framework might be the best fit for that organization.

Post an evaluation of the leadership approach of your selected organization, to include the following:

Assess the leadership theory/framework that you believe aligns with the organization in question. Or, if your organization does not seem to follow a particular approach (or you feel that changes are needed), assess what would be the most appropriate theory/framework for your organization based on what you now understand about leadership theory.
As part of your assessment, paraphrase the central idea of the leadership theory/framework you have selected.
Provide a rationale to support your selection of the leadership theory/framework for the organization, including relevant, appropriate examples and details (without identifying the organization or any individuals), as well as specific lessons that can be learned from the theory based on your observations and experiences.

Digital Article / Strategy

What the Best Transformational
Leaders Do
Learn from Jeff Bezos and Reed Hastings. by Scott D. Anthony
and Evan I. Schwartz

Published on HBR.org / May 8, 2017 / Reprint H03N5Y

Companies that claim to be “transforming” seem to be everywhere.

But when you look more deeply into whether those organizations

are truly redefining what they are and what they do, stories of

successful change efforts are exceptionally rare. In a study of S&P 500

and Global 500 firms, our team found that those leading the most

successful transformations, creating new offerings and business models

to push into new growth markets, share common characteristics and

strategies. Before describing those, let’s look at how we identified the

This document is authorized for use only by Lakenya Campbell in Dynamic Leadership-Spring 2025 at Walden University (Canvas), 2025.

https://hbr.org/2017/05/what-the-best-transformational-leaders-do

exceptional firms that rose to the top of our ranking, a group we call the

Transformation 10.

Whereas most business lists analyze companies by traditional metrics

such as revenue or by subjective assessments such as “innovativeness,”

our ranking evaluates the ability of leaders to strategically reposition

the firm. Some companies that made the list were obvious choices;

for example, the biggest online retailer now gets most of its profit

from cloud services (Amazon). But others were surprising, given their

states before embarking on transformation. The list includes a health

care company that was once near bankruptcy (DaVita), a software firm

whose stock price stagnated for a decade (Microsoft), a travel website

that faced overwhelming competition (Priceline), a food giant that

seemed to lose its focus (Danone), and a steel company that faced new

pressure from lower-cost rivals (ThyssenKrupp).

The team began by identifying 57 companies that have made substantial

progress toward transformation. We then narrowed the list to 18 finalists

using three sets of metrics:

New growth. How successful has the company been at creating new

products, services, and business models? This was gauged by assessing

the percent of revenue outside the core that can be attributed to new

growth.

Core repositioning. How effectively has the company adapted its

legacy business to change and disruption, giving it new life?

Financial performance. How have the firm’s growth, profits, and stock

performance compared to a relevant benchmark (NASDAQ for a tech

company, for example, or DAX Index for a German firm) during the

transformation period?

HBR / Digital Article /

What the Best Transformational Leaders Do

This document is authorized for use only by Lakenya Campbell in Dynamic Leadership-Spring 2025 at Walden University (Canvas), 2025.

We recruited a panel of expert judges (see the list below), who evaluated

the companies through the lens of their own expertise and gauged

which transformations were most durable and had the highest impact

in their industries. (For more on our methods, see the sidebars below.)

With these criteria in mind, our final list is as follows:

Our analysis revealed characteristics shared by the winning firm’s

leaders as well as common strategies they employed.

HBR / Digital Article / What the Best Transformational Leaders Do

This document is authorized for use only by Lakenya Campbell in Dynamic Leadership-Spring 2025 at Walden University (Canvas), 2025.

Transformational CEOs Tend to be “Insider Outsiders”

The list is topped by companies headed by visionary founders with no

prior experience in their industries; Jeff Bezos came from the world of

finance, and Reed Hastings from software. As it turned out, having no

predetermined way of doing things turned out to be an asset when it

came to reinventing retailing and television, and these leaders kept that

outsider’s perspective even through waves of growth.

