Lecture Leadership: Enhancing the lessons of experience (4/e) – Chapter 13

Chapter 13 - Leadership and change. This chapter began by revisiting the topic of leadership and management. Management skills are important to ensure compliance with existing systems, processes, and procedures; they are used to help preserve the status quo, improve consistency and efficiency, and maintain control.

13­1 McGraw­Hill/Irwin © 2002 The McGraw­Hill Companies, Inc., All Rights Reserved C   HAPTER T HIRTEEN Leadership and Change Beer’s Model of Organizational  Change C = D x M x P > R D = followers’ dissatisfaction M = model for change P = process R = resistance C = amount of change McGraw­Hill/Irwin © 2002 The McGraw­Hill Companies, Inc., All Rights Reserved 13­3 Example of a  Vision Statement We believe that an organization will only be as  good as its leaders. Our vision is to increase our  clients’ productivity, profitability, and  shareholder value by enhancing their ability to  attract, develop, promote, and retain leadership  talent.  The Components of  Organizational Alignment Vision Capabilities •  Technical •  Leadership Systems • Accounting •  Sales • HR •  IT McGraw­Hill/Irwin Culture Norms Sharedvalues Structure Spanofcontrol Teamcomposition Hierarchy â2002TheMcGrawưHillCompanies,Inc.,AllRightsReserved 13ư5 TheExpectationưPerformanceGap Performance Change initiative implemented Status quo Gap Expectations Actual  performance Time McGraw­Hill/Irwin © 2002 The McGraw­Hill Companies, Inc., All Rights Reserved 13­6 Common Losses with Change Loss of: Possible Leader Actions Power Demonstrate empathy, good listening skills, and new  ways to build power.  Competence Coaching, mentoring, training, peer coaching, job  aids, and so forth Relationships Help employees build new relationships before  change occurs, or soon thereafter.  Rewards Design and implement new reward system to support  change initiative Identity Demonstrate empathy; emphasize value of new roles McGraw­Hill/Irwin © 2002 The McGraw­Hill Companies, Inc., All Rights Reserved M. Beer, Leading Change  (Boston: Harvard Business School Press, 1988).  13­7 Emotional level Reactions To Change Anger Shock Top leaders Middle managers Individual contributors McGraw­Hill/Irwin Rejection Acceptance Time â2002TheMcGrawưHillCompanies,Inc.,AllRightsReserved 13ư8 TheRationalApproachToOrganization ChangeandtheInteractionalFramework Leader Environmentalscans Vision • Goals • Change plan • Systems vs. siloed thinking • Leadership and management    capabilities Followers McGraw­Hill/Irwin • Dissatisfaction • resistance  • SARA model • Loss of: – Power – Competence – Identity – Rewards – Relationships • Technical/functional  capabilities Situation • Crisis • Consumer preferences • Market conditions  • Societal shifts • Political and legal challenges • Competitive • Organizational structure • Organizational systems • Organization culture © 2002 The McGraw­Hill Companies, Inc., All Rights Reserved 13­9 Four Leader Behaviors of Path­ Goal Theory • • • • Directive Supportive  Participative  Achievement­oriented McGrawưHill/Irwin â2002TheMcGrawưHillCompanies,Inc.,AllRightsReserved 13ư10 BurnssFormsofLeadership Transactionalleadershipoccurswhen leadersandfollowersareinanexchange relationshipinordertogetneedsmet. Transformationalleadershipservesto change the status quo by appealing to  followers’ values and their sense of  higher purpose.  McGraw­Hill/Irwin © 2002 The McGraw­Hill Companies, Inc., All Rights Reserved 13­11 13­12 Factors Pertaining to Charismatic  Leadership and the Interactional Framework Leader Outcomes: Vision Social or cultural  revolutions Rhetorical skills Higher levels of effort Image and trust building Greater follower  satisfaction Personalized leadership Increased group  cohesiveness  Identification with the  leader and the vision  Heightened emotional  levels Willing subordination to  the leader  Crisis  Task interdependence Feelings of empowerment Followers McGraw­Hill/Irwin Situation © 2002 The McGraw­Hill Companies, Inc., All Rights Reserved A Leaders’ Vision Of the Future Can Align 13­13 Efforts and Help Groups Accomplish More Groups that lack  vision Groups with vision McGraw­Hill/Irwin © 2002 The McGraw­Hill Companies, Inc., All Rights Reserved  ... Followers McGraw­Hill/Irwin • Dissatisfaction • resistance  • SARA model • Loss of: – Power – Competence – Identity – Rewards – Relationships • Technical/functional  capabilities Situation • Crisis • Consumer preferences... Transformational leadership serves to  change the status quo by appealing to  followers’ values and their sense of higher purpose.  McGraw­Hill/Irwin © 2002 The McGraw­Hill Companies, Inc., All Rights Reserved 13 11 13 12 Factors Pertaining to Charismatic ... Feelings of empowerment Followers McGraw­Hill/Irwin Situation © 2002 The McGraw­Hill Companies, Inc., All Rights Reserved A Leaders’ Vision Of the Future Can Align 13 13 Efforts and Help Groups Accomplish More Groups that lack