CHAPTER

Introduction to leadership and management development

The aims of this chapter are to:

set the scene for the rest of the book, by setting out the general approach and philosophy taken by the authors, as well as to outline aspects of both the content, structure and features of the book. It seeks to make clear the rationale for the book and its intended audiences. consider the contemporary importance of leadership and management development. discuss the varied potential audiences for the book. outline the key themes, structure, and features of the book.

Chapter 1 Introduction to leadership and management development

Introduction
This book aims to provide an evaluation of the current understanding about leadership and management development, taking account of the historical background to leadership and management development and the recurring themes developed from this legacy. It takes both a theoretical and a practical approach, underpinned by a number of mini case studies throughout the chapters. It considers leadership and management development (L&MD) in terms of its context in organizations; its links and possible integration with human resource management and human resource development (HRM and HRD), organizational development, and strategic choices within organizational strategy, and the role that the wider environmental context has on its processes and practice at work. The major contemporary factors influencing L&MD are considered within the book, including globalization and the need for global understanding and competence of managers, ethical imperatives, and diversity in the workplace. Time is given to consider factors that influence individual managers and leaders in terms of impacts on their learning as well as evaluating a range of well-known and less-used processes and interventions in developing managers for their personal careers and for the organizations that employ them. The notions of leadership and management are themselves, of course, contested and much discussed concepts. Although a consideration of ideas associated with leadership and management would fill an entirely different book, we broadly take the view that (although the notions overlap in reality and are described variously by different academics and organizations):

Leadership is strategic, focused on vision, and involves a strong element of building trust and emotional engagement with followers. Management is operational, focused on goal achievement, and more directive of those managed.

These issues are developed in part one, particularly in Chapter 5. Leadership and management development, therefore, involves the development of individuals and of organizational capacity in respect of these dimensionsthe strategic/operational, the visioning/goal achievement, and the trust/direction elements. It is largely uncontested that it is possible to develop managers and to seek to ensure a continuing supply of managerial talent within organizationsmanagers can be supported to develop managerial skills and behaviours of various kinds. Where leadership is concerned, this is slightly more problematic, and there is a strand of thought which suggests leaders are born rather more than they are made. It is our contention thatwhilst there may be some truth in thatit is, nevertheless, also possible to support the development of some leadership skills and behaviours in individuals, and to seek to develop a continuing cohort of potential future leaders within an

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organization. The development of leadership competence may require, in some instances, different approaches to those involved in management development but there are also many areas of overlap between them. When we consider leadership and management development, we take a broad view which encompasses all the activities and processes making up the organizations attempts to create an ongoing supply of appropriate leadership and management capacity, to enable it to achieve its objectives, to sustain itself, and to transform itself as necessary. There are, inevitably, overlaps between leadership and management development and other ideas, concepts, and processes involved in the management and development of people. These include, for example, aspects of resourcing, succession planning, talent management and development, reward, and employee learning and development. Dependent on ones definition of these concepts, and the context in which they are applied, it is not always apparent where the borders may lie, or even which might be considered a subset of which. These ideas are discussed mainly within part three, particularly Chapters 8 and 9.

Why leadership and management development are important today

The history of management development is long and although that of leader development is probably shorter, the importance of both cannot be underestimated. Since two major reports (Handy et al., 1987 and Constable and McCormick, 1987) identified that the UK had the lowest number of qualified and degree-educated managers when compared to our major competitors of the time and that there seemed to be a relationship between productivity or organizational success and educational achievement of managers and leaders (Constable and McCormick, 1987), the development of leaders and managers has grown in importance. Handy et al. (1987) found that most managers had little higher education and when a manager got a new managerial role they generally learned about the new job through gaining experience at work. These reports led to the professionalization of managers in the UK and to the realization that leaders were not just heroic characters who appeared in an organizations hour of need, much as Winston Churchill did in the Second World War, but that there was a diversity in leadership and that individuals could be assisted to develop leadership and management skills. Debates about the connections between leaders and managers similarities and differences are one of the key sections discussed in the book. Since the need for developing leaders and managers was recognized, an increasing range of approaches with different interventions has developed, some focusing on

