Leadership

The Roles of Leadership

In past issues of Impact, we described the major “roles” leaders must take on to be truly effective. These include: The Role of a Visionary; The Role of Integrity, Honesty and Values; The Role of Releasing Potential and Energy; and The Role of Leading Change (Planned Change and Emergent Change).

While each role is unique, they are also interdependent. The skills leaders learn to perfect one role will also help them master the other roles. In issues of Impact, we will continue to explore these leadership roles- what they are and how to hone your skills for each role.

The Role of Leading Change in the Organization

Leading a change initiative is one of the most difficult tasks a leader can face. It is a double-edged sword with many risks and opportunities. For most leaders, managing a change initiative is a crucial role, but the responsibilities can vary widely depending on the type of change.

Two Types of Change Processes

There are two types of change in an organization: planned change and “emergent” change. In our last issue, we discussed the leader’s role in planned change, which refers to initiatives that are driven “top-down” in an organization. In this issue we explore the leader’s role in “emergent” change, which refers to a culture where change can and should come from within the organization, at any level, and employees feel comfortable and are willing to offer ideas that will improve the business.

A “Readiness for Change” Culture

In “emergent” change, the leader must create and foster a “readiness for change” culture. In this kind of culture, change is not only easily accepted, but also is actually embraced by the organization. Further, change can be spawned from anywhere within the organization, not just driven top-down. Organizations are becoming increasingly interested in learning how to create a permanent “cultural readiness” for change that goes beyond a specific change implementation project. These organizations strive over time to create a corporate culture that is not only ready for change, but also accepts it and thrives in it.

The premise behind “emergent change” is that if a leader can create the right kinds of conditions in the organization, then change will naturally “emerge” on its own. The question then becomes, what are those necessary conditions for this “readiness for change” culture?

Necessary Conditions for a “Readiness for Change” Culture

We believe there are four cultural elements that must be installed in order to create a “readiness for change” organization. These are:

A workforce that is business literate

A workforce that has permission to act

A workforce that will challenge the status quo

Leadership that encourages a “readiness for change” culture

Next, we'll explore each one of these elements.

A Workforce that is Business Literate

We define a business literate workforce as one that understands both the strategic context of the business and the personal impact they can have on critical business outcomes.

Ensuring that employees understand the strategic context of their work is a critical leadership task in creating a “readiness for change” culture. If employees understand what their company is trying to accomplish, what their customers are trying to accomplish, what their competitors are doing, and finally, what important trends are going on in their industry, then these employees are better able to interpret the need for a specific change and accept it. Also, when they can see the organization’s “big picture,” they will be better equipped to make the right decisions and offer relevant ideas.

The second aspect of business literacy is efficacy. That is, do employees understand the impact their job performance has on the critical drivers of the business, such as financial performance, operational excellence, and customer satisfaction? When employees see the link between their job performance and the company’s operational and financial success, they are able to understand how a change in their day-to-day activities might affect the organization as a whole. Likewise, when they understand the relationship between their job performance and the resulting quality of the customer experience, they will know precisely what action they must take to have a positive impact on the customer.

A Workforce that has Permission to Act

In order for employees to initiate change for improvement on their own, they must be allowed to do so. Employees should feel they have permission to make the day-to-day decisions necessary to improve the customer experience, the operational efficiency, and the financial results. They are more likely to suggest change and feel responsible for carrying out the change if they know they have the authority to make changes. Further, changes will be more rapid if employees have the necessary autonomy, and thus don’t have to wait for permission to act.

A critical leadership skill is learning how to install boundaries and to encourage freedom to act within those boundaries. Leaders throughout the organization must learn how to set the goal, communicate the boundaries, and then “let go.” The more specific and understandable the boundaries, the better. For example, a leader might tell a work team in a distribution center that they can make any process improvement changes they want as long as 1) customer service metrics meet or exceed standards, 2) quality metrics are met or exceeded, and 3) labor costs don’t increase (i.e., no increased overtime). When “empowered” in this way, employees are more likely to take ownership of decisions and to become more committed to the resulting course of action.

A Workforce that Will Challenge the Status Quo

If employees feel their ideas are listened