Transformational Leadership Professor Debbie Nightingale November 13. 2002
Transformational Leadership Transformational Leadership Professor Debbie Nightingale Professor Debbie Nightingale November 13, 2002 November 13, 2002
i Management Vs Leadership Management Leadership Planning budgeting Establishing direction Organizing& staffing Aligning people Controlling problem solving Motivating inspiring Produces a degree of predictability. Produces change, often to a order dramatic degree Has potential to consistently Has potential to produce extremely produce short term results useful change(e.g, new products expected by various stakeholders that customers want. new ( e.g., for customers always being approaches to labor relations that on time; for stockholders, being on help make a firm more competitive budget Source: John P Kotter, Leading change, Harvard Business School Press Nightingale @2002 Massachusetts Institute of Technology s
2 Management Vs. Leadership Management Vs. Leadership • Planning & budgeting • Organizing & staffing • Controlling & problem solving • Establishing direction • Aligning people • Motivating & inspiring Management Management Leadership Leadership • Produces a degree of predictability & order • Has potential to consistently produce short term results expected by various stakeholders (e.g., for customers always being on time; for stockholders, being on budget) • Produces change, often to a dramatic degree • Has potential to produce extremely useful change (e.g., new products that customers want, new approaches to labor relations that help make a firm more competitive Source: John P. Kotter, Leading Change, Harvard Business School Press Nightingale © 2002 Massachusetts Institute of Technology
8 Steps to Transforming Your Organization Establishing a Sense of Urgency Forming a Powerful Guiding Coalition Creating a Vision Communicating the vision Empowering Others to Act on the Vision Planning for and Creating Short-Term Wins Consolidating Improvements and Producing Still More Change Institutionalizing New Approaches Source:John P Kotter, Leading Change, Harvard Business School Press @2002 Massachusetts Institute of Technology
1 2 3 4 5 6 7 8 8 Steps to Transforming Your Organization 8 Steps to Transforming Your Organization Establishing a Sense of Ur Establishing a Sense of Urgency Source: John P. Kotter, Leading Change, Harvard Business School Press Forming a Powerful Guiding Coalition Forming a Powerful Guiding Coalition Creating a Vision Creating a Vision Communicating the Vision Communicating the Vision Empowering Others to Act on the Vision Empowering Others to Act on the Vision Planning for and Creating Short Planning for and Creating Short-Term Wins Term Wins Consolidating Impr Consolidating Improvements and Producing Still More Change ovements and Producing Still More Change Institutionalizing New Approaches Institutionalizing New Approaches Nightingale © 2002 Massachusetts Institute of Technology 3
Establishing a Sense of Urgency EXamine market and competitive realities Identify and discuss crises, potential crises, or major opportunities Create the burning platform 50%of companies fail at this stage Underestimate difficulty in driving people out of comfort zone → Lack of patience-“ get on with it → Complacency Source:John P Kotter, Leading Change, Harvard Business School Press @2002 Massachusetts Institute of Technology
• Examine market and competitive realities • Identify and discuss crises, potential crises, or major opportunities • Create the “burning platform” • 50% of companies fail at this stage ➥ Underestimate difficulty in driving people out of comfort zone ➥ Lack of patience - “get on with it” ➥ Complacency 1Establishing a Sense of Urgency Establishing a Sense of Urgency Source: John P. Kotter, Leading Change, Harvard Business School Press Nightingale © 2002 Massachusetts Institute of Technology 4
Sources of Complacency The absence of a major and visible crisis Too much happy talk from senior management Too many visible resources Human nature, with its ow overall s capacity for denial performance especially if people are Complacency standards already busy or stressed Organizational A kill-the-messenger-of- structures that focus bad-news low-candor employees on narrow low-confrontation culture functional goals A lack of sufficient Internal measurement performance feedback systems that focus on the from external sources wrong performance indexes sAMSAN Source: John P Kotter, Leading change, Harvard Business School Press Nightingale e 2002 Massachusetts Institute of Technology 5
5 Sources of Complacency Sources of Complacency Complacency Complacency Too many visible resources Low overall performance standards Organizational structures that focus employees on narrow functional goals Internal measurement systems that focus on the wrong performance indexes A lack of sufficient performance feedback from external sources A kill-the-messenger-ofbad-news, low-candor, low-confrontation culture Human nature, with its capacity for denial, especially if people are already busy or stressed The absence of a major and visible crisis Too much happy talk from senior management Source: John P. Kotter, Leading Change, Harvard Business School Press Nightingale © 2002 Massachusetts Institute of Technology
Ways to Raise the Urgency Level Create a crisis by allowing a financial loss, exposing managers to major weaknesses vis-a-vis competitors, or allowing error to blow up instead of being corrected at the last minute Eliminate obvious examples of excess(e.g, company-owned country club facilities, a large air force, gourmet executive dining rooms Set revenue, income, productivity, customer satisfaction, and cycle-time targets so high that they can't be reached by conducting business as usual Stop measuring subunit performance based only on narrow functional goals. Insist that more people be held accountable for broader measures of business performance Source: John P Kotter, Leading change, Harvard Business School Press Nightingale e 2002 Massachusetts Institute of Technology 6
