unlimited access with print and download

Free

Continue searching

A grounded theory approach to developing a theory of leadership through a case study of ShoreBank

Dissertation
Author: Jay O. Colker
Abstract:
The purpose of the qualitative grounded theory case study conducted was to understand the perceptions of ShoreBank's remaining founders and senior leaders about the values and behaviors that guide leadership. The goal was to develop a constructivist grounded theory about ShoreBank's leadership values and approaches and highlight the core beliefs, attitudes, values, and behaviors that could inform the next generation of leaders in ShoreBank and in other community-development banking institutions. Data gathered from 20 senior leaders were analyzed. The analysis revealed 23 core behaviors, 3 management approaches, 6 influences, and 3 consequences. Recommendations included being strategic about building an organization identity, fostering shared knowledge across internal companies and external stakeholders, developing leaders for succession, and emphasizing collective responsibility for results. [PUBLICATION ABSTRACT]

TABLE OF CONTENTS LIST OF TABLES ............................................................................................................xii LIST OF FIGURES .........................................................................................................xiii CHAPTER 1: INTRODUCTION ........................................................................................1 Background ..........................................................................................................................2 Problem Statement ...............................................................................................................5 Purpose of the Study ............................................................................................................6 Significance of the Study .....................................................................................................7 Significance of the Study to the Field of Leadership ...........................................................8 Nature of the Study ..............................................................................................................8 Research Questions ............................................................................................................13 Theoretical Framework ......................................................................................................14 Definitions ..........................................................................................................................15 Assumptions .......................................................................................................................17 Scope and Limitations ........................................................................................................17 Delimitations ......................................................................................................................18 Summary ............................................................................................................................19 CHAPTER 2: LITERATURE REVIEW ...........................................................................21 Literature Review Key-Word Search .................................................................................21 The History of ShoreBank a nd its Leadership Approaches ...............................................22 Changes in the Community-D evelopment Finance Field ..............................................36 Changes in the Workforce ..............................................................................................45

vi

Grounded Theory ...............................................................................................................52 Development of Grounded Theory ................................................................................53 Divergence from the Original Methodology ..................................................................54 Grounded Theory and Leadership Research ..................................................................59 Individual Beliefs, Attitude s, Values, and Behaviors ........................................................62 The Role of Perception and Knowledge........................................................................63 The Influence of the Cognitive Belief Systems: Adler, Arnold, and Gushurst ..............64 Foundational Theory ..........................................................................................................64 Integration of Constructivist and Adlerian Perspectives ................................................65 Early Recollections as a Projecti on of the Cognitive Belief System.............................66 The Relationship of Affect, Belief, and Behavior ............................................68 Beliefs, Attitudes, Values, and Behaviors in Organizations .............................71 Mental Models and Systems Thinking ..............................................................................74 Conclusions ........................................................................................................................75 Summary ............................................................................................................................76 CHAPTER 3: RESEARCH METHOD .............................................................................78 Research Method and Design Appropriateness .................................................................79 Population, Sampling, and Data Coll ection Procedures and Rationale .............................80 Population .......................................................................................................................80 Sampling .........................................................................................................................83 Informed Consent and Assu rances of Confidentiality ...................................................83 Data Collection ...............................................................................................................85 Data Analysis .................................................................................................................85 Theoretical Sampling ........................................................................................86

vii

Theoretical Coding ............................................................................................88 Theoretical Memoranda ....................................................................................88 Theoretical Sorting ............................................................................................89 Interview Format ................................................................................................................89 Procedure ...........................................................................................................................92 Thematic Analysis .............................................................................................................93 Validity and Reliability ......................................................................................................93 Summary ............................................................................................................................94 CHAPTER 4: DATA COLLECTION AND ANALYSIS .................................................96 The Study Participants .......................................................................................................96 Review of the Research Question and Interview Questions ..............................................98 Pilot Study Findings ...........................................................................................................99 Procedures Used in the Pilot Study ................................................................................99 Feedback from the Pilot Study .....................................................................................100 Leaders at ShoreBank ......................................................................................................101 Data Collection Procedures ..........................................................................................101 Data Analysis Procedures .............................................................................................103 Themes .............................................................................................................................104 Core Behaviors .............................................................................................................106 Demonstrating Competence ............................................................................108 Knowing Your People .....................................................................................108 Respecting People ...........................................................................................109 Hiring the Right People ...................................................................................110 Developing People ..........................................................................................111

