This is an interesting topic to explore within State Street Corporation. It has been taught through the coursework that self-organization is the process where a structure or pattern appears to be in a succinct system without a sole leading force or authority. In regards to leadership, there has been a significant change in how it is viewed and the measure of its effectiveness. Initially a leader was considered effective based on results and other tangible evidence. This view has shifted to where a leader’s success and efficiency is now based upon the impact they have made on their followers and organization.
Organization Overview State Street is headquartered in Boston, Massachusetts, and is today’s industry leader with services offered to the institutional investor sectors. The organization takes pride in their customer service, mutual funds, pension plans, investment assets, and investor relations, which is provided day in and day out. Their clients expect them to provide solutions, research, and to strategize to make them fundamentally more successful. With the millions of dollars that are being traded every day, the relationships, loyalty, and support of State Street employees are looked at with high regard.
The vision of State Street Corporation is to be a strong financial business that can provide the necessary services to its new clients and their longstanding customers to the organization. State Street wants to continue to offer innovative products that will keep customers coming back and having new customers join the group. The clients and investor relations’ that State Street Corporation has established throughout the years continues to show the loyalty of the clientele as well as the investment knowledge that State Street has to offer.
Here in the United States, as well as the international locations, State Street makes it a point to go above and beyond the expectations for their employees and customers. Leadership There have been three big differences between the early view of leadership and the current thinking. First, leadership is not one person’s job; everyone at any level can apply leadership principles to their work. Second, leadership isn’t something that starts and stops in the office; leadership skills can be practiced and used in community work, sports teams and even managing tasks in the home .
Third, leadership is not just about results it is about the process by which you achieve those results and the impact you have on the people needed to reach those results. These concepts can relate to my organization in several ways. State Street is in the process of developing an innovative strategic plan for more efficient communication and teamwork within the company. This will be known as the Centers of Excellence, or the CoE. The purpose of these systems would be to have a company-wide based approach to meet the vision of all local and global locations (Jay Hooley, personal communication, 2011).
The CoE is going to allow larger departments to create specific individual groups, instead of having accounting handle custody and cash, it would separate the focuses and have individual teams work independently only cash or only custody independently. Along with this idea, clients would contact client relationship managers who handle their specific needs, rather than contacting the department as a whole where information can be misdirected or misunderstood (Jay Hooley, personal communication, 2011).
One of the major components that are becoming more of an entity within the organization is the executive leadership. Leadership can be defined as the, “Process whereby an individual influences others to achieve a common goal” (Kreitner & Kinicki, 2008, p. 463). The vision is sustained by maintaining and empowering the employees and working in continuous partnership with the client’s organization. The COE innovation is an encouraging step in the right direction for the organization’s employees, because it allows everyone to focus on what they know best and provide quality service to the clients.
For that reason, smaller teams will be developed. Employees will become experts in their specific role. As a leader the aforementioned would be incorporated into their philosophy. State Street executives would lead their organization by example and empower their employees. Leadership isn’t one person’s job, everyone at any level can apply leadership principles to their work. Leadership isn’t something that starts and stops in the office; leadership skills can be practiced and used in community work, sports teams and even managing tasks in the home.
Lastly, leadership isn’t just about results it is about the process by which you achieve those results and the impact you have on the people needed to reach those results. Self-organizing Behavior of the Vision Much like one of the examples from our unit involving birds, the organization continues to move forward and prosper despite the lack of our CEO’s physical presence. This is a form of self-organizing behavior within our organization. Looking at these changes as a whole and from a logical perspective a pattern has begun to take form.
This pattern illustrates the shift in focus from a leader’s personal accomplishments, characteristics and accolades and focuses on the leadership process and those impacted by it. To begin, State Street can arrange casual meetings with senior management to share the vision with the purpose of receiving input towards crafting it. Once everyone is on the same page, it was management’s job to communicate these ideas to the employees through training sessions and hands on work. State Street can implement training programs which will be requiring all employees to participate in every six months.
They will communicate with each other to find out what is and what is not working. Training programs are established so that every group and department become more familiar with what they are dealing with. Having the employee engaged and understanding this process may help the overall innovational change. With concise and productive communication, accepting the change and facing it can be easily resolved. Having a solid vision of teamwork, communication, and change can become a mere objective rather than challenging risk.
Each department and individual employee has a sense of pride and ownership in the work that they accomplish. The organization functions as a whole with or without the presence of a leader. This is mainly due to the empowerment of our employees. Individuals do not feel helpless when leadership is not physically present. Everyone has an understanding of their role within the organization and how critical it is in relation to our success. This understanding is the inherent driver. Competition State Street has been extremely successful and with success comes competition and those who try to replicate what you do.
The key to their success has been focusing on innovation, perfecting their core competencies and not being complacent. They are continuously exploring new ways to grow their organization and expand their business. One of their most recent ventures has been globalization. They have taken several steps to establish ourselves as an international leader rather than limiting themselves to domestic opportunities. As the company continues to make strides our competition attempts to follow suit. They have unsuccessfully attempted to mimic the organization offerings, their values and their core competencies.
This has proven to be unsuccessful for them as they continue to win business in a competitive climate. The competition is a form of self-organization. They continuously try to mimic State Street recipe for success and try to replicate their advances. They by no means lead them in this direction or attempt to guide them yet they all continue to follow suit. Conclusion In the last five years in developed markets, household wealth has been reduced, social safety nets have weakened, and overall confidence in the markets is lower.
This volatility has translated into savings rates that are increasing across the globe, while corporations and institutions are working to preserve and protect more of these assets. Because organizations and people are interested in managing, servicing and trading on behalf of those asset-gathering organizations, this focus on asset accumulation creates an opportunity for State Street. State Street has not been perfect and still is not perfect with regards to the leadership and innovation process; there is much work that can be done for their future.
The organization has stayed ahead of the curve so their products are on the cutting edge of the industry. This continued effort can only be sustained if technology is kept up and creative employees are allowed to innovate more freely. There are inevitable challenges that the leaders are going to continue to face in the future innovation. State Street Corporation has a great deal to offer, and with research, time, and innovation, it is capable of setting the industry standards well beyond what it has already been accomplishing.
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