In the beginning of the article they suggest that ACT incorporate some principles of the more practiced change models;  empirical/rational, power coercive and normative re-educative but they must be used appropriately. The 10 principles of ACT  incorporates behavior of the other 3 theories. ACT focuses more on  the need for leaders to change first.  The shift to more purposeful behavior and inclusion of others is required in any change model but it has to apply to the leader first.  The leader has to give up control. Clearly communicated support and rational for the change we seek and respect for others is essential.   Developing a vision for the common good to get others to buy in is critical at the front end especially if they are called upon to make personal sacrifices.  ACT requires followers be courageous which will not happen if the leader does not create the right environment.  ACT requires the leader to constantly recognize the hypocrisy in himself as he is going through change by checking his actions to the vision or shared goal.  This is always important if you expect others to model your behavior but harder for a leader to do consistently. Involving others in this process, once you have created an environment where people trust you, could provide a reality check for the leader. I think it is easier for leaders to act with courage and faith in their abilities if they surround themselves with people who are competent, have integrity and feel compelled to challenge your decisions as a leader.  The only way you create that kind of environment is to change your behavior first.

 Three other important concepts I took away from this article  is the impact of diversity in management , the number of layers in an organization and the value in bringing in new management when you need to create change in an organization.   I believe diversity in management is important as  customers and employees are diverse and the management team should reflect that diversity in order to gain trust with customers and employees.  Understanding different cultural beliefs about power and knowing those cultures that accept an unequal distribution of power or high power distant may naturally promote silence in an organization was a concept  I previously did not consider in thinking about the  value of diversity.  I  believe less layers in an organization is best as it allows for greater speed in decision making , communication and feedback in an organization.  I previously did consider the impact  of layers in reinforcing  organizational silence.  Lastly, understanding that more longer term managers tend to believe the shared assumptions about their performance  as they have never allowed any one to question their performance or challenge their decisions.    In creating change in an organization you may have to let skilled managers go not because they lack the technical skills but because they are not capable of seeing any other possibilities about how to compete more effectively.  For so long any new, creative or opposing ideas presenting by their employees have been dismissed.

Employee satisfaction surveys and exit interviews are conducted but nothing is done with the feedback.  Training, treatment of employees and work conditions rated dissatisfied by line foreman leaving their jobs yet no actions were taken to improve in these areas.  The training schedule for all newly hired foreman was identified as critical but cancelled   as a cost cutting measure.  In the short term it may have saved costs but in the long term lack of training is one of the main reasons for reduced productivity and high turnover. With such high turnover in the line foreman position, more attention needs to be placed on the reasons for the turnover.  The line foreman are treated poorly and without respect by their managers and they treat their employees in the same disrespectful manner. In 2006 they moved to 12 hour shifts which caused  physical an mental stress on employees and supervisors, resulting in increased sick calls and employees coming to work late which reduces productivity and morale.  Serious consideration should be given to returning to an 8 hour shift.   Bellingham’s suggestion to increase morale is to add after work social events for their employees.   Because he does not  understand the root cause of the  low morale in the Lima plant  his solution is totally ineffective.  After a 12 hour shift where the employees are regularly treated with disrespect, employees would not value the social events he designed to improve morale.

 Performance appraisals do not reflect what management needs the line foreman to accomplish. Training is inadequate yet the line foreman is held responsible for training.  They are focused on meeting production targets and not aggravating management or the union, yet their job responsibilities are much broader.

They recruited  employees based on human qualities such as energy, passion and caring not their technical abilities.     Their compensation structure encourages and rewards employees to work as a team which is in stark contrast to Nordstrom’s compensation system. While compensation  was  based on sales commissions  per employee, if employees exhibited unteamlike behavior they were fired.  Sales associates commissions are pooled.  Senior executives’ salaries are modest compared to others in the industry. The performance review grade employees in behaviors such as treating all customers properly and without prejudice and how they work as a team.  Managers are graded on similar behaviors and how well they use the 3 Key principles of servant leadership. The company built trust and high moral standards through the Employee relations department with examples of firing employees who hit high sales targets but did not work well in a team and exhibited  self centered behavior. 