viii

Knowing the Market .......................................................................................112 Managing the Tensions ...................................................................................113 Inspiring ..........................................................................................................114 Engaging Stakeholders ....................................................................................115 Knowing Shortcomings ...................................................................................116 Living the Values ............................................................................................116 Openness .........................................................................................................117 Trusting in People ...........................................................................................117 Accountable ....................................................................................................118 Motivating .......................................................................................................119 Tapping into Resources ...................................................................................119 Aligning Others to Values ...............................................................................120 Asking Questions ............................................................................................121 Communicating Effectively ............................................................................121 Forward Looking .............................................................................................122 Listening ..........................................................................................................123 Taking Ownership ...........................................................................................123 Summary of Core Behaviors ...........................................................................124 Management Approaches .............................................................................................124 Diffused Management.....................................................................................124 Collaborative Management .............................................................................126 Avoiding Conflict ...........................................................................................129 Summary of Management Approaches ...........................................................130 Influences .....................................................................................................................130

ix

Triple Bottom Line ..........................................................................................130 Impact of Growth ............................................................................................132 Early Influences ..............................................................................................134 Founder Effect .................................................................................................135 Business Life Cycle ........................................................................................137 Larger versus Smaller Companies ..................................................................138 Summary of Influences ...................................................................................139 Consequences ...............................................................................................................139 Waiting Too Long ...........................................................................................139 Silos .................................................................................................................141 Lack of Role Clarity ........................................................................................142 Summary of Consequences .............................................................................143 Cognitive Belief System ..................................................................................................143 Current Specific Examples ...........................................................................................144 Early Recollections ......................................................................................................147 Difficulty with Collecting Early Recollections ...............................................148 Analysis of Early Recollections ......................................................................149 Summary and Conclusions ..............................................................................................152 CHAPTER 5: CONCLUSIONS, IMPLICATIONS, AND RECOMMENDATIONS ....154 Core Behaviors .................................................................................................................156 Vision, Mission, and Values........................................................................................156 Tapping into Resources and Knowing the Market .......................................................160 Managing the Tensions and Competence .....................................................................161 Summary of Themes of Core Behaviors ......................................................................163

x

Management Approaches .................................................................................................164 Collaborative Management ..........................................................................................164 Diffused Management..................................................................................................165 Avoiding Conflict .........................................................................................................167 Summary of Themes of Management Approaches ......................................................168 Influences .........................................................................................................................169 Consequences ...................................................................................................................173 Summary of Major Focus Areas ......................................................................................174 Cognitive Belief System ..................................................................................................175 Discussion of Results .......................................................................................................177 Recommendations ............................................................................................................179 Alignment of Mission, Vision, and Values ..................................................................179 Stakeholder Relationships ............................................................................................182 Competence ..................................................................................................................183 Management .................................................................................................................184 Review of Findings with Founders ..............................................................................185 Summary of Recommendations ...................................................................................187 Implications of the Research Findings .............................................................................188 Research Reflections ....................................................................................................192 Suggestions for Further Research ................................................................................194 Summary and Conclusions ..............................................................................................197 REFERENCES ................................................................................................................199 APPENDIX A: LETTER OF SOLICITATION ..............................................................213 APPENDIX B: LITERATURE REVIEW KEY WORD SEARCH ................................215

xi

APPENDIX C: SHOREBAN K COMPANY DESCRIPTIONS .....................................219 APPENDIX D: PERMI SSION TO USE PREMISES .....................................................228 APPENDIX E: CONSENT TO ACT AS A RESEARCH SUBJECT .............................230 APPENDIX F: INTERVIEW FORMAT .........................................................................232 APPENDIX G: FLOWCHART OF THE PROCESS ......................................................235 APPENDIX H: STUDY SAMPLE DEMOGRAPHICS .................................................237 APPENDIX I: E-MAIL SOLICITATI ON FOR PILOT STUDY PARTICIPATION ....240

xii

LIST OF TABLES Table 1 Pilot Study Participant Demographics ................................................................97 Table 2 Demographics of Total Popu lation of Senior Leaders ........................................98 Table 3 Themes Reflected in Each Early Memory ..........................................................150

xiii LIST OF FIGURES Figure 1 . Commonalities in the grounded theory process. ...............................................56 Figure 2 .