Chapter 1 Introduction to leadership and management development

education of managers, others on the training and development of skills and behavioural elements of roles, and still others on holistic approaches to personal development within the workplace. The array of methods and interventions available continues to grow, along with the different types of developers, from in-house generalists, through educational institutions, and to externally outsourced experts. Still, whatever interventions are used, each must be appropriate to the environment and individuals who want to learn. Within organizations, leadership and management development has grown, often in isolation, from the remainder of personnel and HRM, and sometimes even as a separate function from employee training and development. Whilst there may have been good reasons for such separation, however, it is important that clear links are made within the major human resource management and development areasand that these, in turn, are able to contribute to and be part of business strategic planning to secure an organizations future senior managers and leaders. The importance of horizontal and vertical integration of business strategy, organizational development, and the management and development of human resources (HR) has never been more obvious as organizations, from all sectors struggle for survival in an increasingly difficult national and international environment. The growing importance of continued development of those who are future leaders and managers can be recognized by reviewing changes in the external environments in which organizations operate. Within the UK, there are major changes and debates about the nature of work and the working population, with increasing diversity, changing opportunities, and increased external political, economic, environmental, and social influences. Globally, changes and influences are very easy to identify through new developing economies and cultures. Recent crises help to demonstrate that all nations and economies are critically linked and that survival of each is reliant on all. Managers and leaders therefore have to learn how to work in such organizational and international environments, taking account of diversities within. For organizations, there are more opportunities due to greater employee mobility, but with technological development there are requirements to manage increasingly distant and diverse employee groups through technological networks. Therefore, with all of the changes briefly outlined above, it is an appropriate time to take stock and ask:
What are the key current theories and features that provide good practice and will these continue to do so looking ahead?

This book attempts to draw together what is known in the key areas of leadership and management development, and to critically analyse its contribution to date and its potential for the future. Gaps in knowledge and performance are identified and questions posed, with suggestions to help to apply current understanding to provide

Chapter 1 Introduction to leadership and management development

solutions. However, the authors are aware that leadership and management development does not stand stillthere are constant new challenges identified and innovative ideas to overcome them. In many ways, this is the main attraction of the study of leadership and management developmentthere are no definite correct solutions, just many different options that lead to a greater understanding, both of ourselves, and of organizational leaders and managers.

Readership and ways of reading the book

This book is based on the writers long experience of involvement in the education and development of managers. It is intended to be used for teaching students about the topics of leadership and management development and also as a reference for anyone whose work involves the development of managers and leaders. There are four main groups of individuals who will find the book of benefit:

Those studying Human Resource Development as part of a post-graduate qualification within Higher Education. Tutors and final year undergraduates interested in current thinking and practice in development. Practitioners who wish to challenge and inform current practice. Managers and leaders who wish to create a greater understanding of their personal development.

In higher education (HE), there are a number of courses on which this book may be used: as part of a Masters in Human Resource Management or Development as the key book to support a module on Leadership or Management Development; or on a more general Masters, in which Development of People in organizations is a key subject. To support its use on Masters programmes in HE, it is mapped against these Management Benchmarks. This book has also been mapped against the new Chartered Institute of Personnel and Development (CIPD) elective standards in management and leadership development and, indeed, against the compulsory module entitled Leading, Managing and Developing People. Please see Table 1.1 for further details of how our chapters relate to the modules. It is, therefore, useful to anyone studying such a subject, as part of an HR Masters programme, whether to gain CIPD accreditation or purely for higher-level study. The book may also be used by those teaching final year undergraduate programmes in which there is a need to encourage practical application of key concepts and to encourage higher study. For readers who wish to use the book to inform their practice there are numerous examples of how different L&MD interventions and processes may be used, along

Chapter 1 Introduction to leadership and management development

Table 1.1 CIPD standards and book chapters

CIPD outcomes: leadership and management development (L&MD) 1. Explain and critically analyse the concepts of leadership and management and their application in an organizational, social, environmental, and multicultural context 2. Evaluate, select and apply a range of approaches to identifying leadership and management development needs in differing organizational contexts

Book chapters 3 Contextual factors in leadership and management development 4 The history of leadership and management development 5 The nature of leadership and management 2 Leadership and management development and organizational strategies 9 Design and delivery of leadership and management development interventions 2 Leadership and management (L&MD) development and organizational strategies

CIPD outcomes: L&MD people 3 Debate and critically evaluate the characteristics of effective leadership and the methods used to develop leaders in organizations 3 Debate and critically evaluate the characteristics of effective leadership and the methods used to develop leaders in organizations 6 Assess the contribution made by HRM and HRD specialists in different types of organizations

