Organisational Change Management Volume 2

Too Little Leadership Also Fuels Mistakes

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Management involves:

. Planning and Budgeting ‐ establishing detailed steps and timetables for achieving defined objectives and then allocating the resources necessary to make that happen

. Organising and Staffing ‐ establishing some structure for accomplishing requirements, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people, and creating methods or systems to monitor implementation

. Controlling and Problem Solving ‐ monitoring results vs. planning in some detail, identifying deviations, and then planning and organising to solve these problems

. Producing a Degree of Predictability and Order ‐ running an organisation efficiently by consistently producing the short-term results expected by various stakeholders, eg for customers, always being on time; for stockholders, being on budget, etc

Leadership involves:

. Establishing Direction for the Future ‐ developing a vision of the future, often the distant future, and strategies for producing the changes needed to fulfil that vision

. Aligning People ‐ communicating the direction by words and deeds to all those whose co-operation is needed so as to influence the creation of teams and coalitions that understand the vision and strategies, and accept their validity, ie get buy-in

. Motivating and Inspiring Action ‐ energising people to overcome major political, bureaucratic and resource barriers to change by satisfying very basic, but often unfulfilled, human needs

. Producing change ‐ often this is to a dramatic degree, and has the potential of producing extremely useful change, eg new products that customers want; new approaches to labour relations that help make a firm more competitive, etc

. Creating the "right" environment within an organisation by providing the framework for staff and the organisation to learn and to maximize their potential to handle the uncertain future. This includes appropriate systems, training and organisational transparency at all levels in the organisation. One of the most important roles of leadership is to identify the mismatches, and then to integrate them in ways that creates the environment that leads to major competitive breakthroughs.

Need to understand that the task of leadership has changed. For example, there is too much focus on high performers rather than identifying high potential, ie

"...companies are seriously challenged about identifying and developing their potential leaders. No longer is the past the best predictor of future success. The task of leadership is changing dramatically......what got you there is unlikely to keep you here or get you further..."

Rajeev Vasudeva (CEO of Egon Zehnder) as quoted by Anne Hyland, 2015a

- need to be able to answer the questions: what is leadership? and what makes a good leader? Especially to handle an era of low economic growth and rapid technological advances where change is constant.
- Egon Zehnder (a leading global head hunter firm) in selecting leaders for change using the 4 markers, ie curiosity, insight, engagement and resilience
i) curiosity ( keeping yourself fresh and always learning, including what is happening outside your industry; it is about developing yourself as you need to keep yourself relevant in today's changing environment; this includes seeking feedback and learning from it)
ii) insight (involves connecting the dots and distilling information despite being overloaded with information; using information in short-term and long-term planning)
iii) engagement (this requires humility and emotional intelligence to handle more diverse workplaces across a mixture of cultures and generation; includes inclusiveness and collaboration, ie

"...The only way that you can lead is to connect with people emotionally and to build those relationships. On the external side, you need to build relationships and connect with multiple stakeholders, from government to environmentalists to consumer activists. You need to deeply engage and be able to build a culture of purpose what this company stands for..."

Rajeev Vasudeva (CEO of Egon Zehnder) as quoted by Anne Hyland, 2015a
This means that the leaders must be motivated by a bigger purpose than just themselves. They must understand the social consequences of their actions and their impacts on different stakeholders from shareholders to staff to governments to communities, etc.
"...the narrative is of a common interest, not selfishness, where leadership is perceived as acting for all and not just a few..."
Rajeev Vasudeva (CEO of Egon Zehnder) as quoted by Anne Hyland, 2015a

resilience (to handle the increasingly volatile environment and accelerating pace of change)

These 4 are needed to handle the future which is more complex and challenging.

. In summary, managers do things right, ie focus on how (uniqueness) & what (implementation); leaders do the right thing, ie focus on purpose (why they exist). The problem lies in splitting the managerial and the leadership functions. Those in charge have to do 2 things

- look after the knitting (managerial functions)

- continually scan the environment for news of important change (leadership function)

It is important to have a balance of the two and not favour one over the other.

(sources: John Kotter, 1995 & 1996; Alistair Mant, 2000)


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