Target population of ShoreB ank Corporation’s leaders. ..................................81 Figure 3. Information that informed the data collection approach and anticipated interview data. .......................................................................................................90 Figure 4 . Predominant codes sorted by major areas of focus. ........................................105

1 CHAPTER 1: INTRODUCTION In 1973, South Shore Bank (now ShoreBa nk) initiated the first community- development bank in the United States (Esty, 1995; Grzywinski, 1991; Nowak, 2004; Osborne, 1989; Taub, 1994). The founders of S horeBank had a vision that grew out of the social activism of the 1960s (Hightow er, 2008; Grzywinski, 1991). The founders decided that many efforts to effect change in minority communities could not gain momentum, could not have a major impact , and could not be self-sustaining. The founders believed that a traditional financial institution as a vehicle for social change could be used to build equity in minority communities, but only if the institution could sustain itself over the long term (Grzywinski, 1991; Nowak, 2004). ShoreBank gained considerable success and attention, and bo th nationally and internationally, became a leader in the growi ng field of community-development finance, helping to inform other leaders about be st practices (Nowak, 2004). By 2004, over 1,000 community-development finance institutions existed nationally (The CDFI Data Project, 2004). Threats to the gains made in the co mmunity-development industry were apparent, including mergers that weakened the conn ection to individual communities (Fishbein, 2003), financial services that bypassed banks altogether (Moy & Okagaki, 2001), and changes to the workforce that added additi onal leadership challe nges (Dychtwald, 1999; Dychtwald, Erickson, & Morison, 2006; Herman, Olivo, & Gioia, 2003). Certain values and appropriate leadership approaches at ShoreBank represent its mission, regardless of changes, and such leader ship approaches must adjust to changing conditions. A more thorough exploration of leadership perceptions at ShoreBank, particularly the values and behaviors that guide leadership, may inform leaders at

2 ShoreBank and other community-development fina ncial institutions about the beliefs and approaches that might help to sustain or ganizations within a changing landscape. Background ShoreBank’s evolution provided an impetus for an entire industry of community- development banking. A review of the history and the changing conditions revealed that problems exist for leaders of community-devel opment financial institutions. The founders of ShoreBank believed a traditional bank could not address the challenges. ShoreBank’s founders struggled to find the best way to es tablish a different structure. The amendments to the 1970 Bank Holding Company Act (Bank Holding Company Act Amendment, 1970) and subsequent comments by the Board of Governors allowed bank holding companies to take equity ownership in co mmunity-development organizations, providing that the primary purpose was to help low- a nd moderate-income individuals (Grzywinski, 1991). The amendments cleared the way a nd the founders established ShoreBank Corporation, a structure that included traditional banking, not-for-profit banking, and real-estate development entities. From 1973 to 1986, the legal name for the corporate holding company was the Illinois Neighbor hood Development Corporation. In 1986, it became Shorebank Corporation and, in 2003, S horeBank Corporation (capital B added to ShoreBank) for the sake of branding consis tency. South Shore Bank became ShoreBank at the same time. Banks that focused on low-income communities were not new when ShoreBank was established (Benjamin, Rubin, & Zielenbach, 2004). Minority-owned organizations that addressed the problems of low-income communities existed in the late 1800s. Credit unions in the 1930s and 1940s focused on Af rican Americans excluded from the normal

3 channels for obtaining capital. What was uni que about ShoreBank was that the approach the founders used combined banking, real -estate development, and not-for-profit organizations (Grzywinski, 1991; Taub, 1994). Within 10 years, the small bank on the south side of Chicago gained national and in ternational attention a nd became a model for others to follow (Jackson, 2006). Taub (1994) noted that Arkansas Governor Clinton became aware of ShoreBank’s worth, and in 1986, Clinton invited consultants from ShoreBank to help establish a similar ve nture in Arkansas. Due to the positive experience, Clinton announced his desire to replicate ShoreBank’s approach nationally (Taub, 1994). Clinton established an Ac t (Community Development Banking and Financial Institutions Act, 1994), based la rgely on his knowledge of the work of ShoreBank (Benjamin et al., 2004). The Act included community-development banks, credit unions, loan funds, mi cro-enterprise financing, and venture-capital funds (The CDFI Data Project, 2004). Within 10 years, the institutions had had a substantial impact on their target communities. The CDFI Data Project tracked 2004 data about 517 community-development financial institutions, including 53 community-development banks, although over 1,000 community-developm ent financial institutions were in existence nationally. These in stitutions invested 3.5 billion in 2004 and reported having a substantial return from their investments. ShoreBank’s innovative approach to community-development banking led the way for an entire industry (Nowak, 2004; Taub, 1994). The earliest community- development funds provided loans and venture capital in the late 1960s (Moy & Okagaki, 2001). A 1977 Act (The Community Reinvestment Act, 1977) set the standards for banks to invest in local communities, including low-income areas, which helped to add capital