3. Critically analyse and evaluate approaches to the formulation and implementation of leadership and management development strategies to meet current and future organizational needs 4. Design, critically evaluate, and advise on a range of leadership and management development interventions to implement leadership and management development strategies and plans 5. Work collaboratively, ethically, and effectively to support a partnership approach to leadership and management development 6. Explain and evaluate the role of leadership and management development in enhancing and developing organizational competence 7. Critically assess and evaluate approaches to the development of leadership and management in international and global contexts

8 Leadership and management development processes to add value 9 Design and delivery of leadership and management development interventions 11 Developing leaders and managers for a diverse workforce 12 Developing ethical leaders and managers 8 Leadership and management development processes to add value 10 Evaluation of leadership and management development 13 Developing leaders and managers with a global competence 7 Promote professionalism and an ethical approach to HRM and HRD practice in organizations 4 Contribute to the promotion of exible working and effective change management in organizations.

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with coverage of key issues that need to be addressed practically in any organization that takes the development of leaders and managers seriously. A number of the figures and discussion questions can be used by practitioners in helping senior managers to understand the current situation in their organization, and how changes can help them to improve opportunities for developing staff. The reflection points can be utilized by individual practitioners or for use with a group of managers, to help them to understand their own personal development and opportunities to improve capability. Any manager or those in leadership positions for whom personal development has not been, to this point, a key priority will find help in the book from a personal perspective and also help to encourage other managers to understand the need for continual development for survival in organizations. There are two aspects to the book that will be of benefit to all potential readership groups:

Reflexivity. Involves asking readers to contemplate frequently what the recently outlined concepts mean to them in their own experience. We then suggest that they discuss their thoughts and findings with others in order to come to a deeper understanding of what L&MD means for them, and how they can contribute to developing others in organizations. Mini case study examples. The writers have included a wide range of different cases to encourage discussion and practical application of concepts addressed. This aims to encourage readers to use current experience and to challenge information provided, to begin to develop managers and leaders who are both knowledgeable and also capable of action. There are cases of differing lengths in all the chapters throughout the bookall are based on real organizations, though anonymity is often used for a variety of reasons, not least to avoid too many reader preconceptions. Some are constructed as composites of more than one organization in order to illustrate a point.

There are three longer case studies that link to the online resources associated with the book. These are presented at the beginning, middle (Chapter 6), and end of the book, but they are designed to be used flexibly to consider either specific aspects of the case, or in a more integrated and holistic way. The authors are all based in the UK, and have a wide range of experience of developing managers within organizations and teaching on educational programmes so that this book takes many ideas from leadership and management development in the UK. We are, however, committed as far as possible to ensuring that the book has an international flavourand we have included mini case studies and examples throughout the text from a variety of international contexts. We have also drawn upon literature and research from around the world, not restricting ourselves to British and American viewpoints.

Chapter 1 Introduction to leadership and management development

Structure and overview of the book

This section provides an overview of the books structure, followed by a brief synopsis of the chapters and additional features within the book and additional support available.

Structure of the book

The book is structured along a number of key parts which are outlined briefly in the introduction. Within each part are a number of chapters, covering particular issues associated with the part. The key parts within the book are as follows. Leadership and management context and strategy are explored in the first part, which provides an overview of ideas about organizational leadership and management, from a historical to a present-day perspective, and attempts to predict some of the key issues for leaders and managers to come. The important and reciprocal links between organizational development and strategy and leadership and management development are explored. There are examples of strategy formulation that both impact on and require contribution from organizational leaders. The main environmental factors that influence organizations are outlined in order to provide an approach to understanding changes in the corporate environment and the crucial role of L&MD to support it. There is an introduction to two contemporary factors that influence organizational leadership and management: cultural diversity and globalization which will be further developed in a later part. Chapters within this part are: Chapter 2, which considers the role of leaders both in organizational life and elsewherein shaping strategy and promoting transformational change. It discusses the strategic leadership skills of visioning, focusing, and implementing before looking at strategy itself. Within this discussion, it considers strategic choice, influencing factors, strategy formulation, and different models within each of these areas. Chapter 3 looks at the international contextual factors of globalization, the growth of the BRIC (Brazil, Russia, India, and China) economies, cultural diversity, and leadership and management development for international managers. It explores both theoretical aspects of these issues and aspects of practical application. In Chapter 4, we discuss the progression of different management development approaches, locating the discussion within particular historical and global contexts. The final chapter in this section, Chapter 5, moves on to a consideration of the nature of leadership and management, and the similarities and differences between these two concepts. The second partunderstanding learning of leaders and managersprovides a rationale for the importance of encouraging all managers and leaders to appreciate the key role they play in any organization, whether to make profit or for organizational efficiency and effectiveness and survival. This part looks, in some detail, at

