SECTION I: Summary Knowledge Section Chapter 1: Leadership - The New Conditions

Book Summary – The Leadership Triad Author: Dale Zand
SECTION I: Summary Knowledge Section
Chapter 1: Leadership – The New Conditions
What constitutes effective leadership in a turbulent, information‐driven society? The subject matter in
the book attempts to answer that question by constructing a model of leadership based on three forces:
knowledge, trust and power. The author refers to his model as the "leadership triad." It forms the
foundation for a comprehensive primer on the principles, skills, and attitudes that constitute effective
leadership. "Leadership in the new world has three dimensions: processing knowledge, building trust
and using power sensitively," author writes. Successful leaders enhance and integrate all three of the
forces.
Here the author talks about the change that the concept of leadership has undergone. The traditional
role of a manager in a manufacturing concern thinking of a solution and expecting the compliance of the
same and the role of knowledge that is bringing about a fundamental change in how leader should
operate.
The transmission of knowledge is very fast but the barriers could be emotional as well. The role of an
effective leader is to unlock this potential and transient knowledge that is inherent in the individuals
that build an organization and harness this to define and achieve appropriate goals.
Knowledge is critical to effective leadership in today's globally competitive and information‐driven
society. In the contemporary marketplace, Author says, "the core competence of organizations is
shifting to the processing of knowledge." This shift in strategic direction necessitates an equally
important shift in the attitudes of leaders who now find they heading knowledge organizations. In a
knowledge‐driven society, leading by directive proves dysfunctional and is rapidly overwhelmed by
structural changes. Knowledge is the source of competitive advantage; the leader and his staff are no
longer the font of all wisdom in the company, disseminating information and issuing edicts from on high.
"The heroic fantasy of one person at the head of a column of followers shouting 'Charge' as they mount
the battlements is outdated," Author writes.
In the information age, the sheer volume of knowledge production is staggering and continuously
increasing. In such a society, knowledge becomes dispersed throughout organizations. Subordinates,
particularly specialists, know more than the leaders, whose role is to search out and marshal the
knowledge of all the people within the organization. Failure to act on this role can lead to isolation for
the leader and to disastrous consequences for the company. Author gives the example of General
Motors, with billion‐dollar buyout of major stockholder Ross Perot. Much to the chagrin of GM's
management, Perot walked the plant floors seeking out problems and possible improvements. From his
discussions with employees, Perot realized that GM's management had isolated itself, creating a stifling
bureaucracy. All the while GM's competitive position and capabilities were eroding. Perot subsequently
used this information to openly question management's policies at board meetings. GM's buyout of
Perot was a "spectacular example of misdirected position power at work."

The diffused nature of knowledge is now the defining the new leader one who can learn and think
across the organization.
Fear of falling behind competitors is the major impetus behind the search for new knowledge in a
company. Finding and disseminating knowledge in an organization is a key role of the leader, whose
attitudes and behaviors can help or hinder that process. Effective leaders understand the organic and
systemic nature of their organization. They foster a seamless communication network and a free flow of
information. They encourage diverse views among subordinates. This openness in turn enables leaders
to facilitate the implementation of new knowledge in an organization. Ineffective leaders suppress
knowledge and communication by punishing those who disclose adverse information or express
opinions at odds with the leaders. This behavior causes subordinates to protect themselves by
concealing knowledge from their leaders.
Leaders cannot use the traditional authority to command other people to reveal or use what they know.
Nor the leaders can assume that formal power gives the greater insight and understanding of the others.
Due to conflicts the managers are unable to use the distributed knowledge in an organization.
Market uncertainty, new product risk, rapid technological advancements new approaches to marketing
have shortened the product life cycles. Decisions on new products / predicting the competition after X
number of years offer you a range of choices. Add to that the factor of Globalization, the factors and
answers multiply manifold.
The uncertainty factors are the regional trade agreements, removing the trade barriers and opening of
the gigantic market areas. These changes present a huge challenge to a single designated leader to
comprehend the 3600 import of the challenges so presented. For a better comprehension the leader
needs to use the distributed knowledge present within the organization and evaluate the challenges so
presented.
A leadership that is based on knowledge and trust is more effective than the one that is based on
authority given the nature of cross cultural teams and markets.
The leaders need to balance the vision with the operational needs and the managers need to balance
the operational need with the vision. Hence the roles are interchangeable within an individual.
Most of the profitable companies are knowledge intensive. The way knowledge is utilized and the
manner in which the manager has derived that knowledge from the subordinates who formulate
judgments, designs, proposals etc. The smaller companies cannot duplicate the level of knowledge that
these companies possess. The leaders in a knowledge organization are fairly pressured to release and
use the distributed knowledge present in the organization.
Knowledge exists in the head it cannot be seen or cannot be produced in tangible quantities plus it is
difficult to measure. The progress in knowledge is also non linear, it is very hard for a leader to know
what stimulates the mind and how the work is progressing. The thinking, ideas al happens in the mind

and unless the subordinates trust the leader it is very difficult to extract that knowledge from the minds
of knowledge workers or subordinates.
The role of leaders in finding the distributed knowledge in any organization is crucial. It is the leaders

that create the conditions that would lead to knowledge sharing and create platforms that would make
that happen.
The leadership has 3 dimensions – Knowledge, trust and power. The leader has to process knowledge,
build trust and use power judiciously. The leaders when use relevant knowledge, people trust them and
grant them the power to as the people know that the leaders know what they are doing. Any deficiency
in the 3 dimension distorts the leadership role and reduces the effectiveness of any leader.
CHAPTER 2: FINDING KNOWLEDGE

The organization is a store house of knowledge as ideas and information are constantly generated and
disseminated. The leaders continuously utilize this knowledge to make crucial decisions. The problem
lies in the fact when the leaders do not create conditions / situations that would make the path for free
flow of knowledge and the result is that crucial knowledge stands blocked. The role of an effective
leader is also to create knowledge pathways for free flow and dissemination of information and
knowledge.
The role of leaders is also to act as teachers, planting ideas and nurturing them. The effective leaders
know and build networks of people as the networks of people act as reservoirs of knowledge and act like
a complex network that acts like a brain that continuously synthesizes knowledge and disseminates it.
The crux of the teacher learner leader lies in the fact that finding the right knowledge and utilizing the
knowledge so distilled from the internal channels within an organization.
The poor leaders ignore and suppress the knowledge, the errors are not taken into account and a willful
neglect is there in not learning from mistakes so made. These leaders ignore the persons who are at
variance to their ideas and ignore any inputs given are ignored.
The leaders depend on the knowledge of the subordinates and do not conceal the fact that they are
dependent on the knowledge that is present in the organization and in the minds of the individuals in
the team.
At the same time the knowledge as to be synthesized from a plethora of sources that continuously
dumps the knowledge to the recipient. The job of a leader is to look for useful knowledge that is there in
the vast dump of knowledge and extract it for utilization. The knowledge that is worthwhile helps to
reduce uncertainty. The knowledge that is worthwhile can be categorized as the knowledge that impacts
any business decision.

