Leadership: Change & The Future

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

 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.

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

 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.

 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.

 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. C = D x M x P > R

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

 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.

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

 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.

 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.

 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

 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.

 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

 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.

 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

 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

 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

 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

 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

 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

 Lewin’s 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

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

 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

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

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

 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

 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

 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

 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

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

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

What Do We Know? (cont’d)  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

What Don’t We Know?  Role of traits  Understanding the impact of the organizational context  Full impact of culture at various levels

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

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

Spiritual leadership Authentic leadership Role of emotions Impact of culture Upcoming Areas of Research

 Self-awareness  Service mentality  Global perspective  Understand organizations  Flexible and open  Continuous learning  Strive for balance What Should Leaders Do?