Chapter 1 Introduction to leadership and management development

what is known about individuals and how they learn, particularly focusing on learning through experience and the importance of individual learning as distinct from organizational training and development. We investigate what encourages managers to learn and how organizations need to provide appropriate situations for learning. Individual differences in learning are also evaluated to identify factors that explain why and how managers learn in different ways. Within this part, Chapter 6 focuses on how managers learn, presenting the many debates, models, and concepts involved. It examines theoretical approaches and their practical applications, concluding that the complexities of learning suggest no single explanation or application will ever be satisfactory on its own. Chapter 7 concentrates on differencesin personality, personal characteristics, intelligence, and learningand examining their impact on the behaviour of leaders and managers. This part leads onto the next one, which has a more organizational focus. Part three considers learning processes, interventions, and evaluation. The commonly known processes and practices used in developing leaders and managers are reviewed. We distinguish between organizational processesthat are commonly part of HR departments responsibilitiesand the interventions that are used in helping managers to learn and develop. These interventions may:

be performed by those within the organization who hold responsibility for L&MD. or simply be managed within the organization, with delivery outsourced to specialists. or be seen as part of the role of managers and leaders within the organization in taking responsibility for developing others.

Whoever has responsibility, and whoever carries out these roles, it is important that there is a coherent approach to supporting the learning of leaders and managers. They should be expected to add value to an organization, and such interventions should be evaluated so that their effectiveness can be assessed. The final chapter in this part discusses issues of evaluation within L&MD. Within this part, Chapter 8 considers how planned leadership and management development processes can add value to organizations. It discusses a range of overlapping processes that are to be found under the guise of talent management, career management or succession management, as well as considers the identification of L&MD needs, and the use of competency frameworks and L&MD audits. Chapter 9 discusses a range of specific interventions to be found within the developers toolkit, including well-known applications such as coaching, mentoring, action learning, and management education. It includes both planned, formal events and attempts to capture more informal learning.

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In Chapter 10, we consider the question of evaluation, including the difficulties and constraints involved. A range of models are critically analysed in relation to their application for leadership and management development. The final part, contemporary issues in leadership and management development, focuses on the main factors that influence the development of leaders and managers in all organizations. Earlier factors in the organizational environment are further elaborated in light of the changing needs of organizations and implications for developing future leaders and managers. Key issues addressed include:

diversity of the workforce developing ethical managers and leaders developing managers in a global environment.

Chapters in this part: Chapter 11, which discusses aspects of developing managers for a diverse workforce. The advent of globalization, the development of trading blocs with fewer restrictions on the movement of labour, and other changing demographic factors, mean that many organizations around the world are experiencing an increasing diversity within their workforce. The chapter discusses the issues involved in both developing a more diverse cohort of managers, and in helping managers to work effectively with their more diverse workforces. Chapter 12 considers the issues involved in the development of ethical leaders and managers, in the light of the growth of the concept of corporate social responsibility and concerns relating to trust within both public and private sector organizations. There is also discussion of the ethical dilemmas that might be faced by managers operating in an international context. Chapter 13 further develops the theme of global leadership and managerial competencies. Finally, Chapter 14 summarizes key issues covered in the book, and considers how they may continue to influence leadership and management development in the future. We also identify what may be the hot topics for future consideration as organizations and the global environment continue to change.

Features of the book

This book has a number of features that are designed to support different groups of readers. There is a companion website that provides students with additional resources to aid study, mini case study analysis, and learning from the book. Tutors who adopt the book can also get additional information from the website to support the use of the discussion questions and to provide additional resources and activities that can be used to support learning. There are also a range of features in the book that are designed to be used by learners, tutors, and development professionals. These are outlined below.

