Leading Organizational Change Through Strategic Leadership

How we wish we could lead
change…

How it really is…
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L=Vision +Task+Relationship
Leadership?
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Change Means Leadership
Diversity
Interdependence
• Stable
• Complicated
• The Best
• Policy
• Management
• Unfolding
• Complex
• The Good
• Politics
• Leadership
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9
Status Quo: Paradigms
Effective tools
Make things work
Provide coherence
Eventually, limit
what we think we
can do
Eventually stops
working
0
10
20
30
40
50
60
70
80
Inputs
Productivity
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Change
Change = A * B * C > Benefits of Status Quo
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How do we break out of the
paradigm?
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Questions
 What are the challenges of strategic leadership
 Defining change management
 Individual change management
 Organizational change management
 Who is involved in managing change
 What is the nature of organizational change?
 How can planned organizational change be
managed? Know more about HackerEarth’s talent
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What are the challenges of strategic
leadership?
 Strategic leadership creates the capacity for
ongoing strategic change.
 Components of strategic leadership:
– Determining the organization’s purpose or vision.
– Exploiting and maintaining the organization’s core
competencies.
– Developing the organization’s human capital.
– Sustaining an effective organizational culture.
– Emphasizing and displaying ethical practices.
– Establishing balanced organizational controls.
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What are the challenges of strategic
leadership?
Sustainable competitive advantage relies on
creativity and innovation.
Creativity is the generation of a novel idea
or unique approach to solving problems or
crafting opportunities.
Innovation is the process of creating new
ideas and putting them into practice.
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What is the nature of organizational change?
Change leader.
– A change agent who takes leadership
responsibility for changing the existing pattern
of behavior of another person or social system.
 Change leadership.
– Forward-looking.
– Proactive.
– Embraces new ideas.
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Change leaders versus status quo managers.
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Change management is:
The process, tools and techniques to manage
the people side of change to achieve the
required business results.
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Organizational change can be represented as
three states of change
States of change
How things
are done today
How things will
be done
tomorrow
How to move
from current
to future
Current
state
Transition
state
Future
state
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Examples of changes organizations are
currently taking on
Ad hoc processes Documented and managed processes
Multiple, legacy systems One integrated database
Generalists in the call center Specialists in the call center
No web interface for suppliers
Supplier website integrated into supply chain
Two different companies Merged organization
Current
state
Transition
state
Future
state
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In reality, there are both organizational and
individual future states
Organization
Individual
How I do my
job today
How I will do my job after the
change is implemented
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
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The organization’s future state is actually the
collection of many individual future states
Organization
Individuals
Documented and managed processes
One integrated database
Specialists in the call center
Supplier website integrated into supply chain
Merged organization
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
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The focus of change management is
helping individuals make their transition
Change management drives project
success by supporting individual
transitions required by organizational
projects and initiatives
Individuals
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
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There are consequences of not managing
the people side of change
Lower productivity
Passive resistance
Active resistance
Turnover of valued employees
Disinterest in the current or future state
Arguing about the need for change
More people taking sick days or not showing up
Changes not fully implemented
People revert to the old way of doing things
The change being totally scrapped
Divides are created between ‘us’ and ‘them’
23
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Change management
perspectives
Individual
perspective
– Understanding how one
person makes a change
successfully
Organizational
perspective
– The tools that project
teams and managers
have to support the
‘people side’ of change
24
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Top-down change.
– Strategic and comprehensive change that is
initiated with the goals of comprehensive
impact on the organization and its performance
capabilities.
– Driven by the organization’s top leadership.
– Success depends on support of middle-level
and lower-level workers.
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Bottom-up change.
– The initiatives for change come from any and
all parts of the organization, not just top
management.
– Crucial for organizational innovation.
– Made possible by:
• Employee empowerment.
• Employee involvement.
• Employee participation.
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 Integrated change leadership.
– Successful and enduring change combines advantages
of top-down and bottom-up approaches.
– Top-down:
• Breaks up traditional patterns.
• Implements difficult economic adjustments.
– Bottom-up:
• Builds capability for sustainable change.
• Builds capability for organizational learning.
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 Transformational and incremental change.
– Unplanned change.
• Response to unanticipated events.
• Good leaders act on opportunities for reactive change.
– Planned change
• Aligning the organization with anticipated future challenges.
• Activated by proactive leaders who are sensitive to
performance gaps.
• Transformational change  major and comprehensive
redirection.
• Incremental change  adjusting existing systems and
practices.
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 How to lead transformational change:
– Establish a sense of urgency for change.
– Form a powerful coalition to lead the change.
– Create and communicate a change vision.
– Empower others to move change forward.
– Celebrate short-term “wins” and recognize those who
help.
– Build on success; align people and systems with new
ways.
– Stay with it; keep the message consistent; champion the
vision. Know more about HackerEarth’s talent
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 External forces for change:
– Globalization.
– Market competition.
– Local economic conditions.
– Government laws and regulations.
– Technological developments.
– Market trends.
– Social forces and values.
 Internal forces for change:
– Arise when change in one part of the system creates the need for
change in another part of the system.
– May be in response to one or more external forces.
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Organizational targets for change:
– Tasks
– People
– Culture
– Technology
– Structure
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How can planned organizational change be
managed?
 Phases of planned change
– Unfreezing
• The phase in which a situation is prepared for
change and felt needs for change are developed.
– Changing
• The phase in which something new takes place in
the system, and change is actually implemented.
