Category Archive: Leading Change

5 Stages Of Organizational Development

Posted by on January 14, 2014

Every organization either within a corporate context or a church context goes through sometimes difficult transition stages that can be clearly defined.  Some stages may last longer than others and quite frankly many times that depends upon leadership.  Ron Edmondson has an excellent post on this subject:

“Every organization goes through life cycles. This includes the church. These cycles can be natural or forced, but part of leadership is recognizing them and adapting leadership to them for continued health and growth. Each stage has overlap, but understanding this can help a leader decide how best to lead…which is different in each cycle.”

Read More …

Vision More Than Words

Posted by on November 6, 2013

In the end everyone is watching to make sure our walk equals our talk.  Any good leader can give a great speech but the payoff is are they living out what they say is important.  Mark Miller challenges us to look beyond what we say to what we do as leaders:

One of the never-ending responsibilities of a leader is to remind people what we’re trying to accomplish and why it matters. This is the essence of vision casting. Unfortunately, most leaders under communicate their preferred picture of the future.

If the leader is sold out to the accomplishment of the vision, why would he or she under-communicate it? There are probably several contributing factors to this phenomena.

Read More…

4 Reasons To Light The Change Fuse

Posted by on September 18, 2013

 

Lighting the fuse is an appropriate analogy for any leader who is about to initiate a significant change process. If you make a mistake during this critical process the whole situation can figuratively blow up in your face leaving your people and your organization in worse condition than before you started.

It is never enough to just do the right thing, you must do the right thing, the right way, and especially at the right time.  There are at least four major reasons for initiating the change process:

  1.  Need Must Be Met—this would appear to be the easiest of all the reasons after all there is someone or something that is not right and we can make it better.  However, rarely does everyone in your group see this need in the same way and many may not be directly motivated by this cause at all.  Be careful of needs that only touch a limited constituency.
  2. Opportunity Should Be Taken—this one requires everyone to look out into the future and see a new reality that is better than the one they are in today.  This requires maximum amount of visionary leadership to paint a picture that people can embrace to the point they are willing to move forward.
  3. Problem Can Be Solved—here again one person’s problem is merely another person’s distraction.  Compelling reasons must be given that this situation not only if affecting people in a negative way but if it is not resolved it will only become worse.
  4. Crisis Threatens Our Future—now you have an issue that can be communicated in such a clear and dramatic way because if it is not dealt with the future of this group of people or organizations is in peril.  Never take a problem and try to turn it into a crisis for impact sake because people will see through the clever marketing and lose confidence in the leader.

The bottom line for any leader is that you have a very limited amount of leadership capital with your people so spend it wisely.  Most people will only be motivated to change when the pain of the present is clearly worse than their fear of the future.  Be careful not to judge them for that because to some degree we are all the same way.

How do you know when the time is right for change?

5 Keys To Crisis Management

Posted by on August 30, 2013

Every individual and organization at some point in time will face a crisis and the way they respond will determine if the situation potentially becomes fatal or they experience a complete and total recovery.  I have learned a lot from personal experience on this subject over the years and probably the most important lesson is to be incredibly proactive and not stick your head in the sand and hope it will get better.

In Jack Welch’s great book Winning he gives some great advice on how he dealt with crisis situations at G.E.  These are his five guiding assumptions:

  1. The problem is worse than it appears—No matter how hard you might wish and pray; very few crises start small and stay that way.  The vast majority are bigger in scope than you could ever imagine with that first phone call and they will last longer and get more ugly.
  2. There are no secrets in the world, and everyone will eventually find out everything—Information that you try to shut down will eventually get out, and as it travels, it will certainly morph, twist and darken.   The only way to prevent that is to expose the problem yourself and tell the truth.
  3. You and your organization’s handling of the crisis will be portrayed in the worst possible light—The very nature of a crisis means that you and your organization will be portrayed in a light so negative you won’t even recognize yourself.  Don’t hunker down.  Along with disclosing the full extent of your problem you have got to stand up and define your position before someone else does for you.
  4. There will be changes in processes and people—Crisis requires change.  Sometimes a process fix is enough.  Usually not because the people affected by the crisis demand that someone be held responsible.
  5. The organization will survive, ultimately stronger for what happened—There is not a crisis you cannot learn from, even though you hate every one of them.  After a crisis is over the tendency is to put it away in a drawer.  Don’t, teach its lessons every chance you get.