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Support within chapters

This section provides the features within the book to aid understanding and the involvement of readers. All of the chapters are introduced with a mini case study or pertinent information regarding the main topic in the chapter to orientate the reader and provide thought-provoking appropriate discussion. Throughout each chapter, there are a number of featureslisted belowto give an emphasis to the practical application of concepts and personal reflection for each reader. Mini case studies of different lengths are used in order to provide activity to involve the reader and check understanding and application. There is a final mini case study in each chapter that attempts to pull together the main issues covered in the chapter. All the case studies are based on real organizational situations that the team has experienced and take most of the information from these situations. As mentioned above, in certain cases, a decision was made to keep the identity of organizations and people involved anonymous, whilst others were happy to include their identity. The cases all provide information to involve readers and it is intended that, where there is anonymity, sufficient background information is provided to give a context to the readers discussions. The aim of the mini case studies is to encourage readers to use their knowledge and experience to examine specific situations in leadership and management development. It may lead to identifying good practice that can be transferred into new contexts or to question and challenge current organizational practice. Both of these outcomes are intended to engage readers to develop a keen interest and an ability to review critically organizational situations that may be encountered and to formulate strategies and actions for successful outcomes through the integration of theory and practical business leadership. A key aim of the book is to cultivate professionals with a good understanding of leadership and management development who can operate in different contexts with confidence to question and further develop personal and organizational knowledge and practice. The companion website provides general guidance for students on case analysis, and the tutor website provides case information and key discussion points. Also to be found on the website are supporting audio and text resources linked to the three larger case studies that are found at the end of the introductory and concluding chapters, and at the end of Chapter 6. Reflection points are included in each chapter at appropriate points in order to encourage readers to reflect on their own experiences, either as managers, leaders, and developers, or on experiences of seeing others in such roles. These reflections have numerous purposes for different readerships:

Reflections may be built into assignments for students or could become part of a PDP process, supported by further information on the student and tutor website.

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Chapter 1 Introduction to leadership and management development

Using reflections in a reflexive way to discuss their thoughts and findings with others who have gone through similar experiences to come to a deeper understanding of what leadership, management, and development means for them. Then applying double-loop learning to identify how the understanding can contribute to their abilities and organizational processes for developing leaders and managers in organizations.

Sections within each chapter are briefly summarized to aid recall and understanding, with two levels of questions included at the end of the chapters (see below). There is also a glossary at the end of the book to define key terms used throughout the text. At the end of each chapter is a range of resources that are provided to support students learning:

Short knowledge questions. These encourage a brief review of the key points covered in a chapter which will help with immediate recall and preparation for examinations and will support personal learning about topics. Longer discussion questions. These are provided to encourage individuals or groups of students to consider the implications of the topics covered and would provide seminar activities or discussions as part of workshop activities. These questions may also be used by tutors to provide the basis of assignment topics. Additional briefing notes are provided on the tutor site. Suggestions for further reading. These are included to aid readers further investigation into topics of particular interest and, although not intended to be exhaustive, will provide a good starting point.

Main issues and concepts

There are a number of ideas and issues discussed in the book that we have highlighted briefly beloweither because we regard them as particularly important, and/or because they recur at different points in different contexts. As readers, you may have your own views as to what are considered important aspects of the book, and we encourage you to reflect upon those and to contact us with your thoughts in this respect.

The need to integrate all development with business strategy and future direction and needsfor leadership and management development to be as effective as possible, there needs to be a clear and close link between development activities and the organizations direction of travel (but see also the issue of tension between individual and organizational needs). The need to take account of contextual factors in all developmentall discussion of any aspect of leadership and management development needs to recognize its highly situational nature, since the individuals and organizations involved

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(and the wider context of time, place, etc.) will create a unique situation for which previous solutions may hold limited relevance.

The possible tension between individual and organizational needs/beliefs although the organization might seek to ensure congruence with strategic direction, a significant element of leadership and management development might be built around individual reflection and self-development. This might well produce tensions between the individuals developing objectives, needs, values, and beliefs and those of the organization, which will ultimately need to be resolved one way or another. The constant need for low-cost solutions and demonstration of added value as pressures grow for justification of all non-core organizational activities in the face of increasing competition. An increasing recognition of the reality that learning is integrated with work, perhaps especially in relation to leadership and managerial workand that our approaches to development need to recognize this reality or face becoming ever more ineffective and marginalized. The increasing diversity in both the employed population, and the leadership and management talent poolleading to a need for new approaches to leadership and management development within organizations, and to changing skill sets for leaders and managers. An understanding of the similarities and differences in leaders and managers, and the issues this raises in relation to development processes and interventions. An appreciation of the historical context of leadership and management developmentAmerican and British models predominate, and there is a need for an improved and more open approach to leadership and management development in the UK and elsewhere. The difficulties of trying to estimate future needs in a turbulent environment and different organizational typesone certainty is perhaps the need to develop leaders and managers with the ability to cope with or thrive on change, as this is the one constant that can be confidently predicted (and links well to the point below). The ongoing need for learning/reflective managers and leaders, not just (or rather than) learned onesthe ability to reflect and learn from personal experience and the environment around us is a key element in managing change productively. We would do well to heed the following, which is surely as good a recommendation for continuing development as you will find:
In a time of drastic change it is the learners who inherit the future. The learned usually find themselves equipped to live in a world that no longer exists. Hoffer, 1973