We see an interesting pattern across the professionally managed

companies, those whose CEOs were hired by the board. These CEOs are

what we call “insider outsiders.” Make no mistake, they have substantial

relevant experience. They had 14 years of tenure on average before

getting the top job. That knowledge helped them understand how

to make change happen inside an organization. Yet these executives

also had an outsider role where they worked on an emerging growth

business or consciously explored external opportunities, giving them

critical distance from the core. After becoming CEO, that insider-

outsider perspective helped them explore new paths to growth without

being constrained by yesterday’s success formula.

Satya Nadella, for instance, joined Microsoft in 1992 and worked his

way up to running its cloud computing effort, building that business

unit into a viable new growth platform before becoming CEO, in 2014.

He got the top job because of that, and then as CEO he accelerated

cloud-business development to make it the company’s primary strategy.

The same was true of Adobe’s Shantanu Narayen. He joined the

creativity applications vendor in 1997, and got the CEO job a decade

later largely because he was able to articulate a vision for pursuing

digital marketing services as the new growth path.

At Priceline, Glenn Fogel joined in 2000 and became head of strategy.

Long before becoming CEO, in 2016, he was searching for new growth in

HBR / Digital Article / What the Best Transformational Leaders Do

This document is authorized for use only by Lakenya Campbell in Dynamic Leadership-Spring 2025 at Walden University (Canvas), 2025.

the hypercompetitive travel reservations market, coming across a pair of

small European startups with a business model opposite to Priceline’s

in two key ways: Instead of taking an up-front 25% commission on a

hotel reservation, the startups charged only 15% after check-out. Instead

of focusing on major hotel brands, they pursued the long tail, engaging

with more than 1 million inns, B&Bs, and apartment buildings in 200

countries. The result was the Booking.com platform. What started with

a $200 million investment a decade ago now accounts for most of

Priceline’s new growth as well as its rise past $80 billion in market

valuation.

And at Danone, Emmanuel Faber, an insider for 17 years, won the

CEO job, in 2014, because he was one of the architects of the firm’s

2020 vision to transform from a food and beverage conglomerate

into a family health and medical nutrition company that emphasized

sustainable agriculture. That vision prompted Danone to divest product

lines such as biscuits and beer while broadening its core dairy franchise.

For new growth, in 2007 Faber helped form a new business unit called

Nutricia, anchored off a $17 billion acquisition, to pursue baby foods,

protein bars, and health shakes. Today this unit accounts for 29% of

revenue.

The Transformation 10 Judges

Chris Chadwick, former CEO of Boeing Defense

Clay Christensen, Professor at Harvard Business School and Innosight

co-founder

Scott Cook, founder and chairman of Intuit

Matthew Eyring, Chief Strategy & Innovation Officer of Vivint Inc.

A.G. Lafley, former CEO of Procter & Gamble

Rita McGrath, Professor at Columbia Business School

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This document is authorized for use only by Lakenya Campbell in Dynamic Leadership-Spring 2025 at Walden University (Canvas), 2025.

TEO Ming Kian, Director at Temasek and Chairman at Vertex Holdings

Theodor Weimer, Country Chairman at UniCredit

They Strategically Pursue Two Separate Journeys

Many firms that have tried to transform have failed. A common reason

why is that leaders approach the change as one monolithic process,

during which the old company becomes a new one. That doesn’t work

for a host of practical reasons. An organization that grew up producing

newspapers, for instance, not only lacks key skills to build a digital

content company but also might actively resist embracing the new in

order to protect the business it knows and loves.

Success requires repositioning the core business while actively

investing in the new growth

business.

Apple serves as the classic model of such “dual transformation.” With

the iMac and iBook, Steve Jobs reinvigorated the core Macintosh

franchise by injecting a new sense of design and rethinking what

computers would be used for in the age of the internet. On a separate

track, he launched the device and content ecosystem, starting with iPod

and iTunes, that would become the company’s new growth engine.

