Why Leaders Can't Lead: Organizational Culture and Change - Research Paper Example

Why Leaders Can't Lead: Organizational Culture and Change Inside any organization a culture exists that shows each employee how they should look, act and approach the workplace. McNamara (2000) defines organizational culture as "the personality of the organization [that includes] the assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors" (p. 1). Organizational culture then, not only shows the worker what they need to do to succeed, but it also is a culmination of who they are and what they do. Organizational culture also is shaped or molded from each of the workers in the organization. As an example, the different diversities like gender, ethnic, race, disability, and sexual orientation will show how individuals may behave in the workplace. Also, how an individual was raised as a child has influence on them as adults and this may mean that they bring certain "baggage" to the workplace. All of these issues attribute to organizational culture and when change happens, all of these issues come into play. The difference as to whether change is easy or difficult in an organization will depend on the leadership of the organization. Strong leaders will educate their employees about the coming change and they will help them prepare for it. When leaders are weak, they have a tendency not to inform their employees of coming changes which can create difficulties because employees become uncertain about their jobs. LEADING CHANGE The current economic times have insured that any organization today must be in a constant climate of change. One challenge for leaders is when employees hear about change, it often brings out a variety of emotions that can be seen as both positive and negative. Fullan (2001) suggests that in situations like this, leaders must be strong and understand their organizations. He also suggests that leadership in these times is not about "mobilizing other to solve problems" but it is more about "acting with the intention of making a positive difference in the lives of employees" (p. 3). Leading change is about understanding the organization's culture and helping employees become better. Bennis (1989) agrees with Fullen adding that "people in charge…have imposed changed rather than inspiring it" (p. 26). He says that in times when emotions are high, leaders "are needed to restore order" (p. 27) which to Bennis means progress. It is apparent from these two experts that leaders must help to inspire their employees towards change rather than forcing them into it. Leadership that is successful in today's world understands this fact and is more inclined to assist employees to grow into change in positive ways instead of pushing them into it without prior preparation. TRANSFORMATION AND LEADING FOR CHANGE In the past, some businesses thought that in order for their business to change, they would need to hire a consultant to transform some aspect of their business to make it perform better. Kotter (2007) argues that this transformation process must be done in a certain way if a business is going to achieve success. He says that change does not come quickly and it comes in phases that leaders must be aware of and follow without making serious errors. Specifically, Kotter says there are eight steps to transforming an organization: 1. Establishing a sense of urgency -- business must understand the competition, identify and discuss crises, potential crises and major opportunities. 2. Forming a powerful guiding coalition -- this step brings together the people who are powerful enough to lead the change and asks them to work together as a team. 3. Creating a vision -- the vision will help guide the change effort and develop the strategies necessary to make the change. 4. Communicating the vision -- getting the word out in as many media as possible will help in communicating the vision; this will also teach employees new behaviors by the examples that the guiding coalition presents. 5. Empowering others to act on the vision -- this is a very important step because it is where obstacles are eradicated, systems or structures are changed or eliminated, and nontraditional ideas, activities and actions are encouraged. Also, anything that would undermine the vision is thrown or for something new. 6. Planning for and creating short term wins -- this step plans "visible performance improvements", creates the improvements and then rewards the staff for being involved in the improvements. 7. Consolidating improvements and producing still more change -- this stage has the leader building on their current improvements to change anything (structure, systems, and policies) that does not fit the vision. They hire, promote and develop employees who will continue the vision and then they reinvigorate the process with new products, themes and other change agents. 