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4.
ROLE OF LEADERSHIP FOR STRATEGIC CHANGE
Upon completion of this chapter you will be able to • Describe the role of the change agent in the change process • Comment on the importance of leadership in the change process • Draw out a process for change management. • Understand the importance of credibility in change management
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4.0
THE AGENTS OF CHANGE
In every programme or project, there are key figures that drive the change. One of the features of the Organization Development (OD) model is the use of a consultant, or change agent, who facilitates the change. This may be an independent person from outside the organization who is brought in solely to advice on and manage a change process. Alternatively it could be somebody who already works within the organization, but within a different function. Schein (1988, quoted in McCalman and Paton, 1992:) makes a number of important points about the role of the change agent/consultant. Managers often do not recognise problems that exist within their organizations and need help to diagnose what their problems really are. They may have a genuine desire to improve things but need help to identify what to improve and how to improve it. They may also need guidance towards finding the right kind of help. Organizations will become more effective if they learn to diagnose and manage their strengths and weaknesses. The essential role of the consultant, therefore, is to pass on their skills of how to diagnose and fix organizational problems to managers so that they can do it themselves in future.
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Activity Illustrate your understanding of the term change agent. What are the types
Which would you recommend as the most effective option? Internal or external change agents?
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Lippit (1959, quoted in McCalman and Paton, 1992:) states that there are four ‘golden rules’ for change agents: Rule 1 The relationship between the change agent and the system that needs to change must be a voluntary one. If people have misgivings about the relationship, they should be able to express these openly. Because of the voluntary nature of the relationship, either party can sever it at any time. Rule 2 The change agent has to help solve a current or potential problem. This means that the organization itself must recognise that a problem exists and accept the need for change. The change agent must have the expertise to deal with the problem. This may come through knowledge of the industry or through an understanding of people management and problem solving methodologies. Rule 3 The relationship between the organization and the change agent is temporary. The change agent needs to see a project through and move on; the organization needs to learn from the change agent how to manage its own development. Rule 4 The change agent must be an outsider who is not part of the hierarchical ______________________________________________________________________________________________________ These materials are copyright of WEC. No part of this document is to be reproduced. Copyright and permission clearance to be Processed for students reading & classroom use only
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power system within the organization. This is the only way they can gain a degree of objectivity and be immune to internal politics.
The change agent needs to be seen as non-partisan by the people who are affected by the change. If an internal change agent is used, it is therefore important that they come from another part of the organization and are brought in to deliver a particular change initiative. They must maintain a distance from any power group or individual within the organization so that their decisions and actions are seen to be impartial. Rosabeth Moss Kanter (1989, quoted in Huczynski and Buchanan, 1991: page 545)) identifies seven skills which change agents need to operate effectively:
1. They should be able to work independently, without the power and sanction of the management hierarchy behind them. 2. They should be effective collaborators, able to contribute in ways that enhance rather than destroy co-operation. 3. They should be able to develop high trust relations with high ethical standards. 4. They should possess self-confidence tempered with humility. 5. They should respect the process of change as well as its substance. ______________________________________________________________________________________________________ These materials are copyright of WEC. No part of this document is to be reproduced. Copyright and permission clearance to be Processed for students reading & classroom use only
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6. They should be able to work across business functions and units. 7. They should be willing to stake rewards on results, and gain satisfaction from success.
Activity In addition the 7 stated skills of change agents, do you see any other valuable points that could be added to the list?
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4.1
THE ROLE OF LEADERSHIP
Management is different from leadership role The words leadership and management are often used interchangeably. In fact, they have different meanings: Managers engage in a range of activities in order to direct resources (including people) towards a goal. Leaders may be involved in the same dayto-day activities but they are distinguished from managers in that they can rise above the usual. This table suggests some comparisons between the leadership and management of a change initiative. Leaders
Managers
Take responsibility for initiating
Set clear objectives for the
change
change
Emphasise and demonstrate
Define the standards that must be
commitment and persistence in
met
achieving goals Encourage innovation and taking
Allow staff to influence
calculated risks in the long-term
performance goals
interests of the organization Seek creative ways to resolve
Help staff to develop specific
conflicts
plans to improve their performance.
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Although there are definable differences between a manager and a leader, the two roles may well be carried out by one person. The person who owns and leads a change initiative may also be the person who is managing it. Change agents need to consider how best to provide leadership through the change process.
Activity List out from within your organization that you see as a manager and a leader. Why is there an apparent difference?
