1. Leadership: Change & The Future

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

3.  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.

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

5.  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.

6.  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.

7.  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

8.  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.

9.  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.

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

12.  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.

13.  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.

14.  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

15.  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.

17.  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

18.  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.

19.  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

20.  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

21.  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

22.  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

23.  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

24.  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

25.  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

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

27.  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

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

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

30.  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

31.  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

32.  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

33.  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

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

35. 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

36. 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

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

38. 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

39. 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

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

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