4 and opportunities to underserved communities (Fishbein, 2003). Taub (1994) noted that after Clinton’s attention to ShoreBank, an increase in requ ests nationally and internationally for help from ShoreBank’s management were apparent. Nowak (2004) spoke of ShoreBank being a founding organization: By any standard, ShoreBank is one of the most important institutions in the field of development finance and community de velopment. It is one of the founding organizations of the field, and its history is a laboratory that is instructive for the field as a whole. No history of develo pment finance, social investment, or community development could be written without a chapter on ShoreBank. It has helped to define, incubate, and lead the industry for three decades. (p. 2) Thirty-three years later, the landscape is changing. Threats to the gains made in community-development finance exist. A subs tantial number of merg ers have weakened connections to individual communities, thereby reducing the usefulness of the Community Reinvestment Act as a tool fo r ensuring that local needs are addressed (Fishbein, 2003). Fishbein observed con cerns among Community Reinvestment Act backers in response to the increase in nonbank lenders and Internet banking diminishing the impact of the legislation (30% of regulat ed institutions required to participate in 2003 compared with 80% of regulated institutions re quired to participate when the legislation was passed). Moy and Okagaki (2001) examin ed the future of community development and capital access and concluded that a ch anging landscape was apparent. “Capital gaps have changed, capital itself is becoming less lo calized, and the financia l services industry has evolved entirely new ways to transact business and service cust omers” (¶2). Moy and

5 Okagaki suggested that community-developmen t financial institutions might no longer be viable unless the institutions developed a way to function within the new parameters. Forty-seven percent of ShoreBank Corporat ion’s senior leader s were aged 55 and older (ShoreBank, 2006). Substantial implications are associated with the aging of the workforce (Dychtwald, 1999; Dychtwald et al., 2006; Herman et al., 2003), and ShoreBank faces similar concerns. One cr itical issue for leaders of community- development financial institutions is balancing the need for profitability and sustainability against the mission of community developmen t (Porteous, 2005), especially as funding sources diminish for not-for-profit ventures. All of the above changes in the landscape challenge leadership approaches at ShoreBank. Problem Statement ShoreBank’s founders developed an approach to community-development banking that addressed a need in the ma rket and modeled approaches for many organizations to follow (Grzywinski, 1991; Nowak, 2004; Taub, 1994). Thirty-four years later, substantial ch anges in the industry are evident (Fishbei n, 2003; Moy & Okagaki, 2001), which may suggest the need for ne w approaches (Ratliff & Moy, 2004). Forty- seven percent of ShoreBank’s leaders ar e nearing retirement (ShoreBank, 2006). The percentage reflects changes that have occurr ed in the workforce in general (Dychtwald, 1999; Dychtwald et al., 2006; Herman et al., 2003). ShoreBank’s leaders recognized the need for a next generation of leaders as one of the highest priorities within the company’s evolving human-capital strategic plan (Shor eBank, 2006). A critical question is how should ShoreBank’s leaders sustain and mainta in the values and in still its leadership practices into the next generation of leader s. As the Human Resources Department works

6 to prepare the next generation of leaders, it is important to understand the perceptions of ShoreBank’s current leaders about the values and behaviors that guide leadership at ShoreBank. The understanding can help sustain the correct leadership practices. Given ShoreBank’s role as a leader in comm unity-development banking, both nationally and internationally (Nowak, 2004; Taub, 1994), an evolving grounded theory may inform leaders of other community-development financ ial institutions of the leadership values and behaviors that can help leaders to sust ain their organizations more effectively and instill the values and behaviors into the next generation. Padaki (2000) noted that a sector or field would place certain expectations on a business functioning in that sector and that the groupings of values predominant in a sector are visible. Understanding the perceptions of ShoreBank’s cu rrent leaders about the values and behaviors that guide their leadership may help to set a standa rd frame of reference for the community- development banking sector. Purpose of the Study The purpose of the qualitative grounded theory case study (Charmaz, 2006; Creswell, 2002; Glaser & Strauss, 1967) c onducted was to understa nd the perceptions of ShoreBank’s leaders about the values and behaviors that gu ide their leadership as the remaining founders and senior leaders near ing retirement. The goal was to generate grounded theory about ShoreBank’s leadersh ip values and approaches. Developing a theory of leadership as the central pheno menon may guide approaches to instilling the practices in the next generation of leader s both at ShoreBank and in the field of community-development banking generally. By highlighting the predominant beliefs (Adler, 1958; Disque & Bitter, 2004; Manast er & Mays, 2004), attitudes, values, and

