Strategic Leadership for Change Management - Article Example

? Strategic Leadership for Change Management of Strategic Leadership for Change Management Introduction Human relations in many ways are nothing but a manifestation goodwill and common sense in practice. To a large degree of success entrepreneur in the field of human relations depend on such things how to make a nice job in a supermarket or an attractive work at the factory. Entrepreneurs often ignore these simple things, especially when their business is only growing. At the initial stage entrepreneurship, they generally have to worry only about themselves, and maybe it’s not numerous staff. Solid consciousness common purpose binds the owner of the company and its staff. But as addition, as new employees, this relationship is waning, if the entrepreneur does not pay enough attention to the so-called human problems. Currently, many companies have become so cumbersome that workers lose the possibility of human contact with their by employers. In some areas of manufacturing high degree of automation leads to the fact that workers lack, for example, feelings of satisfaction and involvement with the product, in which manufacturing have contributed. Many workers do not even have a clue about that the purpose for which the buyer uses their product. Robotic the nature of a significant proportion of their work does not have arisen from them a sense of self-esteem. Leadership has been the object of study when, in early twentieth century began for the first time to study management. However, only between 1930 and 1950 was the first time undertook the study of leadership on a large scale and systematic basis. These early studies set out to identify the property or the personal characteristics effective leaders. According to the theory of personal leadership, and certain set of common for all personal qualities. Developing this idea, it can be argued that if these qualities can be identified, people could to learn how to raise them yourself, and thus become effective leaders. Some of these learned traits - this level of intelligence and knowledge, impressive appearance, honesty, common sense, initiative, social and economic education and a high degree of confidence in itself. In the 40s, scientists began to study the collected facts of the relationship between personal skills and leadership. Unfortunately, despite the hundreds held research, they agreed on a set of qualities that certainly distinguish big leader. In 1948 Stogdill made comprehensive review of research in the field of leadership, which noted that study of the personal qualities continues to give conflicting results. He found that leaders tend to their intellect and the desire to knowledge, reliability, responsibility, activity, social participation and socio - economic status. However, Stogdill also noted that in different situations, effective leaders exhibited different personal of quality. He then concluded, with whom would agree today scientists - behavioral: "Man is not only the head due to the fact that he has a certain set of personal characteristics." The conclusion is that there is no set of personal qualities, which present in all effective leaders are often cited as evidence that the effectiveness of leadership is situational in nature. However, the Stogdill said that his view is not enough emphasizes the personal nature of leadership. He argues that there are substantial evidence for the fact that different situations require different ability and quality. Although he did not call back to an approach to leadership in terms of personal qualities, Stogdill concluded that "the structure personal qualities of the head should be related to personal qualities, activities and tasks of his subordinates." Change Management In present times, organizations of all types live many changes in nature and scale, different with temporalities and rhythms variables (Wentz, 1999, pp. 78). These changes appear, on the one hand, as more or less of questioning the ways of acting and thinking found unsatisfactory, also the development of competent skills leading the organization to a situation perceived as more satisfactory (Beitler, 2006, pp. 141). Changing a situation that becomes problematic, correcting malfunctions in an organization through the development of different skills is also the subject of organizational learning (Spector, 2009, pp. 138). Therefore, it is important to address the issue of the connection between change and organizational learning. Considered in terms of organizational learning, organizational change is the center of the analysis, i.e. the role of individuals in the transformation of an organization. Thus, theories of organizational learning analyze change through the role of knowledge and knowledge held by stakeholders in the development of "routines" of the organization (Salerno & Brock, 2008, pp. 109). Evaluation of the degree of development, level of knowledge, based on analysis of instruments and methods used are necessary for the purpose of change analysis. It includes all forms of institutionalized procedures for real organizational learning, such as the charters of making, management styles, job rotation and project groups (Palmer et al, 2008, pp. 212) . These instruments support the development forces innate and unique to the organization. The evaluation of the degree of development and change can be around the ability to act in a cooperative and participatory manner, the capacity of communication and explanation of analytical capabilities of resolution of complex problems and memory skills of knowledge. It