8. Institutionalizing new approaches -- at this phase the leaders are articulating the connections between new behaviors and corporate success and developing the means to insure leadership development and succession. (Kotter, p. 99). According to Kotter, when leaders follow these steps and avoid making serious errors during the process, they can keep their business growing; he also outlines the errors to avoid. The need for transition can come from internal or external situations or conditions. As an example, the way the economy has fluctuated has created a need for change in many organizations. The current school system was thrust into a changed structure because of the No Child Left Behind legislation. Both of these events were external factors that created a need for organizational change. Examples of internal situations include changes in CEOs, a department deciding to go into a different direction or a business adding another product or service. In each of these situations, the way that business has been conducted in the past must change to meet the demands of the current situation. Hinckley (2009) studied Kotter's steps and found that following similar steps in the school system would create a stronger system. However, her study also showed how the system can fail. In Hinckley's study, the superintendant of schools became the leader who planned the program. The challenge for the superintendant was that the changes he wanted to make were bogged down when the union became involved. The union's questioning of his changes created a drastic change in the school culture because teachers who were unfamiliar with what the district wanted had to be hired; eventually the change in this case failed. The point that Hinckley makes is similar to what Kotter said: If there are serious errors made within the planning process, the change can be disastrous. In this situation, the superintendant did not inform anyone of the changes he was going to make and he did not consult the union. This created more problems for him. Another point that Hinckley reinforces is that when employees do not know what is going on, they have a tendency to push back. In her example, teachers who did not know what was going on did not want to make the changes because they did not understand why they should change. Hinckley points out that "change requires a person to be dissatisfied with the current results" (p. 28). This suggests that in order for people to accept change, they must have some investance in the need for change. It also suggests that without this investance, employees can rebel against it, especially when they have not been included in the movement towards change. Within these situations, it is important for leaders to anticipate the obstacles they may come up against and then find creative solutions to remove the obstacles. THE CHANGING ORGANIZATIONAL CULTURE Many researchers suggest that changes that are brought into an organization will automatically change its culture. One immediate change will be in how employees perform. One area where performance has changed continually is in healthcare. This is a good example of an organization that is in a constant state of change and has to be flexible enough to make change quickly. Now that President Obama has made healthcare a priority, some hospitals and HMOs have had to change how they looked for the consumer. Hilzenrath (1997) reported on the fact that HMOs had to remain flexible through many changes and today the nation is faced with healthcare reform. Erwin (2009) studied hospitals to find where they were most hit by change and found that there were three change initiatives that hospitals shared with business: reducing costs, improving performance and turnarounds (p. 28). When he did a survey of these organizations he found that many did not see their initiatives as successful and in order for them to change, they had to plan for it. Erwin found that there were four stages that the hospital went through to create sustained change: they had to realize the need for change, plan to change, implement the change and sustain the change. These four stages are consistent with Kotter's eight stages but they were made simpler. These action steps automatically moved the hospital into a different culture according to Kotter, because the focus changed from a somewhat mediocre existence to making the hospital more successful in the areas of reducing cost, improving performance and turnarounds. THEORIES OF ORGANIZATIONAL CHANGE Organizational change theories seem to be anchored in how people perceive change as it happens. Many experts have created theories of change that are an important addition to this discussion. Rouse (1993) suggest several change models: Conventional Model This model suggest that an individual's perception is influenced by a person's knowledge and the information they receive. The knowledge they receive is through education. People then modify information to match their ideas and they may correct misperceptions (p. 13-14). Perception Model People perceive what they want to perceive. This model takes into consideration that an individual's perceptions are based on their childhood and the environment they grew up within. In the workplace, the individual brings these perceptions that they have learned, and these can cause problems for them. (p. 16). Developmental Models Another important concept in psychology evolved from developmental theories. These discuss how the experiences that an individual has in their early years will determine how they react later in life. Attachment theory is very important to these theories and two people who were very important to the development of this area were John Bowlby and Mary Ainsworth. Bowlby formulated the theory and Ainsworth took it a step forward. The basic premise of this theory is that people react to their environment based upon their attachment to their primary care giver. If this attachment was secure the individual would form secure attachments for the rest of their life. If this attachment was insecure, the individual would have difficulty with attachments throughout their life (Bretherton, 2000).. Some of the leadership literature has looked at how employees and managers work together in terms of attachment. Motives Model The need for power and prestige is part of this model. Rouse suggests that