6 Ways to Raise the Urgency Level Ways to Raise the Urgency Level Source: John P. Kotter, Leading Change, Harvard Business School Press • Create a crisis by allowing a financial loss, exposing managers to major weaknesses vis-à-vis competitors, or allowing error to blow up instead of being corrected at the last minute • Eliminate obvious examples of excess (e.g., company-owned country club facilities, a large air force, gourmet executive dining rooms • Set revenue, income, productivity, customer satisfaction, and cycle-time targets so high that they can’t be reached by conducting business as usual • Stop measuring subunit performance based only on narrow functional goals. more people be held accountable for broader measures of business performance. Nightingale © 2002 Massachusetts Institute of Technology Insist that
Ways to Raise the Urgency Level (cont Send more data about customer satisfaction financial performance s to more employees, especially information that demonstrates weaknesses vis-a-vis the competition Insist that people talk regularly to unsatisfied customers, unhappy suppliers, and disgruntled shareholders : Use consultants other means to force more relevant data and honest discussion into management meetings Put more honest discussions of the firms problems in company newspapers senior management speeches. Stop senior s management"happy talk : Bombard people with information on future opportunities, on the onderful rewards for capitalizing on those opportunities on the organization's current inability to pursue those opportunities Source: John P Kotter, Leading change, Harvard Business School Press Nightingale e 2002 Massachusetts Institute of Technology
7 Ways to Raise the Urgency Level Ways to Raise the Urgency Level (cont.) (cont.) Source: John P. Kotter, Leading Change, Harvard Business School Press • Send more data about customer satisfaction & financial performance to more employees, especially information that demonstrates weaknesses vis-à-vis the competition. • Insist that people talk regularly to unsatisfied customers, unhappy suppliers, and disgruntled shareholders. • Use consultants & other means to force more relevant data and honest discussion into management meetings. • Put more honest discussions of the firm’s problems in company newspapers & senior management speeches. management “happy talk.” • Bombard people with information on future opportunities, on the wonderful rewards for capitalizing on those opportunities & on the organization’s current inability to pursue those opportunities. Nightingale © 2002 Massachusetts Institute of Technology Stop senior
2 Forming a Powerful Guiding Coalition Assemble a group with enough power to lead the change effort Encourage the group to work together as a team Grow team to 20 to 50 range in large companies Failures due to No history of teamwork at top Undervalue importance Select wrong leadership(staff vS line Source:John P Kotter, Leading Change, Harvard Business School Press Nightingale @2002 Massachusetts Institute of Technology 8
2 Source: John P. Kotter, Leading Change, Harvard Business School Press • Assemble a group with enough power to lead the change effort • Encourage the group to work together as a team • Grow team to 20 to 50 range in large companies • Failures due to: ➥No history of teamwork at top ➥Undervalue importance ➥Select wrong leadership (staff vs. line) Forming a Powerful Guiding Coalition Forming a Powerful Guiding Coalition Nightingale © 2002 Massachusetts Institute of Technology 8
i Building a Coalition That Can Make i Change Happen Find the Right People With strong position power, broad expertise& high credibility With leadership management skills, especially the former Create Trust Through carefully planned off-site events With lots of talk and joint activities Develop a Common Goal Sensible to the head Appealing to the heart Source: John P Kotter, Leading change, Harvard Business School Press Nightingale e 2002 Massachusetts Institute of Technology 9
9 Building a Coalition That Can Make Building a Coalition That Can Make Change Happen Change Happen Source: John P. Kotter, Leading Change, Harvard Business School Press • With strong position power, broad expertise & high credibility • With leadership & management skills, especially the former Find the Right People Find the Right People • Through carefully planned off-site events • With lots of talk and joint activities Create Trust Create Trust • Sensible to the head • Appealing to the heart Develop a Common Goal Develop a Common Goal Nightingale © 2002 Massachusetts Institute of Technology
3 Creating a Vision Create a vision to help direct the change effort Develop strategies for achieving that vision A vision says something that clarifies the direction in which and organization needs to move The vision"magnetically pulls the organization f The soul never thinks without a picture..Aristotle Source:John P Kotter, Leading Change, Harvard Business School Press Nightingale e 2002 Massachusetts Institute of Technology 10
3 Source: John P. Kotter, Leading Change, Harvard Business School Press • Create a vision to help direct the change effort • Develop strategies for achieving that vision • A vision says something that clarifies the direction in which and organization needs to move • The vision “magnetically” pulls the organization Creating a Vision Creating a Vision “The soul never thinks without a picture.” - Aristotle Nightingale © 2002 Massachusetts Institute of Technology 10