What have you learned that helped you get through a crisis?

5 Priorities For Leading Change

Posted by on August 28, 2013

Most leaders understand there are powerful forces in place to maintain the status quo both on a personal level and with an organizational culture as well.  Therefore choosing the timing of when to start a change process that you want to be successful is critical.

If you don’t have any of the following priorities in place then do not light the fuse because it will blow up in your face:

  1. Problem to be solved—at the very basic level of motivation for any change is the reality  that something  is clearly wrong and you know it needs to be fixed.  I am overweight and if I do not start an exercise program and change my diet I am going to be in serious trouble.
  2. Opportunity to be taken—sometimes doors seem to open that we were not expecting and the benefits gained far outweigh the risks involved.  A good friend offers to pay my membership in the health club for a year if I will commit to go.
  3. Crisis to be avoided—in this situation you recognize the perfect storm is brewing and if you don’t act immediately the consequences of my inaction could be catastrophic.  I have now had a heart attack and my doctor says without major change I will have another one and it will probably be fatal.
  4. Need to be met—this moves the motivation point high up on the scale because there are hurting people involved and the change process will directly benefit them.  If I am not willing to act based on what I need surely because of the people I love the most I will do whatever is necessary to be there for them.
  5. Calling to be followed—as a Christian I am called to represent Christ to the world in all that I do with my life.  If I do not take care of the body He has given me to be used in His service then I can lose my testimony and damage my effectiveness in helping other people.

These priorities also apply in our professional lives as we seek to lead the change process in the context of a company culture that tends to react after it is too late rather than respond to what should be obvious.  Leaders must be willing to cast a clear vision that the benefits of leaving the current reality behind far outweigh any pain involved in moving to a new and better place for all involved.

 

7 Lessons for Leading in Crisis

Posted by on March 2, 2013

Virtually every American institution is facing major crises these days, from declining businesses to evaporating financial portfolios. To get out of these crises, authentic leaders must step forward and lead their organizations through them.
The current crisis was not caused by subprime mortgages, credit default swaps, or failed economic policies. The root cause is failed leadership. New laws, regulations, and economic bailouts won’t heal wounds created by leadership failures. They can only be solved by new leaders with the wisdom and skill to put their organizations on the right long-term course. “Seven Lessons for Leading in Crisis”
The Wall Street Journal – February 24, 2009

 

 

Bill George

Here are seven lessons for leaders charged with leading their organizations through a crisis:
Lesson #1: “Leaders must face reality.” Reality starts with the person in charge. Leaders need to look themselves in the mirror and recognize their role in creating the problems. Then they should gather their teams together and gain agreement about the root causes. Widespread recognition of reality is the crucial step before problems can be solved. Attempting to find short-term fixes that address the symptoms of the crisis only ensures the organization will wind up back in the same predicament.

In order to understand the real reasons for the crisis, everyone on the leadership team must be willing to tell the whole truth. As J.P. Morgan Chase CEO Jamie Dimon said at a panel I chaired at the World Economic Forum at Davos in January, “It’s not sufficient to have one person on your team who is a truth teller. Everyone on the team must be candid in sharing the entire truth, no matter how painful it is.” How can we solve problems if we don’t acknowledge their existence?

Lesson #2: “No matter how bad things are, they will get worse.” Faced with bad news, many leaders cannot believe that things could really be so grim. Consequently, they try to convince the bearers of bad news that things aren’t so bad, and swift action can make problems go away.

This causes leaders to undershoot the mark in terms of corrective actions. As a consequence, they wind up taking a series of steps, none of which is powerful enough to correct the downward spiral. It is far better for leaders to anticipate the worst and get out in front of it. If they restructure their cost base for the worst case, they can get their organization healthy for the turnaround when it comes and take advantage of opportunities that present themselves.