leaders who succeed have a high need for power, a high degree of impulse control and they believe in centralized authority: "People who have a high need to achieve, tend to be those who are strongly oriented toward improving task performance and accepting personal responsibility for performance (p. 18)". Basically Rouse is saying that a strong leader will take responsibility for their actions because they understand that it is just part of the job they need to achieve. This leader is usually openly competitive and very assertive in the way they behave in the organization. Rouse also points out that individuals in this category will deal with failure in the way they were taught to deal with it as children. Some will have a similar fear of rejection tied to their fear of failure. Some leaders, in order to move past these fears will draw upon their need for affiliation with others (Rouse, p. 19). Rouse asserts that "people with a high degree of affiliation perform better when opportunities to relate to other people are present" (p. 19). Perhaps Rouse is saying that although many leadership styles exist, people who enjoy working with people are motivated by the affiliation factor. Another way that motivation is approached is through the lens of attachment theory. Marmarosh (2009) reviewed two research reviews that further the idea that people's perceptions are born from how they were raised. Attachment theory presumes that employees react to leadership based on their early attachment to parents. If they securely attached to parents they are more likely to be "relationship oriented" and they would respect leadership easier (Marmarosh, p. 282). Also, team leaders who were already seen as strong leaders were also securely attached individuals. The two studies that Marmarosh reviewed showed that Attachment Theory was responsible for how some people dealt with change. Simmons, Gooty, Nelson and Little (2009) also studied attachment and how it worked in performance and other aspects of leadership. They also found that secure attachments actually lead to a full range of work outcomes and were "antecedents to hope, trust, burnout and performance" (p. 242). Those leaders who had secure attachments handled their business and personal lives better than those with insecure attachments. I agree that Attachment Theory is extremely useful because it sheds insight on the difficult problem of understanding why employees react in different ways to change and why it is necessary for leaders to understand what to do in these situations. It can also clarify why some leaders have problems relating to people and others do not. Needs Models Many people are most familiar with Maslow's Hierarchy of Needs. In this model, a person's perception of their needs will win out over any other situation. As an example, if an individual is in need of food, it would be difficult for them to do anything else until the need for food was satisfied. Maslow suggested that the lower level needs for food, security and safety, must be satisfied before someone is able to strive towards the higher levels of needs. As an example, an individual must satisfy the biological and physiological needs before they went towards the need for safety before they would concern themselves with self-actualization. Attribution Theory This theory focuses on how people perceive other people and what attributes they give to them by virtue of this perception. These perceptions are based on the individual's "behaviors, intentions, values and priorities" (Rouse, p. 22). This theory is part of daily life for most people because everyone is judging each other by the way in which they present themselves. This theory also states that when attributions are being considered, there are several factors that are important to consider: 1. People will assess attributes based on their own actions or those of others. 2. The needs, desires and a priori beliefs of those reporting attributions. 3. The information available upon which to base attributions. (Rouse, p. 21). This theory is interesting because in a study by The Gallup Group (Buckingham and Coffman), employees were asked "What makes a strong leader?" and the employees related to strong leaders based on their own perceptions of what "leadership" meant. This says to me that although leaders are trained differently whether they are strong or weak leaders may be more the perception of those who are employed by them. In other words, when looking at attributes, how they will be perceived will depend on the needs and desires of those assessing the individual as well as the information they have and their own bias. Each theory has created an opportunity for leaders to look deeper into the psyche of their employees to understand their motivations for reacting to change in the way they do. LEADING CHANGE AND DIVERSITY In most organizations today, diversity has come into question on many levels. Whether the organization is dealing with gender, ethnic, racial or global diversity issues, when a leader is moving an organization through change, these issues must be taken into account. Salopek (2006) speaks to the necessity for new leaders to understand the multigenerational workplace because each generation has specific skills and abilities to add to the workplace. Peter Ronayne, Dean of the Faculty of The Federal Executive Institute in Charlottesville, VA, states: "By harnessing the potential of each generation, companies will get much more than they have to give up" (Ronayne as quoted in Salopek, p. 22). Salopek adds that each generation has certain characteristics, values and motivations that will