Leadership and Change Management - Assignment Example

Leadership and Change Management Contents Contents 1 Introduction 2 Defining Leadership 3 Leadership at IKSU 5 Michael Armstrong 6 Defining Change Management 6 Issues Surrounding Implementation of Change Management 9 Change Management at Texas Children's Hospital 10 Leadership, Change Management and Marketing 11 Leadership and Change Management at Dell 13 New and Emerging Trends 14 Conclusion 16 Reference List 17 Introduction Leadership is a trait that is in high demand in every profession. The questions about what are the qualities of a good leader and how these qualities can be expressed are continually asked and debated upon. People are on the look-out for more information regarding the development of a good leader. For people generally, leadership is considered as a way to chisel their social and interpersonal skills. For the purpose of the organization, leadership is important to bring special assets to the firm and to promote and enhance the bottom line (Northhouse & Northhouse, 2009). Moreover leadership has been the topic of interest for many people all over the world. Reviewing scholarly material proves the assortment of researches that are available of leadership, experimenting upon the different styles of leadership and trying to comprehend the dynamics of its operation. According to some researchers, leadership is an attitude or a trait whereas others interpret it from an information-processing viewpoint or a relational position. Management of leadership is significant to the survival of the business. Leadership and change management are also intricately tied together. Charles Darwin’s famous “survival of the fittest” states that only that form of life can survive which has the ability to adapt to the changing environment (Kneer, 2009). The theory can be applied to the economic framework as well because the change process occurs at all levels of economic life. As a result, it follows that firms should be able to change with changing conditions and to adapt themselves accordingly in order to survive in this competitive era (Kneer, 2009). Effective and successful change management means that a strong leadership is present to direct and supervise the change. This report covers the role of change management and leadership in an organization. It defines and explains change management and leadership and different models that are used to evaluate them. Moreover it discusses the issues which affect implementation and best practice. It compares and contrasts different theories e.g. models, critical factors, different authors, traditional and modern approaches and explores the links with marketing, performance and strategy. The report also cites examples of organizations practicing effective leadership and change management and identifies current and emerging trends. Defining Leadership There are many ways to define leadership. Over the past sixty years, about sixty-five various classifications have developed to define leadership. One of the definitions was proposed by Bass and regards leadership as the focus of group processes. According to this dimension, the leader is regarded as the center of the group change and encompasses the will of the group. From another definition, leadership is a conglomeration of a set of personality traits. People who have these traits are able to motivate and push others to perform certain tasks. Yet another definition views leadership as a behavior. From such a standpoint, leadership is regarded as the things that are done by the people to cause change in a group. Leadership is also considered in relation to the power relationships that are present between people, i.e. the leader and the subordinates. According to this theory, leaders have the ability to bring about change in others. Transformational leadership viewpoints regard it as the process that makes people gain more and perform better than normal. The skills perspective defines leadership as the capabilities that make a good leader (Northhouse & Northhouse, 2009). However despite all the various dimensional interpretations of leadership, there are certain elements that are considered as central and universal to the notion of leadership. These include that leadership is a process and entails influence. Moreover, leadership takes place within groups and encompasses common goals (Northhouse & Northhouse, 2009). A comprehensive definition of leadership would therefore be that it is “an influential relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes” (Daft, 2007). The word influence means that the relationship between the leader and the followers is not passive; rather the component of influence makes it multidirectional and noncoercive. Leadership is reciprocal and involves not only the influence of the leader on his or her followers but also the influence of the followers on the leader. People who form the links of the chain of leadership are looking for substantive changes. It follows that the purpose of leadership is not to maintain a status quo but also to produce change (Daft, 2007). The changes that are demanded by people are not enforced upon according to the personal likes and dislikes of the leader; conversely, they mirror the intentions and purposes that are in common between the superior and the subordinates (Daft, 2007). For implementation of best practice, it is essential that a leader has the aforementioned characteristics of influencing others and being influenced back. Moreover a leader should be able to induce changes in the followers and set goals for them to achieve. In fact, the traits that make a good leader are the same traits that are required to be an effective follower (Daft, 2007). For effective leadership and healthy dynamics of the relationships that it entails, leadership should be shared between the superior and the subordinates, with all the people being