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Copy of Copy of Presentation on Richard Branson

Richard Branson Leadership

mohamed karouf

on 19 October 2013

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Transcript of Copy of Copy of Presentation on Richard Branson

Biography & Virgin
Studied @ Scaitcliffe School (now Bishopsgate School) until 13
Continue in Stowe School until 16 and was dropped out.
Poor in his academics (Dyslexia)
learning disability that impairs a person fluency or comprehension accuracy in being able to read
First Business in 1967 (
Record Shop in 1971
Almost went to jail (Mother Mortgaged House)
Slowly expanding, became incorporated in 1989.
> 400 Companies worth UK 5.01b as of 2008
Characteristics of Branson:
Enthusiasm, Optimism and Warmth
Sense of Humor
Courageous, Flexible & Adaptable
Internal Locus of Control
Emotional Intellgence
Always believed that by doing things better than their competitors (High Risk Industry) (i.e. VA vs BA)

They will be able to succeed in the industry
opened to new experiences – high level of inquisitiveness

Highly flexibel – adapting to new situations quickly
Making money was never the goal of businesses.

Business is about improving the life of the community

Act according to what he claims like

Set up Branson School of Entrepreneurship in 2005 in CIDA City Campus, Uni Johannesburge in Jamica in 2011 (Virgin Unite, 2012)
Host annual summer party

> than 25,000 people attended and greeted by Branson

Attends New Employees Orientations
Genuine and honest about his personality, values and beliefs.
People should not be dying due to AIDS/Malaria/TB & business should improve community instead of profit

Pumps in alot of $ to tackle HIV/AIDS and improve healthcare in South Africa (Virgin Unite, 2012)

"Great fortunes are made in difficult times, and so for new, young entrepreneurs, now is the time to look for opportunities, because the cost of everything is a fraction of what it was a year or 18 months ago. If you can somehow come up with an idea and get a business up and going, your cost base is going to be very low. So if you've got a good idea, give it a try. You may fall flat on your face, but it's a lot of fun (Bloomberg, 2009)."
Enthusiastic about his businesses and enthusiastic to challenge the existing big firms within the industry.

Feels a sense of achievement
Provide emotional support to his staffs

Encourages his staffs to try their best and inspire them

Give his staff second chances (Entrepreneurs we LOVE Inc, 2005).
When conducting PR events to gain publicity
"People asked me: ‘Why don’t you have some fun now?’ but they were missing the point. As far as I was concerned, this was fun. Fun is at the core of the way I like to do business and it has been key to everything I’ve done from the outset" (Branson, 2007).

Businiess is not about the product or services but people bounded by vision

Separate virgin and its competitors are his employees (Branson, 2011).

Reads mail from employees every morning
Goes into high-risk industry low-return industry

Adapted to changing organisation cultures (Small Firm Association, n.d.).
He is confident of taking on big players within the industries
Good self-management

Stuns during publicity (Happy instead of Angry)

Integrity is shown
Social Awareness
He care about his employees by reading mails (Glenn, 2004).

Respond to employee grievances (Rifkin, 2004).

Does not believe in firing people (Rifkin, 2004).
Ability to communicate

Branson was good in relationship with the stakeholders

E.g. Takes out entire flight crews for dinner and parties

Stayed at the crew's hotel rather in expensive hotels (Rifkin, 2004).
Understand own emotion

Adapt emotion according to situation
Leadership Style, Behaviour & Attitudes
Both relationship and task oriented

In the Blake Mouton Leadership Grid: Team Management Style
work accomplishment from committed people through a common stake in organisation, purpose leads to relationships of trust and respect.
Relationship Oriented Behaviour
Openness to worker opinions
Known for his ever-present notebook and pen
Pulls out when chatting with employees
Encourage employees to e-mail him about their complains, ideas, dreams, etc.
Create Inspiration and Visibility
Inspire employees through his charismatic and transformational leadership style
His credo:“If you know one business, you know any business.”
Fun Facts
“If you can run a record company, you can run an airline. If you can run an airline, you can run a bank. If you can run a bank, you can run a soft drink company. And on and on.”

High creativity in leadership

Visionary leader in engineering projects

Passionate and enthusiastic about work

Charismatic leader
Task Related Relationship
Concentrate on the strength of group member
Capitalising on each employee’s unique skills

Acknowledges his philosophy is centred on finding the best people to run the business.
Risk taking and execution of plans
Believes in taking action without all the research and the “experience” needed may be a good way to get started.
Hands on guidance and feedback
Fly frequently on Virgin Airline

Spends entire flight chatting with passengers, serving drinks, leading games over the public address system, etc.