It’s a strategy that has also worked for others on the list. While Amazon

has expanded its core retailing platform into new categories, such as

food and streaming content, in parallel it has built the world’s largest

cloud computing enterprise. Amazon Web Services CEO Andy Jassy

has been with the effort since it began as an internal challenge to

scale IT infrastructure. Established as a separate division in 2006, AWS

ultimately addressed a long-standing analyst complaint about Amazon

— that its core was only barely profitable. Today AWS accounts for

HBR / Digital Article / What the Best Transformational Leaders Do

This document is authorized for use only by Lakenya Campbell in Dynamic Leadership-Spring 2025 at Walden University (Canvas), 2025.

just 10% of Amazon’s $150 billion in revenue, but generates close to $1

billion in quarterly operating profit.

German steel maker ThyssenKrupp, facing pricing pressure from Asian

competitors, likewise embraced a dual transformation strategy. In 2011

the board selected as the new CEO one of its own members, Heinrich

Hiesinger, a Siemens executive with experience supplying technology

to many industries. From day one, Hiesinger began executing a plan

for repositioning the declining core of steel manufacturing by divesting

less profitable product lines, focusing on higher-margin custom

manufacturing, and even opening 3D printing centers to fashion

components such as parts for wind turbines. For new growth areas that

now make up 47% of sales, it moved into industrial solutions and digital

services, creating systems such as internet-connected elevators.

They Use Culture Change to Drive Engagement

Microsoft is a case in point. In the four years since Satya Nadella

came on as CEO, he has been credited with transforming Microsoft’s

cautious, insular culture. In the old world, large teams would work for

years on the next major version of a franchise program like Windows

and Word, leading to a risk-averse environment. In the new world of

“infrastructure on demand,” dozens of new features and improvements

would need to be introduced per month — and no one would fully know

ahead of time what they might be. This required a culture of risk taking

and exploration.

In this way, Nadella was unlike his predecessors, in that he built his

reputation as a hands-on engineer, not as a visionary like Bill Gates

or a Type-A salesman like Steve Ballmer. Instead, Nadella was known

for listening, learning, and analyzing. His idea of how to engage and

motivate employees wasn’t by making a speech but rather by leading

a company-wide hackathon, and empowering employees to work on

projects they were passionate about. This new level of employee

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engagement has helped drive Microsoft’s expansion into cloud services

and artificial intelligence, areas that now account for 32% of revenue.

The story of Kent Thiry, CEO of the kidney care firm DaVita,

also illustrates the role of employee engagement in successful

transformations. In 1999 Thiry came with a strong track record in the

kidney dialysis industry to salvage a near-bankrupt company called

Total Renal Care, whose market cap was sinking below $200 million.

In addition to finding ways to stem losses, he led a six-month effort

to create a new identity and set of values, to reengage the company’s

dispirited workforce and generate enthusiasm for his growth plans.

He chose the name DaVita, Italian for “giving life,” and settled on

a list of core values that included service excellence, teamwork,

accountability, and fun. As any manager knows, a generic-sounding

list of values won’t move the culture needle unless leadership brings

it to life. To that end, Thiry and senior managers performed skits

in costumes — for instance dressing as the Three Musketeers and

leading call-and-response chants of “All for one, one for all.” To honor

employee heroism, he became the emcee of awards banquets that had

all the music, stagecraft, and emotional speeches of the Oscars, and

he celebrated “village victories” around milestones like achieving a five-

star quality rating for dialysis delivery from the Centers for Medicare

and Medicaid Services.

The success in turning around DaVita’s core business caught the

attention of Warren Buffett, whose Berkshire Hathaway became DaVita’s

largest shareholder. But it was DaVita’s move into new growth areas that

earned it a spot on our list. Starting with an acquisition of 50 physician

offices, DaVita worked to build an “integrated delivery network” that

contracts for the full spectrum of care, using the value-based care model

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of being paid to keep patients healthy rather than accepting fee-for-

service — resulting in new growth that now represents 30% of revenue.

Methods

We began the process of identifying candidates for the Transformation 10

by screening companies in the S&P 500 and Global 500 according to the

following questions.

1. Has this company exemplified strategic transformation?

2. Has this transformation had impact on customers and its industry in the

past decade?

3. Does the company show potential to sustain its transformation over the

next decade?