The leaders in the present context have to depend on others for seeking knowledge, learning and action.
A confident leader will not believe everything that he/she hears. But they are discriminatory in their
approach at the same time not demeaning the subordinates. These values are observed by the
subordinates and the leader gains respect over time. In contrast the arrogant leaders are in a denial
mode for knowledge sharing. They neither share nor seek knowledge. Subordinates with such leaders
are fearful of the fact that these leaders when it comes to sharing and exchange of fresh ideas.
The informed leaders keep asking questions and focus on the relevant answers. The questions flow a
logical cycle and same goes for logical answers. The leaders separate the wheat from the chaff and
derive knowledge that is consistent with the assumptions. These go a long way in relating to the
important decision making process. The magic is in identifying what is unknowable and searching for
those answers to the unknowables. By continually monitoring the unknowables the fine tuning of the
assumptions happens. Any good question formulation depends on the knowledge that one has on the
subject and that unlocks a branching process that opens up new thoughts and possibilities. This usually
comes when the leader uses an extensive body of knowledge about business strategy to frame the
relevant questions.
The key is that the leader has to keep abreast of the important changes and improvement that is
happening in these areas to ask the questions those are really relevant. These questions have no
immediate answers but nonetheless these need to be asked in order to keep the organizations strategy
fine tuned to the market.
Even failure to get the correct answer should result in reverse logic being applied to learn from any
failure. And it’s the leader’s job to make that happen. The leaders need to ask penetrating questions
that provoke new concepts and ideas. This is so because the knowledge does not follow a logical path
and can come from really unknown areas and sources.
In view of imperfect knowledge the leaders know that how to base their decisions on the existing
knowledge and work on that, in the event of a failure they learn from it and move on to refine that
strategy.
The synergy unless defined by asking hard nosed questions proves to a worthless strategy, unless
boosted by making concrete information available about all the aspects of the synergy and taking
decisions based on them. The danger comes in form of useless knowledge and the time taken to process
such information. The decisions that are based on appropriate usage of time to assess the information
at hand results in fewer failures.
Again the danger stems from the fact that any organizations churn volumes of data that is meaningless
to the people that have to take decisions. The leaders should take initiative to ask for and process only
the information that is usable. The formulation of new knowledge should alter the existing structures
and paradigms. Knowledge is a precursor to the success or failure of any company as in the case of
M&A industry. This knowledge is new to the leader but known to others. The other aspect defines the
knowledge that is new to all. Here the leader has to make a strategy that is based on speculative
creative thinking and original insights to create the new knowledge.

The creation of knowledge is a process that needs freedom of thought and the thought that questions
the established norms and procedures. Working in a routine and a structured environment kills this
aspect of creating knowledge. Acquiring knowledge from others requires negotiation skills whereas
creativity depends on the ability to concentrate on a problem without sensitivity to others and an
indifference to power that might inhibit the pursuit of unconventional ideas.
The leaders need to formulate studies and guidelines that how their organization stimulates, creates
and absorbs new knowledge. The negative trait of a leader is hiding the new knowledge lest their
position gets diminished or searching for new knowledge the leader may feel that he / she is appearing
as a weak leader. Any effective leader would stimulate new ideas and information but they are subject
to resistance as the people may say that the new information is not their creation. On the other hand
the poor leaders resist acquiring of new knowledge as it may lower their image in the eyes of their
superiors.
The leaders have to make the new knowledge as a means to better the competition. The fear of lagging
behind a competitor is perhaps the greatest motivators to acquire and utilize new knowledge. The
process of acquiring the new knowledge has to be practical and demonstrable that it will impact the
desired change in a positive way.
CHAPTER 3: FROM KNOWLEDGE TO ACTION
Without action the knowledge is of no use. From the actions the outcomes are strategies, investment
plans and coordinated performance to better the product and service offerings of the organization that
they represent. The road to actions has to be navigated with many pitfalls that a leader can encounter.
The pitfalls can be termed as status quo leadership, success that breeds complacency, unfamiliarity that
blocks action, a resistant organization culture and negative attitude towards technology.
The action desired to be taken faces 2 potential dilemmas. The first is the options conflict, the second is
the conflicting views on competition and the third is the vision conflict. These can be aggravated by
people with their own visions and dilemmas. The job of a leader is to cut beyond these and formulate a
coherent course of action by effectively resolving these dilemmas. Some do it by not doing anything. The
resultant is that there is a small island of prosperity until the sea of competition drowns them out or
forces them into action. The assumption here is that the competition will allow them time to act out but
opposite is the case. These leaders need to have an alternative course of action and implement in the
event of competition catching up with them. Potential obstacles that can cloud a leader’s vision are
success, lack of familiarity with some aspects of business, corporate culture and a fear of technology.
The fear to introduce competing products in the existing ones stems from the idea that it will displace
the existing successful product line or that the existing monopoly position will allow them to dominate
the market for years to come.
The success is a fragile commodity and it needs to be nurtured and sustained by attention and
adaptation/ innovation for the status quo to be maintained in the dominant position that is currently

being enjoyed by the company. That is achieved by people being constantly made to get a higher degree
of knowledge, goals and performance.
The knowledge and strategies emanating from other divisions are mostly ignored by leaders from other
divisions. This has to be countered by rotating these leaders into learning assignments in unfamiliar
divisions and encourage the flow of best practices across all divisions.
The organization culture is the bedrock that will define how the knowledge and ideas from a leader are
absorbed and acted upon. The company culture has to adapt to facilitate strategic action and the role of
the leader is to circulate his ideas to make that happen.
The fear of technology stems from two factors one being redundancy and the second being relegated to
lifestyles that will leave them in a monotonous routine. The message that has to go across is that the
competition will out do us and our position will suffer as a consequence of rejecting technology.
The action strategy that has to be implemented works around rational and well thought out conversion
decisions. The ambiguity has to be constantly challenged and assumptions clarified. For that the probing
questions have to be asked that examine the key assumptions in the plan of action and concepts are
continually challenged.
Some examples of probing questions:
1. What customer needs and wants? Does this action satisfy that?
2. How will this action contribute to the organizations goal?
3. What is the productivity and cost efficiency of the proposed action?
4. How does the proposed action fit into the organizations plan?
5. What are the human and social effects of the proposed action?
The course of action that has been decided warrants that the team should be geared to take it to its
logical conclusion. For that the people have to be sent on rotational assignments, simulations and
opportunities to relearn the customer needs.
Rotations work best as the leaders are exposed to a hands on approach to the learning methodology.
The exposure in terms of how action of one division affects the other division and vice versa, build
relationships across divisions to help in problem solving as and when they crop up. It also helps in
building a cross functional teams that values and integrates the process and procedures of other division
in their decision making process.
Simulations are a crucial tool that prepares persons from other division to get an inside knowledge of
how the other operates. As all the managers cannot be rotated the simulation exercise is a cost effective
tool that makes the process easy. The domino effect is very visible when the manager of one division
makes a decision that has a cascading effect across the organization.
The customer is an ever‐changing enigma. A good leader knows this fact and facilitates the learning of
this new attitudes and choices of customers. As the products, markets and competition are an ever

