Representing the helm of a global enterprise proves no easy feat, particularly in the highly competitive and dauntingly complex world of the airline industry. Yet Richard Branson has managed to become viewed as a cool guy, who is down-to-earth, sensible and unpretentious as well as effectively leading the company Virgin into a hopeful future. A cogent understanding of the intensity and difficulty required to run an airline is noteworthy at the outset of this essay. In an article appearing in the Harvard Business Review, Anderson (2014) describes the treacherous terrain of management in this business sector as “perils of the traditional airline business model,” and that “the industry has in recent decades been known for short-term thinking, destructive decision making, and poor employee relations” (p. 44). The nature of the airline industry, even to the uninformed business mind, makes a study in the business acumen and leadership style of Richard Branson all the more interesting.
This paper covers the gamut of inquiry about the leadership of Richard Branson within the rubric of approximately seven sections. The coverage includes: (1) Assess key elements of Richard Branson’s leadership style and their impact upon business success, (2) How the unique aspects of the Virgin Group mesh with Branson’s leadership style, (3) Determination of two key ways in which Richard Branson is able to motivate employees, (4) Assess the effectiveness of Branson’s ability to communicate his vision, (5) Response to having received a managerial job offer with Virgin Airlines, (6) Take a position deciding whether Branson is, or not justifiably, a global leader, and (7) Prediction regarding Richard Branson’s future business success over the next five years.
1) Leadership Style and Impact
There is no denying that the leadership style of Richard Branson is as unique as the notion of an airline endeavoring to sell flights to the moon. Walenius (2010) of CMW Management assesses Richard Branson as the founder of Virgin Group and holding a “very interesting background,” with an enduring entrepreneurial spirit whose leadership style is “exciting” and un-plucked out of any standardized business textbook on management theory (“Leadership Style Sir Richard Branson”). Some elements of Branson’s leadership style and abilities stem from his background, communication, personality, and convictions. Walenius (2010) characterizes a main personality trait of Branson’s is passion. Branson also has courage which shares a great deal of responsibility on the business success impact because it directly translates into “taking risks and initiatives” (“Leadership Style Sir Richard Branson”). Branson does not try to minimize the importance of knowing the business, and he knows the airliner industry and operates his insight accordingly – focusing on the young, hipster crowd – make no mistake, Branson is extremely aware of brand image. If Branson’s leadership style had to be specifically defined it may be assumed that he borrows from a plethora of frameworks, such as servant leadership, charismatic, people-oriented, task-centered, and transformational leadership.
Branson’s creativity seems unparalleled as well. In his own words Branson says that his interests in life never specifically aimed for entrepreneurship, but that he always enjoyed “setting myself huge, apparently unachievable, challenges and trying to rise above them” (“Leadership Style Sir Richard Branson”). No other industry is simultaneously as mammoth and supremely fast-paced as the commercial passenger flight business. According to a Queensland Government report entitled ‘Change Management Best Practices Guide’ several elements of leadership that impact business include planning, commitment, and communication. The scope of any business success means that managing change is essential, and “the underlying basis of change management is that people’s capacity to change can be influenced by how change is presented to them” (“Queensland Department of Public Works,” 2009). The rationale is clear how Branson’s agility in vision and accepting change as a stable in the airline business has had a beneficial impact on success. Besides, Branson’s leadership ‘rules’ posit that employees must believe in themselves, have fun at work, and smile! Who can argue with that?
