Social Power and the CEO: Leadership and Trust in a Sustainable Free Enterprise System

208 Pages·2002·2.43 MB·English

by  Jaques E.

Social Power and the CEO:
Leadership and Trust
in a Sustainable
Free Enterprise System
Elliott Jaques
Quorum Books
Social Power and the CEO

Social Power
and
the CEO
Leadership and Trust in a Sustainable
Free Enterprise System
Elliott Jaques
Quorum Books
Westport, Connecticut • London
Library of Congress Cataloging-in-Publication Data
Jaques,Elliott.
Social power and the CEO :leadership and trust in a sustainablefree enterprise system /
ElliottJaques.
p. cm.
Includes bibliographical references and index.
ISBN 1–56720–551–8 (alk. paper)
1. Chief executiveofficers. 2. Executiveability. 3. Leadership. 4. Management. .I
Title.
HD38.2.J37 2002
658.4'092—dc21 2001051096
British Library Cataloguing in Publication Dataisavailable.
Copyright © 2002 by Elliott Jaques
Allrightsreserved. No portion of this book may be
reproduced,by any process or technique,without the
express written consent of the publisher.
Library of Congress Catalog Card Number: 2001051096
ISBN: 1–56720–551–8
First published in 2002
Quorum Books,88 Post Road West,Westpor,tCT 06881
An imprint of Greenwood Publishing Group,Inc.
www.quorumbooks.com
Printed in the United Statesof America
The paper used in this book complies with the
Permanent Paper Standard issued by the National
Information Standards Organization (Z39.48–1984).
10 9 8 7 6 5 4 3 2 1
Contents
Illustrations vii
Acknowledgments ix
Chapter 1 Introduction: Creating the High Mutual-Trust
Organization 1
Chapter 2 The New and Powerful CEO Class 9
Chapter 3 W hy People Work 21
Chapter 4 Manager-Subordinate Accountability 29
Chapter 5 The Four Managerial Authoritites 45
Chapter 6 The Natureof Time and the Measurement of
Size of People and Size of Roles 51
Chapter 7 In Praise of Hierarchy 61
Chapter 8 The Cross-Functional Morass 69
Chapter 9 Getting the Right Person for the Right Role 79
vi Contents
Chapter 10 The Appraisal of Personal Effectiveness and Merti
Recognition 97
Chapter 11 Strategic Planning and Alignment 105
Chapter 12 The Demystification of Compensation 113
Chapter 13 Managerial Leadership 125
Chapter 14 CEOs of Public Service Organizations 133
Chapter 15 The Light at the End of the Tunnel 139
Chapter 16 Some Practical Examples of Organizational
Development 147
Chapter 17 Some Results in One Company 165
Chapter 18 Managerial Leadership and the Great
Free Enterprise Democracy 173
Glossary of Key Concepts 183
References 189
Index 191
Illustrations
FIGURES
6.1 The Two Dimensions of Time 59
7.1 Requisite Basic Managerial Layers 65
9.1 Maturation of Individual Potential Capability 89
9.2 Talent Pool Set Out on Maturation Bands 92
10.1 Equilibration of Personal Effectiveness Appraisals 101
11.1 The Key Planning Periods within Strata 107
11.2 Cascading Vertical and Horizontal Alignment of Plans 108
11.3 Example of Lateral Alignment of Key Goals and Plans
Across the One Year Level and Below 109
11.4 Example of Vertical and Lateral Alignment of Goals at
Different Organizational Levels 110
13.1 Impact of Capability of CEO 130
16.1 Manifest Organization: Components Company 151
16.2 Extant Organization: Components Company 152
16.3 Requisite Organization: Components Company 153
16.4 Repair Service Station: Manifest Organization 155
16.5 Repair Service Station: Extant Organization 156
16.6 Repair Service Station: Requisite Proposal 157
viii Illustrations
TABLES
6.1 Time-Span and Felt-FairPay Differentials 56
7.1 Basic Structure of the Managerial Hierarchy 66
9.1 Basic Managerial Layering and Information Processes 88
9.2 Example of Talent Pool: Str-V and -IV Roles 91
12.1 Example of a Total Work-Related Differential
Compensation Structure 119
12.2 Example of Pay Rangefor a Role 120
15.1 Universal Felt-FairPay Differentials 143
17.1 Improved Results in Purchased Factory 171
Acknowledgments
The material in this book has grown up over 55 years of continuous con-
sultancyresearch in every kind of organization all over the world.Ihave
acknowledged in detail in my last book Requisite Organizationeveryone
who has been of significant help to me in that endeavor.Iwillnotrepeat
those acknowledgments here. But I would like to refer to a few old col-
leagues, and to some who have been added in the past few years to my
long list of valued associates and friends,without whom any useful work
that I may have accomplished would have been impossible.
FirstImust mention Kathryn Cason,thePresident ofROII (theRequisite
Organization International Institute), Dr. Jerry Harvey,Professor of
Organization Behavior at George Washington University,and Mark
Kaminski,President of Commonwealth Industries,Inc,.who have so care-
fully read and critiqued my every word .The material in chapter 11 is
derivedfrom project workthatIwasabletocarry out in collaboration with
CharlotteBygrave,VPHR of ICOM Information and Communications,Inc.
and Nancy Lee,President of Requisite Organization Associates,Inc.
Next, there is Elizabeth (Betsy) Watson, former Chief of the Houston
and Austin, Texas, Police Departments, with whom I have had the great
privilege to collaborate on her work as Research Fellow for the
Department ofJustice ontheorganization andleadership ofpolicedepart-
ments. We havelearned great lessons about discipline and accountability
for results. At the same time I had the opportunity to work with Ron
Mazzeo and to test results in work that he was doing with Visteon, and
then with Exxcel Construction.
During this period,I also had the opportunity to continue the richness