Sir Richard Branson, Chairman, Virgin Group, Ltd. Case Study
Assignment 4

Professor

Leadership and Organizational Behavior
February 26, 2012

Since the beginning of history humans have lived in groups guided by the group leader; in which leader is either chosen for his characteristics or born into through cast. No matter the culture this is similar through the human race. Humans need someone to guide them, teach them, someone to look up to. Without followers there is no leader. “That is, leader is a term applied by observers to someone whose behaviors and characteristics match the observers’ implicit leadership preferences” (Hellriegel, D., & Slocum, J. W., Jr. (2011). They are different type of leaders and leadership style depending on the situation and solution needed at that moment by the followers. In my opinion good leaders have shown to be flexible enough to switch between leadership styles depending on the demands of the situation. One of the worlds most intriguing, succesful and enduring entrepreneurial business leaders today is Richard Branson, someone who takes control of the situation by conveying a clear vision and goals for the team, a marked passion for the work and an ability to make the group feel recharged and energized. I consider Richard Branson to be a transformational leader, a leader with vision, confident, motivation, passion and determination. He is the founder of Virgin Group Ltd. “Born July 18, 1950, in Surrey, England, Sir Richard Charles Nicholas Branson struggled in school and dropped out at age 16, a decision that ultimately lead to the creation of Virgin Records in 1973. His entrepreneurial projects started in the music industry and expanded into other sectors making Branson a billionaire. His Virgin Group holds more than 200 companies, including the recent Virgin Galactic, a space tourism company.” (Biography.com). Branson is constantly inspiring his employees and those around him with new vision and innovation. Transformational leaders encourage followers to be creative and open; allowing teams to work together for a common goal improving their overall efficiency for the good of the company. Researcher Bernard Bass also expanded on concept of transformational leader, creating what is known today as the Bass Transformational Leadership Theory, which includes four components describing this leadership style, which are “intellectual stimulation, individualized consideration, inspirational motivation, and idealized influence” (psychology.about.com). Branson has demonstrated all of these components as a leader and entrepreneur through his career.
As a good transformational leader Branson provides his employees by framing the teams with a new purpose for working. “His business plan is to focus on very small segments of a particular market and doing a high quality job at providing the product or service. This concept is able to gain small monopolies on a market share and often creates very high profit margins” (upxsuccess.com). This innovated entrepreneurial concept contributed to his success. This management concept sets the tone for the management team within the company. Each division of the company shares the same idealism and is responsible for maintaining the culture, integrity, and ethics of the brand and increasing customer awareness of the Virgin brand. Each division has specific goals and resources needed to complete each goal implementing the planning at every level of the company. One of the leadership tactics which Branson teaches to the company’s high and lower management teams is to “always have a notebook and a pen, which he pulls out whenever he chats with employees and customers” (Hellriegel, D., & Slocum, J. W., Jr. (2011). Creating a habit of making a list of the things and ideas which matter to the employees and the customers helps create new ways of improving customers and employees’ satisfaction. Chairman Branson inspires those who around him to work to the best of their abilities for the good of the company. Transformational leader encourage followers to bring out their best potential, to do these they will use all resources needed to help bring the team towards the visions and the goals for the leader. Branson logic is that, “if your employees are happy, they will do e batter job. If they do a better job, the customers will be happy, and thus business will be good and the shareholders will be rewarded” (Hellriegel, D., & Slocum, J. W., Jr. (2011). Effective leaders bring the best out of people at all levels in the company from the lowest to top executives.
Another aspect of Branson’s leadership style is that he tends to trust those around him and give them the freedom necessary in their work. As a good leader Branson has open communication with his employees. Branson states, “Instead of needing union when they have a problem, they come to me. I will give the employees the benefit of the doubt on most occasions”(Hellriegel, D., & Slocum, J. W., Jr. (2011). Branson listen to his followers’ concerns. As a leader listen effectively and trust with those around you is very important. A good leader needs people he can trust and also those around him need to trust the leaders’ judgments. As Branson states, “Loyalty means a lot to me. Working with people I know and trust makes me feel secure”(Hellriegel, D., & Slocum, J. W., Jr. (2011).
Trusting and being trusted is one of the good skills of an effective leader. Branson has demonstrated he trust his teams. At Virgin Group management promotes from within the company. It is Branson’s goal to first give his teams the direction and resources needed in their work, and then let them take control of the situation there after. He empowers his managers to make decisions. When employees feel the freedom in their work, it allows employees to be creative and do better without the need for micromanagement. “The company believes that employees should have a certain amount of freedom to make choices for the good of the organization. It is this freedom and decision making that has the potential to bring out the best in an employee”(upxsuccess.com).
This innovative managerial style helps create a healthy company structure and culture. “Richard Branson’s leadership style and vision for the company has made him the center of attention within many business and management discussions throughout the world” (upxsuccess.com).
Transformational leaders see change as an opportunity and are open to take risks. For Branson, “It is impossible to run a business without taking risks. Virgin would not be the company it is today if risks had not been taken”(Hellriegel, D., & Slocum, J. W., Jr. (2011). Richard Branson is seems as a reachable leader and a people person. He likes to have fun and look at everything with a positive attitude. Branson had made a few negative financial decisions for Virgin group, but as a good leader, Branson has stated, “he has fun running the Virgin businesses, so a setback is never a bad experience, just a learning curve” (Hellriegel, D., & Slocum, J. W., Jr. (2011). Effective leaders need to get to know their employees by making themselves visible and approachable. This way leaders encourage new ideas, innovation, motivation and inspiration by talking to the staff, something that Branson does in a regular basis. This is one of Branson skills to his success. When a person starts thinking that he has done the best he could, the effective leadership skills start to vanish. Branson is a great transformational leader, but to continue his way up as a person and as a leader there is always concepts to improve as an entrepreneur. My recommendation that would make Richard Branson an even more effective leader would be to utilize delegation leadership style more in-depth in his organization and in his new ventures. One of the difficulties with transformational leadership style is ensuring that all the guides and inspirations are passed down throughout the whole organization. Delegation is a great way for employees to develop better managerial skills and become better leaders. This will help to make sure that corporate structures and goals get to all levels in the organization. Having continus training on management and diveristy concepts at his an international organization will help his delegating colleagues and management staff keep the fresh and motivational structure in the entire organization world wide. Transformational leaders are more effective at new innovations and organazing new companies, or when a comapny is indout of survival. Branson spends a lot of time in the early stage of a new business, implementing the goals and helping the management team setting the business plan.
Investing in his management team’s skills, education and self improvement is a long term benefit for Branson’s employees and his organization. This is an important element for the success of the organization. When management can determine where an employee can be most efficient, this will help the entire organization. Richard Branson is a sucessfull entreprenuer and chairman of an international organization and a transformational leader, a visionary, his latest innovation is making out of space trips for people who can affort it. He is a true visionary and inspirational. Brason, himself run all his companies all over the world. One of keys to be bale to do this is his good time managenet he has developed over the years. “As chairman of a large group of firms, Branson says he spends about a third of his time on trouble shooting, another third on new projects, both charitable and business, and the last third on promoting and talking about the businesses he has set up” (Knowledge@Wharton).
Branson has already experience leading a global team, but there is always ways to improve its effectiveness, as Virgins Group continues to grow globally. One way Branson can better lead his global teams is by effectively influence people no matter where they come from. Effective cross cultural leaders know how to approach each culture to make thier business a sucess. Through training, education, and coaching on his global team, Branson can support the development of global leaders in his organization. Attention to cultural understanding, Branson can help his global teams develops leaders who focus on more effective outcomes within Virgin Group global projects. Branson is an innovator with fresh and new ideas and a great personality all these attributes will help his global team understand the needs of customers depending on the country and business. Richard Branson inspires his followers and the world through his work and leadership. Branson has demonstrated being a risk taker and an innovator. Transformational leaders are generally energetic and passionate. Not only are these leaders concerned and involved in the process of their projects; they are also focused on helping every member of the group succeed in their own goals. Branson followed his dream all the way. Branson stated, “If Virgin stands for anything, it should be for not being afraid to try out new ideas in new areas” (Hellriegel, D., & Slocum, J. W., Jr. (2011).
There is a lot to be learned from Richard Branson’s leadership. His management formula has contributed to the long success of Virgin Group, Ltd. Branson’s leadership qualities can be implemented into my role at work. I need to be able to listen and pay more attention to my coworkers’ needs and others around me. By helping my team come up with new ideas and solutions on how to make our workplace more enjoyable and productive, I can really start making a different in my current position. I think we all have the potential of becoming good leaders by being more motivator and inspirational to others no matter our position professionally and personal.