During this first phase of the methodology, a small team of Innosight

consultants pored over the S&P 500 and Global 500 to arrive at a list of 57

companies that had made a clear commitment to strategic transformation

within the past 10 years. Our team rated each company using a set

of criteria measuring their financials (notably revenue growth and stock

performance), the degree to which they had built meaningful new growth

businesses, and the degree to which they had repositioned their core

business.

During phase two, we used these comparative metrics to narrow the list to

18 finalist candidates. For each of company, we created a one-page judging

profile. We then sent that presentation of profiles along with instructions

out to our panel of judges, who scored each company on a scale of 1 to 5,

with 5 being the best example of a successful strategic transformation.

They Communicate Powerful Narratives About the Future

To change the culture and move into new growth areas, the CEO needs

to become “the storyteller in chief,” says Aetna’s Mark Bertolini. That

means telling different aspects of the same transformation narrative to

all the constituencies and stakeholders in the company.

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This document is authorized for use only by Lakenya Campbell in Dynamic Leadership-Spring 2025 at Walden University (Canvas), 2025.

“The CEO’s responsibility is to create a stark reality of what the future

holds,” says Bertolini, “and then to build the plans for the organization

to meet those realities.”

In Aetna’s case, this meant building a narrative of how the move away

from fee-for-service reimbursement to the new business model of value-

based care would change the nature of health insurance, and one day

possibly render it obsolete. Instead of simply reinforcing the story about

strengthening Aetna’s current businesss, Bertolini developed a narrative

about building new skills to help consumers make better health choices

— and about building a new organization that can make money doing

so.

Telling that kind of story about the future is not a one-time event. “It’s

easy to underestimate the amount of communication that is needed,”

he adds. “You have to be tireless about it, consistent and persistent,

and keep battering the core messages home week after week. Your

leaders have to as well, and they have to tailor the message so it has

the appropriate level of fidelity relevant to each part of the organization.

A person working in a call center might need a different set of messages

than a line manager does to understand how he docks into the big

picture.”

They Develop a Road Map Before Disruption Takes Hold

Because dual transformations typically take years, we used a 10-year

time frame in our analysis. Indeed, transformations often can’t be

completed during the average tenure of a CEO. These long time horizons

mean that there’s no time to waste in getting started. Many of the

most notable disrupted companies — from Blockbuster, to Borders, to

Blackberry, to Kodak — ran into their deepest troubles a decade or more

after some of the first warning signs appeared. None of their leaders

developed effective transformation plans in time to halt the decline.

HBR / Digital Article / What the Best Transformational Leaders Do

This document is authorized for use only by Lakenya Campbell in Dynamic Leadership-Spring 2025 at Walden University (Canvas), 2025.

At the other end of the spectrum is Reed Hastings of Netflix. Even as the

original DVD-by-mail business grew quickly to dominate the industry,

Hastings believed that a new wave of disruption could be rolling in. “My

greatest fear at Netflix,” he says, “has been that we wouldn’t make the

leap from success in DVDs to success in streaming.”

That’s why he laid the groundwork for a transformation as far back

as 2007, when he started negotiating deals with Hollywood to test

online streaming of movies and TV shows. Famously, Hastings moved

too quickly to spin off the core and focus only on streaming, when

Netflix announced plans in 2011 to create a stand-alone mail-based

DVD company called Qwikster. This prompted a backlash from angry

customers — and triggered a humbling apology from Hastings.

But the mistake he made was preferable to waiting too long. He

reformulated his plan, this time to extend the life of the core DVD

business while aggressively rolling out the new streaming service in

parallel. It proved to be such a winning strategy that it funded a big

move into original content. Now, with membership of 100 million

homes in 190 countries, Netflix is the leader of a reconfigured movie

and television landscape that it helped shape.

As all these cases show, transformation is not just about changing an

enterprise’s cost structure or turning analog processes into digital ones.

Rather, it’s about pursuing a multiphase strategy to reposition today’s

business while finding new ways to grow. That’s why we believe the

companies that made the Transformation 10 list deserve to be seen as

models to help other leaders create the future.

Editor’s note: Every ranking or index is just one way to analyze and compare companies
or places, based on a specific methodology and data set. At HBR, we believe that a well-
designed index can provide useful insights, even though by definition it is a snapshot of a
bigger picture. We always urge you to read the methodology carefully.