is, therefore, the feasibility of learning by providing opportunities to each member of the organization which leads to organizational growth (Mackenzie, 1990, pp. 490) . The assessment level will be based on the desire to develop and to enrich the potential of individuals and the organization must be agreed and ready to challenge their expectations, values, knowledge and actions if they venture onto new and unexplored paths. It is also important, to systematize the reasoning in order to fully understand the reasons for change. Changes on managerial level may involve an element of procedure or routine (for example an information system, a system control, etc). However, it may also target changes in relations between actors, for example, a change in structure (Hayes, 2010, pp. 401). The culture of the organization includes a direct experience rooted in actors, which determines their degree of participation in the organization. Therefore, it is an area that does not change quickly (Harigopal, 2006, pp. 175). In this context, we understand that, in addition to past efforts to, manage the project, to invest money, time and resources, it becomes essential to make a minimum of change management. Here, are four key principles that can help better prepare change management activities: 1. Change management should be planned Change management is not a process or a function or event. All deliverables change management must be part of the process of project management and the natural cycle of the project. We must, therefore, include all activities and deliverables in the project plan and to schedule. 2. Teamwork The change management activities can be provided by a person dedicated to managing change. Sometimes this role is assumed by the project manager. 3. Business units must take ownership of the solution The ownership of the solution is important. The projects often emerge from one department in particular: information technology and human resources. Business units are not only involved in the project, but they also feel that the change has been designed for them. The project team and change management must work with business units and not for them. Transformational Leadership Transformational leaders are leaders who are able to infuse the rest of the group, some form of vision or inspiration that motivates them to transcend the common performance goals and make an effort in the interest collective (Charbonneau, 2004). My company’s mission philosophy would be more inclined towards transformational leadership and teamwork. Teamwork is a key to success, as two heads are better than one. In order to make sure all employees are working for the same purpose inclined towards the mission of the organization, it is mandatory that influential people are given roles; roles in which they can inspire and motivate people to work in the same direction and coordinate and collaborate with each other. Teamwork would be the key element for the mission of my organization. Transformational leaders are more people oriented than results oriented, and transformational leaders are powerful motivators. The major transformational leadership style, that my organization would assign, would have behaviors, that include confidence in others, respect in others, pride among employees, interest in others and not in self, focus on the common good, achievement, self-actualization, enthusiasm, optimism, vision, problem solving, promotes creative and adaptive solutions to stressful conditions, developing employees, and treating employees as individuals (Yammarino, 2003). The transformational leader will encourage employees to get to the goal with the focus being more on the people than on the results. Many times, the focus on the people are all it takes to motivate the team to work harder, through the weekend, etc. in order to meet the goals of the organization (Charbonneau, 2004). The items that will help these managers become stronger include recognizing the negative, empathizing with the negative, categorizing the negative, globalizing the negative, neutralizing the positives, deputizing the employee, and actualizing understanding. Doing these things will help managers and employees relate better to their employees and will help employee retention, which would in return be beneficial for the organization. Transformational leaders will play a significant role for achieving the objectives of my organization. For achieving the objectives, transformational leader guides the subordinated that play an active role together with the leader that is to focus on the conduct and behavior of others, on the environmental factors and their mediating judgments (Avolio & Bass, 1987). Examples of this approach would be: The leader would meet with internal and external environmental needs that affect the behaviors of subordinate to control their behavior. The leader would look for individual factors that govern the behavior of subordinates. The leader jointly with the subordinates will try to find ways to control individual behavior to produce mutually reinforcing and beneficial acts for the results of the organization. With these approaches, the transformational leaders and subordinates regulate relations based on cooperation, and consciously try to change the behavior of each other, giving and taking the desired reward (Bycio and Hackett, 2005). In order to create the followers, the transformational leader has to be very cautious in establishing personal integrity and their trust, which is a vital part of the transformational leadership style. The transformational leaders should focus on their method of leading the