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 acceleratedGlobalization will be imperativeGeographic 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 globalThe U.S. work force is in competition with

workers around the world for jobsCompanies 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 necessaryEffectively communicating and bridging

cultural gaps will be a top priorityTeamwork 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?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? What Do We Know? (cont’d)(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?What Don’t We Know?

Role of traits

Understanding the impact

of the organizational

context

Full impact of culture at

various levels

Changes in OrganizationsChanges in Organizations

Structural Structural changeschanges

Changing Changing demographicsdemographics

GlobalizationGlobalization New work ethicNew work ethic TechnologyTechnology

Learning and Learning and

knowledgeknowledge Need for Need for

flexibilityflexibility Fast-paced Fast-paced

changechange Fit individual Fit individual

and organizationand organization

Consequences for Consequences for LeadershipLeadership 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 Upcoming Areas of Research Research

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

What Should Leaders Do? What Should Leaders Do?