part of the group in true spirit and bearing much greater degree of responsibility (Daft, 2007). The interplay of the roles of leadership between the leader and the followers can be demonstrated by an example. A few years ago in Argentina, residents of a village staged a protest outside a local police station. The reason for this protest was that the police had refused to search for a missing child who was found some days later by the villagers, strangled and raped. The villagers surrounded the police station and did not let anyone come out. The siege only came to a halt when the government promised that the entire staff at the police department would be replaced and that the villagers would have the authority to elect the new chief. What is notable that the villagers would not have been able to carry out the siege with such great resolve had it not been for some leadership. However when they were asked about the leader, it could not be established as to who supervised the mob (Daft, 2007). Leadership at IKSU Idrottsklubben Studenterna i Umeå (IKSU) is a non-profit organization operating in Umeå. Despite being a non-profit organization, it commands successful leadership. A research conducted on the sports club examined the leadership styles that are present in such non-profit organizations. The research concluded that the leadership styles that were present at IKSU had the characteristics of being supporting and coaching. Moreover the leaders assumed the position and responsibility of being team builders and developers. The research also found out that the leaders had a high degree of interaction with the employees, which led to the development of high supportive behavior. The leaders valued the norms of the organization and did not adopt an attitude that would lead to lower motivation and less job satisfaction amongst the employees. Furthermore, they also let the employees be involved in the decision-making process; this is yet another reason for the successful leadership at the organization (Larsson & Storhannus, 2008). Michael Armstrong Michael Armstrong is an example of a directive leader. He was appointed as the CEO of Hughes Aircraft after Malcolm Currie left. He did not graduate from a renowned college known for its business leaders, nor did he have any particular scientific training, like many of his colleagues in companies which dealt with the production and use of latest technology. He started off with a $225 salary at IBM and made his reputation through hard work and commitment to his work (Tim, 1992). He stated that he has gained fame due to international marketing and merchandising. He had a focused approach and was intent on making sure that the employees understood the task that they are required to perform. He observed that the employees should be aware of Hughes and know what they are made to do. He proved his mettle as a marketing executive at IBM and integrated the experience in leading Hughes as an aerospace chief. He focused on balancing the military aspect of the organization with its marketing and made new products for international customers. He also managed and supervised the 63,000 individual’s workforce operating at Hughes. When he accepted the CEO position, he gave the employees in top management positions a choice: either accept his vision or resign. Moreover, his emphasis on the production of goods gave the employees a target to achieve and kept them focused. Armstrong’s success lies in how he brought about an increase in the falling revenues of the organization by shifting it towards the market needs (Bass & Bass, 2008). Defining Change Management Change management broadly refers to a range of activities and programs that are occurring in an organization. Change management deals with helping people how to work their way through change. It is defined as the systematic approach that makes use of “processes, tools and techniques for proactively managing the people side of the change in order to achieve the desired business results” (Hiatt & Creasey, 2003). With advances in technology, there have been changes in the way organizations function. These changes have mandated the adoption of various other skills in order to adapt better and to survive. According to Hiatt & Creasey (2003), the influx of skills and knowledge from various fields to manage change may have a beneficial impact overall, the consequence is that it has created confusions in the minds of business leaders as to the definition of change management and the purposes that it serves. Software and the IT sector have also made use of the term change management extensively. They have used the term to describe the processes and systems that are used to coordinate and bring about software and hardware revisions; this is also known as change control. If the Internet is browsed for definitions of change management, many terms come up with varying meanings. Some research findings describe change management as a book; others are related to the software and hardware control. Hiatt & Creasey (2003) observe that the principles of change management that have developed over the years do not clearly define what it means and wholly encompasses. In fact, at several instances, the principles are not coherently discussed and evaluated as a constituent of the resulting model. Therefore, the how of the rules and principles governing change management is clear, but the why is not. This comes as another challenge for leaders in the modern world; this is because the knowledge and experience of the people in the past who practiced change management and were the pioneers of the change management process as we know today are not accessible easily to modern leaders (Hiatt & Creasey, 2003) Best practice implementation in change management is achieved via five factors. First and foremost is effective communication. A good leader should have the traits to be able to