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Chapter 1 Introduction to leadership and management development

The major case studies found in this book

Case study 1.1 is designed to be used for multiple reasons in support of student learning. It can be used as the basis for:

a summative assessment exam. a work-based simulation project. a formative assessment exercise. class-based discussions.

Typical questions and answers can be found on the Online Resource Centre for this book or lecturers can design and develop their own to match preferred learning objectives. In addition, there are two further cases based on public sector organizations which can be found in Chapter 6 and in the concluding chapter for similar purposes.

Case study 1.1: Nandos

The legend of Barcelos (Barci) And so the legend goes that back in the 14th century in Barcelos, a village in Portugal, a pilgrim was wrongly accused of theftthe penalty was death! The pilgrim appealed for justice to Our Lady and St James, the patron saint of protection. The judge who would decide the pilgrims fate was also about to eat a roast cockerel supper and so the pilgrim pleaded, If I am innocent may that cockerel rise and crow! To everyones astonishment, and luckily for the pilgrim, the cockerel did rise and crowed heartily!! We love this legend and so we decided that Barcelos or Barci as he is more commonly known in Nandos should be our ambassador because of the association with faith, justice and good fortune.
http://www.nandos.co.uk

It all started in 1987, when Robby Brozen and his friend, Fernando Duarte, visited a restaurant called Chickenland in Rossettenville, South Africa, and fell in love with PERi-PERi flamed grilled chicken. They bought the restaurant and changed the name to Nandos. Five years later, Nandos moved to the UK, where Robby Enthoven opened the first Nandos restaurant in Ealing, London. Robbies vision was not just to build another chain of restaurants that serve chicken-based meals, but to create something unique that was based around the many aspects of the South AfricanPortuguese culture which had played a big part in the formative years of his life. He wanted all restaurants to be individual and reflect their location and characteristics. Together with an engaging and inspiring style of people management and a quality product, the Nandos brand was born.

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From this point onwards, a remarkable and unique multinational business unfolded. Fast forward to 2010, the company employs 7,000 people in the UK, operates 228 restaurants, and is growing at a rate of 15 to 20 more restaurants on a year-by-year basis. Internationally, it has developed a portfolio of franchise agreements that, whilst staying close to the core values and culture of Nandos, allows flexibility for the culture of the countries they operate in to be incorporated. In March 2010, Nandos achieved first place in the Sunday Times Top 25 Best Big Companies to Work For (a big company is classed as one with 5,000 or more employees). In 2009, Nandos celebrated achieving the maximum three stars in the Best Companies Accreditation award. They were the only big company in the UK to achieve three stars. This award measures eight key areas, including personal growth, well-being, and leadership. In 2010, they again entered the Sunday Times competition, and once again received three stars, showing not only quality but sustained commitment to the leadership and management development across the organization. National Training Awards are the most prestigious awards for training in the UK, and, at Nandos, they have achieved awards for five of their in-house training schemes. These are: buddy systems (buddies are staff who help train new staff); new restaurants opening training; working in management teams (team building); Nandos inductions; and coaching programmes. In addition, Nandos was first recognized as an Investor in People in 1998. They are now celebrating ten years of recognition. So, what is behind this remarkable set of achievements? According to HR director Julia Claydon, Its not just one thing, its a whole mix of different things. At the heart of the business are a unique culture and a set of fundamental values and ways of doing things. Pride, passion, courage, integrity, and family are the five values that drive behaviours and decision making in the company. Fun, friendly, and different, is the way one employee described the feeling of working at Nandos and the sense of belonging that is found within the company or family as it is described. I wanted to be part of a success story and be with a family of like-minded people. They even use different words, tone of voice, and language in everyday life at Nandos. The board of directors are referred to as the Full Monty, restaurant managers are called Patrao (head of the family in Portuguese), Nandoca is a waiter, Grillers are the chefs, and the head office in Putney is referred to as Central Support. All throughout the restaurants, on the menus, the walls, internal documentation, company website, and marketing material, you will see the same fun, funky, and different style of language. Barci the cockerel is the symbol of Nandos and the legend that goes with it. They refer to CSR (corporate social responsibility) at Nandos as Do the right thing. The spirit of Nandos is alive in each of their restaurants through the hand-selected, eclectic mix of global music and unique features to ensure you enjoy the Nandos experience. They have the largest collection of art by South African artists in the UK and the support and investment in this industry has changed many lives for the better in deprived areas of South Africa. On the green energy front, a new Nandos restaurant at Junction 27 on the M62 in West Yorkshire is an eco-restaurant, where heat from the grills is recycled to heat up the water and central-heating system. Also, frying fat is recycled for fuel. This approach will be rolled out gradually to all the Nandos group of restaurants. The staff are encouraged to participate in community projects in the locations of their own sites, and schools and colleges partnerships and the funding of community improvements, as well as the donation of staff time and effort is strongly supported and is also seen as a staff development opportunity.

