Topic 18Leadership and Change / Leadership in the Future

(NOTE: Material in this topic will be on Exam 2 only if you choose it as your essay option.)

“Old is easy , new is hard”

~David B. Peterson and Mary Dee Hicks,

Personnel Decisions International

Introduction

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.

Introduction

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 and Management: Revisited Again

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 and Management: Revisited Again

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.

The Rational Approach to Organizational Change

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

(D) Dissatisfaction

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.

(D) Dissatisfaction

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.

(M) Model

Environmental scanningVisionSetting new goals to support the visionIdentifying needed system changes

– Systems thinking approach– Siloed thinking

The Components of Organizational Alignment

(P) Process

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.

(P) Process

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.

(R) Resistance

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

(R) Resistance

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.

Reactions to Change

The Rational Approach to Organization Change and the Interactional Framework

Change and the Future

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

Leading in the 21st Century

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.

Leading in the 21st Century

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

Leading in the 21st Century

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

Leading in the 21st Century

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

Leading in the 21st Century

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

Leading in the 21st Century

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