differ. Leader's must be aware of these characteristics when they are handing out rewards or other benefits. In order to be affective in this area leaders must also understand that retention and loyalty must be "reframed' because each generation is different in how they react to retention and loyalty. As an example, the younger generation will only be retained if they are engaged in their jobs, receive continual training and if they have involvement within the company (p. 23). In other words, Salopek is saying that each generation can be retained but in different ways. Fulmer and Goldsmith (2001) make the point that leaders must be chosen from a diverse population because this helps them draw a more diverse workplace. Those organizations that build their training to meet specific diverse needs are considered "A Players" . In contrast, Adler (1991) argues that many companies think that diversity will only bring more problems to the organization. When asked to describe the advantages and disadvantages of diversity, many organization could only list disadvantages (p. 98). Although I agree with Adler to a point, I cannot accept her overall conclusion that diversity causes more problems. I think that when an organization begins to try and employ diversity, it is not used to working in this area and they have to make adjustments that they would not have to make if they kept the organization in its original condition. Again, the perception of what they will have to do is more prominent than what they will actually have to do. Diversity is particularly important as an organization wants to move into a global marketplace. Mehrtens (1993) adds that organizations must embrace diversity because: "[a] truly diverse workplace in racial, ethnic and sexual terms will produce a profound shift in values and a richer, more diverse set of perspectives about the corporation's customers, goals, performances and role in the wider society" (p. 14). I agree that diversity is important because our world has changed and we live in a more diverse society than we have ever done in the past. We have a multi-racial president, we have a larger Hispanic community and we have many different types of people working together in organizations that used to be predominantly Anglo American. THE ROLE OF LEADERSHIP DURING CHANGE Leaders will have many roles as organizations move through change. Crippen (2005) suggests that "servant leadership" is a way that organizations can lead for a better community. This concept helps create caring communities because it makes sure that leaders understand and embrace ten characteristics: 1. Listening -- a deep commitment to listening to others. 2. Empathy -- striving to understand and empathize with others. 3. Healing -- the servant leader has the ability to heal themselves and heal other people. 4. Awareness -- the leader is self-aware and has a large capacity for general awareness. 5. Persuasion -- the servant leader is able to convince other people to work together rather than coerce compliance. 6. Conceptualization -- the servant leader seeks to nurture their own abilities to "dream great dreams." 7. Foresight -- being able to see the big picture and how the outcome of a situation could happen. 8. Stewardship -- the leader cares about the well being of the organization and for the needs of society. 9. Commitment to the growth of people -- the servant leader helps others grow in their careers and they do what they can to nurture others. 10. Building community -- the leader in the organization helps build community through many different approaches. Some examples include giving back to the community, investing money in the community or granting scholarships. (Crippen, p. 14). Although Crippen saw these characteristics in light of the educational organization, it is clear that they are important characteristics for any leadership. Buckingham and Coffman (1999) suggest that the leader's role is to be a catalyst. It is important for a leader to be able to turn talent into performance and help employees find other ways to unleash their talents (p. 154). Buckingham's point is that a leader must be a catalyst for change and must be able to lead their organization towards that change. They do so by creating employees who are dedicated and motivated to promote the change. Luc (2009) furthers this idea of the leader as a catalyst for change by stating that "being a leader means having the ability to be aware of the pressure coming from the group around us and yet put it aside and take the risk of expressing an idea, opinion, aspiration or view" (p. 8). In making this comment, Luc argues that a leader must continue to move the group forward even though they feel pressure from them. In this situation, it could be a good idea to encourage ideas from other employees so that they will feel a part of the change. Fullan (1993) argues that a change agent should be committed to making continuous change. He states that "everyone has the responsibility to create an organization capable of individual and collective inquiry and continuous renewal, or it [change] won't happen" (p. 39). I agree with Fullan and these other experts because people need to be a part of all aspects of change so that they can embrace it. Leaders then, are able to set change in motion on every level. TRAINING LEADERS FOR CHANGE Training for leaders is important and most of the time organizations will train their top talent. The challenge for some organizations is that they may not know what they actually need to train their leaders to do. Buckingham states that in the catalyst role, the leader must not