Effective Leadership in Change Management

1. London Centre of Marketing ( LCM) Level: Postgraduate Diploma in Business Management & Marketing Module – Leadership Lecturer : Dr. SAMTA RAI Date - 25th Jan, 2011 Dr. Samta Rai 1 1

2. LO4 • Learning Outcome • Critically evaluate key trends and emerging issues in organisational • leadership • Topic • ► Effective leadership in change management Dr. Samta Rai 2 2

3. Lewin’s force field analysis S T A T U S Q U O Restraining forces Driving Forces

4. A force-field analysis provides an initial view of change problems that need to be tackled, by identifying forces for and against change based on an understanding of the context of change - including the existing culture. • It allows some key questions to be asked – • What aspects of the current situation would block change, and how can these be overcome? • What aspects of the current situation might aid change in the desired direction, • and how might these be reinforced? • What needs to be introduced or developed to aid change? Dr. Samta Rai

5. Kurt Lewin was an American social psychologist and having contributed to science group dynamics and action research, he  is regarded one of the founders of modern psychology. But Lewin is perhaps best-known for developing Force Field Analysis, using Force Field Diagram. According to Kurt Lewin "An issue is held in balance by the interaction of two opposing sets of forces - those seeking to promote change (driving forces) and those attempting to maintain the status quo (restraining forces)". Lewin viewed organizations as systems in which the present situation was not a static pattern, but a dynamic balance ("equilibrium") of forces working in opposite directions. In order for any change to occur, the driving forces must exceed the restraining forces, thus shifting the equilibrium.

6. The Force Field Diagram is a model built on this idea that forces - persons, habits, customs, attitudes - both drive and restrain change. It can be used at any level (personal, project, organizational, network) to visualize the forces that may work in favor and against change initiatives. The diagram helps its user picture the "tug-of-war" between forces around a given issue. Usually, there is a planned change issue described at the top, and two columns below. Driving forces are listed in the left column, and restraining forces in the right column. Arrows are drawn towards the middle. Longer arrows indicate stronger forces. The idea is to understand and make explicit all the forces acting on a given issue.

7. The Force Field Analysis is a method to: - investigate the balance of power involved in an issue- identify the most important players (stakeholders) and target groups for a campaign on the issue- identify opponents and allies- identify how to influence each target group

8. Leaders should have the ability to act as a change agent within an organisation. • Identify the attitudes, values and behaviour of a change agent. • Reflect on their own attitudes, values and behaviour and identify areas of • change required to be an effective change agent. • – Identify a plan of action to maintain effectiveness as a change agent. • – Who are the likely change agents within organisations? • – Internal and external change agents. 8

9. To really understand organisational change and begin guiding successful change efforts, the change agent ( leader) should have at least a broad understanding of the context of the change effort. This includes - 1. Understanding the basic systems and structures in organisations, including their typical terms and roles. This requirement applies to the understanding of leadership and management of the organisations as well. 2. Leaders always need the ability to get all people affected by the project involved to ensure their support and commitment. This requires a high competency as the basis for acceptance as well as soft skills, which are often summarised as emotional intelligence. This includes the ability to communicate, to understand and to take into account opinions and doubts of others. 9

10. 3. Change projects involve a great variety of factors and forces. These factors do not only comprise the reasons and objectives for change, but also the existing state of the organisation, values, beliefs and routines of the people there. Many change projects challenge the existing cultural framework of an organisation. Efforts to change such lasting values however, lead to resistance and denial. It takes the acceptance and the support of all people affected by such projects to make them succeed. It is the change agent’s task to generate this acceptance in order to implement change with the people, not against them. 10

11. Key Competencies of a Leader in Managing Change • Sensitivity to changes in key personnel, top management perceptions and market conditions, and to the way in which these impact the goals of the project. • Setting of clearly defined, realistic goals. • 3. Flexibility in responding to changes without the control of the project manager, • perhaps requiring major shifts in project goals and management style. 11

12. Roles • Team-building abilities, to bring together key stakeholders and establish effective working groups, and to define and delegate respective responsibilities clearly. • 2. Networking skills in establishing and maintaining appropriate contacts within and outside the organisation. • 3. Tolerance of ambiguity, to be able to function comfortably, patiently and effectively in an uncertain environment. 12

13. Communication • Communication skills to transmit effectively to colleagues and subordinates the need for changes in the project goals and in individual tasks and responsibilities. • Interpersonal skills, across the range, including selection, listening, collecting appropriate information, identifying the concerns of others, and managing meetings. • 3. Personal enthusiasm in expressing plans and ideas. • 4. Stimulating motivation and commitment in others involved. 13

14. Negotiation • 1. Selling plans and ideas to others by creating a desirable and challenging vision • of the future. • 2. Negotiating with key players for resources, for changes in procedures, and to • resolve conflict. • Managing up • Political awareness in identifying potential coalitions and in balancing conflicting goals and perceptions. • Influencing skills, to gain commitment to project plans and ideas from potential sceptics and resisters. • 3. Helicopter perspectives, to stand back from the immediate project and take a broader view of priorities. 14

15. Styles of managing change Style - Education Means/Context – Group briefings assume internalisation of strategic logic and trust of top management Benefits - Overcoming lack of ( or mis) information Problems – Time consuming. Progress may be unclear Circumstances of effectiveness – Incremental change or long-time horizontal transformational change Dr. Samta Rai

16. Styles of managing change Style - Collaboration Means/Context – Involvement in setting the strategy agenda and/or resolving strategic issues by taskforces or groups Benefits - Increasing ownership of a decision or process. May improve quality of decisions. Problems – Time consuming. Solutions/outcome within existing paradigm. Circumstances of effectiveness – Incremental change or long-time horizontal transformational change Dr. Samta Rai

17. Styles of managing change Style - Intervention Means/Context – Change agent retains coordiantion/control: delegates elements of change Benefits - Process is guided /controlled but involvement takes place Problems – Risk of perceived manipulation Circumstances of effectiveness – Incremental or non-crisis transformational change Dr. Samta Rai

18. Styles of managing change Style - Direction Means/Context – Use of authority to set direction and means of change Benefits - Clarity and speed Problems – Risk of lack of acceptance and ill- conceived strategy Circumstances of effectiveness – Transformational change Dr. Samta Rai

19. Styles of managing change Style - Coercion Means/Context – Explicit use of power through edict Benefits - May be successful in crisis or state of cinfusion Problems – Least successful unless crisis Circumstances of effectiveness – Crisis, rapid transformational change or change in established autocratic cultures. Dr. Samta Rai

20. Case Study Leadership styles for managing change Successful top executives have different leadership styles Key words – Noodle – to improvise aimlessly Coddle - To treat indulgently 20