“I Don’t Have an Opinion, the Theory Has an Opinion” Clayton Magleby Christensen, Professor of Business Administration at the Harvard Business School (HBS).

The Leadership Palette brings the colors of theories, techniques and methods important to consider in Management Art efforts. It provides a framework for diagnosing challenges and improving decision making. The list of theories, techniques and methods is by no means an exhaustive one.

Contingency Theory

The contingency theory emphasizes the importance of both the leader’s authenticity and the particular environment in which the leader operates.

Theory of “Good Money” and “Bad Money” (Gresham's law)

The theory throws light on corporate deliberate strategy - be impatient for profit and quality but patient for growth. The theory is equally important and relevant for business, project-based operations and transformation initiatives. ‘Bad Money’ seeks growth before profit and quality; ‘Good Money’ is patient for growth, but impatient for profit and quality.

Theory of Disruptive Innovations (Clayton M. Christensen)

The theory explains the phenomenon by which an innovation (e.g. technological, digital) transforms an existing product or process by introducing simplicity, cost effectiveness and affordability when complication and high cost are the status quo.

Complexity Matrix

The technique helps leaders to make better choices when leading transformation programmes.

Jay Galbraith’s Star Model

The Star Model is a framework used for an organisation’s design. The five categories -- strategy, structure, processes, rewards, and people -- are connected in a solid base of organisation.

Theory of Capabilities

The theory of capabilities helps leaders develop an understanding of elements critical for business success, examining where businesses spend time, resources and energy. Three critical capabilities that drive business performance are resources, processes and priorities. The theory defines a business’ ability to integrate, build and reconfigure internal and external competences.

Responsibility Assignment Matrix

The responsibility assignment matrix -- also known as a RACI -- is a simple roles and responsibilities matrix used to design operating models. RACI is an acronym typically used in business: stakeholders must be responsible, accountable, consulted and informed.

The Two-Factor Theory (also known as Herzberg's motivation-hygiene theory and dual-factor theory)

The Herzberg's motivation-hygiene theory states that the factors leading to job satisfaction are "separate and distinct from those that lead to job dissatisfaction." Hygiene factors are essential for workplace motivation. However, these hygiene factors cannot themselves be regarded as motivators. The motivational factors yield positive satisfaction. These factors are inherent to work.

Murphy’s Law of Scaling

Anything that can go wrong will go wrong at scale. Or to put it slightly less memorably, something unexpected has a much higher probability of occurring at scale than not at scale.

Bias Blind Spot

Awareness about biases alone is not enough. Leaders need to have other protections with respect to preventing biases from popping up in leadership algorithms. Most of the time, leaders want to do the right thing but the information is ambiguous, and a bias can nudge them one way or another. Leaders need to have incentives and specific criteria in addressing bias, stereotypes, and prejudice.

The Peltzman Effect

The Peltzman effect is often used as a lens for studying risk compensation, the theory that leaders make different choices depending on how secure they feel in any given situation. Leaders take more risk when they feel more protected and less when they perceive that they are vulnerable.