communicate openly and transparently with his or her followers in order to effect a change in them. Secondly, full and active executive support is required for carrying out the change. The authorities should be able to respond to the change and support it accordingly for it to be effectively implemented. The third factor that is needed for managing change is the utmost involvement of the employees. Employee engagement forms the backbone of the dynamics of the work process at the organization. In order to bring about a change, it is necessary for the employees to be maximally engaged in the process. No change can be implemented without proper planning. Therefore another influential factor in successful change management is planning out and evaluating the process. Last but not the least, there is a dire need for recognition amongst the workers and the authorities to bring about a change. If they do not comprehend the importance of the change, they would not be able to contribute their due share in the process, which would obviously reflect poorly on the effectiveness of the change process. Moreover one can deduce that introducing and enforcing a change in the organization should entail the engagement of the employees and a high level of trust (Heathfield, 2010). Most of the change models that are employed to manage change have been developed over the period of time through trial and error. They are shaped as a process or as a sequence of steps. The models are derived from the experiences and business practices of leaders and the operation of firms in managing change (Hiatt & Creasey, 2003). John P Kotter presented an eight step process that comprehends and defines a model for managing change. Every stage in the model is associated with the reactions of the people and takes into account the aspect of how people see, feel and then change. The eight step model starts from increasing urgency. This is what provides the drive for people to change. People are motivated to step up and set goals for changing. The next step involves making a guiding team which pushes the right people to come into the right place, and allows them to be motivated in the direction that would make maximum use of the skills that are required for the change. The third step entails setting up of the right vision by slightly altering the emotional and creative facets required for change. The fourth step is about engaging as many people in the process as possible. It also involves de-cluttering the communications so that technology is availed for the purpose of change management. The next step, empowering action, means that the leader tries his or her best to facilitate the process of change by clearing any problems or hindrances that come in the way and by duly acknowledging the efforts of the followers. Team empowerment also leads to better performance of the team (Chen, Kirkman, Kanfer, Allen & Rosen, 2007). Making short-term wins is also an essential component of the change management process since people would be motivated to work harder if they accomplish smaller tasks that are part of the bigger change process. The last step in Kotter’s model is making change continue. This is done by emphasizing upon the value of effective and triumphant change through recruitment, promotion etc (Chapman, 2010). Issues Surrounding Implementation of Change Management Change management is characteristic of a strategy that buttresses personal and organizational shifts. This support is dependent on both cultural and technological change; this is the main problem that is faced with regard to the implementation of change management at the corporate level. For instance, a perception is rampant in the business thinking of most organizations that customer relationship management is completely a technological advance. These organizations are keen to provide training and assistance programs for the employees to master the operation of the technology. However, they do not give much importance to the cultural factors operating within the organization that may be a hindrance to its success. One of the most important cultural factors is the resistance that the leader feels from some of his or her employees on the adoption of something new and innovative. As noted above, one of the principles of effective change management is the engagement of the employees. Therefore the more the employees are involved, the greater are the chances for the success of the firm. However it is often cumbersome and difficult to make all the employees be engaged in the process of change management at the same time. As a result, there is greater need to mitigate the degree of preliminary objections and complaints that are raised when the change is first introduced. The role of leadership is also essential with regard to the implementation of change. Some employees may have greater objections to the change if the style of leadership is authoritative and unyielding (Raab, Ajami, Goddard & Gargeya, 2008). Change Management at Texas Children's Hospital It was in 2006 that an expansion worth billions of dollars was started in the Texas Children's Hospital. The project was worth $1.5 billion and includes the construction four buildings. The number of service lines and programs are also going to be increased, accruing the number of employee resources. In the current year, the number of employees is expected to have increased by almost three thousand since 2006 and the management of the patient records through electronic medical records. The change management was conducted by a special change management team. The creation of a particular team was done mainly to facilitate with the people side of the change, representing best practice in change management. There were two main factors that were closely regulated throughout the change process under the surveillance of organizational leaders and the change management team: reducing