only identify their talent but they must identify the right for each job. They must focus on the strengths of each leader and define the "right" outcomes before they start training (p. 87). Another challenge in training is that the individual must have talent in the area they are being trained within or "the employee will not be able to see what to do [in new situations] unless the task was a part of the training" (Buckingham, p. 88). This creates a limitation for the employee and "when faced with an unanticipated scenario, they lose much of their power" (Buckingham, p 89). I agree that an individual must have talent in an area to be able to handle any scenario because my experience in organizations confirms it. I have seen leaders have problems with certain tasks because it was not their area of expertise. I have attended trainings with other leaders who did well in the training, but when they found themselves in a situation in the workplace that was outside of the training arena, they were not sure what to do. I also agree that "the power of talent is that it is transferable from situation to situation. Given the right stimulus it fires spontaneously. Any type of situation will bring out the talent" (Buckingham, p. 88). I agree that the point about talent is a point that needs emphasizing since so many people believe that a leader can be trained to do anything, but this may not be the case. COACHING FOR CHANGE One of the ways that many organizations find to help their top is through executive coaching. The Executive Coaching Handbook (2004) defines executive coaching as: …an experiential and individualized leader development process that build's a leader's capability to achieve short- and long-term organizational goals. It is conducted through one-on-one interactions, driven by data from multiple perspectives, and based on mutual trust and respect (p. 22). Through executive coaching, many great leaders are made stronger and they can become more innovative if they have the right coach. Altman (2007) points out that executive coaching has become more important in the last ten years in both the U.K. and the United States. In the UK "about 50% of businesses spend 100,000 to 500,000 pounds a year and American companies spend as much as $1 billion a year on coaches" (p. 27). According to Altman, one of the reasons why executive coaching is important is because it is one way that an executive can get to their higher office if the coach is a good one. Senge, Kleiner, Roberts et al (1999) suggest that executive coaching is important because executive leaders are more challenged today because of the demands that come from profound change and extraordinary outside pressures (p. 18). They further suggest that the role of executive coaching is complicated because they have accountability for the entire organization, they are looked upon for profound change and because they have to create an organizational environment for "continual innovation and knowledge" (p. 18). This information reiterates that point that Altman makes about executive coaching: When it is done correctly, it will benefit the executive in most situations. Fulmer and Goldsmith support coaching as one type of leadership development because it helps an organization maintain a "sustainable competitive advantage" (p. 2). They suggest that the CEO's are paying to develop their top talent because it is a necessity and should be a part of their overall strategy. One very important aspect for leadership development is that these experiences open leaders to new experiences, broaden their perspectives and help them learn to work better with cultural diversity (Fulmer and Goldsmith, p. 3). Fulmer and Goldsmith demonstrate that development for leaders is important to every company because it opens the leader to a wider world. Morgan, Harkins and Goldsmith (2005) spoke to 50 top executives coaches to find out their thoughts on executive development. In talking to coaches who coach leadership development, they found that there were a variety of issues that coaches worked on with executives that include: 1. Coaches help leaders find a teachable point of view. 2. Coaches work with CEOs to develop the clarity that is needed to coach the executives well. 3. Coaches must be leaders themselves in order to coach other executive leaders. 4. The coach and the client must be a good fit for each other and the client must be committed to their own change process. 5. Coaches can assist leaders in seeing, thinking and communicating from the perspective that all things are possible. In other words, coaches can assist leaders in finding their highest potential and help them deliver strong leadership within their organizations. Although executive coaching works for many people, there are several challenges that can stop it from being effective. One of the challenges is that coaching as a field is still young and anyone can call themselves a coach. Because of this, it is important to find out the credentials of the individual and where they have worked in the past. Another challenge is that some coaches do not coach well enough and often managers are inadequately trained because of it (Altman, p. 28). A study by Dagley (2007) identified cost as a challenge for some organizations and finding the time to do it is difficult for others. They also found that implementing the information received from coaching was sometimes difficult (p. 5). In the same study, it was found that there were several characteristics that made the difference between whether a coaching experience was good or not. These characteristics included hiring highly