7 behaviors (Arnold, 1960; Gus hurst, 1971; Padaki, 2000) am ong ShoreBank’s 20 senior leaders across all affiliate locations, a theory of leadership can be developed. Leadership is complex; it relies on hu man dynamics, and grounded theory allows the complexity to be fully explored (P arry, 1998). Qualitative approaches are also appropriate given that no theories to te st against specific hyp otheses exist (Conger & Toegel, 2002). The focus for the research was on participants’ interpretations of reality, which further justifies the value of grounded theory methodology (Suddaby, 2006). ShoreBank’s leaders within the United States were interviewed about their perceptions of the values and behaviors that guided their leadership, and they were asked to identify current, specific examples that revealed th e nature of leadership at ShoreBank. In addition, early memories of experiences were solicited to underst and the influence of early experiences on leaders’ leadership beliefs and values. Grounded theory assessment methodology was used to generate a theory of leadership based on the information solicited in the interviews. Given the comp lexity of leadership, a grounded theory research approach proved helpful for expl aining the information and the approaches revealed.

Significance of the Study The perceptions of ShoreBank’s current leaders about the values and behaviors that guide their leadership were explore d. ShoreBank is facing challenges as existing leadership matures; many of the companie s that followed ShoreBank’s example are facing or will face similar challenges. The ge nerations that follow will benefit from a thorough understanding of ShoreBank’s values and behaviors that have served as a foundation for its success. The use of a quali tative grounded theory case study approach

8 provided the opportunity to examine core belie fs, attitudes, values, and behaviors and may provide a benchmark for others in th e community-development banking field to follow. Significance of the Study to the Field of Leadership The study specifically examined a theory of leadership at ShoreBank using a grounded theory approach (Charmaz, 2006; Gl aser, 1992; Glaser & Strauss, 1967). Parry (1998) noted that grounded theory is an appropr iate approach to rese arch the leadership process. Leadership involves human interac tion of individuals and has an accompanying social process. Understanding the beliefs, atti tudes, values, and behaviors of ShoreBank’s leaders may help to define a theory a bout its leadership pr actices. Popper (2002) reinforced the view that leadership is a bout relationships. Dunford (2002) focused on the influence of rules, norms, and beliefs on or ganizational practices and examined the role of language as an influence on people’s t houghts about management. Sooklal and Hanlon (2002) used grounded theory to examine aspect s of entrepreneurship, particularly the dreams of leaders and leaders’ engagement of others when implementing those dreams. Ropo, Pariainen, and Koivunen (2002) took the id ea of a social proce ss a step further and included the concept of aesthetics in leadershi p, particularly the atmosphere and the feel of the work. Revealing a theory about l eadership at ShoreBank may help inform ShoreBank’s management and others in th e field of community development about important leadership processes. Nature of the Study Beliefs, attitudes, values, and behaviors are the focal points of the theory of leadership at ShoreBank. Beliefs, attitudes, values, and behaviors are distinguished at

9 both individual and organizati onal levels, and thereafter, they are reviewed for the appropriateness of the qualitative methods used to assess them. A summary of the proposed research design s hows how the approach satisfied the purpose of the study. ShoreBank evolved, as all organizations do, through the set of beliefs, attitudes, values, and behaviors of its employees, espe cially its leaders (Padaki, 2000). Leaders have beliefs about work and values that help to shape an organization’s values and business direction (Roe & Este r, 1999). Because of their pos ition, leaders have a direct impact on the values that are active w ithin any organization (Lord & Brown, 2001). Values influence the feelings and behavior s of individuals (Rokeach, 1973) and are a key factor in effective management (Padaki, 2000). The more similar the values are within an organization, the more the values will predict behavior and the more efficiently the values will coordinate actions (Meglino & Rav lin, 1998). Rokeach (1973) discussed a value as a belief that one way of behaving or being is better than the opposite approach, and a value system as a set of beliefs about a preferred behavi or or way of existing that also notes the level of importance of each belief. As people confront situations in which values compete, the more important values within the system will prevail. Rokeach (1973) also noted that, as a belief, a value has related be haviors, attached fee lings, and cognition or a way of thinking. One can distinguish between beliefs, att itudes, and values and a value system (Padaki, 2000). A belief is an organized thought such as big compared with small or possible compared with impossible, but a beli ef has little or no emotional engagement. An attitude involves a level of emotional e ngagement, such as good compared to bad, and demonstrates a connection between beliefs. A value reflects a consistent pattern of