– Refreezing
• The phase of stabilizing the change and creating the
conditions for its long-term continuity.
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Lewin’s three phases of planned
organizational change.
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Phase 1 – Preparing for change
Understanding the
nature of the change
Understanding the
groups being changed
Creating the right
sponsorship model and
coalition
Identifying risks
Developing special
tactics
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Phase 2 – Managing change
Communication plan
Sponsor roadmap
Training plan
Coaching plan
Resistance mgmt plan
35
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Phase 3 – Reinforcing change
Compliance audit reports
and employee feedback
Corrective action plans
After action review
Transition management
36
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Who is involved in managing change
The change management
resource on a project plays
the role of enabler
– The conductor of the
orchestra
– The director of the play
Effective change
management requires
involvement and action by
many in the organization
Project team
Change
management
Senior leaders
Managers and
supervisors
Employees
37 37
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Senior leaders
Why is this group important?
– Active and visible sponsorship is identified as the
top contributor to overall project success in
Prosci’s five benchmarking studies
– Senior leaders are one of two preferred senders of
messages about change
What is this group’s role?
– Participate actively and visibly throughout the
project
– Build the needed coalition of sponsorship with
peers and other managers
– Communicate the business messages about the
change effectively with employees
Project team
Change
management
Senior leaders
Managers and
supervisors
Employees
38 38
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Managers & supervisors
– Managers and supervisors are the other preferred
sender of messages about change
– This group has a unique and well-developed
relationship with the employees being impacted
by the change
– Communicate the personal messages about the
change with their direct reports
– Conduct group and individual coaching sessions
– Identify, analyze and manage resistance
– Provide feedback to the rest of the change
management ‘gears’
Project team
Change
management
Senior leaders
Managers and
supervisors
Employees
39 39
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Employees
– Employees will ultimately make changes to how
they do their day-to-day work
– Their acceptance and use of the solution
determines the success of the project and the
ongoing benefit derived from the change
–
– Seek out information related to the business
reasons for change and the personal impact of the
change
– Provide feedback and reaction to the change and
the change management efforts
– Take control of the personal transition (using an
individual change management model like
ADKAR)
Project team
Change
management
Senior leaders
Managers and
supervisors
Employees
40 40
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Project team
– The project team designs and develops the
‘change’ – they are the ones who introduce new
processes, systems, tools, job roles and
responsibilities
– This group provides much of the specific
information about the change to the other ‘gears’
– Provide timely, accurate and succinct
information about the change (or project)
– Integrate change management activities into
project management plans and activities
Project team
Change
management
Senior leaders
Managers and
supervisors
Employees
41 41
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Committed Core
Get it
– Feeling
– Understanding
See their success
Identify with the
change
Committed to you
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Working with Committed Core
Working with the Core
* Ensure their ongoing engagement by checking in.
* Focus their work on particular achievable
improvement- their leadership, practice and larger
issues.
* Get them to understand and tell the stories of their
transition.
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Working with the Middle
Working with the Middle
*Segment and actively develop each group or individual.
*Repeat tales of success- patients, financial, work-life of the
committed core.
*Pair those ready to change with mentors who connect to them.
*Have them assist with larger undertakings.
*Provide new skills, but “just in time”.
*Teach them how to solve problems in the new paradigm.
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Distant Detractors
Don’t see value
Deeply attached to SQ
Do not see themselves in
the future
Judgmental
Faithful to the “true
cause”
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Working with Detractors
• Ask questions to understand; not convince
• Decide who is essential
• Develop individual plans for each
• Remember
• Emotion
• How they see it
• Investing your time
• Do not ignore attacks
• Digital wisdom
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Research results
When to start change management
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managed?
 Reasons for people resisting change:
– Fear of the unknown
– Disrupted habits
– Loss of confidence
– Loss of control
– Poor timing
– Work overload
– Loss of face
– Lack of purpose
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managed?
Methods for dealing with resistance to
change:
– Education and communication
– Participation and involvement
– Facilitation and support
– Facilitation and agreement
– Manipulation and co-optation
– Explicit and implicit coercion
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managed?
 Force-coercion strategy of change.
– Uses power bases of legitimacy, rewards, and
punishments to induce change.
– Relies on belief that people are motivated by self-
interest.
– Direct forcing and political maneuvering.
– Produces limited and temporary results.
– Most useful in the unfreezing phase.
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managed?
 Rational persuasion strategy of change.
– Bringing about change through persuasion backed by
special knowledge, empirical data, and rational
argument.
– Relies on expert power.
– Relies on belief that reason guides people’s decisions
and actions.
– Useful in the unfreezing and refreezing phases.
– Produces longer-lasting and internalized change.
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managed?
 Shared power strategy of change.
– Engages people in a collaborative process of
identifying values, assumptions, and goals from which
support for change will naturally emerge.
– Time consuming but likely to yield high commitment.
– Involves others in examining sociocultural factors
related to the issue at hand.
– Relies on referent power and strong interpersonal skills
in team situations.
– Relies on belief that people respond to sociocultural
norms and expectations of others.
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Alternative change strategies and their
leadership implications.
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54
Your Ideas vs. Their Anxiety
•To work, it has
to be about what
they love…
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Change Leadership Check List
 Awareness
 Self
 Others
 Alignment
 Culture
 Strategies
 Action
 Small steps
 Participation
 Communication
 Coherence
 Inspiration
 Direction
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Change Strategy: From a Pro
“There is nothing
more difficult to
carry out, nor more
doubtful of success,
nor more dangerous
to handle, than to
initiate a new order
of things.”
Machiavelli,
The Prince, 1513
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Change Strategy: From a Pro
• Broad
• Adaptive
• Other Directed
• Purposeful
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THANK YOU!
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Leading Organizational Change Through Strategic Leadership

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