References:
Hellriegel, D., & Slocum, J. W., Jr. (2011). Organizational behavior: 2011 custom edition (13th ed.). Mason, OH: South-Western Cengage Learning.
UPX Success. Management and Leadership of Richard Branson at Virgin Group Ltd. Article Notes: MGT/330 Week 5.2011. Available from http://www.upxsuccess.com/leadership_richard_branson.html. 24 February 2012

Cherry, Kendra. Transformational leadership. 2012. Available from http://psychology.about.com/od/leadership/a/transformational.htm 24 February 2012
Leadership. Available from http://www.centreofexcellence.ie/Sectors/sfa/SFANCEDocLib.nsf/441763b04b0320b68025722e003fb55a/bc12f53469df45728025722e003f060f/$FILE/Leadership.pdf. 25 February 2012
Walenius, Michael. The Leadership style of Sir Richard Branson. 15 July 2011. Available from http://michael.walenius.com/?p=141. 24 February 2012
Knowledge@Wharton. The Importance of being Richard Branson. January 12, 2005. Available from http://knowledge.wharton.upenn.edu/article.cfm?articleid=1109. 25 February 2012
ITAP International. Global Leadership Development. Available from http://www.itapintl.com/whatwedo/global-leadership. development/globalleadershipdevelopment.html. 26 February 2012