employees and as well as implementing the vision which will guide the organization in meeting the objectives (Avolio & Bass, 1987). Transformational leaders actively seek to change personal values among followers so that they can go beyond their self-interest for the good of the organization. The policies I have mentioned would make sure that all employees are aligned on the same path, and each and every one recognize the mission of the organization. It would be the responsibility of the leader who would set the benchmark and “walk the talk” and make set an example which others can follow. Servant Leadership & Management Styles Two authors in their book, Transforming Public and Non-Profit Organization, assert that non-profit agencies, including boards of directors, have historically focused on leader centered management which is based on the assumption that change emanates from the CEO, Executive Director or Chairman of the Board (Kee and Newcomer, 2008). Although, there are strengths in leader center leadership, including improved productivity and efficient decision making, the philosophy also creates greater distance between the central leader and his or her followers. Those organizations or board of directors that follow a leader centered approach also face the danger that the leader may have an unclear vision for the agency. It is not always the Executive Director or Board Chair who has the “pulse” of the organization, “it is often mid level managers and frontline employees who a full understanding of the organization, its clients, and why a change effort may be necessary” It also appears that non-profit leaders are reactive rather than proactive these same leaders are driven from a glass is always empty perspective. Our own board chairman admitted that is very easy to become caught up in what is not possible rather than what is possible. He asserted that, that is easy to become focused on the lack of resources, the overwhelming complexities of poverty, the economic challenges, and operational barriers inherent in a non-profit organization rather than the opportunities or possibilities. The authors of Stories of Transformative Leadership in the Human Services, Why the Glass is Always Full writes, “the most difficult task is reframing how we live and work in our lives and to see the glass as always full. It is to believe we are worth the struggle it will take each and every day to remain op to interpreting the world as rich in possibility and promise” (Burghart &Tolliver,2011). The authors ask leaders of human service agencies, including board members, staff, and volunteer to shift their perspective from pessimism which drains one’s capacity for service to optimism which inspires followers to take action. The following analysis is a result of the experiences in the non-profit sector in Colorado. These remarkable changes were witnessed by non-profit organizations which are driven by a commitment to serving its clients and the surrounding community. Also witnesses were several human service agencies dissolve due to mismanagement, a lack of vision, or centralized power structures. In my opinion, Servant Leadership has the potential to transform how non-profit organizations deliver services to marginalized communities. Moreover, it has been believed Servant Leadership has the power to change how boards of directors manage stakeholders, raise money, and evaluate performance of organizations in the non-profit sector. Servant Leadership and Board Management Servant leadership is the concept of leadership which is based on services provision to the people by leaders. The idea is inspired by the ancient times of kings when they treat themselves as the servants of their people. It is a way of life that exhibits, encourages and support people to serve others first. It means to serve people and treat them with honor and respect; this includes external and internal customers both. Servant leadership can be measured by following criteria: Servant leader seeks and accepts sincere feedback Servant leader always involves himself in developing people up to their highest potential Servant leader tries to find out other people’s need and tries to meet that needs Servant leader prepares his team for future with the help of succession planning Servant leader offers higher quality services to customers There are certain characteristics of servant leader, these include: listening, empathy, healing, awareness, persuasion, conceptualization, foresight, stewardship, commitment to the growth of people, building community (Spears, 2010). There are many companies that are practicing servant leadership while effectively maintaining their place in the market. Many organisations and individuals have adapted servant-leadership style as guiding philosophy. For individuals the theory of servant leadership is helpful in achieving personal growth and spirituality. Several organisations are adapting it as corporate philosophy. Servant leadership could be applied in board management, but it requires to extra efforts. By successful adaptation of the ten characteristics of the servant leadership, any organisation can work on the model of servant leadership. While exploring the concept of servant-leadership for applying it to the board management more practically, it is found that a method should be designed carefully for boards that are committed as servant-leaders. Following are the reviews of ten characteristics of servant-leaders as identified by Greenleaf in the relation to board management. Stewardship Servant- leader boards consider themselves as stewards. This means that they realize the