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There are four basic leadership styles: Directive: the leader solves the problems and makes all the decisions, then informs team members. Consultative: the leader consults with team members and then bearing in mind team members’ contributions makes the decisions or takes a course of action. Participative: the leader encourages team members to share responsibility and agree decisions for the team’s performance once the team has agreed how decisions should be made. Delegative: team members manage their own work, referring to the leader as appropriate, for example when team action or organizational policy is involved. Leadership style will be linked to the way in which an individual works with team members, by the culture of the organization and the type and nature of the change, for example: • whether it is a change initiated by team members and employees or imposed on them • the extent of innovation involved and how much upheaval it will involve • how quickly the change must be accomplished • how much autonomy the change agent has in making the change ______________________________________________________________________________________________________ These materials are copyright of WEC. No part of this document is to be reproduced. Copyright and permission clearance to be Processed for students reading & classroom use only
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• the likely response of team members to the change • How open and flexible the organization is to the change.
A participative or delegative style may be appropriate when change is incremental – perhaps as a result of continuous improvement. A directive or consultative approach, on the other hand, may be appropriate when the change is radical and is imposed on the team. It is unlikely that a team leader will consistently use only one style. Most people use a blend of styles, although they may feel most comfortable with one of them. A degree of adaptability is important so that leaders can adjust their management style according to the situations they face. Activity Which style of leadership is most preferred today? Justify.
Identify a leader that best suits the types listed. Justify
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Situational leadership There is no single method of good management and no best way of influencing people to accept change. Leaders must blend their own management styles with internal and external influences such as the needs of their staff, the speed with which change has to be implemented and the nature of the change initiative. In the 1970s, Paul Hershey and Kenneth Blanchard developed a model that takes into account the complexities of the workplace. For them an effective leader is one who diagnoses the needs of both the tasks and the people who must undertake them and adapts their style to suit the situation – hence the name of the model, ‘situational leadership’. This model recognises that individuals and groups will vary in their ability to undertake a particular task and in their willingness to tackle the job. Individuals and groups that are unwilling or unable will need careful direction and monitoring. Individuals who are enthusiastic and able can be given far greater responsibility for carrying out the task, including being asked to monitor and control it. In these circumstances, the leader’s role will be to give general support and more specific help if it is requested. The model is clearly explained by Mike Woodcock and Dave Francis (1982). They describe four styles that leaders (or change agents) can apply in response to particular situations:
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• Telling is appropriate for individuals and groups that lack the necessary knowledge and skills for the task, or where there is no will to learn. The change agent (leader or manager) defines what is required and closely directs and monitors performance. • Selling is appropriate for individuals and groups that have some basic skills and are willing to learn. The change agent is still active in directing and monitoring performance, but places more emphasis on discussing the relevance of the task to the organization or department. Performance standards will be established by both the manager and group members. • Participating is appropriate for individuals and groups that are basically competent. The change agent will show them how to tackle and solve their own problems. Individuals are encouraged to take on responsibility for carrying out their work and maintaining their morale. • Delegating is appropriate for individuals and groups that are broadly competent and enthusiastic about their work and the organization. The change agent will delegate much of the responsibility for the task and will take on the role of a resource that team members can use when necessary. As individuals and groups develop in relation to their work, leaders can vary their style to suit the circumstances. This development may not follow a steady path. In any activity, individuals and groups will ______________________________________________________________________________________________________ These materials are copyright of WEC. No part of this document is to be reproduced. Copyright and permission clearance to be Processed for students reading & classroom use only
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sometimes become temporarily less competent. The leader’s style will need to reflect this.
Strategic leadership One approach to leading change is through strategic leadership. Bourgeois and Brodwin (1984) identify five different approaches to strategy implementation: 1. Change comes from the top and is passed down to senior managers who implement the plans. 2. Strategic leaders reveal their strategies in stages and get support for each stage. 3. Strategic leaders develop a change scenario through lengthy discussions with senior managers. They, in turn, communicate extensively with middle managers. This cascade process helps to gain commitment at all levels. 4. Strategic leaders establish the mission and purpose of the change and encourage support throughout the organization, but specific changes are implemented in a bottom-up process. 5. Change is initiated in the most appropriate places within the organization. The leader’s role is to establish a framework for evaluating proposals for change. ______________________________________________________________________________________________________ These materials are copyright of WEC. No part of this document is to be reproduced. Copyright and permission clearance to be Processed for students reading & classroom use only
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Activity What do you think will be the positive and negative aspects of each approach?
