Leadership: Change

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Topic 15

• Leadership Change The Future

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Old is easy , new is hard

• David B. Peterson and Mary Dee Hicks,
• Personnel Decisions International

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Introduction

• The best leaders are those who recognize the
  situational and follower factors inhibiting or
  facilitating change, paint a compelling vision of
  the future, and formulate and execute a plan that
  moves their vision from a dream to reality.
• To successfully lead larger-scale change
  initiatives, leaders must attend to the
  situational and follower factors affecting their
  group or organization.

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Introduction

• Leaders must use their power and influence,
  personality traits, coaching and planning skills,
  and knowledge of motivational techniques and
  group dynamics to drive change.

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Leadership and Management Revisited Again

• Leadership is being more concerned with doing the
  right thing and management is being more
  concerned with doing things right.
• Organizational systems are fairly resistant to
  change.
• Followers may prefer to have a predictable path
  rather than risk their success on some uncharted
  course for the future.

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Leadership and Management Revisited Again

• Leadership is the key to aligning organizational
  systems and follower behavior around a new
  organizational vision.
• It takes a combination of both leadership and
  management skills to successfully implement any
  team or organizational change effort.

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The Rational Approach to Organizational Change
C D x M x P gt R

• D Dissatisfaction
• M Model
• P Process
• R Resistance
• C Amount of Change
• Leadership practitioners who understand the model
  should be able to do a better job of developing
  change initiatives and diagnosing where their
  initiatives may be getting stuck.

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(D) Dissatisfaction

• Followers who are relatively content are not apt
  to change malcontents are much more likely to do
  something to change the situation.
• Followers emotions are the fuel for
  organizational change, and change often requires
  a considerable amount of fuel.

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(D) Dissatisfaction

• The key for leadership practitioners is to
  increase dissatisfaction to the point where
  followers are inclined to take action, but not so
  much that they decide to leave the organization.

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(M) Model

• Environmental scanning
• Vision
• Setting new goals to support the vision
• Identifying needed system changes
• Systems thinking approach
• Siloed thinking

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The Components of Organizational Alignment
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(P) Process

• The change initiative becomes tangible and
  actionable because it consists of the development
  and execution of the change plan.
• Change will only occur when the action steps
  outlined in the plan are actually carried out.

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(P) Process

• The best way to get followers committed to a
  change plan is to have them create it.
• Leaders who address shifts in styles and
  inappropriate behaviors in a swift and consistent
  manner are more likely to succeed with their
  change initiatives.

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(R) Resistance

• There is often a temporary drop in performance or
  productivity as followers learn new systems and
  skills.
• Four reactions to change that make up the SARA
  Model
• Shock
• Anger
• Rejection
• Acceptance

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(R) Resistance

• Leaders should
• Recognize the four reactions to change.
• Understand that individual followers can take
  more or less time to work through the four
  stages.
• Understand that people are not likely to take any
  positive action toward a change initiative until
  they reach the acceptance stage.
• Understand that where people are in the SARA
  Model often varies according to organizational
  level.

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Reactions to Change
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Change and the Future

• Change and the future are inextricably linked.
• Change is a constant for organizational survival,
  competitive advantage, and organizational
  success.
• So, CHANGE FUTURE
• (or is it)
• FUTURE CHANGE

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Leading in the 21st Century

• Much has been written about managing and leading
  organizations of the future. The information
  that follows is drawn from a variety of sources
  from the academic literature, as well as the
  popular business press.

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Leading in the 21st Century

• Pace of change will be accelerated
• Globalization will be imperative
• Geographic barriers will be increasingly blurred
  and sometimes irrelevant
• Competitive pressures and strategies will dictate
  corporate alliances and partnerships
• Technological innovations that become marketplace
  advantages will be accelerated

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Leading in the 21st Century

• Sensitivity to environment concerns will be
  requisite
• Simplifying and delegating work will increase
• Education and reeducation will be essential
• The supply of skilled labor is now global
• The U.S. work force is in competition with
  workers around the world for jobs
• Companies will have to be good at what they do

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Leading in the 21st Century

• U.S. companies will have to design and make the
  best products in the world
• Tapping the talent of people will be crucial
• Empowering workers will be necessary
• Effectively communicating and bridging cultural
  gaps will be a top priority
• Teamwork will increase
• Companies are increasingly supportive in helping
  employees balance work and family obligations