changing phenomenon a good leader is constantly evaluating these to gain new knowledge about this
ever changing field. This knowledge is then disseminated across the organization to prepare them for
the new course of action which leads to a better output in terms of strategy, service and offerings.
The knowledge that has to be implemented runs into delays and wrong implementation of the same.
The preventative course of action here is that the leader’s link knowledge and action by soliciting an
early involvement of people managing boundary conflicts, using radial organization and encouraging
problem centeredness.
The early involvement of people builds a cross functional team that encompasses all the divisions of
design, manufacturing, marketing and accounting. A lack of this results in confusion across all these
divisions about the product that is being offered. The resultant delay incurs great costs and undermines
the morale of the people. These teams need to focus very early on the aspects related to manufacturing
costs, financing and pricing, distribution and promotion, consumer use and product repair, product
disposal and environmental impact.
A result of an action by a leader changes the status quo leading to some stress in the organization at
departmental boundaries and precipitates conflict. The different groups in the organization can be
termed as people “who do” and people who “know”. “Staff” are people separate from and loosely
coupled to the “line” people. Functional experts, project managers and brand managers are ambigiously
connected to operating managers. The stress occurs at these thin boundaries when an action is initiated
by a leader. The idea is not to be trapped in these conflicts and keep asking the right questions and
maintain a focus on the critical issues.
The role of a coordinator becomes very important is an organization has one. The coordinator has to link
the knowledge with action or the coordinator becomes a part of the problem instead of being a
solution. The coordinator has to monitored very carefully by the leader in question initiating the change.
A radial organization is an ad hoc group of people who are brought together by and radiating from a
person with an urgent problem. The problem requires an urgent solution that requires the skill of people
across the organization. This kind of an ad hoc setup gives a direct access to the resources and
competencies of the organization at one place. The problem resolution happens at a very accelerated
pace since the knowledge required to resolve the problem is at hand. The hierarchy can act an
impediment to problem resolution hence a radial organization plays very important role in this area.
The problem centered nature of a radial organization is very effective is problem resolution without
undermining the current hierarchy of the organization.
CHAPTER 4: LEARNING AND KNOWLEDGE
The leaders are the centre points in any organization who foster a learning environment for the
subordinates as well as they learn in the learning of the subordinates. The market is so idea driven that

unless there are is a high degree of innovation of ideas in any organization, the competition is bound to
overtake. That makes nurturing the intellectual capital a prime concern of any effective leader. Each
lesson that has been learnt or that has been incorporated in the organization makes an organization
even more adaptive and flexible for any change in the market conditions.
The knowledge that is required by the leader is what he will get and maybe a little more and this
becomes a determinant of what people will discover and learn. Thus the leader has to frame the
questions in a manner that stimulates knowledge that has range and depth, and which is an output of an
inquiring mind. The factors that stimulate learning are fostered by the leader and these include creative
deviance, mastery of existing knowledge, unstructured time and new perspectives.
The creation of new knowledge or attempting any thing new is to challenge the existing paradigms and
structures. The result is the new way of doing things in a better way and more efficient way. The process
of creation is very different from the product itself. And that process works well in a climate that
encourages such deviant ideas those are totally in variance with the established norms. At 3M it is said
that to be a “ZEALOT” is normal. The leaders at 3M expect that the 50 divisions generate 30% of sales
from products that did not exist 5 years ago. Unstructured time is set aside for pursuing personal
projects by the scientists. This leadership stimulates almost a hectic demand for innovation and
creativity in almost zealous manner. No idea howsoever small is allowed to die, even if no body/ division
in the company are receptive to that idea.
The knowhow that is existing is not the area of further learning but mastering the existing knowhow is
the key for making innovation possible. It is the use of existing knowledge that is the key for developing
the new and efficient ways of doing the same thing. For any creativity to emerge from a persons mind
he / she has to be given some time outside the usual sphere of work so that the mind is free to explore
the various dimensions of irrational thought. The usual leaders who foster structured thoughts and
processes can never take advantage of any new ideas or innovation. The role of an effective leader is to
push the people into the unknown and giving unstructured time for them to ruminate on their thought
process which is a precursor of innovation.
The leaders who encourage new perspectives have a totally new way of seeing the same problem. A
problem given to different set of people or departments would yield numerous solutions; many of them
would be so innovative that they merit serious attention. But how do you gain that new perspective.
Here the role of an effective leader is to stimulate the team to take really unusual ways to thoughts that
are unheard of, but they should be rational enough to stimulate coherent solutions. The strength of an
idea or a solution is more effective in heterogeneous groups. These really challenge the existing
paradigms and thought structures in the process uncovering the information that had been hidden from
the very obvious.
Knowledge get obsolete if it is not renewed continuously on a regular basis. Thus a leader has to keep
his knowledge bank updated lest the lack of knowledge does not hamper his day to day decision making.
The leaders who do not believe in this erode their competitive advantage as also the organizations. The
leaders usually lag behind their people as the knowledge advances and if they do not then they are

having mediocre people on board or in some way inhibiting the growth of the individuals. The leaders
however keep abreast of the latest developments so that the knowledge gap remains within the
working boundaries. The idea is not to become experts but to understand the advice that they receive
and the implications thereof. In contrast a poor leader using his position circumvents this learning and
discourages the team that he is working with.
The leaders should be discriminative enough to separate the fine theories from “know all” knowledge
worker who thinks in abstract terms with little touch with the real world. There is a danger that these
two can clash on the ideological plane, where one tends to undermine each others competencies. Here
the role of the leader is to understand the disconnect between the theory and the conceptual gap that it
represents. They are not intimidated by the arrogant attitude of the knowledge workers. They
encourage such individuals as these are crucial for the competitive edge of the company when the
products of the company grow obsolete. But they have to ensure that they completely understand the
explanations of assumptions and the theories. They ask for demonstrations and pilot tests so they the
full import of the new theory is clear and also helps in better understanding of the things that they do
not understand and the knowledge gap becomes less. The leaders work on a need to know basis so that
they can utilize and manage the sophistication of the newer products and processes that the
organization is going to utilize in the near future. On the other hand the leaders who are lagging in
knowledge, expose their organization to serious risks and blame some one else for the costs of their
knowledge obsolescence.
CHAPTER 5: KNOWLEDGE STRESS AND
KNOWLEDGE WORKERS
The new paradigm these days is to acquire knowledge as fast as possible before your competitor has
that knowledge and out paces your initiatives. Secondly the attitudes of the workers also define these
stress levels to a great extent. As these knowledge workers have a distinct views about their roles and
those of the leaders.
The distinction between the knowledge worker and the production worker is decreasing. The resultant
stress emanates from the newly acquired knowledge that they have to use and learn as they switch their
roles in a cross functional teams. The introduction of new technology also entails that the workers
update and acquire knowledge. The established practices are abandoned for the newer practices thus
the new components of the knowledge create increasing levels of anxiety and stress. Global market is a
dynamic market which entails that the goals and strategies also act in tandem of these changes which
may happen very rapidly leaving very less time to react to the changing scenario of market and the
competitor.
These decisions have to be understood that how will they interact with the interplay of the market and
the dynamics of the competitors decisions. The consequent results may provide and negative effect on

