1. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Change, Culture & Leadership: Can Changing Culture Facilitate the Leadership of Change? Leadership Conference July 18/19 2007 Professor Malcolm Higgs Henley Management College

2. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Scope of the Presentation  The Challenges of Change  Approaches to Change  Change Leadership  Relationship between Culture & Change  Further Developments in Thinking around Change Leadership

3. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre The Challenge of Change

4. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre The Reality is that 70% of Changes Fail !! In 2004 in the UK it has been estimated that $6 billion was spent on Change So $4.2 billion was wasted !!!!

5. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre The Challenge of Change The Key Questions: If 70% of Changes Fail: Why? What makes the others succeed ?

6. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre What Really Happens?

7. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre One Look Distributed Simple Complex Change Approaches © RFLC 2005

8. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre One Look Distributed Simple Complex Change Approaches © RFLC 2005 Directive Self- Assembly Master Emergent “I can manage change” “Launch enough Initiatives & something will stick” “ I trust my people to solve things with us” “I can only create the conditions for change to happen”

9. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre One Look Distributed Simple Complex Change Approaches © RFLC 2005 Directive Self- Assembly Master Emergent High magnitude: 48% High scope: 42% Low scope, int. source +ve High magnitude: 44% All correlations -ve Long term: 21% High magnitude: 32% All correlations +ve Key: Green = positive relationship Red = negative relationship % = amount of variance between success and failure explained in that context

10. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre One Look Distributed Simple Complex Change Approaches © RFLC 2005 Directive Self- Assembly Master Emergent Doing Change To Doing Change With

11. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Leading Change in Practice

12. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre “We cannot change unless we learn and grow” “Without me, nothing will happen” “With clear boundaries, people can be free to contribute” Leadership Behaviours ©RFLC 2005 ShapingFramingCreating

13. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre “We cannot change unless we learn and grow” “Without me, nothing will happen” “With clear boundaries, people can be free to contribute” ©RFLC 2005 Impact of Leadership Creating FramingShaping Successful Unsuccessful

14. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Why is Culture so important? How do culture and leadership interrelate?

15. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Leadership Performance Culture 60% 80% ? Leadership and Culture Make a Difference ?

16. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre The Challenge of Change 70% of Change Initiatives Fail  Aspects of Corporate Culture have a significant impact on the success/failure of Change  Understanding the Culture of an organisation is key to change  Making Change work often entails making some change to aspects of the culture of an organisation

17. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre CULTURE determines :  The way we address problems  Our receptivity to change  The way we deal with each other  The way we deal with stakeholders  Our commitment to strategy The Impact of Culture on Performance

18. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre The Goffee & Jones Model Solidarity Sociability

19. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Solidarity Lo Hi Sociability -ve Success +ve Success +ve Shaping -ve Shaping +ve Framing ? Communal as best culture

20. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Solidarity Lo Hi Sociability Fragmented Networked Communal Mercenary The Goffee & Jones Model

21. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre  Know where you are starting  Know where you need to go (from a business perspective)  Identify the levers which need pulling  Pull the levers Managing Cultural Change

22. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Increasing SociabilityIncreasing Solidarity Promote the sharing of ideas, interest and emotions by recruiting compatible people Increase social interaction among employees by arranging casual gatherings inside and outside the office Reduce formality between employees Limit hierarchical differences Act like a friend - set the example Develop awareness of competitors through briefings, e-mail, newsletters, etc. Create a sense of urgency Stimulate the will to win Encourage commitment to shared corporate goals Changing Culture The Goffee & Jones Model

23. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre We cannot change unless we learn and grow “Without me, nothing will happen” With clear boundaries, people can be free to contribute ©RFLC 2005 Study 2 Shaping Negative Framing strongly Positive Creating positive A combination (Framcap) strongly positive in all Contexts

24. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Attractor Creates an energy for the change Edge & Tension Amplifies disturbance around the change Creates a Container Holds the tension around the change Transforming Space Creates movement © RFLC 2006 Behaviours which Make a Difference

25. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Attractor Creates an energy for the change Connects with others at an emotional level, embodies the future intent of the organisation Tunes in to day to day reality, sees themes & patterns that connect to a wider movement, and from this creates a compelling story for the organisation Uses this to set the context of how things fit together, working the story into the life of the organisation so that every conversation & decision “makes sense” Visibly works beyond personal ambition to serve higher purpose, the organisation, and its wider community Is consciously aware of one’s own leadership and adapts this for a specific purpose © RFLC 2006

26. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Edge & Tension Amplifies disturbance around the change Tells it as it is – describes reality with respect yet without compromise In times of turbulence, has constancy; does not withdraw from the tough stuff; keeps people’s hands in the fire Can spot and challenge assumptions – creates discomfort by challenging existing paradigms and disrupting habitual ways of doing things Sets the bar high and keeps it there – stretches the goals & limits of what’s possible Does not compromise on talent – pays attention to getting and keeping “A” players © RFLC 2006

27. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Creates a Container Holds the tension around the change Sets & contracts boundaries, clear expectations & hard rules so that people know what to operate on (performance expectations) and how they need to operate (values & behaviours) Is self assured, confident, and takes a stand for one’s beliefs – is non-anxious in challenging conditions Provides affirming & encouraging signals; creates ownership, trust & confidence Makes it “safe” to say risky things & have the “hard to have conversations” via empathy & high quality dialogue skills Creates alignment at the top to ensure consistency & constancy of approach © RFLC 2006

28. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Transforming Space Creates movement Demonstrates a commitment that engenders trust, enabling the system to go to new places, learn about itself, and act differently Frees people to new possibilities through making oneself vulnerable and open Understands what is happening in the moment & breaks established patterns and structures in ways that create movement in the “here and now” Powerfully inquires into ripe systemic issues to enable deep change to happen Creates time and space (including attending to its physical quality) for transforming encounters © RFLC 2006

29. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Attractor Creates an energy for the change Edge & Tension Amplifies disturbance around the change Creates a Container Holds the tension around the change Transforming Space Creates movement © RFLC 2006 A combination of these factors explained nearly 50% of the variance in change success

30. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Attractor Edge & Tension Creating a Container Transforming Space © RFLC 2006 Putting it all Together  Understand & Incorporate Wider Context  Build Leadership Teams  Work on the Underlying System  Patient with People  Display Self-Awareness  Set Tangible Measures

31. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Creating a Positive Climate for Change

32. Change,Culture & Leadership © Professor Malcolm Higgs 2007 RAF Leadership Centre Questions?