Can our current Leadership Drive and Implement Transformation

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Can our current Leadership Drive and Implement
Transformation?

• Presentation by
• Marguerite Orane
• November 15, 2005
• At the CAIB Conference Grand Cayman

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Its messy In the change from being a
caterpillar to becoming a butterfly, you are
nothing more than a yellow, gooey sticky mess
(Ted Forbes)
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What has been our traditional way of leading
change?

• Doing the same things better
• Fixing things
• Orderly transition from current state to a new
  state
• Assumes steady state
• Task managing the status quo
• Command and Control plantation-style
• Leaders role
• Determine the change
• Delegate the implementation

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Traditional Change Leadership Assumptions

• All knowledge rests with the leader
• Leaders know exactly where they are going, plan
  for getting there
• Leaders MUST control behaviour in order to
  succeed
• Environment/marketplace wont change too much
• Employees cant and dont want to contribute
• Cooperation must be forced
• Needing to alter plans means leadership has
  failed or doesnt know what they are doing

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Results of Traditional Change Leadership

• Lack of buy-in and commitment by the followers
• Results are not sustainable
• Return to status quo
• Loss of credibility of the leaders
• Followers become cynical

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Leadership for Transformation
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Why Transformation ?

• Transformation catalysed by major changes in
  external environment
• Change is always happening, is not isolated and
  comes from all corners
• TRANSFORMATION is a choice in response to that
  change!
• The challenge - Transform or be changed!

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Challenges of transformation

• Future state is RADICALLY different, not easily
  seen nor understood
• Future is fuzzy, it develops and becomes clear as
  the transformation unfolds
• Future has no clear goal to manage to, thus the
  process cannot be clear
• Future therefore requires HUGE shifts in how
  people THINK

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Successful Transformation Leadership

• Successful transformation leadership needs
  competence in
• Creating an integrated transformation strategy
• Transforming mindsets
• Designing, implementing transformation process

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Building an Integrated Transformation Strategy

• New business strategy not enough
• Need strategic thinking on HOW to handle the
  transformation
• MUST be driven by top leadership as it determines
  successful implementation of business strategy

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Building an Integrated Transformation Strategy

• Leader must make sure that
• It is top priority
• Catalytic levers for change identified
• Participation by important stakeholders
• Roles identified
• Realistic pace of change set

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Transforming Mindset

• Mindset is CAUSATIVE
• Behaviour
• Decisions
• Ultimately results
• Must begin with leaders mindset FIRST as it
  determines
• What they see and dont see in human dynamics
• Their internal reaction to dynamics
• Their change leadership style and strategies

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Transforming Mindset

• From Industrial Mindset
• Transformation occurs through numerous separate
  initiatives
• People will obey what leaders say with little
  communication
• Resistance is a necessary evil (best delegated to
  HR Dept)
• Project management will keep things under control
• Only requirement of leaders is to get the
  strategy right

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Source Linda Ackerman Anderson Dean Ackerman
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Transforming Mindset - Culture

• Culture is the mindset of the organization
• Change strategy MUST address culture
• Widespread personal change needed, starting with
  leadership

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Transformation Process

• Transformation cannot be managed!
• Future unknown
• No guaranteed outcome
• Process chaotic (human dynamics)
• Process and outcomes emerge over time
• However, need to design a roadmap to guide
  transformation
• Actual roads taken will depend on what is
  encountered along the way

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Transformation Process
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Complexities of Transformation require leaders to

• Model the change walk the talk! Be the first to
  change
• Create alignment in top leadership team
• Stay involved to point where the value of the new
  state is realised
• Stay out of details, but keep fully abreast of
  strategic issues
• Proactively handle human and cultural dynamic
  issues
• Create the change integration plan early

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Complexities of Transformation require leaders to

• Set realistic timelines unrealistic timelines
  threaten credibility of change effort AND
  leadership
• Build critical mass of support identify points
  of power
• Establish mechanism for gathering information and
  quickly making decisions at all levels!
• Transformation leaders need eyes and ears on the
  ground
• Who best? Employees as they are close to the
  environment
• Provide authority and support to the right people

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Successful Transformation Leadership will require
of you

• Courage to go first, set the example, open to
  failure
• Flexibility transformational process emerges as
  you proceed
• Ability to let go of control, remain calm and
  comfortable amid uncertainty, chaos

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Successful Transformation Leadership will require
of you

• Capacity to collaborate, build consensus
  process requires input of numerous people across
  functions, processes, regions
• Coaching and mentoring to help others with
  their personal change
• Patience change will take longer than you
  expect!

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To Summarize

• Traditional approach to leading change is not
  sustainable
• Transformation necessary because future state is
  different, fuzzy and requires huge shifts in how
  people think
• Successful transformation requires a new mindset,
  beginning with the leader

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Can the Current Leadership Drive and Implement
Transformation?

• YES! Same body
• NO! New mind!