the resistance of the employees and generating dedication for the execution of the change. Employee engagement was maximized by the creation of Change Agent Network. The network consisted of participants from different departments of the hospital; these people served to be co-helpers of the main change management team. In order to evaluate the performance of the project, the management team carried out surveys both before and after the change was implemented. This also served to ascertain which best practices were the most effective (Elam & Christensen, 2010). Leadership, Change Management and Marketing John le Carre, a renowned novelist, once wrote about change management that the desk is not a safe place to watch the world from. Most of the people who have managerial positions in the organization view the world from their desks. This presents its own array of risks. One of the disadvantages of interpreting the market from the desk is that the leaders do not remain in touch with the customers. This necessitates a change. Researches carried out regarding marketing have shown that competitive elements are perhaps the foremost element that are inducing businesses to change and thus competitors are often alleged for the need for change management. However, the real driving force for change is the customers themselves. The clients are reflecting the market share of a product; therefore the contribution of each customer to the market share is delineates a substantial number of customer defections (Hiam, 1997). In the viewpoint of Hiam (1997), the reason why an organization is being pressurized by its competitors is due to the number of unsatisfied customers or the increasing difficulty of attracting the secure clientele of the competitors. The role of the leader in this regard is his perception and interpretation of the market. If the leader continues to view the market from the desk, he is likely to regard competitors as the immediate threat. However it is the customers who are the sustainers of the market and their purchase decisions result in shifts in the market, amongst other factors. The strategy that needs to be adopted by people in managerial positions is that the important issues that are impacting product development, service quality and many other reasons that may not come into the notice of the manager from behind the desk (Hiam, 1997). Change management in such circumstances should be aimed to satisfy the customers; otherwise, it will not be able to gain anything and all efforts would be vain. The products should be laden with a greater value but at a reduced cost. This market-focused change should be considered and implemented by all managers desiring change even if the change management strategy is not inclusive of customer focus (Hiam, 1997). For some managers, change is not only regarded as a survival strategy. In fact, it is the core of the marketing strategies taken up by the firm. Such managers market their flexibility to change and adapt to the changing circumstances. This helps the organization gain competitive advantage especially in instable economic times. Although it is difficult to be in the process of continuous change, it proves to be beneficial to the organization if customers prefer change and make the market in change too. For instance, the company Xerox ran an ad in business print publications that boasted its ability to change. The ad reads that the story of Xerox is purely concerned with change. Not only the company is at ease with change but also a process of ongoing change has been in operation since the time the first photo copier was made (Hiam, 1997). The ad run by Xerox is a powerful marketing tool since the influx and rise in the popularity of new technologies keep the market in motion such that there is always change occurring. As a result, change management is vital in customer-focused marketing strategies (Hiam, 1997). Leadership and Change Management at Dell Dell was not such a renowned brand name in the start. It is through adaptation to change that it rose from the position of a marginal competitor to market leadership. In the early 1990s, Dell was like just any other competitor in the computers industry. Its sales were high, but it only has 3% of the market share for PCs in 1994. Moreover it also had a loss of $36 million that year. In just a matter of five years, Dell became the top PC seller in the US, leaving behind famous names such as Compaq, Hewlett-Packard and IBM. At the start of 2000s, Dell established itself as the worldwide market leader in the sale of PCs. Moreover it was also accredited for having worldwide market leadership. The market share of Dell in desktop and notebook PC is 19% and 24% respectively, making it the most consumed brand. The reason for so much success is the adaptation of Dell to the changing preferences of the consumers and the changes in its organizational framework. It made stunning advances in its core operations and focused on customer satisfaction. It improved operating performance by promoting its operating efficiency, cycle times and customer service. Michael Dell’s foresight into what would push the sales of Dell further higher is also exemplary of strong leadership. He realized the need to gain advantage of technology as the changing times demanded. Therefore he made the company stress upon direct sales on the Internet at Dell’s official website Dell.com. This also led to the rise in sales on the Internet to $50 million per day. It should also be noted that Dell changed the supply organization too and was the pioneer of mass customization of PCs. The consequence of the innovative combination of mass customized PCs, customer-specific design of the product, just-in-time supply chain solutions and fast service even to distant areas was fast growth in sales and rising margins (Davidson & Davidson, 2004). This graph shows performance breakthrough at