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4.2
A PROJECT MANAGEMENT PERSPECTIVE
Derek Pugh (1978) suggests six rules for managing change effectively. This is a summary of his ideas: Rule 1: Establish the need for change and make this clear to everyone in the organization. Rule 2: Think through the change and consider what it will mean for all the people who are involved. Analyse both the benefits and drawbacks that will affect individuals so that you can establish potential resistance. Rule 3: Initiate change through informal discussion to get feedback and discussion. Early discussion encourages participation and commitment. Rule 4: Encourage people to voice their objections. People will have more confidence if they believe that their objections have been listened to and addressed. It also helps managers to identify and deal with forces that could resist change. Rule 5: Be prepared to change yourself. Your ideas and proposals are not necessarily the only way in which a change initiative can be introduced. By being flexible you give other people a chance to contribute ideas that may prove even more effective. Rule 6: Monitor and reinforce the change. Change must be monitored and modified if necessary. If it works well, then the benefits need to be publicised. This will confirm that change can be beneficial and may reduce resistance to future change initiatives. ______________________________________________________________________________________________________ These materials are copyright of WEC. No part of this document is to be reproduced. Copyright and permission clearance to be Processed for students reading & classroom use only
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Activity
How would the managing of change be conducted without a project management perspective? Is this possible? Justify your understanding
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4.3
LEADERSHIP CREDIBILITY
When leaders are asked to define the ideal leader it is not uncommon to hear an emphasis on intelligence. Frequently left off the list are the qualities that are a personal reflection of the individual–but recent studies indicates that leaders who are honest, competent, and inspirational and look to the future receive kudos as the most influential leaders in life and work. Current research also supports that although a certain degree of analytical and technical skill is a minimum requirement for success, what is called — emotional intelligence“ serves as an accurate predictor to distinguish those who will outperform the capable managers. By combining the emotions and thinking, leaders can build a flourishing career and cultivate lasting, meaningful relationships with credibility as the cornerstone.
CREDIBILITY AT WORK - WHAT IS CREDIBILITY ? Leadership is a give and take between those who desire to lead and those who choose to follow. Any discussion of leadership should attend to the energy of this relationship, which serves as a vital force for the organization. Strategies and talent are empty without an understanding of the human passions that connect constituents and their leaders. Two decades of research by James Kouzes and his associates shed some light on the concept of this vital force. Through the world wide administration of seventy-five thousand questionnaires that asked for the seven qualities most sought after and admired in a leader deep insight was gained. ______________________________________________________________________________________________________ These materials are copyright of WEC. No part of this document is to be reproduced. Copyright and permission clearance to be Processed for students reading & classroom use only
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The results of the survey have been amazingly consistent over decades. Four qualities have continuously earned more than 50 percent of the votes.
We must believe our leaders are: Honest, Forward-looking, Competent, and Inspiring. Communications experts often refer to these characteristics as —source credibility“. In determining the believability of communication sources researchers evaluate individuals on three criteria: their perceived trustworthiness, their expertise and their dynamism. The most credible sources of information rate the highest on these dimensions.
Notably these characteristics are tightly linked to the admired leader qualities of honesty, competent and inspiring. What this link clearly says is that people want leaders who are credible. The propellant to accelerate your success as a leader is credibility. Above all else, we want to believe in our leaders, trusting their word, seeing a match between their words and behaviour that they have personal passion about the direction in which we are going, and that they are taking the lead with a full complement of knowledge and skills.
Knowing leadership credibility has such a significant impact on your follower‘s attitudes and behaviour certainly provides a clear precept for leaders. Credibility makes a difference, and leaders must want to take it personally. Loyalty, commitment, energy and productivity depend upon it. ______________________________________________________________________________________________________ These materials are copyright of WEC. No part of this document is to be reproduced. Copyright and permission clearance to be Processed for students reading & classroom use only
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Activity Identify situations that you have suspected your bosses’ credibility. Why?
Why is leadership credibility very important in change management?
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THE CREDIBILITY DILEMMA
Adding to the presence of credibility, we expect that someone whose direction we would be willing to follow also have a vision for the future and thereby provide a sense of direction that moves us forward. We expect that our leader have a point of view with firm stances on critical issues impacting our national, organizational, and civic reality. In essence we want leaders who not only report the news, but also create it. At the same time, taking a clear position on such vital issues puts the leader in a position to have their credibility questioned by those who support a different direction or outcome.
We must acknowledge that as a society we put leaders in some very awkward situations. After demanding that they remain credible, we undermine them expecting them to focus on a clear and steadfast direction for the future. Aspiring leaders must then learn to balance their personal desire to achieve specific outcomes with the constituent‘s need to believe that the leader has their best interest at heart. Because of these competing standards, leaders must also be diligent in guarding their personal credibility. Simply put a leader must be seen as highly credible if they are to successfully challenge the status quo and lead followers in a new direction. Once the followers believe in a leader‘s trustworthiness, expertise, and dynamism then it is easy to be excited about future possibilities.