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Leading in the 21st Century

• Decision-making will be shared
• Awareness of diversity issues (e.g., women,
  ethnic minorities, immigrants) will be imperative
• Pyramid organizations will be flattened to fewer
  layers and levels of management
• Companies are becoming smaller and employing
  fewer people
• Managers will lead, not order
• Participative management and employee involvement
  will spread

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Leading in the 21st Century

• Technology will provide machines that think,
  thereby enhancing leader capabilities
• Even companies that manufacture products must
  think in terms of providing a service
• Companies and workers will need to think in terms
  of continuous learning and innovative thinking
• Innovation is a critical ingredient to success

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Reasons for Resistance to Change

• Lack of trust
• Belief that change is unnecessary
• Belief that the change is not feasible
• Economic threats
• Relative high cost
• Fear of personal failure
• Loss of status and power
• Threat to values and ideals
• Resentment of interference

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Stages in the Change Process

• Lewins Force-Field Model
• Unfreezing
• Changing
• Refreezing
• Stages in Reaction to Change
• Denial
• Anger
• Mourning
• Adaption
• Response to Repeated Traumatic Change
• Leaves people less resilient and more vulnerable
• Leaves people inoculated and better prepared to
  deal with change

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Types of Organizational Change

• Attitude-Centered Change
• Role-Centered Change
• Changes in Technology
• Change in Competitive Strategy
• Economic or Human Factor Changes
• Generic Change Programs

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Systems Model for Organizational Change

• Problems have multiple causes
• Actions have multiple outcomes
• Changes have delayed effects
• Actions that appear to offer quick relief may
  make things worse in the long run
• The best solution may offer no immediate benefits

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Influencing Organizational Change

• Nature of Organizational Change
• Primary Ways to Influence Culture
• Attention
• Reactions to crisis
• Role Modeling
• Allocation of rewards Criteria for selection and
  dismissal

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Influencing Organizational Change

• Secondary Ways to Influence Culture
• Design of systems and procedures
• Design of organizational structure
• Design of facilities
• Stories, legends, and myths
• Formal statements

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Developing a Vision

• Desirable Characteristics for a Vision
• Elements of a Vision
• Procedures for Developing a Vision
• Involve key stakeholders
• Identify strategic objectives with wide appeal
• Identify relevant elements in the old ideology
• Link the vision to core competencies
• Evaluate the credibility and refine the vision

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Implementing Change

• Responsibility for Implementing Major Change
• Support from top management
• The Pace and Sequencing of Changes
• Rapid versus gradual introduction of change
• Change interdependent subunits simultaneously
• Changes in the organizational structure to make
  it consistent with the strategy

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Guidelines for Political/Organizational Actions

• Determine who can oppose or facilitate change
• Build a broad coalition to support the change
• Fill key positions with competent change agents
• Use task forces to guide implementation
• Make dramatic, symbolic changes that affect the
  work
• Monitor the progress of change

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Guidelines for People-Oriented Actions

• Create a sense of urgency about the need for
  change
• Prepare people to adjust to change
• Help people deal with the pain of change
• Provide opportunities for early successes

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Guidelines for People-Oriented Actions

• Keep people informed about the progress of change
• Demonstrate continued commitment to the change
• Empower people to implement the change

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What Do We Know?

• On the average, leaders are more energetic,
  motivated, intelligent, and self-confident
• Traits are important, but no single trait defines
  leadership
• Power is key to leadership its use and function
  in organizations is changing
• A contingency view is key to understanding and
  predicting leadership effectiveness
• Teams are changing leaders roles

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What Do We Know? (contd)

• An emotional bond between leaders and followers
  is one of the key factors to changing
  organizations
• Leaders must clarify their vision
• Upper echelon, strategic leadership has distinct
  characteristics
• Culture must be an integral part of any
  understanding of leadership

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What Dont We Know?

• Role of traits
• Understanding the impact of the organizational
  context
• Full impact of culture at
• various levels

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Changes in Organizations

• Structural changes
• Changing demographics
• Globalization
• New work ethic
• Technology

• Learning and knowledge
• Need for flexibility
• Fast-paced change
• Fit individual and organization

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Consequences for Leadership

• New roles for leaders emphasis on followers
• Understanding differences and culture
• Understanding global issues
• Accommodating different working styles
• Continuous training and leading knowledge workers
• Learning to manage change
• Remaining flexible
• Create a fit between individual needs and
  organizational goals

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Upcoming Areas of Research

• Spiritual leadership
• Authentic leadership
• Role of emotions
• Impact of culture

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What Should Leaders Do?

• Self-awareness
• Service mentality
• Global perspective
• Understand organizations
• Flexible and open
• Continuous learning
• Strive for balance