impacts of their decision, not just today or tomorrow, but on the next seven generations. Conceptualization Shaping the vision of the organisation is one of the most essential tasks of the servant-leadership boards. Servant-leadership board has the ability of foreseeing, they could see beyond the present, and understand the demands of future. According to Greenleaf, servant-leaders take challenges and shape the future, they work for future and strive to achieve those things for which they are not even sure about how to achieve. Another theorist Carver, see the situation differently, he believes that vision cannot be created in isolation; servanthood plays its role in inviting the ownership in helping to shape the vision. Listening Servant leaders have skill of listening to other people, and an ability to talk in such a manner that influences people directly. Creation of shared vision does not lose the identity of individual visions, but establishing synchronization among various visions so that the team can move ahead together. Foresight Servant-leaders board must seek lesson from the past, realities and circumstance of the present and possible consequences of their decisions in future. Inability to foresee future is a serious ethical compromise that leaders make in present. Owners should allow board to know about any situation than owners, because board is responsible and in a position of leadership and trust on the behalf of the owners. The Test of Servant-Leadership Anything cannot be learned just by reading it such as computer; servant-leadership is the same. It cannot be learned only by hearing, one must practice servant-leadership, and practicing servant leadership means being servant leaders Servant Leadership and Non Profit Boards As previously stated, the focus of this study was to explore nonprofit governing boards in Denver, Colorado. In his 2006 book, Boards That Make a Difference, John Carver defined a governing board as “a group of peers who have total accountability for an organization, along with total authority over it, normally on behalf of someone else” (p. 327). A majority of governing boards are managed by a board chair and include a treasurer and secretary. According to Astor Kirk (2006), author of Governing Non-Governmental Public Serving Organizations, boards of directors have a specific purpose that should not be mixed with the responsibilities or duties of nonprofit staff and volunteers. Kirk identified the following roles as vital to the functioning of a healthy board: a) Ensure that the organization fulfills its trusteeship obligations effectively, efficiently and responsibly b) Monitor the effectiveness of the Executive Director of the agency c) Facilitate organizational learning d) Act as a catalyst when the legitimacy and viability of the nonprofit organization require catalytic board behaviors e) Ensure that the organization is adequately equipped and resourced to carry out its public service commitments f) Evaluate the organization’s performance. Federal and state law clearly mandates that boards of directors responsibly govern agencies through incorporation documents and by-laws. It appears that Kirk is making a clear connection between a board’s responsibilities and a nonprofit organization’s designation as a means of serving the community. Robert Greenleaf’s Theory of Servant Leadership The servant-leader is servant first. The concept starts with the natural feeling that one would like to serve. Then an individual has been inspired to lead by choice (Spears, 2004). Servant Leadership is unique in that it is driven by one’s moral compass. In Robert Greenleaf’s 1977 book, Servant Leadership: A Journey Into the Nature of Legitimate Power, a collection of essays on the philosophy of servant leadership, in the foreword Stephen Covey (2001) wrote that the main quality that differentiates the servant leader from the others is that they live by their principles or their sense of right or wrong. And this has been the main differentiating factor between the Servant Leadership and others. The philosophy of Servant Leadership was originally developed by Robert Greenleaf, Greenleaf identified the themes of Servant Leadership, as well as the ideas of leading from a place of conscience and morality; as detailed above by Covey from Hesse’s parable, which describes an arduous journey undertaken by a group of men and the central character, Leo, who acts as a servant who performs menial chores for the men. After Leo disappears, the group loses their way, becomes lost and, ultimately, isolated. Through this ordeal, the men discover that Leo, although a servant, is the “guiding spirit, and a great and noble leader” This parable demonstrates leadership from a shared perspective rather than from the traditional top-down perspective. In essence, Leo represents visionary leadership from the least-valued member of the group. In his 1995 essay “Robert Greenleaf’s Legacy: A New Foundation for 21st Century Institutions,” Peter Senge asserted that leaders should begin to reassess the predominant theories that have guided decision-making within groups and institutions for the last several decades: The traditional leadership model in Western culture suggests a one-way link. The leader sets the vision and then works to get people to buy in. The leader creates the policies and structures that determine how things get done. The leader motivates people. Greenleaf suggested that we give up the notion of the one-way effect on follower, and begin to see leaders and followers interacting in a continuous process of mutual interaction. (Spears, 1995) Greenleaf