Simultaneously collect feedbacks and provide appropriate guidance to the employees.
Ethics & Social Responsibility
Fearless Business Approach
Transparent Style
Over The Top Ethics
Held great appeal to the next generation of ethical leaders
Ethics & Social Responsibility
Accept and encourage whistle blower
Virgin Airline blow whistle on illegal airline cargo price collusion by the British Airway in 2007.
Engaging in philanthropy
Form Virgin Unite
Pools volunteers across Virgin group
Build schools, provide health care support and spread AIDS awareness

100% of donations received go directly to the frontline where they are needed most.
Creating a pleasant workplace
Richard Branson treats his employees as important team players
Ranked 16th in “UK’s Ideal Employers 2011” by UNIVERSUM (global leader in employer branding).
Build a sustainable environment
Gives US$25 million cash prize for whoever can develop a commercially viable design technology to cut down on greenhouse gasses.
Pledge 100% profit of US$3 billion from Virgin Airline to develop clean fuels to fly their 747 jet
Motivational Skills
Goal Theory
Hard but realistic/Accepted by the person
With the purpose to give a sense that they are involved in an important and meaningful task.

Virgin Atlantic’s goal is to develop clean fuel to reduce CO2 emission. The goal is challenging as they are the first airline company doing it but the goal is accepted by the group and currently near to achieve the goals as they are doing test trails.
Used to evaluate performance
“If a group members don’t perform at an existing assignment, brings him into another venture where he is more likely to perform according to his capabilities.”

Richard Branson’s philosophy
Link feedback t0 rewards
1. When Virgin Atlantic becomes the industry favourites,

Richard Branson takes the entire crew:
- Out for dinner and parties
-Gives them each a Virgin card which provides big discounts on Virgin’s products
2. He relates to employees and industry gurus for their feedbacks.
Fun Facts

Collect feedbacks from Freddie Laker who has failed to establish budget Airlines, adviced him not only to concentrate on low price but also offer quality, innovative and value for money; which sees Virgin Atlantic to be the first Airline offering more than 2 choices of meals and putting seats back videos in every seats.
Using Recognition to motivate others
Recognised efforts of his employees from all level.

Most enthusiastic cheerleader, offering constant praise to employees.
Fun Facts:

He invited 20 employees from different level because of excellent performance such as pilot, housekeeper, reservation clerk, switchboard operator, etc; to his private Caribbean island “Necker” for vacation.
Fun & Weird Publicity
Contingency Leadership
Situational Leadership II
“You can’t be a good leader unless you like your people and that is how you bring out the best in them” (Knowledge@Wharton, 2005)
Fiedler’s Contingency Theory

Control of situation -> Moderate

Leader-member relationship: good

Task structure: poor

Position power: moderate
Path-goal Theory

- Participative style:

Keep a to-do list & take notes of employees’ feedback (Ribunal , 2011)
Path-goal Theory

Motivate employees

“Take it easy, mix fun with work”

“Remember, all work and no play make Jack a dull boy”(Chakraborty, 2008)
Situational Leadership II:

Supporting style

(Source: Dubrin, 2010)
Situational Leadership II:

Delegating style

Original idea first three months intervention ask executives to run in their own ways (knowledge@Wharton, 2005)
Branson Charismatic Quality

Masterful in Communication

Romanticize Risk

Self-promoting Personality
- Able to see the future

- Eg. Virgin Galactic (Freudenrich, 2012)
- Inspire trust & make employees feel capable

- Eg. Encouraged his employees to mingle like a common man (Anoop Concepts, 2012)
- Treasuring risk & adopting unconventional strategies

- Eg. Virgin Galactic again
- Promote the importance of himself

- Eg. Great PR capability

Branson, R. (2007). Losing My Virginity. United States: Crown

Branson, R. (2011). Richard Branson on the Power of Your People. Retrieved from http://www.entrepreneur.com.

Branson, R. (2011). Richard Branson on the Business of Sustainability. Entrepreneur. Retrieved from www.entrepreneur.com.

Bloomberg. (2009, June 26). The Case for Optism. Retrieved from http://images.businessweek.com.