 Recognizing the key to  their success is the untapped human potential, they created an environment designed to develop employees potential.   Their goals for employees were purpose goals not financial goals.  Reaching their potential was not limited to higher sales, it was also aimed at helping an employee be a better person.    Their training programs were designed to develop employee potential and were was done in house.   The goal was not only to have employees learn to be more effective sales persons but becoming an artist as a salesperson. The first day of their Suits training focused on attitude.  How to sell with soul and making an emotional connection with customers and trained how to think long term long term versus immediate sale. 

George Zimmer is a hands on, charismatic leader with  employees who are intensely loyal to him, however I think he has created a culture and systems that will outlast him.  The concept of servant leadership was built into covenants with each employee that clearly stated managers  3 key management principles are to maximize employees self esteem, listen and understand employees and to ask employees for their help in solving problems.  It is built upon  a team with a shared purpose. I think the systems and culture are so strong that the company could continue to be successful even as it grew.

Stybel & Peabody assumes that Robin has no choice but to cut jobs and only focus on recommendations to cut jobs that will yield the biggest and immediate expense savings.  Their suggestion is to focus on the interests of long term shareholders but their recommendations are short term focused not long term.

Jurgen Dormann- I do not agree with much of his ideas.  His suggestion to consolidate leadership and replace the majority of his executive committees is based on the assumption he is not getting good advice from any of them except VP of marketing.  He does not have any evidence to support that assumption other than to rely on what he did in the past that was successful. 
It is important to reach out to employees with truthful communication however his message has more of a threatening tone.   While truthful, there is not compassion, empathy or concern in the message he delivers.  I do agree that management should model the behavior is seeks from its employees.

Bob Sutton has some of the best ideas in his recommendation. He suggests that other cost cutting options be considered and the longer term impact those actions will have on the company.   I agree with his rejection of cutting the bottom 10% based on performance, due to how poorly performance appraisals are conducted at most companies and due to differences in each manager’s style and how they run their operating units. I agree that you cannot stretch out the process as it fills employees with anxiety and has them focused on “will I be next” versus doing their jobs well. He also recommends communication to all employees. unlike Dormann’s message his recommendation is to treat employees with compassion, respect and warmth as it sets an example for those who remain.  In the long term having the best employees delivering great customer service fulfills one of the values that have made the company successful. I think Robin should have his six executive members work as one team versus working in 3 pairs of two.  They all had different ideas and working together with a shared purpose would bond the executive committee and better use the different talents of each member.

The  Toro company’s CEO Ken Melrose gained trust though subjecting himself to scrutiny, sharing how he was performing toward his goals and welcoming ideas of all employees not just those in an in group.  He acted as a steward of information, sharing his knowledge with employees to assist them when needed in accomplishing the shared purpose.  Servant leaders have personal humility and channel their ambition toward fulfilling the company goals not not their own self interests earning the respect of their employees.  Shared agreements result in a win win for the leader, follower and the company.

    Col. Dowdy , on the other hand has leadership qualities unlike the 2 generals he reports to and probably the rest of the marines. His source of power is legitimate, it is based on his position as a marine colonel and he has mutual agreement with his men. He uses referent power.  There is an interpersonal attraction between him and his men.  He treats his men like equals, if his marines didn’t have the things he was provided due to his rank, then he too went without those things.  In an organization such as the marines where rank is power and to be followed, Col. Dowdy invited enlisted men as well as officers to the annual Christmas party at his home.   As a result he  is more effective as a leader.  He ultimately completed his mission and got his troops into Numaniyah with ample time to join the assault on Baghdad but he did it without sacrificing the lives of his troops.

While General Mathis was more skilled in maneuver warfare than colonel Dowdy, I think his skill was useless in this situation as his orders were based on the false assumption that the Iraqis’ would fight a fierce battle in Bagdad and there would be little resistance in the surrounding countryside.  That turned out to be completely false.  When Colonel Dowdy’s regiment was confronted by Iraqi troops throughout the countryside, he relied on his knowledge of the current situation and his mindset of  men versus mission.

The discussion on “born or bred” introduced concepts we have not discussed in depth in the past.  Ethics and high moral standards are clearly necessary in good leaders and organizations and we have discussed them at length; however this section discusses other qualities level 5 leaders possessed.   They were inspired standards, faith in their abilities and strong religious beliefs acquired through their life experiences.  Mockler went as far as becoming a part of a business group that discussed the carry over of religious values to corporate life.  I realize  life experiences are critical in the development of your personality but the concept of faith in your ability, inspired standards and strong religious beliefs support  the notion that the level 5  leaders can be bred.