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Pride, passion courage, integrity, and family, the five company values drive the everyday ethical and honest behaviour, and this engaging culture results in an impressive level of 45 per cent of appointments that are filled through career succession within the businesses. The management ethos is to allow as much leadership responsibility and authority for decision making to be at the local restaurant level as possible, once the restaurant has been approved and signed off personally by Robby Enthoven himself. In essence, the leadership and management style is one that can be associated with a hands-on action-orientated, situational, and contingency approach. There is a fairly tight framework, as you would expect, to ensure consistency around the product and brand, that is centrally controlled by the support functions of procurement, marketing, and distribution. Yet almost all else is down to the local leadership of the Patrao (manager/family leader). That is, the recruitment/selection, resourcing, motivation, training of staff, and the customer service and profitability of the restaurant. Coaching and facilitation in the Nandos way as well as developing the business profitability and the personal growth of the Patraos themselves, and spotting future talent, are provided by the next level up of management, the MDs (managing directors). Even below the conventional management level, all Nandocas are encouraged to challenge substandard quality and service in line with the company values. There is a comprehensive development process to support career paths. There are some specific and technical courses that all must go on, such as food hygiene, licensed house, health and safety regulations, etc. Then also many other sessionscoaching, people management, finance, leadership development, etc. Staff can select as many as appropriate that have been identified in the success management process. In terms of speed of career progression, it usually takes approximately 12 to 18 months to get to first assistant position and a further similar period to get to be Patrao. As can be seen, investment in training is given high priority as this is considered a key enabler for business success. In fact, the training costs amount to approximately 75 per cent of the human resources budget. Nandos HR department is challenged with improving the training and development evaluation systems and looking for continuous improvement methods that will really measure worth and added value of this level of training and development. Whilst there is a strong intuitive sense and informal evidence that this investment in training is linked to the success of the business, Nandos would ideally like stronger, more specific assessments. Diversity is also a major way in which Nandos is different from other restaurant groups. It has always taken on all staff, regardless of their level of English. They are trained in ways that work best for that individual and provided with development opportunities. These staff are given opportunities to develop within Nandos to be the best they can and there are numerous stories and examples of employees from abroad who have fitted in well with the Nandos family culture and gone on to develop successful careers within Nandos. Recruitment and selection are done by each restaurant itself and the team who work there are also heavily involved. Normally, a trial shift is done to see if a new person has the right skills and competencies, if they have the right attitude, and if they get involved in the fun and delivery of good service within the restaurant. Engagement and a high level of involvement by all staff are important to Nandos. It is a regular occurrence for conferences and formal get-togethers, where staff are consulted and included in introducing new working practices and processes. But its not all work; they also like to enjoy themselves, and one thing about the people at Nandos: they know how to party!

Chapter 1 Introduction to leadership and management development

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Questions 1 Consider the approaches to leadership and development, both formal and informal, that are found in the Nandos organization. List them and discuss them in small groups. 2 Consider the leadership style, cultural issues, and the nature of the industry that Nandos operates in. How does this leadership style compare with other restaurant food chains you are aware of? 3 What are the contemporary issues and challenges related to leadership and development that are found in this case study? Pay particular attention to competition and the environment.
Copyright: Peter Emsell and Jan L. Carmichael, University of Hudderseld Business School