10 behavior. A value system groups a number of values and in fluences a person’s way of thinking, feeling, and behaving. Adler (as ci ted in Ansbacher & Ansbacher, 1956) spoke of a cognitive belief system as a unifying principle within a person with respect to mind, body, and emotions acting as a whole to affi rm core beliefs. When an organization reveals a distinct approach or a consistent set of values, the orga nizational identity may form the value system of that orga nization (Padaki, 2002). To understand an organization’s value system, therefore, one can examine consistent beliefs, the level of agreement about beliefs, and the way in which values are maintained or changed (Padaki, 2002). Leaders reflect their beliefs, attitudes, and values in what they say and especially in what they do (Argysis & Schon, 1978; Pada ki, 2000; Schein, 1996). Beliefs, attitudes, and values are a reflection of culture a nd are understood more easily through direct observation (Padaki, 2002; Schein, 1996). Lead ership is also a social process that researchers can understand through examining social interactions (Parry & Meindl, 2002). Examining specific leadership exampl es, in addition to broadly questioning leaders about leadership processes, can provide additional information about the theory of leadership within a specific organization. Differences exist between values that are emphasized at the overall organizational level, the espoused values, and the values that are actually in use (Argysis & Schon, 1978). The study conducted used a grounded theory design (Charmaz, 2006; Creswell, 2002; Glaser & Strauss, 1967). Glaser (1978) emphasized the value of a theory evolving from data in order to explain a basic soci al process. The basic social process under investigation was the theory of leadership at ShoreBank as revealed in the beliefs,

11 attitudes, values, and behaviors of senior leaders. Quantitative approaches to research were not appropriate for the study because no spec ific theories exist to test against known processes (Conger & Toegel, 2002). Many dynami cs operate on various levels. Conger and Toegel observed, “The complexity of leadership can be illustrated along three fundamental dimensions—each of which pr esent special challenges for quantitative research approaches. These include leadership’s multiple levels of phenomena, its dynamic character, and its symbolic compone nt” (p. 178). A case study approach that merely described what the leaders of S horeBank did would not examine the dynamics involved with the beliefs, attitudes, values, and behaviors of those leaders. The focus was on participants’ interpretations of reality, which further ju stified the value of grounded theory methodology (Suddaby, 2006). Senior leaders at ShoreBank’s holding company and all affiliate organizations were invited to participate in individual in-d epth interviews. Senior leaders met regularly at a quarterly meeting titled the Performan ce to Plan Group. Together leaders helped to drive the corporate strategy and the actions to achieve that strategy. Prior to beginning the actual interviews, a small pilo t study was conducted to ensure that the questions obtained the information required for the research. The interviews consisted of questions designed to assess each individual’s understanding of lead ership at ShoreBank as related to beliefs, attitudes, values, and behaviors. Where re levant, specific behavi oral examples were solicited to gain descriptions of interactions within the leadership processes that might reveal patterns or themes not discussed in the answers to the specific questions about leadership and change. Questions were aske d within a specific theoretical framework

