CHAPTER 1

LEADERSHIP

Part 1 in a Series of 5

There are proven success steps leaders follow to bring about culturalchanges in their organizations. This book offers ways to facilitatesuccessful organizational change. Questions are also provided to helpensure positive outcomes where measured goals and objectives are createdand then tracked to completion.

As a leader, it isimportant for you tounderstand that the speedof organizational changeis directly related to thesize of an organization.CHANGE TAKESTIME. Planned change,with proper implementingand tracking strategies,allows goals to be realized.To make informeddecisions about the need for a cultural shift, you must first look at whatcurrently exists inside and outside of your organization. Then you shouldinclude other stakeholders to develop a sound and systematic approach.

PLANNING A CHANGE EFFORT

There are 3 major steps to consider:

* Preparing for Change

* Implementing Change

* Following-up on Change

Each step in the change process requires careful and detailedplanning. If any step is done incorrectly, organizational resources may belost, time wasted, and morale affected.

There are several questions that must be addressed before you begin:

* Do I have a compelling reason to justify the change?

* Have I identified the key stakeholders to discuss the possible change?

* Am I prepared to make a strong personal commitment to the change?

* Am I ready to handle change-related disruptions that may occur inmy organization?

* Do I have a timeline prepared for making the changes?

* What will my organization's new vision/mission statement be afterthe change?

* Do I have the resources needed to implement the change?

* Have I prioritized the steps needed to successfully implement thechange?

* Am I prepared for potential casualties that may occur during/afterthe change?

* How am I going to communicate the planned changes to everyoneinvolved?

* What communication channels are available for my team membersto use?

DOES MY LEADERSHIP STYLE MAKE A DIFFERENCE?

Leaders must take an honest look at how they manage their followersand stakeholders. The more autocratic a leader has been in the past,the more difficult it will be for followers to trust the changes he or shewants to implement. Those leaders who have led with a transformationalleadership style will often find it easier and faster to garner supportfrom the followers during a shift in the culture of their organization.Transformational leadership is finding ways to help followers performbeyond expectations their superiors and their own personal goals.Transformational leaders are concerned with all aspects of their followers'personal and professional lives.

Based on your current knowledge, what is my current leadershipstyle (transformational, transactional, charismatic, authoritarian,servant, situational, other)?

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If I decide to make a cultural change in my organization, will I needto modify my current leadership style? If so, how? If not, why not?

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What tools and resources are available to me and my leadership teammembers to analyze our current leadership styles?

Do I have these tools or resources available internally? Yes No

If NOT, do I have the financial resources to find outside help? Yes No

THE INSIDE LOOK

In today's rapidly changing business environment, there are productsand services that were not available a few short years ago. If a leader wouldlike to expand a product/service line to retain the organization'scompetitive advantage, he or she may need to make changes within theorganization. Leaders, along with their teams, will need to evaluate theresults they hope to see, examine the current culture and procedures oftheir organization, and determine if their current strategy still makes sense.More importantly, a leader must realize the status quo may no longer beworking. Leaders must be willing to abandon processes that do not yieldresults and search out other opportunities that will prove successful.

As you contemplate whether or not a change is needed, don'taccept the idea that your organization has gone as far as it can. Doingso creates an immediate barrier to greater success. Effective leadersare visionaries who regularly consider how they can improve theirorganizations—increasing revenue, decreasing expenses as well as gaininggreater efficiency and effectiveness.

A holistic plan to dealwith significant changein personnel, vision,mission, and values mustbe put inplace. If current stakeholders are expected to change, they mustunderstand the new paradigms—and they must be given a reason tobelieve the new paradigms will work.

Those who choose to come onboard must be assured that they aremaking the right decision. Many may hear negative feedback from otherswho are resisting the changes. Such individuals need reassurance abouttheir job security. It is important for the organization to provide a safeenvironment for workers to express questions and concerns.

Leaders need to make a strong personal commitment to followthrough once the change process has started. They must understand thatmost followers dislike and resist change. If they waiver in their resolveto change, leaders often lose credibility, trust, and possibly their jobs.Leaders should only begin a major change if they are committed to itand can endure negative feedback that might arise.

Leaders must determine whether outside human resources willbe needed to make the changes envisioned and if the organization hasthe financial ability to hire outside consultants. These issues need to beaddressed prior to any changes being implemented. A monitoring systemalso needs to be in place to determine where the organization is withregard to the planned changes.

There are two kinds of changes organizations can make—structuraland cultural. Structural changes can be simple or difficult, depending onthe size of the organization and/or the level of change being considered.Structural changes can be as easy as moving people into new or differentpositions—or they can be difficult if people or positions are beingeliminated. Both structural and cultural changes require followers tounderstand why the changes are being made and how the changes willaffect them personally.

Change is personal and it affects everyone involved to some degree.Don't assume everyone in the organization is happy with changes even ifthe change seems to be logical and agreed to by all. Unhappy people havethe potential to destroy morale or cause other problems that can hurtan organization. Most change plans fail when not planned adequately,and others fail because the change was implemented too quickly. Ourexperience shows when change is made, 30% of the followers accept it.Another 30% won't accept it and will either leave, attempt to underminethe change, or be terminated. The remaining 40% will watch from thesidelines until they decide whether they support the change and newvision.

If you believe your organization needs to change its culture orstructure, vision, and/or mission statement, take time to think throughthe steps involved, and consider the issues that usually arise. Share yourthoughts with your direct subordinates and other stakeholders to be sureyou have the correct information that is guiding your understanding ofthe need for change.

What reasons have my leadership team and I identified that wouldmotivate us to change the culture or structure of our organization?