the company’s overall policies and bottom lines. Hence the crux here is the knowledge and the
awareness of the consequences of all the decisions taken.
The why’s and how’s of any decision and the consequent result creates a state of ambiguity that every
leader has to encounter. As any one decision cannot be attributed to the results that a company may
face in light of if any good or bad happens. Thus the problem is compounded when the leader forces the
employees to look for links where they may not exist. This is also true when the people when interaction
at professional level in any company and with a leader they have their own interests and views. Hence
the leader has to listen to the departments across the length and the breadth of the organization. There
is a need to balance these so that these do not add to the stress component.
In the era of transient relationships across all the functions and teams the various levels of stress are
generated as these relationships are very short in nature. Given the uncertain nature of the job stability
the stress levels multiply depending on the fact that whether the individual is needed or not.
With the rejection of an idea proposed by and individual the leader has to be careful in managing that as
the most valuable contributions these days are ideas and concepts that are being proposed by the
individual. The leader has to balance people who are constantly berating others ideas and trying to
prove that they have the best of ideas. The leader also has to constantly keep his knowledge updated
about the workers and their attitudes as the knowledge workers have different mindsets which values
the questioning approach.
They feel that the leaders are answerable for the decision they take and explain the logic behind that.
The leaders who are not comfortable with these workers keep them in check while an effective leader
will utilize these to create new challenges and improve their decision making process. The leaders need
to give freedom to the teams to operate on their own terms and deliver results. The knowledge workers
are hungry for knowledge, as these workers are seeking knowledge in all spheres hence the leaders
should allow them to develop their skill sets so that they can upgrade their mental horizons.
Knowledge workers are aware of the larger picture that an organization operates in. Therefore any
unethical and morally wrong decision is not looked up by these people. The effective leaders have to
realize the fact that they are accountable for their decision that affects the society as a whole.

SECTION II: SUMMARY TRUST
SECTION
CHAPTER 6: TRUST AND DESIGN PROCESS

The ability of the leader to trust and be trusted directly affects how the leader makes decisions and the
quality of those decisions. Trust implies vulnerability and a loss of control over others. The more a leader
controls employees, the less trust he has in them. Trust also affects how much information is shared
between the leader and employees and how willing each is to be influenced by another party. Trust is
also reciprocal and self‐fulfilling. Numerous factors predispose the propensity of an individual to trust.
Early life experiences and the degree to which dependency needs were fulfilled by family and friends are
contributing factors. Trust is also affected by occupational training, perceived competence, and the
design of reward systems. Leaders' ability to understand the basic elements that affect trust are
essential both in understanding their own trust patterns and those of their followers. Armed with this
knowledge, leaders can work at improving trust, motivation, loyalty, and commitment with the
organization.
The trust and trust levels will define the relationships that a leader can expect to have with his team. It
then leads to greater levels to knowledge sharing amongst the team and their leaders. The leaders
express trust through information, influence and control. High trust leaders collaborate with their staff
to produce business decisions and the mistrusting leader will take decisions in isolation and alienate the
staff decreasing the employee loyalty to the organization. Trust and trust levels vary according to the
tasks.
Components of Trust model, high vulnerability, low control, modest benefit, high possible loss and the
belief that the other person will not abuse the vulnerability. The trust is expressed through 3 elements
namely, how they disclose information, share influence and exercise control.
Information that a leader discloses may lead the other person to thwart the plans and take credit
himself. On the other hand if leader mistrusts he may disclose misinformation, hide crucial facts give
untimely information.
Influence is the information, its source and how it affects the leader. The leader when he accepts the
counsel of his superiors or subordinates, he put a level of trust on them. And these can be a negative or
positive influence on him depending on the view of the superior or peer or subordinate that has
counseled him. When the leaders mistrust they deliberately resist the attempts to influence his
decisions. These leaders reject the outcomes of others results and findings and push only their way of
thought and action.
Control is exercised by limiting others behaviors and thoughts. The leaders who are trust oriented
delegate vital tasks such as problem analysis and information gathering to the subordinates hence
increasing their level of vulnerability and a decrease in control, the consequences could be fatal for
them. The mistrust leaders are power centre’s and all authority and power flows from them. They never
relinquish control.
Spiral Model of Trust
Trust between two individuals develops through a circular, mutually reinforcing process that begins with
one’s expectations about another’s behavior. Trust spirals up or down depending on how people

disclose information, share influence, and exercise control. When people trust one another, they
provide comprehensive and accurate information without fear that exposure will lead to abuse. They
are open to influence from those they trust and are confident that control is not necessary because the
other person will fulfill their obligations. Mistrust, on the other hand, occurs when people conceal or
distort relevant information out of fear of exposure and vulnerability. Suspicion of malevolent behavior
leads to a deflection of others’ attempts to exert influence. One who does not trust makes every effort
to decrease their dependence on others and seeks to impose controls on others’ behavior. People have
predisposing beliefs about how trusting they should be and how trustworthy other people are.
Predisposing beliefs lead one to regulate how much information to reveal, how receptive to be toward
others, and how much control to exercise. They gather impressions of others’ trustworthiness through
repeated interactions. Short‐cycle feedback of these impressions confirms or disconfirms one’s
predisposing beliefs. Equilibrium occurs after short‐cycle feedback becomes repetitive and trust reaches
a plateau. “When people trust each other, the three phases flow in a beneficial spiral… When they start
with a lack of trust, people can get caught up in a downward spiral…until they reach a plateau of
mistrust”. Page 95