Dell as represented by huge reductions in Inventory (Davidson & Davidson, 2004). New and Emerging Trends The fast pace at which technology is changing has affected every sector. Globalization, changing geopolitical forces, outsourcing, virtual teams and e-businesses are some of the new trends that have encroached upon the traditional ways of working and living, causing people to change and adopt them. Furthermore, may people are of the viewpoint that given the unstable economic conditions, ethical scandals and the lack of security due to the rapid influx of terrorism in many countries of the world and the subsequent wars, it is much more difficult for leaders to supervise people and to keep them motivated, grounded and focused towards achievement of a goal. People are of the opinion that the transitional phase that the world is going through at the moment is far greater in magnitude than the one it underwent since the advent of the modern age and the Industrial Revolution some five hundred years ago. The accelerated pace at which events are occurring as well as the environmental changes that these events are bringing has a significant impact on the organizations and present greater challenges for leaders. Judging overall, such shifts are representative of a change from the traditional paradigm to a new paradigm. The changed, new reality for leaders encompasses that they forego the old paradigm which involved control, stability, uniformity, hero, competition and a self-centered approach. The new paradigm, on the other hand, involves empowerment, change and crisis management, diversity, humbleness, collaboration and an approach pertaining to a higher ethical purpose (Daft, 2007). The Association of Change Management Professionals (ACMP) has convened a conference on change leadership and best practices in change management in May 2011 (PR Newswire, 2010). The conference is aimed to bring together experts on change management all over the US. They are going to present their papers and discuss best practices in the implementation of change management. This is indicative of the increasing emphasis that is being placed on research in change management. Conclusion Change management is imperative to the success of the organization. Moreover change management requires the presence of strong leadership. There are many different styles of leadership, depending upon the definitions with which they are interpreted. It is primarily defined as the influence of a person upon a group to motivate them for the achievement of a common goal. Successful management is integral to the survival and success of the organization in a changing business milieu (By, 2005). Change management entails that a systemic approach is adopted to bring about change. It is critical for the survival of the business, particularly in current times. Implementation of change management is not an easy task. Leaders are faced with the problem of unwanted attitude from potential users: resistance (Aladwani, 1995). The mismanagement of resistance often aggravates the implementation project. Therefore it follows that managers try to make use of this resistance rather than letting it be an impediment in the process (Waddell & Sohal, 1998). The management of issues by managers who sit behind the desk does not offer them a broad perspective of the reality. As a result, organizational change management often tends to ignore the cultural aspect, while focus is given on the technical aspect (Diefenbach, 2007). This is another area of focus for managers. However, not a lot of research has been carried out on change management and there is need for more. Reference List Aladwani, AM 2001, ‘Change management strategies for successful ERP implementation’, Business Process Management Journal, vol. 7, no. 3, pp.266-275. Bass, BM & Bass, R 2008, The Bass handbook of leadership: theory, research, and managerial applications, edn 4, Simon and Schuster. By, RT 2005, ‘Organisational change management: A critical review’, Journal of Change Management, vol. 5, no. 4, pp. 369-380. Chapman, A 2010, Change management, viewed 1 October 2010, Chen, G, Kirkman, BL, Kanfer, R, Allen, D & Rosen, B 2007, ‘A Multilevel Study of Leadership, Empowerment, and Performance in Teams’, Journal of Applied Psychology, vol. 92, no. 2, pp. 331-346. Daft, RL 2007, The leadership experience, 4th edn, Mason, Cengage Learning. Davidson, B & Davidson, WH 2004, Breakthrough: how great companies set outrageous objectives, and achieve them, John Wiley and Sons. Diefenbach, T 2007, ‘The managerialistic ideology of organisational change management, Journal of Organizational Change Management, vol. 20, no. 1, pp.126-144. Elam, S & Christensen, T 2010, Helping Employees Adapt to Change at Texas Children's Hospital, viewed 1 October 2010, Heathfield, SM 2010, Leadership and Management Success Tips, viewed 1 October 2010, Hiam, A 1997, The portable conference on change management, Human Resource Development. Hiatt, J & Creasey, TJ 2003, Change management: the people side of change, Prosci. Kneer, C 2009, Change Management: Enhance the Ability to Survive, GRIN Verlag. Larsson, L & Storhannus, P 2008, Understanding leadership in successful non-profit organizations : A case-study of IKSU, viewed 3 October 2010, Northhouse, PG & Northhouse PG 2009, Leadership: Theory and Practice, 5th edn, SAGE. PR Newswire, 2010, ACMP Announces Inaugural Global Conference on Leading Change, viewed 1 October 2010, Raab, G, Ajami, RA, Goddard, GJ & Gargeya, VB 2008, Customer relationship management: a global perspective, Gower Publishing, Ltd. Tim, D 1992, ‘New man atop Hughes Aircraft: Michael Armstrong brings strong IBM marketing credentials to an aerospace giant’, Los Angeles Business Journal, viewed 3 October 2010, Waddell, D & Sohal, AS 1998, ‘Resistance: a constructive tool for change management’, Management Decision, vol. 36 no. 8, pp.543-548. Read More