wrote a number of publications about Servant Leadership, as a means of encouraging mission and value-based leadership models. This study explored the leadership models these boards of directions have used to guide their decision-making, policies, visions, and goals setting. Greenleaf identified boards as too often the construction of a management style with, what Senge identified above as, a one-way link (Greenleaf, 1977). Greenleaf suggested that boards often result from the outdated traditional model, which actually can harm individuals and the larger community. In his 1977 essay “Servant and Leader,” he wrote that, “The pyramid style with a single chief at the top is still the conventional model, yet, in the face of historical precedent and practice, it is small wonder that administrators have not accepted trustees as an important influence, and that trustees have not seen fit to establish their traditional roles”. In further introducing the concept of Servant Leadership, this chapter includes insights on how organizations today are utilizing that philosophy as a powerful and effective means of leadership. This chapter also outlines the purpose of this study, the research method used, and the significance of this study. Competitive Strategies & Strategic Decisions Strategic Planning and Management Strategic planning also is typically distinguished from strategic management. Strategic planning is the cornerstone of strategic management, but the latter is a far more encompassing process, ‘concerned with managing an organization in a strategic manner on a continuing basis’ (Poister and Streib, 1999: 310).Strategic management links strategic planning and implementation by adding ongoing attention to budgeting, to performance measurement, management and evaluation, and to feedback relationships among these elements. SWOT (1960s) The SWOT framework has been used by different companies around the world and it is one of the oldest tools of strategic management. According to SWOT framework, firms are able to achieve competitive advantages by executing strategies that could exploit the internal strengths of the company by responding to the external environmental opportunities and at the same time by neutralizing the effect of external threats and avoiding any weaknesses of the firm (Ansoff, 1965; Andrews, 1971; Hofer and Schendel, 1978). BCG Growth-Share Matrix (1970s) The limitations of the discounted cash flow model were particularly apparent to corporate executives of large, diversified firms in the early 1970s. Many firms had acquired an array of businesses but because of a recession, they also faced financial problems. GE Matrix: Market Attractiveness-Business Strength (1970s) The market attractiveness-business strength matrix was developed by General Electric (GE) and McKinsey. GE corporate planners felt it was simplistic to make important investment decisions based on only two factors -market growth and relative market share. PIMS Analysis (1970s, early 80s) The profit impact of market strategy (PIMS) project was organized in early 1972 by the Marketing Science Institute at the Harvard Business School. A large data base containing information on more than 600 businesses was established and used to develop different PIMS profit models (Schoeffler et al., 1974). Industry Analysis - Five Forces (early 80s) Industry analysis, as noted earlier, was introduced by Michael Porter to the field in the early 1980s, and was a transformation of the structure-conduct-performance paradigm in industrial organization economics to apply to strategic analysis. Value Chain Analysis (mid 80s) Most goods or services were recognized to be produced by a series of vertical business activities - acquiring supplies of raw materials, manufacturing intermediate products, manufacturing of final products, sales and distribution, and service (Porter, 1985). Scenario Analysis (1970s) Scenario analysis has been used by management to facilitate and assist in decision making as it has the ability to address uncertainty by signifying the future situations through some number of sets internally consistent scenarios. Value Based Planning (1980s) Value based planning had its roots in financial theory. The decision criterion of this method was the maximization of shareholder wealth. Strategic Option Analysis (1990s) The strategic option approach incorporates both the uncertainty inherent in business and the active decision making required for a strategy to succeed. Business strategy can be conceptualized as a series of options in the face of uncertainty. Strategic Planning The following discussion revolves around the concept of formulating business strategies on the basis of theories and learning from Professor Michael Porter, Harvard University. The definition of what strategy is, how the five competitive forces shape business strategy and what should be the long-term strategy in times of economic downturn will also be a part of the discussion. What is Strategy? According to Michael Porter, strategy in the easiest sense is the outcome or result of the objective of the company. A company can develop different strategies that can help them achieve organizational goals and objectives. The Five Competitive Forces That Shape Strategy The link is an Interview with Michael E. Porter, Professor from Harvard University. Porter's five competitive forces are the basis for much of modern business strategy. The aim is to understand the framework and how to put it into practice. The concept presents the holistic view of the business industry. Practically speaking, the basic structure of the company is responsible