Boorstin, J. & Friedman R. (2005)."The Best Advice I Ever Got". Fortune, 151(6), 90-118. Retrieved from ABI/INFORM Global. (Document ID: 813599491).

Entrepreneurs we LOVE Inc. (2005). Inc. 27(4), 75-8.1 Retrieved from ABI/INFORM Global. (Document ID: 975873771).

ETHISPERE. (2011). Ranking: Top 100 Most Influential People in Business Ethics. Retrieved from www.ethispere.com.

Finkle, T.A. (2011). Richard Branson and Virgin, Inc. Journal of the International Academy for Case Studies, 17(5), 109-121.  Retrieved from ABI/INFORM Global. (Document ID: 2439571261)

Joy, Frank. (2007). BA & Virgin: Flying in Formation. The Economist. Retrieved from www. Economist.com.

Manfred, Kets. (1996). Leaders who make a difference. European Management Journal, 14(5), 486. Retrieved from ABI/INFORM Global. (Document ID: 10498420).
Manfred, Kets. (1998). Charisma in action: The transformational abilities of Virgin's Richard Branson and AAB's Percy Barnevik. Organizational Dynamics, 26(3), 6-21. Retrieved from ABI/INFORM Global. (Document ID: 25629363).

Martindale, Nick. (2007). high-flying management. Personnel Today,32-33. Retrieved from ABI/INFORM Global. (Document ID: 1338161201).

Rifkin, Glenn. (1999). Case Study: How Richard Branson Works Magic. New York Times. Retrieved from www.nytimes.com.

Rifkin, G. (2004). Richard Branson. Retrieved from http://www.startupjunkies.org.

Small Firms Association. (2012). Leadership. Retireved from http://www.centreofexcellence.ie.

Virgin Unite. (2011). About us. The non-profit foundation of the Virgin group. Retrieved from www.virginunite.com

Virgin Unite. (2012). Bhubezi - Community Healthcare Centre. Retrieved from http://www.virginunite.com.

Virgin Unite. (2012). The Branson Centre. Retrieved from http://www.virginunite.com.

Knowledge@Wharton. (2005). The Importance of Being Richard Branson. Retrieved from www.knowledge.wharton.upenn.edu.
Why Branson:
one of the most successful leaders in nowadays’ economics

Leadership techniques of Branson are applicable to any leadership situation occurring in corporate life

examine Branson’s leadership by applying course theory, study good and bad leadership behaviour

background, focus on demonstrated leadership in airlines and engineering environments
Does not act as recognition seeker

Elaboration and clarification of ideas
Transformational and charismatic leadership:
Boosting leadership through competence and ability to motivate people

Featured aspect of small teams for increasing effectiveness
French & Raven :

Branson and legitimate power

Branson and expert power?
Branson’s main source of power is referent power
Leadership and Power
Hadeel Alatom (Personal & Family)
Layan El-Sakka (Early Business)
Alma Ahmed (Business Venture)
Reham Al-Zard (Future Business)

Richard Branson
Empowerment as a strategy for higher productivity and satisfaction

Branson on empowerment

Superleadership model
• Born in 1950 in London
• Barrister, Stewardesses,& Privy Concellior.
• Family influence.
. At age 16 dropped out of school
• Dyslexia
Sir Richard Charles Nicholas Branson
learning disability that impairs a person's fluency or comprehension accuracy in being able to read
Leadership & Influence
Gained Trustworthiness through constancy
Being open close to stakeholders
Honesty and walking the talk
Not hiding failures
Argumentativeness & Negotiation
Looking from others perspective
Magazine & Records
• His motivated behaviours built Virgin’s culture & beliefs
• Setting goals.
• Monitoring & improving followes.
• Expectations.
• Culture & knowledge sharing.
Leadership in org virgin group
Worth 4.2 billion.
project planned - Virgin Fuel
Starting in 80s, Virgin expanded to 400 international companies.
5 sources of power
Question, please?
Thank you for your attention
. In 1984 - Virgin Atlantic
Business Venture
Business Venture
1984 Virgin Atlantic
1993 Virgin Rail
1999 Virgin mobile
2000 Virgin Blue
2004 Virgin Galactic
2006 Virgin Animation
Virgin Cola
2007 Virgin Media
2007 Virgin Health Bank
2008 Virgin Healthcare

• Name?
• Started as student magazine
• 1970 selling records per mail order
• Establish an official retail in London
• In 1992 Virgin records was sold for about 500GBP million
Full transcript