SPIRAL MODEL OF TRUST

The trust cycle defines how two people can work in tandem and produce concrete results. It is said that
trust begets trust and that is the trust cycle that is emphasized in the book. This goes on till the trust
levels reach a plateau phase where the vulnerability increases and the control decreases; result is an
increased level of problem solving effectiveness. The opposite is true for the mistrust cycle.
What is the effect of trust? The book describes trust as a force that makes people open up, be more
trusting and willing, taking the relationships to new heights. On the other hand the mistrust destroys
relationships through frustrations and rage. In a mission critical department the trust levels often define

the outcome solutions and a mutual trust and acceptance. On the other hand the mistrust levels create
boundaries and people are generally defensive about their actions. The motives of others are generally
seen as dubious and commitment to a motive is generally low. Hence it can be inferred that trust levels
describe the social certainty and uncertainty levels.
The CONRAD study substantiates these findings with the 2 groups that were created and the SPIRAL
model is vindicated as the high trust group is the one that communicates the relevant ideas in resolving
the various dilemmas. The study also found out that the executives are generally unaware of the effects
of trust and mistrust in teams and how it affected the outcomes and behavior of the team members.
Chapter: 7 DETERMINANTS OF TRUST
The 2 factors that contribute directly to the trust levels are ‐ #1 Personality #2 Training.
These are discussed as compared to Lee Iacocca and Harold Geneen. The style of functioning of Lee
Iacocca was that of building trust and confidence levels which shaped by his personality that developed
in the early childhood; As he came from a loving and caring childhood, a family that was a tight knit and
very supportive. These factors helped him turning around Chrysler compared to others who had a
difficult childhoods were not as responsive to challenges as the ones which came from happy
childhoods. In essence the growing up days and a happy childhoods shape the personality of a leader
and his responses to the various challenges.
In case of Harold Geneen we look at how training affects the leader’s responses and the outcomes of his
actions. As each business specialty gives you a distinct perspective in terms of trust levels, the lawyers,
accounts people and finance people are naturally distrustful of other people. In contrast the engineering
and scientist community go by the word of the mouth, trust is implicit. Coming back to Geneen, he
comes from an immigrant broken family, laggard at school in sports, in short a complete opposite of Lee
Iacocca. His style of functioning was that he saw people as an extension of his mistrust. On an
operational scale he used to collect 2 types if information. The first one was the financial which included
the minute details. The second was his budgeting, planning and cost control systems. The two leaders
left behind a legacy that was a sustainable and an unsustainable one. Lee’s legacy of trust and faith was
a positive legacy that continued much after his exit, whereas Geneen left behind a legacy that was
negative which could not sustain after his exit.
Trust Levels have 5 factors:
1. Competence
2. Openness
3. Supportiveness
4. Intentions
Trusted leaders tend to:‐

Be aware of their own values. They know themselves well. Faults and all. This helps them to
know why others may trust them, what can reinforce trust and what could be an obstacle.
People want to trust when they can align with values. For example, if someone knows they tend
to listen with their hand on the trigger, they should get others to point this out to them.
Work hard on cultivating trust at every opportunity. They work consciously to develop trust.
They use the space between stimulus and response to chose to think of the consequences for
trust of their behaviors. They also set boundaries or ‘rules of engagement’ and make their
expectations clear to prevent a ‘free‐for‐all’.
Take responsibility. They have humility and strong will. They are understated and free of
egotism. They share credit, looking out of the window at every opportunity when things go well
and straight in the mirror if things go poorly. They don’t blame. They have a strong internal locus
of control and are resilient to setbacks. But have a hunger to learn. Window in good times,
mirror in bad.
Be clear and honest – without hidden agendas. Trusted leaders are open. They say what they
think and feel. They are an open book. On occasions when confidentiality is essential they
acknowledge this but say they must respect the confidentiality of the situation.
Genuinely have the organization’s and team member’s interests at heart. Their ambition is
channeled into the organization and the team not their own personal ambition. They want to
leave a legacy. They know what they want to hear people say of them when they leave. They
contribute rather than seek gain. How can we ultimately trust someone who is pursuing a
personal rather than collective agenda?
Chapter 8: Laws of Trust

1. There are regularities, or reliable predictions, in the trust systems that we call laws of trust; a
particular outcome is likely if leaders do not change the level of trust.
2. Mistrust drives out trust; does not reciprocate acts of trust from others. Trust increases
cohesion: holds people together; means that people have confidence that they can rely on each
other. Mistrusting groups self‐destruct: as a corollary, when members mistrust each other, they
repel and separate, turn against each other, pursue their own interests.
3. Trust stimulates productivity; it gives people confidence that they can depend on each other to
define and achieve appropriate goals; also encourages people to think of productivity with
satisfaction and joy.
4. Mistrust depresses productivity: people who mistrust do not believe they can depend on each
other; they conceal and secretly pursue their own interests; obstruct creativity; distort
information, interpretations, and decision making.

5. Rapid growth masks mistrust: as sales and profits increase, leaders seek expedient solutions,
misshape relationships, and encourage short‐term thinking.
6. Increasing trust: effective leaders deal with a paradox‐‐minimal trust in order to improve trust
ability.
a. Through integrated reward systems.
b. Through reciprocal increases in trust.
c. Through relationship analysis; reviewing how they can increase trust.
SECTION III: SUMMARY
POWER SECTION
CHAPTER 9: LEGITIMATE AND DECISION PROCESS
POWER
Legitimate power remains the formal basis of leadership. It gives leaders the basis of authority on which
to act. In large organizations, a leader's authority to select the strategy of the organization can elevate
or devastate the lives of thousands of people, as in the recent restructurings at AT&T and Scott Paper.
The actual exercise of legitimate power ranges along a continuum of decision modes from commanding,
consulting, concurring, and consigning. Legitimate power enables a leader to determine the
organization's goals, select its staff, and exercise the right of review. Effective leaders rely also on
consultation, a form of legitimate power, to work with distributed knowledge in their organizations. By
acting as consultants, leaders seek and exchange knowledge, overcome power differences, and build
trust throughout the organization.
Power is defined as the ability to influence people. It
is described as the ability to get someone to do or
not to do something. The 4 fundamental decision
modes are:
1. Commanding
2. Consulting
3. Concurring
4. Consigning

