WHAT IS VALUE DRIVEN LEADERSHIP?
The idea behind value-creating leadership is that people and organizations with different views, interests and competences together realize an economically feasible, ecologically sound and socially just result. A result that none of the parties could have achieved individually.
Value-creating leadership is therefore about mobilising people and organisations. Central to this is the activation of innovation and the ability to connect. Value-creating leadership is not tied to a formal role or position. Anyone can take the initiative to achieve a common outcome.
THE RAINBOW MODEL
Multiple value creation requires leadership at different levels. This is well illustrated in the Rainbow Model. On a micro level, it’s all about personal characteristics such as competencies, motivations and behavioural styles. At the meso level, it’s about the functioning of the team and the managerial situation. Finally, the macro level is about being able to deal with social developments. Read more
Based on the Rainbow Model, we can distinguish four leadership styles:
Personal leadership
Personal leadership is the individual’s ability to lead himself. The basis consists of self-knowledge and an awareness of one’s own talents, qualities and shortcomings. Read more
Team leadership
Within successful teams, the leadership tasks are divided between different people. Based on a clear and inspiring vision, teams are able to formulate and achieve common goals. Read more
Administrative leadership
Administrative leadership is the ability to translate a strategy into a result. A successful administrative leader supports the (collective) decisiveness and facilitates support for the change. Read more
Social leadership
Social leadership focuses on achieving sustainable innovation and entrepreneurship by encouraging and enabling collaboration in networks.
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MULTIPLE VALUE CREATION
The economy of tomorrow will be about value creation rather than short-term profit. Future business models will increasingly focus on multiple value creation, in which economic, ecological and social values are in balance. It is no longer just about money or social arrangements, but about striking a balance that does justice to all three factors. Think of value in the form of purchasing power, participation and climate. To be able to create value in these three areas, you will have to cooperate as an organization, for example in a network or community.
Collaboration in teams
A self-managing team is a relatively permanent group of employees in an organization who are jointly responsible for the total process in which products or services are created. These products or services may be intended for an external customer, but also for an internal customer or department.
Self-organisation instead of self-management
Self-management was created because employees who are given more responsibility think more actively and rise above themselves. Taking charge yourself gives satisfaction, makes people proud and ensures personal development. However, self-directed teams do not always succeed because problems that go beyond the subject matter are often not solved. Self-organisation therefore seems a better term. In this construction the responsibility for the various challenges lies at the right level in the organisation. Read more
Working together in networks
Collaboration in networks is about collaboration between organisations. We also call this setup the organization network. Leadership and power are often shared between different people. The beauty of organisation networks is that they can respond quickly to social changes. After all, they are the sum of all knowledge, products and services of the participating organisations. A network organisation therefore only functions if all organisations make a relevant contribution. This also means that there must be heterogeneity. In other words: different organizations and professionals with different expertise.
IN 4 STEPS TO VALUE CREATING LEADERSHIP
Research shows that successful implementation of value-creating leadership consists of different phases, each with their own characteristics. These come together in the 4V model. The different leadership characteristics are linked to specific phases. The table shows which leadership characteristics are needed in which phase to make cooperation in an organisational network successful and realise multiple value creation.
Explore
The exploration phase is the search for the right route. Information is collected, preconditions are formulated and exploratory studies are carried out. Leadership is characterised here by the development of a shared vision and strategy. Read more
Design
Once the vision and strategy are clear, support must be created in order to realise the intended objective(s). This phase is therefore about psychologically checking in on the (new) strategic course. The focus is on the story and the numbers. Read more
Achieve
This phase focuses on implementing the strategy established in the previous phases. It should be checked whether the agreements made between the parties are also being complied with. The calculators and connectors make way for the implementers. Read more
Renew
Central to this phase is keeping the culture change on track until the economic, environmental and social goals are achieved. Value-creating leadership is characterised here primarily by providing insight into the relationship between the behaviour of the organisations, teams and people involved and the results achieved. Read more
LEADERSHIP IN THE ECONOMY OF VALUE
This eBook will give you insight into exactly what value-creating leadership entails and the steps needed to put it into practice. Moreover, it gives a practical interpretation of the concept of value-creating leadership based on our Rainbow Model.
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