2) Entrepreneurial Aspects as Company Facets Mesh with Branson’s Style
Richard Branson’s willingness to reach beyond the limits of ‘normal’ requirements in a company leaders is legendary. For example, according to Alter (2014), consider the time he lost a bet and delivered his punishment of paying up by “dressed as a female flight attendant,” and serving orange juice on a plane (p. 14). However as chief executive of the Virgin Group, Branson takes his role quite seriously. Evidence of his entrepreneurial style surfaced when as a young man, according to Lynch (2014) Branson “developed a small record mail-order business” as early as 1969 from which emerged the “Virgin Megastore chain” – following an attempt to sign and develop a music record label by signing a variety of “pop artists” at the time (“New Strategic Management Case”). Professor Richard Lynch continues in the article, marking the Virgin Group’s enterprising strategic efforts as ‘emergent’ and a matter of picking the correct opportunities at the right time. Just as entrepreneur constantly seek ways to expand and improve business, Branson’s entrepreneurial leadership style meshes perfectly with the like-minded attitude of the multi-faceted airline organization.
The World of Business Ideas (WOBI) publication describes Branson as a powerful, global leader. WOBI (2012) states Branson is “loved by his employees and admired by his peerscreated a number of organizations and has written a book called Screw Business as Usual, in which he explains his theory regarding why it is necessary to re-found capitalism as a means of achieving the desired results” (“Sir Branson, the English Gentleman”). While it is true that one may not agree with all of Branson’s philosophical concepts, it is clear his unique style fits Virgin airlines.
3) Key Determination of Key Ways How Branson Motivates Employees
At least two key ways of how Richard Branson motivates employees in the quest for goal achievement for the Virgin Group serve as a reflective indication if his approach is likely to work in a different organizational setting. The heart of this consideration lies in Branson’s innovative thinking. Obviously in today’s globally competitive environment, spanning over a phase of international recession, innovation is a must. In the academic publication “Management Across Cultures Challenges and Strategies” authors Steers et al. (2013) advocate a recognition that “definitions of management abound” across borders dating forward from the theories of Fayol, Weber, Taylor, and Mary Parker Follett (p. 26). The first key in how Branson motivates employees is by keeping a realistic attitude as a global manager. Steers et al. (2013) state that a global manager is “someone who works with or through people across national boundaries to accomplish global corporate objectives” (p. 28). The airline business must operate within this sphere of understanding.
But the main, second key, is dual in nature. Branson brilliantly communicates with his employees and offers generous destination voyages for business meetings, as well as pleasurable relaxation. It appears that Branson has adopted the French philosophy of work and motivation. Steers et al. (2013) indicate that “French employees are not motivated by competition or the desire to emulate their colleagues,” and that although they admire the industrious behavior of Americans and Asians, “they believe that quality of life is often more important than success at work” (p. 109). This is clearly demonstrated by Branson’s rule that employees have fun. In an article from Research Methodology, John Dudovskiy (2012) notes that there are differences between internal (intrinsic) and external (extrinsic) motivators for employees. However, Branson is not simply keen on delivering ‘warm-and-fuzzy’ feelings of friendliness to employees. According to Dudovskiy (2012) following a winning lawsuit in a Virgin Atlantic victory over British Airways the “compensation” for the libel suit was fully “shared with all employees of Virgin Atlantic” (“Virgin Atlantic Airlines Employee Motivation,” 2012). Branson’s leadership style is “transformational,” so he leads by example and generosity (“Virgin Atlantic Airlines Employee Motivation,” 2012). Branson also does not neglect stakeholders. The basic premise for Branson’s ability to motivate employees utilizes a powerful theory, in recognition that “Abraham Maslow’s Hierarchy of Needs is the most basic and most popular theoretical frameworks related to need-based perspective on motivation” which is rigorously and effectively applied at Virgin (“Virgin Atlantic Airlines Employee Motivation,” 2012). Training and development at Virgin are offered to all levels of employees as a result of their performances.