HBR / Digital Article / What the Best Transformational Leaders Do

This document is authorized for use only by Lakenya Campbell in Dynamic Leadership-Spring 2025 at Walden University (Canvas), 2025.

This article was originally published online on May 8, 2017.

Scott D. Anthony a clinical professor at Dartmouth College’s Tuck
School of Business and the author of Epic Disruptions.

@ScottDAnthony

Evan I. Schwartz, a writer focused on innovation and leadership, is
Innosight’s former Director of Storytelling.

HBR / Digital Article / What the Best Transformational Leaders Do

This document is authorized for use only by Lakenya Campbell in Dynamic Leadership-Spring 2025 at Walden University (Canvas), 2025.

https://hbr.org/search?term=Scott%20D.%20Anthony&search_type=search-all

https://hbr.org/search?term=Evan%20I.%20Schwartz&search_type=search-all

http://www.innosight.com/

Transformational CEOs Tend to be “Insider Outsiders”

They Strategically Pursue Two Separate Journeys

They Use Culture Change to Drive Engagement

They Communicate Powerful Narratives About the Future

They Develop a Road Map Before Disruption Takes Hold

SIDEBARS

The Transformation 10 Judges

Methods

AUTHORS

Scott D. Anthony

Evan I. Schwartz

Transformational Leadership

Using these resources, you will examine the framework of transformational leadership. Transformational leaders focus on what their followers need. Instead of making sure they are served by their team, transformational leaders invest in their team’s development and guide their team toward growth. Can you think of a leader with these qualities who may have had an influence on your life?

· Anthony, S. D., & Schwartz, E. I. (2017, May 8).

What the best transformational leaders do

.
Harvard Business Review Digital Articles, 2–9.

http://hbr.org

· Boamah, S. A., Spence Laschinger, H. K., Wong, C., & Clarke, S. (2018).

Effect of transformational leadership on job satisfaction and patient safety outcomesLinks to an external site.

.
Nursing Outlook, 66(2), 180–189. https://doi.org/10.1016/j.outlook.2017.10.004

· Chin, T. L., Lok, S. Y. P., & Kong, P. K. P. (2019).

Does transformational leadership influence employee engagementLinks to an external site.

.
Global Business and Management Research: An International Journal,
11(2), 92–97.

· Cleavenger, D. J., & Munyon, T. P. (2013).

It’s how you frame it: Transformational leadership and the meaning of workLinks to an external site.

.
Business Horizons,
56(3), 351–360. https://doi.org/10.1016/j.bushor.2013.01.002

Authentic Leadership

Authentic leadership focuses on whether leadership is genuine and real. Authentic leaders come across as being trusting, ethical, and sensitive to the needs of others. Harvard Business School professor Bill George is most credited with initiating the conversation on leadership and focused on developing an authentic leadership model, which is referenced in these resources. In these resources, you will explore the characteristics and strengths of authentic leadership. As you do so, consider what authentic leadership looks like for you.

· Dhiman, S. (2011).

Personal mastery and authentic leadershipLinks to an external site.

.
Organization Development Journal, 29(2), 69–83.

· George, B. (2016).

The rise of true north leadersLinks to an external site.

.
Leader to Leader,
2016(79), 30–35. https://doi.org/10.1002/ltl.20215

· Talks at Google. (2015, November 2).

Discover your true north

| Links to an external site.

Bill George | Talks at Google [Video]. YouTube. https://www.youtube.com/watch?v=Mea0u1FfOcM

· White, R. P. (2017, June 20).

Answer the call for authentic leadershipLinks to an external site.

.
Chief Learning Officer,
16(5), 54–65.

Servant Leadership

Servant leaders are responsive first and foremost to the needs of followers, placing others before themselves. They empower followers and help them achieve their personal and professional objectives and goals. Have you ever worked under or been taught by someone who displayed qualities of a servant leader? Using these resources, you will examine some of the benefits and strengths of servant leadership.

· Cable, D. (2018, April 23).

