Richard Branson • Group One • Chan Yin Mui, Angel • Chong Kar Yee, Lucy • Wong Ka Pik, Venus • Wu Yi Hua, Eva • Yeung Chui Ying, Tracy
Outline of Presentation • Profile of Richard Branson • Profile of Virgin Group • Richard Branson's leadership style/approach • Situational circumstances contribute to Branson’s success • Comments on Richard Branson
Profile of Richard Branson • Job: Chairman, Virgin Group • Age:51 • Marital Status: Married, with 2 children • 2001 Ranking: 52
Profile of Richard Branson • 1950Grew up in a traditional family and received education at Stowe School • 1970 Founded Virgin as a mail order record retailer. Later in this year, a record shop opened in London • 1992Virgin Music Group---sold to Thorn EMI in a $1 billion US deal • 1992Starting of the Megastore • 1984Started the Virgin Atlantic Airways • 2001 Received 2 knighthood from Queen Elizabeth II
Impression of Branson… • Enviably successful! • Rich! Extremely Rich! • Fun-loving~ • Flamboyant~
Virgin Key Businesses • 1. Virgin Travel Group Limited (Includes Virgin Atlantic and Virgin Holidays) • established in 1984 • big fleet with 26 Boeing 747s and Airbuses • Revenues : 1.6 billion • Profits : 151 million
Virgin Key Businesses • 2. Virgin Entertainment (Includes Megastore and Virgin Cinema) • Revenues : 1.3 billion • Profits : 81 million
Virgin Key Businesses • 3. Virgin Rail (Includes Cross country and West Coast) • Revenues : 671 million • Profits : 22.9 million
Attributes-Risk-seeking & Innovative • Risk Seeking • Evidence: His insatiable desire to take on Coca Cola and British Airways-the industry giants • Careful plan for aggressive competition: • make a lot of noise to irritate those gorillas,so that they tried to swat back. • Then he waited for their mistakes
Attributes-Risk-seeking & Innovative • Innovative • Evidence: tried out every mean to promote his company • Example: • 1) Drive a tank down 5th Avenue in N.Y city to introduce Virgin Cola to the States
Attributes-Risk-seeking & Innovative • 2)Fly a hot air balloon across Atlantic to promote his Virgin Airlines • 3)Wear a wedding gown to promote his new bride chains • AND MANY MORE!
Attributes-People-Oriented • His belief: PEOPLE COME FIRST • ‘PEOPLE’: includes Employees and Customers • likes to refer to the Virgin staffs as a large extended family • e.g. gives every new employee his telephone number & encourages them to call him if they come up with any bright ideas or complaints
Attributes-People-oriented • For customers, he tries to keep them paying the lowest price for their products as long as he can cover the cost and earn ‘some’ profit • Believes in keeping faith with the staffs • no matter in good times or bad • E.g.He shared the settlement from British Airways equally with his staffs
Attributes-Determined & Optimistic • Failed to wrestle the UK’s lottery franchise from Camelot • But was dignified in defeat • Looked into the positive side
Attributes-Determined & Optimistic • Immediateaction: • call the CEO of Camelot • asked her not to feel sorry for him…… because he still had a beautiful life! • Within days, he announced his own non-profit game.
A) Transformational Leadership • “Master Motivator” • Pushing employees into their limits • Turning the self-interests of employees to the sake of “Virgin”
A) Transformational Leadership • He believes: Enthusiasm is infectious! He is good at: • Attempting the impossible • To excite, arouse and inspire followers • Giving trust and encouraging followers
A) Transformational Leadership Example: MISSION IMPOSSIBLE • He asked John, the marketing manager of Virgin, to place an ad in the London Evening Standard. Tomorrow will be the deadline! • ** He gave confident to John and said, “Do your best all the same as normal.” • Result: John paid superhuman effort and spent entire day, did make the last edition of the standard.
B) Empowerment Leadership Style Definition: • Intrinsic motivation and self-efficacy of people are influenced by leadership behavior, job characteristics, etc . • Transferring authority to subordinates
B) Empowerment Leadership Style “Virgin” Trademark Situation: • More than 200 companies • Not feasible, hard to be boss of all of them Solution: Empowerment
B) Empowerment Leadership Style • Branson Backseat Leader “ I know when to get out the way and let people get on with it.” • = Want, X= don’t want X people follow him blindly X hired hands • individual entrepreneurs
B) Empowerment Leadership Style • Advantages of this style Virgin staffs • regard works are meaningful • develop self-determination and self-efficacy because they have a significant impact on works.
C) Charismatic Leadership • Attribution Theory • Charismatic leader • A form of INFLUENCE • Based on followers’ PERCEPTION • Leader has exceptional QUALIUTIES
Example:VIRGIN ATLANTIC • Founded in 1984 • Branson’s vision • Dangers behind? • Extremely capital-intensive • Laker Airline’s failure • Aviation industry: political
Example:VIRGIN ATLANTIC • Branson: To be? Or not to be? • That is the QUESTION! • Branson: Go on! • Think about: • Risk: huge loss (Virgin) • Personal failure: money, status!
Example:VIRGIN ATLANTIC • What did Branson demonstrate? His…… • Courage - Vision • Self-Confidence - Commitment • Embrace to Changes • Dreaming Impossible Dreams ; Challenge • Act in unconventional ways
Example:VIRGIN ATLANTIC • Branson’s decision making process: • Rational • Logical • Realistic Assessment • Minimize risk • Balance between DREAM and REALITY
Example:VIRGIN ATLANTIC • Branson = Charismatic leader? • Courage Self-confidence • Commitment ThinkRationally • Embrace changes • Charismatic leader • Vision, Confidence, Courage • bearing substantial risk • Minimize risk, at the same time~
Therefore…… Richard Branson = Charismatic Leader~ = Effective Leader~
D) Inspirational Leadership • Manage employees with “Tough Empathy” • Empathize people • Care about employees’ work
Branson’s Philosophy • An ADVANTAGE of Virgin: • EMPLOYEES • SUCCESS of Virgin: • EMPLOYEES + MOTIVATION Branson’s concern: Employees’ cohesion + satisfaction
Examples? • Promote from within • Assign Virgin’s bright people to new companies • Stretching, Developing employees • Provide opportunities!
More Examples? • Party Hard! • Throw a party… • When morale is low…………..↓↓ • Letter (sealed with a kiss…?) • Every month, Branson wrote personally • Content: • Heart-warming messages~~~ • Virgin’s plan~
Branson Cares! • Employees’ work • Their Feeling, Satisfaction • Branson: an inspirational leader • Branson: an effective leader
Argument for Branson’s success • 1) High-high leader • Both task and relations-oriented • Tasks: Clear objectives and goals for all Virgin Brand Customization • Relations: treats everyone equally + support • Example: He writes birthday card to staffs to praise their effort of saving virgin’s reputation.
Argument for Branson’s success • 2) Innovative and unique leadership style Richard Branson likes creative and innovative ideas • encourages his subordinates to look beyond the differences in each sector • Adopts diversification strategy • Sectors where he had set up never the same again
Argument for Branson’s success Our team impressed by his adventure-liked Style. • He likes daunting challenge, he views impossible as just another business opportunities. • Vision