Topic 18 Leadership 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 scanning Vision Setting new goals to support the vision Identifying 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 21 st 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 21 st 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 21 st 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 21 st 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 21 st 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 21 st 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