The legitimacy of power is depicted in the case of NBC. The takeover by GE in 1995 of NBC resulted in
Robert Wright replacing Tinker who could not be persuaded to stay. Wright by his default power that
came with the position wanted to curtail the news department’s budgets. The move was resisted by the
current head of the division Larry Grossman. Ultimately he was replaced as the independent
consultant’s vindicated Wrights contention that the news division was over staffed and over budgeted.
Hence by wielding his default authority Wright was able to bring about the desired changes in the
company. In the short term these Leaders loose popularity in face of such decisions but the long term
effects of popularity and sound business decisions, it’s the sound business decision that wins hands
down. The comic strip of SUPERMAN says that “With great power comes great responsibility”. Thus
leader who has been given this should choose to use power judiciously lest it ends up destroying lives
and homes of their subordinates.
In decision process power the leader’s innate ability to choose the decision process decides the
effective/ ineffective outcomes. Command, Consult, Concur or Consign is the dilemma that a leader has
to face when it comes to taking effective decisions. Command is clear it is a one way process, the leader
commands and the people obey. Prior to using command sequence the leader concurs and consults his
subordinates to build that trust levels and understanding. Effective leaders know even when
commanding when to consult, concur and consign.
In consulting the leader effectively taps into the knowledge that is there in the organization, by posing a
situation before a group of employees and asking for a possible range of solutions thereby increasing
the trust levels between the leader and the people consulted. On the other hand the poor leader just
uses the information sought without explaining the context or posing the dilemma in a referential way.
The concurrence sees a leader jointly consulting a group to seek a solution that affects many. The
decision of the leader is final but the discussion is an open forum where the subordinates are required
to make there contributions. There is an overlap zone between concurrence and consultation where the
effective leader operates. They consult the subordinates implicitly seeking concurrence. The decision
process is effectively held with the subordinates in the loop, wherever possible. Where not possible the
leader takes into confidence the subordinates and making clear the costs of the decision if delayed. On
the other hand a poor leader the image of concurrence is turned to “yes men” and there is no room for
dissent. Here the subordinates learn to conceal their disagreements and learn to go by whatever comes
from the leader as command.
Consignment sees the decision been effectively transferred to a subordinate and in a subtle and a not so
subtle way controlling and directing the decision making process and its final outcomes. There is an
effective delegation of power, which rests on guidance, development and review. The leaders set up the
broad boundaries that the person taking a decision has to adhere to and the goals and strategies of the
organization. The subordinates under such leaders grow in handling projects of greater scope and
capacities. The concept of consignment also works as the people who have been delegated that
responsibility act in concurrence with the people who are still lower in the hierarchy, and here the
people are aware of what the real problems are and how to devise cost effective solutions.

Chapter 10: AGENDA, STAFFING AND REVIEW
POWER
Knowledge is the base on which agenda, staffing and review power rest. The agenda is described as the
navigation process defined by the leaders. The right of the leader to define goals and strategies with a
road map how to get there. The assessment is a continuous process that the leaders do to evaluate
constantly the rapidly changing environment, the threats, opportunities and they work with the
subordinates to set the challenging goals. The strategy formulation is done to enable the organization
reaches it destination. The systems and procedure are installed to have course correction in case the
organizations deviates from it natural course.
Personnel selection for key positions is also done by these leaders. They will select, motivate and
nurture the talent of an individual so that he / she is groomed for higher positions. The environmental
changes make apparent the leader’s agenda power as the situation changes in a subtle manner the
visibility is not much but as the situation changes rapidly the agenda power is more apparent.
The working style of Pfeiffer has been given as an example on how he used the “4 C’s” of decision
processes, viz., consult, concur, consign and command including the change in agenda to bring about the
mission critical changes in the product mix and the critical changes in the manufacturing process to turn
the organization around and strategically position it as a competitive hardware manufacturer.
The staffing power is the selecting, developing and motivating people to carry out the leader’s agenda.
Effective leaders surround themselves with effective people. The nature of business is such that as the
business grows the interdependence amongst people also grows. The leader has to anticipate these and
pick the best people to help implement the desired wide changes that would enable the organization to
meet its expected goals. The leaders have an innate talent to choose the best of the candidates from the
lot of people; they spot talent and know the competencies of a person that is geared for the future.
Sam Walton of Wal‐Mart did this by spotting talent and grooming for future role as managers. With his
innate ability for spotting talent he was able to implement his expansion plans beating the competition
by a wide margin. His record 50 stores a year, 2500 stores by the end of 1993.
At the top level the staffing proves to be a crucial decision in selection of a right candidate for the
position. The level and depth of thinking has to match that of the organizations goals and strategies. The
decision of the COMPAQ bosses in appointing Pfeiffer illustrates this.
Review power is used to take stock of the situation and steer the course corrections as and when
needed. Review can be an important learning tool for an effective leader. The subordinates can be
shown how’s and why’s of a decision making process, their own performances and that of others.
The review is of 3 types: ‐ 1. Individual 2. Operational 3. Strategic

The individual review is of personnel. It guides and focuses the individual on his working style and
guided by an able leader that resource makes suitable changes to his / her working style to achieve
higher standards and goals in line with that of the organization. It’s a learning process and the duty of a
leader is to make that happen.
The operational review is of the way a certain business process is being done. It brings about
refinements and best practices into that business process or operations. Operational review is also
educating the organization on how the business is run and the changes that are being implemented.
Strategy review is more top level and is capable of drastically altering the company’s goals to be in line
with the current factors in the business environment; COMPAQ, by altering its product line, top
management etc.
Knowledge as Power can be defined as expertise, vision and process knowledge.
The expertise can be seen as a leader synthesizing knowledge that is spread across the organization in
making his / her mission critical decisions. It is the understanding and evaluation of knowledge that the
leader does not possess, while making some strategic decisions the leader has to evaluate the various
options suggested by the various experts. The COMPAQ’s decision not to introduce the Pentium chips is
a case in point.
Vision is the ability of a leader to see the future and make meaning of it in present. So that the firm’s
strategy can be modified to suit the future envisioned scenario. Vision is an intangible and
unquantifiable knowledge more as a product of long term relationships. Vision to be used effectively has
to have support of legitimate power.
The process knowledge “is knowing” how things are done in a firm. Access the distributed knowledge,
build trust and convert knowledge into effective actions.
Using trust as a power medium requires the leader to be influential enough to make or not to make
people do things. People who trust others invariably let others control them and their fate. Trust is an
outcome of leaders conduct and faith of his subordinates in his leadership style and functioning. Despite
having legitimate power some leaders fail and others succeed due to the fact that these leader’s varying
levels of trust that they enjoy with their subordinates.
Charisma cad be defined as a mesmeric personality, it is a rare quality found in very few leaders. These
people are very adept in winning our trust. The downside is that these leaders may misuse the trust that
has gained. But this cannot be a substitute for trust that is built on more solid foundations of time, effort
and leadership style.