4) Effectiveness to Communicate Vision to Employees and Stakeholders
Frank communication is probably a highlight of CEO Richard Branson. WOBI (2012) appraises one 1980s interview with him as stating “You need to treat people as equals,” and “never disappoint the team” (“Sir Branson, the English Gentleman”). Despite the fact that Branson is dyslexic he is as straightforward with customers, employees, and stakeholders alike. In Profiles International, in reference to Branson’s style of communication, is stated “He is not afraid to say that not everyone should be a leader,” and in addition to bringing out the best in humans, “he tells the customer they are wrong sometimes,” with full awareness that perfection does not exist (“Branson the Blueprint for Effective Management,” 2013). Branson has been known to exercise his skills of communications in expressing his vision to stakeholders. In a display of communicating the myriad of innovations that the business needs to explore, Branson has made them aware that “Business opportunities are like busesThere’s always another coming along” (“New Strategic Management Case”). Branson presents a trial-and-error process of progression, rather than dictating his singular ‘vision,’ even with failures a certain amount of the Virgin Group’s popularity seizes a great deal of respect from stakeholders. Proof of Branson’s ability to communicate his vision to stakeholders lay in the success of developments from 1996 to 2003 of: Virgin Trains (long-distant service in varied UK areas), Virgin Mobile, Virgin Cars (car buying website), Virgin Cosmetics, Singapore Virgin Mobile, and the acquiring of a “stake in the British cable television company NTL” (“New Strategic Management Case”). Obviously Richard Branson understands the importance of sharing his visionary ideas to stakeholders.
Good relationships with stakeholders appraises so much, in terms of business success outcomes. In the Change Management Best Practices Guide, by the Australian Government the report declares that “Stakeholders must be clear about their contribution to the desired improvement. If the change is not clear or shared, commitment is unlikely, and the change efforts will be short-lived at best and will likely fizzle out” (“Queensland Department of Public Works,” 2009). Coordination of Branson’s efforts to do so have resulted in the implementation of the Virgin Group’s expansion as indicated in the above paragraph.
5) Assuming You Received a Job Offer as Manager within the Virgin Group
You go online, of course, if you had been offered such a position to investigate how employees feel about working there and to ascertain a firm grip on how Branson leads the company – in terms of style and philosophy in practice. Everyone knows theory has its place but practice is where business counts, especially if your life is affected by working there. The criteria that would fit resembles most of what Branson represents, with the flexibility to grow and develop opportunities for the company and managerial employees. Planning is part of effective managing, yet Branson does not allow a dogmatic approach to be fluid in his approach. One great thing is that such a career would allow a manager so hired to grow, and learn a great deal.
6) Take a Position on Whether Branson is a Global Leader
Yes, the evidence is quite clear that Richard Branson is a global leader. His actions demonstrate his business acumen extends beyond a narrow region of the airline industry. He has developed businesses in other countries, such as Singapore Virgin Mobile, and the factor of his running Virgin Atlantic Airways places him in a position of global expertise. The airline Branson is responsible for, obviously, executes international flight routes. As CEO Branson must enlist a critical understand of global policy in air transportation matters.
7) Prediction of Branson’s Success over the Next Five Years
Richard Branson is undoubtedly a global leader. To compete and implement organizational planning, management, and success of an airline automatically places one in the position of international leadership. But Branson has managed to develop other avenues unrelated to the airlines industry, which makes him very special. Previous examples may serve as justification for this opinion and position. The prediction of this observer is that Richard Branson will have fulfilled his implementation of providing air service to outer-space, yes – visitors to the moon, or at least a turnaround flight into its atmospheric realm. He may open other branches of business in the next five years, successfully no doubt with perhaps a smattering of failures.
CONCLUSION
They say space is the ‘final frontier’ but Branson is sure to challenge the veracity of that statement. In an interview with David Miliband (2012) Branson bravely and candidly discusses politics, war, and entrepreneurship, and stating why he did not attend college, “My university education was out in the jungle. Talking to my kids, Holly in particular, who did go to university, people need to sit back and rethink it,” because many courses can be drastically shortened (p. 39). One concrete retort Branson gives is that he believes government should be savvy with reduction in expenditures on non-productive assets and calls the aviation industry a disgrace. Branson’s audience may be confident that both industry and governments are listening to his ideas, and may look forward to suggestions.
References
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