Monday, October 24, 2011

Leadership at SAS-- Jim Goodnight CEO and Co-Founder

Here is the Link to the article! http://resources.greatplacetowork.com/article/pdf/sas_2010.pdf

This article is an overview of company SAS and its CEO and co-founder Jim Goodnight.  SAS is an analytical software company that has been recognized for being one of the best companies to work for for over 7 years and was America #1 company to work for in 2010! A key reason behind this is Goodnight's leadership skills.

Based on the article I think it is a safe assumption that Goodnight, utilizes the leader-member exchange theory.  He values his employees and credits them with being the companies largest assets.  Goodnight is very involved in all levels of the organization, when it comes to decision making there're yearly surveys that ask employees what they would like see change or implemented.  As a result, Goodnight and others go through and implement on average 80% of the suggestions.  The 20% of suggestion that are not accepted are returned to employees with explanations of why they could not be implemented.  This helps create the dyadic relationship that LMX focuses on.  Goodnight makes himself available to his employees whenever they need him he has an open door policy, where employees can drop in whenever they need/want to.  Another example of this is, the basic framework for executive conversation is that "executives speak directly and honestly with employees, and ask their ideas and feedback."

What leadership phase with in the LMX theory do you think most SAS employees are at?
Brittany Bowen

6 comments:

  1. Great view, Brittany. I would say that most employees are at the Partnership Phase. The Partnership Phase demonstrates great mutual trust and respect towards each other. Employees do have trust in their leaders at SAS. Goodnight makes them feel like they are making a difference in the company. Question and Answer time is also a must. Employees will respect leaders that communicate effectively. That is exactly what Goodnight encourages at SAS.
    -Michelle Fulkerson

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  2. I agree with Michelle's view that most employee's are in the Partnership Phase. Since Goodnight has been CEO for the entire existence of SAS, many employees have spent a lot of time working under Goodnight. This long relationship has contributed to the development of the partnership. Another way to tell that SAS' employees are in the partnership phase is the reciprocation of ideas that are high quality. This is evidenced through the yearly surveys. Employees are able to suggest improvements to the management. Management tries to put these ideas into effect if they are possible. If not possible, management exchanges reasons why to the employee to ensure mutual communication.
    -Clay Gruenwald

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  4. I would also agree with Michelle that in terms of LMX theory Goodnight would be classified in the Partnership level. In regards to the style approach I would classify Goodnight as a Team Management leader that is concerned for both subordinates and the tasks the organization faces

    Kyle Burrows

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  5. Clay to continue with evidence that they are in the Partnership phase look at how successful SAS is every year in terms of profits. They made over 818 million last year and profits have consistently gone up in order to do that you need good motivated employees and strong leadership. Also, the voluntary turnover rate is only at 2% not many organizations have dedicated employees like they do. One of the major contributors of this is Goodnight's leadership and communication skills.
    Brittany Bowen

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  6. I think the Partnership phase comparison is a strong point - especially for the subordinates of Goodnight. Brittany makes a strong argument by pointing out how strong the dedication and trust are by showing the voluntary turnover rate was only 2%. I agree that this is a strong comparison.

    Kyle Burrows

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