How humble leadership really works

.
Harvard Business Review Digital Articles, 2–5. http://hbr.org

· Schwantes, M. (2015, May).

Servant leadership: The case for the best leadership philosophyLinks to an external site.

.
Leadership Excellence,
32(5), 30–31.

· Walker, C. A. (2015, September 15).

New managers need a philosophy about how they’ll lead

.
Harvard Business Review Digital Articles, 2–4.
http://hbr.org

Authoritarian Leadership

In these resources, you will explore the authoritarian leadership style. Authoritarian leaders retain control and power. They usually make decisions without relying on (or in some cases even considering) other people’s opinions. The term “authoritarian” can stir mixed feelings for many people, but as you explore this topic, try to keep an open mind. Consider instances where this leadership style could be beneficial in leading people, as well as where it could be detrimental to influencing followers.

· Chhaya, N. (2019, July 25).

Does your leadership style scare your employees?

Harvard Business Review Digital Articles, 2–4. http://hbr.org

· Du, J., Li, N. N., & Luo, Y. J. (2020).

Authoritarian leadership in organizational change and employees’ active reactions: Have-to and willing-to perspectivesLinks to an external site.

.
Frontiers in Psychology,
10, 3076. https://doi.org/10.3389/fpsyg.2019.03076

· Hull, J. W. (2015, March 6).

Learn to become a less autocratic manager

.
Harvard Business Review Digital Articles, 2–4. http://hbr.org

· Organization Communication Channel. (2020, January 25).

Autocratic leadership style

Links to an external site.

[Video]. YouTube.

Participative Leadership

Participative leadership is demonstrated when leaders actively involve followers in decision-making processes. In this type of democratic environment, it is less likely for employees to be given their “orders from the top” and more likely to “have a say.” Have you even been on a team that was either led by a participative leader or led by someone who was the complete opposite? As you explore these resources, consider the benefits and challenges to this leadership style.

· Chan, S. C. H. (2019).

Participative leadership and job satisfaction: The mediating role of work engagement and the moderating role of fun experienced at workLinks to an external site.

.
Leadership and Organization Development Journal,
40(3), 319–333. https://doi.org/10.1108/LODJ-06-2018-0215

· Ibarra, H., & Hansen, M. T. (2011, July–August).

Are you a collaborative leader?

Harvard Business Review, 89(7/8), 68–74.

· Organizational Communication Channel. (2020, February 3).

Democratic leadership style

Links to an external site.

[Video]. YouTube. https://www.youtube.com/watch?v=d_oCEre1NJ0

· Sy, T., Horton, C., & Riggio, R. (2018).

Charismatic leadership: Eliciting and channeling follower emotionsLinks to an external site.

.
The Leadership Quarterly,
29(1), 58–69.

https://doi.org/10.1016/j.leaqua.2017.12.008

Delegative Leadership

Delegative leaders often leave the details to the team, taking their hands off of the day-to-day minutia and other burdens. Followers can make decisions that would typically belong to the manager. As you review these resources, think about situations that would benefit from this style of leadership, as well as what sort of challenges this type of leadership style could present. Are there certain industries or professions in which this type of leadership style would be more appropriate than others?

· Organizational Communication Channel. (2020, February 10).

Laissez-faire leadership style

Links to an external site.

[Video]. YouTube. https://www.youtube.com/watch?v=n-5q7GbYMPc

· Wong, S. I., & Giessner, S. R. (2018).

The thin line between empowering and laissez-faire leadership: An expectancy-match perspectiveLinks to an external site.

.
Journal of Management,
44(2), 757–783. https://doi.org/10.1177/0149206315574597

· Yang, I. (2015).

Positive effects of laissez-faire leadership: Conceptual explorationLinks to an external site.

.
Journal of Management Development,
34(10), 1246–1261.

https://doi.org/10.1108/JMD-02-2015-0016

Important Resources and Documents

· MacMillan, K., & Woodwark, M. (2012).

House, hearth and home: Managing leadership change

. Ivey Publishing. http://hbr.org

·
Document:

How to Analyze a Business Case Study (PDF)

Download How to Analyze a Business Case Study (PDF)

·
Document:

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