Abstract for: Effective Leadership using System Dynamics and the Matrix of Change

The business environment has become more demanding. This has increased the pressure on leaders already struggling with a changing world. The purpose of effective leadership is to increase value and the productivity of teams. Leadership models have been proposed in various aspects to make leaders more effective. However, there are no explicit guidelines for how to effectively manage leadership in different scenarios. As a result, many organizations have faced challenges dealing with ineffective leadership which ultimately has negative impact on overall business performance such as Hewlett Packard and Research In Motion. We have performed interviews and research to create a framework of leadership, that based on the current state and the desired future state, is able to recommend a dominant style of leadership. This is modeled through the matrix of change and system dynamics. The matrix of change helps in understanding the current and future states, their stability, and the transition between them. On the other hand, the essential leadership attributes and dynamics are implemented into the system dynamics model based on the transformational leadership perspective. Preliminary results are being validated using interviews with leaders/experts across different regions, cultures, and seniority levels.