CHAPTER 11: POWER OF LEADERS AS
CONSULTANTS
This brings us back where we started from – Knowledge. The leader in order to be effective and
successful needs to be a consultant and a client, both at the same time. And for that to happen the
leader need knowledge to take decisions in a rapidly changing context. The latent knowledge that is
inherent in any organization has to be tapped by the leader to arrive at that decision.
Power has 2 dimensions, influence and control and in context of consulting it can be implied that
influence and control of knowledge that the leader seeks from the distributed knowledge in the
organization. The model of consulting discussed here includes 2 levels, content and process.
The need for consulting has always been there as both the leader and the subordinate require it in the
face of competitive environment. The leader needs to access the large distributed knowledge pool in the
organization and the subordinate the depth, vision and maturity of the leader. Prior consulting is more
of a necessity than an option. Adaptive organizations need leader‐consultants who develop
subordinates by providing perspective and counsel.
The leader has to act as a consultant client to steer the company through the changing business
scenario. He then has to rely on his rich and varied experience to be an effective consultant client.
Globalization is an everyday affair in the current business scenario and working in such an environment
the best strategy is to act as a consultant client rather than issuing commands or prematurely consigning
to unfamiliar people.
The consulting relation ship focuses on:
1. Content level
a. Define Problem
b. Generate Alternatives
c. Choose and Implement
2. Process Level
a. Establish Rapport
b. Define Roles
c. Withdraw
This model has been defined as an alternative to

the regular gladiator and ferret model is commonly
seen in the organizations. These 3 phases overlap and
rarely follow a linear sequence. This is a know fact but
still the leaders demand a quick solution for the issues.
The problem gets compounded when the problem
recycles through the same levels again and again. The

leader then intimidates the subordinate to resolve the issue linearly. As a rule when the simple
problems amenable to linear problem solving reach the higher management they have been overly
simplified or else would have been resolved without the involvement of the senior management.
First step is to define the problem that may not be the final. The leader consultant has to gather more
information from his subordinates as the positions does not give much scope to have a clear view of the
problem definition. Hence the consultant leader, gather more data, refine the original problem in the
light of the new data.
CONTENT LEVEL
Generation a range of options requires synectics a process that encourages creative imagination, by
having an all round view of the problem, by pretending to be various characters and by role playing
various identities to look at the problem from their perspectives. 6 HAT lateral thinking is also employed
in problem resolution.
1. White Hat – Focus on facts and figures.
2. Red Hat – Expresses feelings, hunches and intuitions.
3. Black Hat – Explains why things will not work
4. Yellow Hat – Envisions opportunities and constructive possibilities.
5. Green Hat – Grows new ideas, asks provocative questions, looks for fertile connection across
disparate fields.
6. Blue Hat – Conducts the discussions and calls on a particular hat to fill the gaps in thinking.
The whole exercise is to make the client generate his own range of solutions the leader consultant
stimulated such and outcome of ideas and solutions.
The steps and assumptions have to be contentiously argued and debated again and again till all the
assumptions have been accounted for and taken on record. The trade offs in the various options need
careful evaluation so as to arrive at the best possible combination with various back up solutions in case
plan A fails, the plan B should be put into action. Hence each assumption has been accounted for and
the potential consequences understood for the range and depth of the issues at hand before jumping n
to a pre determined solution as in case of poor leaders.
The implementation phase is not telling people what to do but is like a guided tour from start to finish.
The client has to be told the road map, the pit falls and with periodic review and course correction.
PROCESS LEVEL
The process level works in conjunction with the content level when consulting. Here also the 3 phases
are overlapping and are equally important for consulting leader to be successful.
Establishing a rapport is the basic step in going forward, for a problem resolution. Never assume that a
rapport exists. Test the waters first as rapport levels vary and it is an ongoing process that will vary till
the time the leader and the client are working together in the same organization.

The Leader has to define an appropriate role which may fall in one of the categories as below:
1. Acceptor
2. Reflector
3. Questioner
4. Problem Definer
5. Solution Generator
6. Evaluator
The underlying common denominator here is that the leader has to assume these roles based on the
type of situation that is developing. It is a dynamic situation and a poor leader sticks to the doctor
patient role thereby playing all these roles at the same time.
The “Acceptor” knows that people make errors and that’s why many situations happen. This role is
critical in building rapport and trust. The “Reflector” reaffirms the problem statement by rephrasing the
problem statement thereby objectifying it leading to a different perspective on the problem. That leads
to a situation where the client feels that “ok, the problem is not that great and can be resolved”. In
contrast a poor leader recounts his / her own experience and tries to distract the client. The
“Questioner” asks more probing questions so as to put the problem in perspective and to have a handle
on all the aspects of the problem. The questions are such that they give a new insight to the client and
new courses of action become clearer. The poor leader would berate the client and make him / her feel
small and awkward in the light of the situation and the inability of the client to resolve it. The “Problem
Definer” will look at all the aspects even go to the context of the problem so that the client will get a
clear idea on what the problem is as a properly defined problem will determine the client focus and
future actions. The “Solution Generator” may focus on being a facilitator, helping the client to generate
a solution or can co‐generate a solution or can himself generate a solution. These people can generate
out of the box solutions as they are not confined by the narrow boundaries of the corporate setup. They
are free to question the established norms and assumptions and create a rich range of options that were
not there earlier. The “Evaluator” looks at all the sides of the solutions and gives a balanced picture to
the client. They both may evaluate the solution by judging its predicted outcomes in context of the
preset criteria.
Finally the leader withdraws from the consulting relationship. The idea is to let the client forge his / her
own path that has been set out in consulting with the leader. This builds a new trust and faith which is
very useful for future projects as it creates a level of understanding and faith.
A few problems that are encountered as a consultant are defined as follows:‐
1. Defensiveness
2. Process Skills
3. Withdrawal
The issue in “Defensiveness” lies in the fact that who has the control. The leader feels that if they are
consulted they are or should be in control. If the client questions the logic or reasoning of the leader,

they feel threatened that they are loosing control of the situation. The problem and the solution has to
discussed threadbare and the leader should not feel threatened on this account.
The leader assumes that the rapport is already there and the client is receptive to the ideas that are put
across to him. These leaders have little knowledge of the various roles that they can play as a leader
consultant and the skill that these roles require. They ignore or distort the withdrawal phase
The leader consultant here either pulls out too quickly or is not willing to let go, till the point that they
assume the role of the client and overseeing the proposed solution. The effective leader consultant
keeps this aspect in picture and negotiates a smooth withdrawal procedure.
The role of the client also faces some dilemmas, which are listed as:‐
1. Fear of loss of control
2. Low tolerance for Ambiguity
3. Discomfort With being a constructive client
These issues crop up when the leader feels that by consulting the superior, subordinates or co workers
they can benefit but for the above mentioned 3 fears.
The fear of loss of control stems from the fact that these leaders have been schooled in the hierarchical
setups where control is the buzzword. And being on the client side is seen as a weakness. But a leader
who has surmounted these feelings knows that it implies that one has the courage, wisdom, and risk
taking ability to confront and surmount difficulties.
The leader has to be in “know” of the ambiguity of the problem resolution process. Diagnosing the
problem and offering a solution are a circular process and to get a correct solution the leader has to dig
deep lest the wrong problem gets solved.
The last part deals with the leader being a constructive client. The dogmatic aspect of the situation
forbids the leader from adopting a conciliatory mindset. Constructive clients can successfully guide the
consultant by providing the correct information at all stages of the relationship. The client knows what
the consultant is lacking without being scornful of the consultants abilities. They can guide and
periodically review the roles and their distribution amongst them.
CONCLUSION