for reaching the heights of profitability. Long-term Strategy in a Downturn In this time, of economic downturn, trade policies are encouraged which allow globalization; however, governments need companies and foreign direct investment to create special economic zone which allow companies to exploit the resources in that area. Governments are encouraging companies to come to their country so that they can gain tax revenue. The price sensitive customers tend to pressurize with their bargaining power and result in organizations to reduce the prices. To cope up with this competition, company’s make a mistake in compromising on the quality of the product or service to cater the price sensitive customers. Important Points by Michael Porter The important points presented by Professor Michael E. Porter are, understanding the market competition and rivalry, particularly, zero sum rivalry. The new article by Porter focuses on industry analysis as the basic step towards formulating a business strategy. Identifying the structure of the industry helps the company to position itself in the market according to the industry analysis and formulate strategies that can keep the organization on track in order to achieve their goals and objectives. Importance of Business Strategy The strategy is useful and important for future business application by keeping the operations of the company in alignment and Application in the Real World Apply this learning to the real world, we can say, the concepts can be applied to any industry; airplane, cars or soft drink industry. Wherever possible, set targets for them, either through historical data or comparisons of the company with a goal or a value that comes from the best business practices. The emerging economy around the world is facing many competitive forces and in order to meet these challenges porter’s theories are helpful in formulating business strategies. The five forces are the tools for the company to understand the dynamics of the industry and make long term business strategies. Learning from the Theory In order to survive in this economic crisis, a company should keep in mind the long-term and short-term goals, and formulate strategies to survive in the competitive environment. This is the only way with which they can maintain the company’s existence. Applying the model of Porter's five forces to analyze the competitive environment; we can estimate the value of each of the five competitive forces. Porter's model, the stronger competitive force, the lower the profitability of the companies that are present in this market, and consequently, the competitive attractiveness of the industry is falling. Porter model leads to the conclusion that, for a successful business, competitive forces should be used to develop a strategy that would have saved the company from the actions of the five competitive forces of Porter, and would ensure the creation of such a position that will enable her to secure a competitive advantage in the industry. Conclusion Leadership has been the object of study when, in early twentieth century began for the first time to study management. However, only between 1930 and 1950 was the first time undertook the study of leadership on a large scale and systematic basis. These early studies set out to identify the property or the personal characteristics effective leaders. According to the theory of personal leadership, and certain set of common for all personal qualities. Developing this idea, it can be argued that if these qualities can be identified, people could to learn how to raise them yourself, and thus become effective leaders. Transformational leaders are more people oriented than results oriented, and transformational leaders are powerful motivators. The major transformational leadership style, that my organization would assign, would have behaviors, that include confidence in others, respect in others, pride among employees, interest in others and not in self, focus on the common good, achievement, self-actualization, enthusiasm, optimism, vision, problem solving, promotes creative and adaptive solutions to stressful conditions, developing employees, and treating employees as individuals. Strategic management links strategic planning and implementation by adding ongoing attention to budgeting, to performance measurement, management and evaluation, and to feedback relationships among these elements. Changing a situation that becomes problematic, correcting malfunctions in an organization through the development of different skills is also the subject of organizational learning. Therefore, it is important to address the issue of the connection between change and organizational learning. Considered in terms of organizational learning, organizational change is the center of the analysis, i.e. the role of individuals in the transformation of an organization. Thus, theories of organizational learning analyze change through the role of knowledge and knowledge held by stakeholders in the development of "routines" of the organization. References “Harvard's Michael Porter on long-term strategy in a Downturn” 2008, Retrieved on 8th February, 2012, from “The Five Competitive Forces That Shape Strategy” 2008, Retrieved on 8th February, 2012, from “What is Strategy?” 2009. Retrieved on 8th February, 2012, from Avolio, B. J., & Bass, B. M. (1987) “Transformational leadership, charisma and beyond” Palo Alto, CA: Consulting Psychologists Press Beitler, M. (2006), “Strategic Organisational Change”, Practitioner Press International, pp. 141-153 Bernstein, W. 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