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There is not a leader in history who has had 100% of their potential constituents enlisted. Knowing that leadership is not a popularity contest those who aspire to this role must thrive on tensions between their own calling and the desires voiced by their followers. We want to acknowledge that as followers our opinions about those leading will rise and drop with current events. However, history has proven that even in the most difficult periods the most successful leaders are held in extremely high regard. These are the leaders who stay true to their principles whatever the situation.
Those who fall out of leadership roles during adversity often are too weak, too corrupt, or too mercenary to stand firm against the storms of uncertainty or the temptations of their own desires. Those who never reach the outcome described in the vision have no bonds of belief to serve as anchors. So when wealth, fame, or power creates a temptation or the boat is rocked by change and chaos they fall with no credibility. Clearly history shows us that credibility is one of the most difficult attributes for a leader to earn and then sustain.
Activity
How would most people react to credibility dilemma?
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THE BEHAVIORS OF CREDIBILITY
In the research by Kouzes and his associates we learn some common phrases used by followers to describe how they know credibility when they see it: —Leaders practice what they preach.“ —they walk the talk.“ —their actions are consistent with their words.“ —they put their money where their mouth is.“ —they follow through on their promises.“ —they do what they say they will do.“
The verdict is clear. Followers tell us that as leaders we can only be judged as credible hen our words match our behaviours. Our followers are watching. If they don't see the consistency between the voice and actions, we will be deemed not really serious at best or maybe more harshly as we are labelled a hypocrite. Kouzes wrote, "To gain and sustain the moral authority to lead, it is essential to model the way."
Now that we understand the power that lies in connecting what we say to what we do, when at the core of being a leader is to connect your voice to your impact. Aspiring leaders need to give finding their voice the first priority .If you don't find your own voice then your communication will always belong to someone else. Using someone else‘s words will never make you credible. ______________________________________________________________________________________________________ These materials are copyright of WEC. No part of this document is to be reproduced. Copyright and permission clearance to be Processed for students reading & classroom use only
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As an aspiring leader, you have an opportunity to freely and honestly choose the principles that guide your actions. Then as you communicate your beliefs, the impact you have will uniquely represent who you are as a leader. Finding your voice by clarifying your personal values requires commitment. If you are ready for the challenges here are some steps you can take. "We Don't Need another Hero" by Joseph L Badaracco, Jr. (Harvard Business Review, September 2001)
This article focuses on making small changes that reflect your valuesespecially in the face of thorny moral dilemmas. According to Badaracco, you can effect meaningful change by becoming a quiet leader. Such leaders work inconspicuously, deep within their organization, to address ethical challenges (as Niall FitzGerald did in South Africa).
Quiet leaders use four strategies: 1) Buying time (e.g., raising strategic questions and seeking advice) during which the problem may resolve itself; 2) Picking their battles by calculating a battle's risks to and possible returns on their reputation and support networks; 3) Bending the rules by creatively manoeuvring within the rules' boundaries; and 4) Crafting responsible workable compromises. Quiet leaders may not make headlines. However, their modest, measured efforts make Their organizations better places without causing casualties. ______________________________________________________________________________________________________ These materials are copyright of WEC. No part of this document is to be reproduced. Copyright and permission clearance to be Processed for students reading & classroom use only
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"What Makes a Leader?" By Daniel Goleman
In this ground breaking article, Goleman defines the five components of El. Self-management skills include I) self-awareness knowing one's strengths and weaknesses, feeling confident in one's self-worth, knowing intuitively ho,\' one is affecting others; 2) self-regulation-controlling one's emotions and acting with honesty and integrity channelling one's feelings for good purpose: and 3) motivation-having a passion for achievement for its own sake. Relationship skills included 4) empathy-sensing and acknowledging others' feelings; and 5) Social skill building rapport with others, disarming conflicts, communicating clearly and convincingly, and inspiring people to cooperate.
With extended practice and feedback from colleagues, Goleman maintains, anyone can boost their El.
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4.4
SUMMARY
An organization may choose to use a change agent from inside or outside its staff. They serve a useful purpose in that their focus is on the change process itself rather than other organizational issues. Strong leadership is important for any change programme. At all levels, from senior management to individual work teams, there may be people who are leading the change. Their style of leadership may influence how successfully it is implemented.
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TEST QUESTIONS
1. Who are change agents and what are their expected roles? 2. Comment on the importance of leadership in the change process 3. What is value that project management to a manager who is internally coordinating change? 4. Discuss what makes a credible leader?
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