Lesson #3: “Build a mountain of cash, and get to the highest hill.” In good times leaders worry more about earnings per share and revenue growth than they do about their balance sheets. In a crisis, cash is king. Forget about EPS and all those stock market measures. The question is, “Does your organization have sufficient cash to survive the most dire circumstances?”

Goldman Sachs, where I serve on the board of directors, anticipated the difficult times and built up its cash reserves. When the markets got really bad, Goldman had adequate cash reserves to weather the storm.

Lesson #4: “Get the world off your shoulders.” In a crisis, many leaders act like Atlas, carrying the weight of the world on their shoulders. They go into isolation, and think they can solve the problem themselves. In reality, leaders must have the help of all their people to devise solutions and to implement them. This means bringing people into their confidence, asking them for help and ideas, and gaining their commitment to painful corrective actions.

Lesson #5: “Before asking others to sacrifice, first volunteer yourself.” If there are sacrifices to be made – and there will be – then the leaders should step up and make the greatest sacrifices themselves. Crises are the real tests of leaders’ True North. Everyone is watching to see what the leaders do. Will they stay true to their values? Will they bow to external pressures, or confront the crisis in a straight-forward manner? Will they be seduced by short-term rewards, or will they make near-term sacrifices in order to fix the long-term situation?

Lesson #6: “Never waste a good crisis.” This piece of advice comes from Benjamin Netanyahu, the next prime minister of Israel, at the panel I chaired in Davos.

When things are going well, people resist major changes or try to get by with minor adaptations. A crisis provides the leader with the platform to get things done that were required anyway and offers the sense of urgency to accelerate their implementation.

Lesson #7: “Be aggressive in the marketplace.” This may sound counter-intuitive, but a crisis offers the best opportunity to change the game in your favor, with new products or services to gain market share. Many people look at a crisis as something to get through, until they can go back to business as usual. But “business as usual” never returns because markets are irrevocably changed. Why not create the changes that move the market in your favor, instead of waiting and reacting to the changes as they take place?

The Bottom Line:
In a crisis we learn who the real leaders are, and whether they have the wherewithal to stay on course of their True North.

About the Author
Bill George, author of “True North,” is a professor of management practice at Harvard Business School. He is also the former CEO of Medtronic and serves on the boards of directors of ExxonMobil, Goldman Sachs and Novartis.

Light The Fuse

Posted by on June 10, 2010

 

Lighting the fuse is an appropriate analogy for any leader who is about to initiate a significant change process. If you make a mistake during this critical process the whole situation can figuratively blow up in your face leaving your people and your organization in worse condition than before you started.

 It is never enough to just do the right thing, you must do the right thing, the right way, and especially at the right time.  There are at least four major reasons for initiating the change process:

  1.  Need Must Be Met—this would appear to be the easiest of all the reasons after all there is someone or something that is not right and we can make it better.  However, rarely does everyone in your group see this need in the same way and many may not be directly motivated by this cause at all.  Be careful of needs that only touch a limited constituency. 
  2. Opportunity Should Be Taken—this one requires everyone to look out into the future and see a new reality that is better than the one they are in today.  This requires maximum amount of visionary leadership to paint a picture that people can embrace to the point they are willing to move forward.
  3. Problem Can Be Solved—here again one person’s problem is merely another person’s distraction.  Compelling reasons must be given that this situation not only if affecting people in a negative way but if it is not resolved it will only become worse.
  4. Crisis Threatens Our Future—now you have an issue that can be communicated in such a clear and dramatic way because if it is not dealt with the future of this group of people or organizations is in peril.  Never take a problem and try to turn it into a crisis for impact sake because people will see through the clever marketing and lose confidence in the leader.

The bottom line for any leader is that you have a very limited amount of leadership capital with your people so spend it wisely.  Most people will only be motivated to change when the pain of the present is clearly worse than their fear of the future.  Be careful not to judge them for that because to some degree we are all the same way.

When To Light The Fuse For Change

Posted by on March 8, 2010

Most leaders understand there are powerful forces in place to maintain the status quo both on a personal level and with an organizational culture as well.  Therefore choosing the timing of when to start a change process that you want to be successful is critical.  