The situations can be grouped into 2 sets:‐ 1. Well‐Structured routine 2. Ill‐Structured Non‐Routine. We
have production and knowledge modes which need to be matched to the situations by the leaders and
to integrate knowledge, trust and Power. We see the relationship between knowledge mode and task
forces and the blend of production and knowledge modes and operational realities of using a knowledge
mode.
Examples of well structured work are

related to routine physical or low level
mental work. Examples can include,
producing automobiles, posting of cheque
transactions into the computer systems,
compiling the credit card statements etc.
The reverse is true for Ill structured

situations; here the work is complex, non
routine mental work. Examples can be
deciding the right product mix, pricing
decision for a new product etc. These
situations are affected by outside forces
not under the control of anyone. These
occur infrequently and are difficult to find a
perfect solution for the same.
Effective leaders work with both the modes, after studying the situation adapting to the production and
the knowledge mode. Then there is also the hybrid mode.
The production mode

standardizes the procedures,
benchmarking the processes to
achieve high productivity.
Hierarchy is used to control
people ensuring that they follow
the standard procedures; jobs
are divided into small easily
learned tasks with clear
boundaries. The leader has little
discretion in this mode except to
adjust for absence of personnel,
equipment breakdown, and
shortage of materials. Authority
is respected boundaries crossed
only with explicit permissions,
leaders conform to rules, SOP,s,

past practices. Influence is determined by the hierarchy in which the person is placed. The production
mode is geared to maximize the output from men and machines. The high volume production systems
use the production mode.
The knowledge mode is used by the leaders to solve problems by creating & synthesizing information.
Influence come from the contribution that a leader makes in terms of concepts, ideas, questions, facts
and insights. The leader pushes formal power in the back ground; role is that of a facilitator consultant
rather than directive commanders. Many if not all the production mode norms are tossed out of the
window by creating informal channels of communication, creative individuals are given a free reign
across their domain.
The effective leader knows the changing business scenario
and adapts to the situation by having a production /
knowledge mode working for the organization, the idea is
not remain stuck on any one mode but keeping your
options open to switch between the 2 modes or having a
Hybrid mode if the situation so demands.
The CASE STUDY depicts how a bank working in the

Production mode was able to turn itself around by having
lateral knowledge mode. The external consultant in his
consultant leader function enabled the established
management to question the existing paradigms and
build new channels for information exchange. The
strategy that was followed was that the consultant
gathered the basic information and developed some
norms for a lateral knowledge mode to be established.
Next all the key people were oriented toward this new
system. The chief motivation was to the need to develop
a strategy for international banking in the changing global context. The integration of knowledge, trust
and Power is amplified in the above example. The knowledge was created and synthesized and applied
in a strategic context by the lateral knowledge mode. Using the knowledge created trust because
trusting a leader is different than trusting a completely new process completely. Once it became clear
that the creator of that knowledge and the process are they themselves, and then the trust in the new
process grew even higher. The leader use of power in a mature fashion made him the leader that could
be trusted and faith could be reposed on the leader. Hence he justified the power dimension of a true
leader.
Formation of a task force to implement a new mode does not guarantee the results. In the banks case it
succeeded because they used the knowledge mode norms, they were able to contribute creatively and
enthusiastically and the task force was part of comprehensive, inclusive knowledge system which was
subject to constant feedback and review.

The formal leaders were on board the task force hence the implementation was achieved at a very good
rate and that linked them to the lateral knowledge mode.
The blend of knowledge and process is the Hybrid mode. Effective hybrid leaders and good listeners and
team process observers, they have qualities of good interviewers and data gatherers and cooperate with
others in a flat network with varying memberships to diagnose and resolve the issue.
The creation of a Hybrid mode has its own problems as it increases the use of more human interface in
forms of groups and this group brings to surface the problems that existed only in the minds of the team
members. The level of interaction increases the problems that never existed before. The structured
problems are referred to the production organization whereas the unstructured and ill structured
problems go to the knowledge mode. The frequency of the meetings reduces subsequently to reflect the
establishment of a system of reducing the ill structured situations.
The stress factor on the middle level leaders multiplies as the top level management can now interact
with the low level managers directly; hence they come to know that the middle order has been window
dressing the information communicated to them. Thus as the barrier between the lower level
management and the top level falls both sides realize that the problems that seemed insurmountable
are just five minute resolution issues. This flat mode of information exchange propels the senior
management to redesign the levels of authority in the process making the middle level managers
redundant. In the production mode they play a vital role as a bridge between the senior and the lower
level management.
The level of flexibility depends on how much a person understands the lateral and or the knowledge
mode. Once the people realize that the knowledge mode complements the production mode they adapt
faster. There is a danger of over optimism as people think that they have broken a higher level of trust.
Here there is a real danger of overconfidence coming into play as the team solves some ill structured
problems hence they believe that they have come a long way, but the real problem comes when the
implementation of the solutions kicks in the whole momentum goes for a toss. The meetings are
disjointed and people generally pessimistic. The leader is the only person who knows that it is the
knowledge mode integrates knowledge, trust and power in a hierarchal organization.
Summary of Knowledge mode:
1. Find, define and solve ill structured problems.
2. Differentiating between the production mode and the knowledge mode problem.
3. Realigns the power structure in the organization when a team is formed.
4. The expected behavior of people in the lateral mode and the production mode differs.
5. The knowledge mode requires the people to question carefully, analyze goals, assumptions,
predictions, methods and options.
6. The knowledge mode recommends the solutions to the leader who has the formal authority to
implement those decisions in the production mode.
The Triadic Leaders display 3 major traits:

1. Wisdom
2. Integrity
3. Courage
Wisdom to have a vision, wisdom to comprehend a vision before others, wisdom to use power
sensitively and wisdom to ask questions and simplify a complex situation.
Integrity of the spoken word, Integrity of action, integrity in others, integrity to support subordinates.
Courage and wisdom to take risks and ventures into uncharted waters, courage to believe in their
convictions and lead others also with it, courage to believe in their subordinates, courage to use the
knowledge mode and relinquish the decision taking power. The leaders have the courage to understand
that the humans are prone to make mistakes and learn from them, thus the leaders have the wisdom to
impart these traits to others.

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Book Summary – The Leadership Triad Author: Dale Zand

The role of leaders in finding the distributed knowledge in any organization is crucial. It is the leaders

This model has been defined as an alternative to

Examples of well structured work are

The reverse is true for Ill structured

The production mode

The CASE STUDY depicts how a bank working in the

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