Chapter 15 Question:How would you suggest a leader overcome resistance from employees, church members, etc., to a change that is going to cause some to lose their jobs, positions, etc.? Explain.Instru

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Resistance Is Real Leaders initiate many changes, but most of these don’t meet expectations. Consider that among leaders in 166 U.S. and European companies making major changes, only about one-third reported success in most types of their changes. Some studies have estimated that 90 percent of strategies fail to achieve intended objectives and that 70 percent of all change initiatives in organizations fail.5 There are many reasons why change programs don’t produce the intended results. One significant problem is that most people have a natural tendency to resist change—even when the changes are ones that could make their lives better. At Comalco, a rolled products company based in New South Wales, Australia, for example, leaders wanted to make changes to create a more egalitarian workplace with less separation between management and workers. They did away with all the separate uniforms for electricians, fitters, operators, foremen, and so forth; eliminated the time clock for hourly workers; and got rid of the separate parking lot for managers. Each change was resisted. Employees said they liked the uniforms because they were less costly and identified who they were compared to wearing different clothes every day. Workers were strongly opposed to elimination of the time clock because, they said, “We won’t be able to prove we’ve been to work, so they’ll be able to cheat us on our pay.” They were suspicious that doing away with the managers’ car parking was so employees couldn’t see that managers could afford a new car every year.6 If people resist changes designed to add value to their lives, imagine what it is like trying to implement changes that significantly shift their job responsibilities, task procedures, or work interactions! Leaders should be prepared for resistance and find ways to enable people to see the value in changes that are needed for the organization to succeed. Later in this chapter, we will talk about how leaders can overcome resistance and help people successfully change. The Leader as Change Agent Change does not happen easily, but good leaders can facilitate needed changes to help the organization adapt to external threats and new opportunities. For people throughout the organization to view change as positive and natural, they need leaders who serve as role models for change and provide the motivation and communication to keep change efforts moving forward. Research has identified some key characteristics of leaders who can accomplish successful change projects: 7 • They define themselves as change leaders rather than people who want to maintain the status quo. • They demonstrate courage. • They believe in employees’ capacity to assume responsibility. • They are able to assimilate and articulate values that promote adaptability. • They recognize and learn from their own mistakes. • They are capable of managing complexity, uncertainty, and ambiguity. • They have vision and can describe their vision for the future in vivid terms.

Daft, Richard L.. The Leadership Experience (p. 463). Cengage Learning. Kindle Edition.

A FRAMEWORK FOR CHANGE When leading a major change project, it is important for leaders to recognize that the change process goes through stages, each stage is important, and each may require a significant amount of time. Exhibit 15.2 shows a model developed by John Kotter that can help leaders navigate the change process.10 1. Light a fire for change. People have to believe that change is really needed. Leaders communicate the urgency for change in a way that touches people’s emotions—in other words, they help people feel the need for change rather than just giving them facts and figures. Consider Peter Löscher, the first outsider ever hired as CEO of Siemens, who says “never miss the opportunities that come from a good crisis.” Löscher stepped in at a very difficult time, with the company facing bribery charges, and he needed to make massive changes in structure and culture. He spent his first 100 days traveling around the world talking with employees about how the bribery scandal had tarnished Siemens’s proud heritage.11 2. Get the right people on board. Considering the complexities of change, no single person can implement a change, especially a major one, alone. For successful change, leaders build a strong coalition of people with a shared commitment to the need for and possibility of change. They include people with enough power to make sure the change happens, as well as people who can make the change more acceptable to end users. 3. Paint a compelling picture. People need a clear vision and strategy to inspire them to believe that a better future is possible and they can achieve it through their actions. The energy for true change comes from seeing how the change can be positive for individuals and the organization. Leaders create a picture that helps people understand why the organization is undertaking the effort and how the change will help achieve long-term goals. It’s also important to develop a strategy for achieving the vision and let people know how they fit into the big picture. 4. Communicate, communicate, communicate. Leaders tell the message not just once but over and over again. Change throws everyone into doubt and uncertainty, and people don’t listen well when they feel anxious. Another point to remember is that actions speak louder than words. Change leaders model the new behaviors needed from employees. At Siemens, Peter Löscher mapped the amount of time the company’s top executives spent with customers and presented it at the annual leadership conference. Löscher was number 1, having spent 50 percent of his time with customers. He told people that had to change and that the rankings would be presented each year to see if people running the businesses were honoring the new focus on customer contact.12 5. Get rid of obstacles and empower people to act. Leaders give people the time, knowledge, resources, and discretion to take steps and make the change happen. This might mean revising structures, systems, or procedures that hinder or undermine the change effort. After setting a vision and broad outline for change, Bill Glavin, CEO of OppenheimerFunds, Inc., gives his team members leeway to move forward with their own ideas for implementing desired

Daft, Richard L.. The Leadership Experience (p. 465). Cengage Learning. Kindle Edition.

changes. “I meet with each direct report every two weeks and try to keep a light hand on the tiller,” Glavin says.13 6. Achieve and celebrate quick wins. Unless people see positive results of their efforts, energy and motivation can wane during a major change project. To keep the momentum going, leaders identify some short-term accomplishments that people can recognize and celebrate. A highly visible and successful shortterm accomplishment boosts the credibility of the change process and renews everyone’s enthusiasm and commitment. 7. Keep it moving. Don’t get stuck on short-term wins. One study suggests that nearly 50 percent of all change initiatives crumble simply from lack of attention.14 It’s important for leaders to build on the credibility of early accomplishments and keep the change process moving forward. At this stage, they confront and change any remaining issues, structures, or systems that are getting in the way of achieving the vision. 8. Find ways to make the changes stick. At this stage, leaders look for ways to institutionalize the new approach, striving to integrate the new values and patterns into everyone’s work habits. At Del-Air, a Florida heating, ventilation, and air conditioning contractor, managers linked a new GPS-enabled timetracking system with the company’s bonus system. Employees who are more efficient with their time get rewarded for it. By integrating the change with the incentive system, managers made the new time-tracking system an accepted, integral part of everyone’s daily work.15 Stages in the change process generally overlap, but each of these stages is important for successful change to occur. When dealing with a major change effort, leaders can use the eight-stage change process to provide a strong foundation for success.

Daft, Richard L.. The Leadership Experience (p. 467). Cengage Learning. Kindle Edition.