1. Copyright © 2010 Prentice Hall 8-1 TOPIC 15 Leading Change Implementing Organizational Change: Theory into Practice 2/e Bert Spector

2. Copyright © 2010 Prentice Hall 8-2 Major Areas to be studiecd 1. Definition of effective leadership. 2. Difficulties of enacting effective leadership. 3. Tasks associated with leading change. 4. Developing future leaders.

3. Copyright © 2010 Prentice Hall 8-3 Definition of Effective Change Leadership Formal leader: an individual who is granted authority, usually based on hierarchical position, in an organization. Leadership: act of leaders that mobilize adaptive behavior within an organization. “Formal leaders have important roles to play as decision- makers, resource-allocators, and occasionally even company symbols.” “Think of leadership as an intervention into the organization designed to impact the behaviors of others.” “Effective leadership can be exercised at all levels of an organization.” “Effective change leadership mobilizes adaptive behavior on the part of organizational members.”

4. Copyright © 2010 Prentice Hall 8-4 Core Tasks of Change Leadership Develop and articulate clear and consistent sense of purpose and direction for the organization Establish demanding performance expectations Enable upward communication Forge an emotional bond between employees and the organization Develop future change leaders

5. Copyright © 2010 Prentice Hall 8-5 Organizational purpose A clearly articulated and well-defined ambition for the organization. “A widespread and common understanding of organizational purpose allows employees to exercise greater autonomy in moving the change effort in its desired direction.”

6. Copyright © 2010 Prentice Hall 8-6 A clearly articulated, well-defined and shared organizational purpose supports Change Shared PurposeHow It Helps Change Supports decentralized decision making Common sense of direction and goals allows employees at multiple levels to make decisions that further overall purpose of organization. Supports enhanced autonomy Employees at all levels understand purpose and goals and can respond quickly and effectively to dynamic environment. Supports coordination Employees working toward a common goal better able to coordinate their efforts.

7. Copyright © 2010 Prentice Hall 8-7 Establishing demanding performance goals Set demanding performance goals that drive change Stretch goals: are performance expectations that are clearly articulated and challenging

8. Copyright © 2010 Prentice Hall 8-8 Upward Communication The flow of information from lower to higher hierarchical levels in an organization. 3 – Ways (to do so) (a)Acknowledging the need to learn from lower organizational levels (b)Creating channels for upward communication in an unfiltered way (c)Pushing down decision making

9. Copyright © 2010 Prentice Hall 8-9 Forging Emotional Bond Forge a relationship between individuals and their organizations based on a deeply felt commitment to the organization’s purpose and goals. “If employees are committed to their organization emotionally as well as instrumentally, they are more likely to engage in required behavioral changes.”

10. Copyright © 2010 Prentice Hall 8-10 DEVELOPING FUTURE CHANGE LEADERS Traditional Approaches to Leadership Development are Barriers to Effective Leadership Development PracticeBarrier Rapid upward mobility Prevents individuals from having to live with consequences of their actions and learning from their successes and failures Movement within a single function Individuals never gain knowledge of total organization, particularly of how subunits fit together Short-term performance pressures Individuals get better at tactical and operational management than at long-term strategic and visionary leadership Recruitment for specific technical skills Internal employee pool is thin on individuals with real leadership potential

11. Copyright © 2010 Prentice Hall 8-11 REMEDIES & SOLUTIONS 1.Work through coalition rather than hierarchies 2.Formulate vision/strategy rather than plans 3.Communicate purpose and build commitment rather than reporting 4.Think in long term rather than immediate terms 5.Work with culture rather than formal structure

12. Copyright © 2010 Prentice Hall 5-12 Top Management Development (Already discussed)  Internal candidates can be developed through Succession planning: a formal process in which top executives regularly review all managers at or above a certain hierarchical level, looking at both performance and potential, and devise developmental plans for their most promising individuals.

13. Copyright © 2010 Prentice Hall 5-13 Top Management Development Continued PracticesOutcomes Explicit international movement Assigning managers to work in a non-native culture for a significant period of time develops cross-cultural awareness and skills that can be vital in a culturally diverse environment Career mazes Explicit lateral movements replace rapid upward functional mobility with a far broader set of experiences. Functional blinders are removed, general management skills are enhanced, and commitment to the organization as a whole is enlarged Slower velocity to allow greater learning So-called fast-track managers often fail to stay in one position long enough to deal with the consequences of their actions (and the reactions of employees). Learning about and dealing with the consequence of actions requires greater length of tenure in a position.