12 (Adler as cited in Ansbacher & Ansb acher, 1956; Arnold, 1960; Gushurst, 1971) to facilitate the focus on individual beliefs and values. The data generated in the interviews were examined for patterns using Atlas.ti qualitative data analysis soft ware (version 5.0) and grounded th eory was the data analysis framework. Each interview was digitally reco rded; a transcript was typed and reviewed for accuracy with the participants prior to beginning each analysis. The data were analyzed by coding for themes and patterns th at described the lead ership process at ShoreBank. Concurrent with coding, memora nda were written with observations and comments about the codes and the potential ways the data reveal ed patterns in the leadership dynamics. The same process was applied for each interview. The goal was to show consistent patterns, not to generate new codes; use the memoranda to lead to broader concepts or ideas; a nd describe core leadership processes within ShoreBank. The Chief Learning Officer at ShoreBa nk conducted the research. His special relationship with ShoreBank informed the c oding and focus of the processes connected with the writing of the memoranda. Duignan, Collins, Coulon, and Fagan (2002) suggested that a close asso ciation between the person c onducting the research and the target population allowed the possibility for re sults to be more collaborative. Roberts (2002) confirmed the same when discussing th e concept of aligning with the research subjects. At a critical poin t in the grounded theory data -collection process, Roberts provided feedback to those involved through a workshop but maintained confidentiality. The feedback noted some divergence of views, which the leaders discussed. The feedback session allowed Roberts an opportuni ty to go through the factors researched, and the responses helped guide Roberts in further research.

13 In the study conducted, tentative findings were presented to the two remaining founders of ShoreBank after th e completion of all interviews to aid in the further exploration and to consider the relevance of the analysis and the recommendations. The feedback session was recorded; the data from the session was added to the grounded theory analysis. Research Questions A clearer understanding of a theory of leadership at ShoreBank was the focus of the study. The central question for the research was the following: Wh at are the beliefs, attitudes, values, and behaviors that guide leaders at ShoreBank? Every organization has a culture and an accompanying set of beliefs, attitudes, values, and behaviours among its leaders (Lord & Brown, 2001; Padaki, 2000). The patterns and themes that revealed the distinct beliefs, attitudes, values, and beha viors of ShoreBank’s leaders were explored. The questioning process was in the form of an interview conversation. All interview questions were addressed in the conversation, but questions of clarification followed and current, specific examples were also examined where possible. The reason was that direct observation helps in the process of gaining understanding of the beliefs, attitudes, and values reflected in a culture (Padaki, 2002; Schein, 1996). Specific examples of an interviewee are likely to refl ect individual beliefs, but the da ta provides an opportunity to examine the social interactions more broadl y (Parry & Meindl, 2002) and to see values actually practiced (Argysis & Schon, 1978). The research questions explored perceptions about the most important and unique beliefs , attitudes, values, and behaviors of ShoreBank’s leaders and directed participants to focus on what they saw, heard, and felt during the leadership process.

14 Theoretical Framework The grounded theory study conducted focu sed on a theory of leadership at ShoreBank, and examined the perceptions of ShoreBank’s current l eaders of the beliefs, attitudes, values, and behaviors that guided their leadership. Given that ShoreBank is a leader in the field of community developm ent (Nowak, 2004), an additional goal was to inform the field of community-development finance, which may face similar challenges. Using grounded theory to explore the dynami cs of leadership is not new. Parry (1998) proposed the use of grounded theory as an appropriate way to understand the leadership process. Parry noted established face ts of leadership that define it as a social process. First, leadership includes the adju stment of the beliefs, the behavior, and the motives of those who follow, over time. Sec ond, leadership research demonstrates an overlap of disciplines with a range of variab les, which suggests the need for an approach that examines the complexities of leadershi p. Finally, leadership i nvolves the interaction of people. Popper (2002) confirmed the view of lead ership as a relationship where both leaders and followers are important. With re spect to followers, Popper suggested that followers have built-in biases towards a leader and attribute outcomes to the characteristics of the leader in a given situation. Popper added that perceptions of employees together with any ascribed theories are based on culture. While the study conducted relied solely on the perceptions of se nior leaders, eliciti ng specific examples examined the role of followers in terms of the biases in participants’ perceptions. Ropo et al. (2002) took the idea of a social process one-step further and brought in the concept of aesthetics in l eadership. Ropo et al. suggested that the traditional view of

Full document contains 255 pages
Abstract: The purpose of the qualitative grounded theory case study conducted was to understand the perceptions of ShoreBank's remaining founders and senior leaders about the values and behaviors that guide leadership. The goal was to develop a constructivist grounded theory about ShoreBank's leadership values and approaches and highlight the core beliefs, attitudes, values, and behaviors that could inform the next generation of leaders in ShoreBank and in other community-development banking institutions. Data gathered from 20 senior leaders were analyzed. The analysis revealed 23 core behaviors, 3 management approaches, 6 influences, and 3 consequences. Recommendations included being strategic about building an organization identity, fostering shared knowledge across internal companies and external stakeholders, developing leaders for succession, and emphasizing collective responsibility for results. [PUBLICATION ABSTRACT]