skilled coaches, confidentiality of discussions, senior management engagement and support, careful matching of coach and participant and individually tailored program content (Dagley, p. 8). I agree that coaching is important to the field of change. If the coach has been trained to coach executives and they are leaders themselves, it seems that they would be better able to take care of the myriad of issues that happen within an organization. I also agree that it takes time and planning to make sure that there is a fit between the coach and the executive so that the executive will invest in their own change process. THE FUTURE OF LEADING CHANGE Change will continue in organizations and this will take planning to keep up with what happens. As a nation we have already seen the effects of the Internet and technology on organizations. Because of the Internet organizations have been able to build a global business. By adding social networking and virtual business meetings, businesses are able to talk to their employees wherever they are in the world and hold inexpensive business meetings. They no longer have to worry about travel or accommodations because they can "send" everyone to a very information conference or training via many virtual business centers across the Internet. As an example, IBM and other large businesses have set up training inside Second Life, a virtual program that can be downloaded to any computer. These virtual meetings can save money in the long run and employees can socialize, attend meetings, and do extra-curricular programs as they would in an onsite meeting. Many organizations are finding that social networking works for them to allow their customers to find out more about them. Large and small organizations have a blog, a presence on networks like YouTube, Twitter, Facebook and LinkedIn, although many may not know exactly how to use these networks effectively. As an example, a search on the Internet with the keywords " social networking and organizational development" will yield many blogs and social networking opportunities that talk about organizational development. In fact, President Obama used social networking to advance his campaign and he continues to use it to keep the public informed as he continues his presidency. Although we are totally involved in an Information Age, Pink (2006) suggests that we are moving out of it into a Conceptual Age. He suggests that leaders will need to train differently for the future because left brained thinking will only be part of what is needed in a Conceptual Age. He suggests that we are entering a time of "high concept" and "high touch" (p. 2). The aptitudes that will be needed in this new Age will be based on creativity instead of computers. He suggest that there are "six senses" that leaders will need to develop in order to be competitive: 1. Design -- leaders must develop something that is functional but also beautiful, emotionally engaging or whimsical. 2. Story -- people enjoy hearing stories and therefore people need to have a compelling narrative as well as the ability to persuade and communicate from it. 3. Symphony -- leaders will need to keep focus on several issues at one time. They will need to see both the big picture and the small one and bring all pieces together. 4. Empathy - -leaders will need to apply logic in some situations but having an understanding of others and building relationships will become more important. 5. Play -- although the information age made it clear that facts and figures were important and people learned to live with day to day struggles, in the Conceptual Age leaders will have to learn how to play and have fun. 6. Meaning -- the Conceptual Age brings a need for purpose, for spiritual fulfillment and transcendence in the workplace. Leaders must be ready to search for deeper meanings in their organizations. (Pink, p. 65-67). These six senses extend Kotter's eight steps and makes it clear that as organizations change, leaders will need to find more innovative ideas to continue to be competitive. CONCLUSION Organizational change always brings a change to the culture of any organization. It is important to involve as many players as possible into the change arena so that everyone understands that change is coming and they become a part of that change. When others are not involved, they can rebel against the change and make it more difficult for the leader to move the organization forward. Executive development is very important for leaders so that they are always looking forward instead of being stagnated by the present circumstances. Some leaders find that executive coaching helps them keep perspective while others still go the traditional routes of taking courses, upgrading degrees or going to conferences and workshops. The challenge with change is that it can be constant and it can be dependent on both inside and outside factors. It is also dependent on building relationships inside and outside the organization. References Adler, N.J. (1991). International dimensions of organizational behavior. Second edition. MA: PWS-Kent. Altman, W. (2007). Executive coaching comes of age. Engineering Management. 17 (5), p. 26-29. Retrieved August 24, 2009 from Academic Search Premier AN: 28724016. Bennis, W. (1989). Why leaders can't lead: The unconscious conspiracy continues. CA: Jossey-Bass. Bretherton, I. (1992). The origins of attachment theory: John Bowlby and Mary Ainsworth. Developmental Psychology 28, 759-775. Retrieved July 28, 2009 from http://www.psychology.sunysb.edu/attachment/online/inge_origins.pdf. 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