If you don’t have any of the following priorities in place then do not light the fuse because it will blow up in your face:

1.      Problem to be solved—at the very basic level of motivation for any change is the reality  that something  is clearly wrong and you know it needs to be fixed.  I am overweight and if I do not start an exercise program and change my diet I am going to be in serious trouble.

2.      Opportunity to be taken—sometimes doors seem to open that we were not expecting and the benefits gained far outweigh the risks involved.  A good friend offers to pay my membership in the health club for a year if I will commit to go.

3.      Crisis to be avoided—in this situation you recognize the perfect storm is brewing and if you don’t act immediately the consequences of my inaction could be catastrophic.  I have now had a heart attack and my doctor says without major change I will have another one and it will probably be fatal.

4.      Need to be met—this moves the motivation point high up on the scale because there are hurting people involved and the change process will directly benefit them.  If I am not willing to act based on what I need surely because of the people I love the most I will do whatever is necessary to be there for them.

5.      Calling to be followed—as a Christian I am called to represent Christ to the world in all that I do with my life.  If I do not take care of the body He has given me to be used in His service then I can lose my testimony and damage my effectiveness in helping other people.

These priorities also apply in our professional lives as we seek to lead the change process in the context of a company culture that tends to react after it is too late rather than respond to what should be obvious.  Leaders must be willing to cast a clear vision that the benefits of leaving the current reality behind far outweigh any pain involved in moving to a new and better place for all involved.

 

 

 

How The Mighty Fall

Posted by on September 8, 2009

Jim Collins follows up his all time best selling leadership book Good to Great with this incredible new work on why some of these once great companies now have fallen as well.  He writes, “Whether you prevail or fail, endure or die, depends more on what you do to yourself than on what the world does to you.”

Based on his thorough teams research there are five major stages that lead to failure:

1.       Hubris Born of Success:  This stage kicks in when people become arrogant, regarding success virtually as an entitlement, and they lose sight of the true underlying factors that created success in the first place.

2.      Undisciplined Pursuit of More:  Companies in this stage stray from the disciplined creativity that led them to greatness in the first place, making undisciplined leaps into areas where they cannot be great or growing faster than they can achieve with excellence, or both.

3.      Denial of Risk and Peril:  At this stage leaders discount negative data, amplify positive data and start to blame external factors for setbacks rather than accept responsibility.

4.      Grasping for Salvation:  The sharp decline now becomes visible to all and the common saviors include a charismatic visionary leader, a bold but untested strategy, a radical transformation, a dramatic cultural revolution, a hoped-for blockbuster product or maybe game changing acquisition.

5.      Capitulation to Irrelevance or Death:  At this stage accumulated setbacks and expensive false starts erode financial strength and individual spirit to such an extent that leaders abandon all hope of building a great future.

All companies go through ups and downs but if you are willing to admit your mistakes and make the necessary changes early then this death spiral cannot only be overcome it can be avoided entirely.

Organizational Culture Change

Posted by on September 4, 2009

According to John Kotter there are many reasons change initiatives fail especially in large organizations.  The number one reason is there is not a clear sense of urgency for change that makes everyone willing to pay the short term price of pain due to change to gain the long term benefit of progress.

Many times the communications part of the process breaks down and the implementers do not get enough information to really buy in.  The importance of creating short term wins for establishing credibility for the entire process cannot be overstated. 

When the new of change becomes the norm there are several key factors that let you know it is now firmly in the D.N.A. of your organizational culture:

1.       More change, not less:  The guiding coalition uses the credibility afforded by short-term wins to tackle additional and bigger change projects.

2.      More help:  Additional people are brought in, promoted, and developed to help with all the changes.

3.      Leadership from senior management:  Senior people focus on maintaining clarity of shared purpose for the overall effort and keeping urgency levels up.

4.      Project management and leadership from below:  Lower ranks in the hierarchy both provide leadership and specific projects and manage those projects.

5.      Reduction of unnecessary interdependencies:  To make change easier in both the short and long term, managers identify unnecessary interdependencies and eliminate them.

When everyone in the organization starts to articulate the new vision in their own words as if it were their idea then you know they own the process.  It is time to start looking for what needs to be changed next, the process never stops.