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What policies, practices, products, and/or services might we have toabandon if we change the culture in our organization?

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THE OUTSIDE LOOK

Organizations are created to serve various stakeholders—customers,clients, patients, and/or students. Leaders need to identify how a culturalshift in their organization may affect those they serve. Is a change goingto provide any value-added products? Have those being served asked fornew products or services that can reinforce the need for a cultural shift?Does the organization have the resources to provide new products orservices if a change is warranted? Looking at these outside considerationsand answering these kinds of questions helps convince internal followersabout the value of the proposed change.

What new products or services have our stakeholders requested?

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How (if at all) will the people we serve be affected by a change in theculture of our organization?

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What value-added products and/or services will we be able to provideour stakeholders if we decide to change the culture or structure ofour organization?

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WHAT CAN LEADERS LEARN FROM WHAT OTHERSHAVE DONE?

For decades, experts have studied what leaders have done insuccessful organizations. Effective organizations have several things incommon: they have few rules, the control is in the hands of the followers,and there are measureable standards. The followers trust the leaders. Thefollowers are allowed to own their own jobs. The leaders in these kindsof organizations trust their people, empower them, and want to see themgrow both professionally and personally.

CASE STUDY

In Bay City, Michigan, a 70-year-old General Motors (GM) partsproduction factory employed 4,000 people and was losing millions ofdollars each year. Productivity was low, workers were demoralized, andthey had no part in decision-making other than what their Union Localnegotiated for them. Workers had to check in and out, not just at thebeginning and end of a shift, but also to use the restroom and take requiredunion-negotiated breaks. If an employeebecame sick during their shift, he or she wasrequired to have a form signed by theirimmediate supervisor and the factorymanager before being allowed to leave.

When asked about the factory'smanager, the vast majority of workerssaid they had never met, nor even seen,the manager. Most didn't even know themanager's name. General Motors had plansto retool the factory, but the financial lossesand low productivity made that plan impossible to implement. In 1986,2,000 employees were terminated. With the loss of 50% their workforce,GM began to plan for a complete shutdown of the factory.

The GM leadership, hesitant to lose the factory, attempted to turnthe losses and productivity around by hiring a new factory manager. In1986, Pat Carrigan, a high school psychologist, was hired on as the newfactory manager. Soon after Pat arrived, she walked the floor to introduceherself and shake hands with every employee. She told them she wouldwelcome their ideas and comments and that they should feel free toseek her out at any time. Her immediate goal was to build mutual trustbetween herself, the employees, and the union.

While some plant managers viewed unions as an impediment toprogress, Carrigan saw this as an opportunity to create a new partnership.The union chairman called Carrigan his partner. When someonecomplained about a decision Pat made, the chairman would tell them"it wasn't her decision, it was their decision and all decisions were madejointly by Pat and the union for the well-being of all employees."

Carrigan immediately involved the floor supervisors and unionchairman in decisions regarding the employees, operating policies,negotiations with vendors, financial decisions for the plant, andworking directly with customers. The employees quickly began to trustCarrigan because she was open with them. Soon employees were ableto sign themselves in and out without permission. They set their ownproduction benchmarks, kept their own records, and measured their ownprogress toward those benchmarks. One year later after these changeswere implemented, a supervisor who had completed a computer reportof his division's productivity progress proudly shared that, "these were hisrecords—he owned them."

Within two years, the plant was back on budget, productivity hadskyrocketed, and the operations saved 13%—without a single employeelaid off. Based on significant improvements, GM abandoned its plans toclose the factory.

When Carrigan was asked what she knew about building auto parts,she replied she "didn't know anything about auto parts, but she knew heremployees did and that was the only thing that mattered." When askedabout her leadership style, she said, "People are my thing!"

WHAT DOES PAT CARRIGAN'S LEADERSHIP STYLEMEAN TO ME?

Leaders contemplating a cultural or structural change in theirorganizations need to believe in their people (as Pat Carrigan did).Many leaders don't realize people are their greatest asset. Making crucialdecisions without regard for employees, customers, patients, and otherstakeholders is a strategy for failure. Finding those most trusted people inyour organization and involving them in the change process is a strategyfor success!

What can I learn from Pat Carrigan about changing the culture andstructure of an organization?

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SETTING GOALS

WHAT IS MY LEADERSHIP TEAM TRYING TO ACCOMPLISHBY CHANGING THE CULTURE AND STRUCTURE OF OURORGANIZATION?

A goal should be measureable and realistic, yet not too easilyaccomplished. Goals may be long term and broken down to smaller,incremental steps. For example, quarterly goals contribute to a largerannual goal.

* List measureable goals you can track to monitor progress towardyour objective. A measurable goal can determine if you are gettingcloser to your goal or further away from it.

* Be specific! Include a NUMBER that can be regularly measured togauge your progress.

What specific, measureable goals can our leadership team use to assessprogress toward our objectives? (Use additional paper if necessary.)

1. _____________________________________________________________

2. _____________________________________________________________

3. _____________________________________________________________

4. _____________________________________________________________

5. _____________________________________________________________

Examples:

* Reduce injuries by 25%

* Improve customer satisfaction by 30%

* Obtain $50,000 line of credit

* Run a full marathon (26.2 miles)

ESTABLISHING TIMEFRAMES

Timeframes hold people accountable for achieving a measureable goal.

* Select a realistic target date. Do not procrastinate by setting a longwindow of time to accomplish your goal. But also do not expectmiracles overnight!

* Choose a specific date. Organizations often have quarterly andannual dates for goals to be accomplished. For example, a deadlineof December 31, 2013 could be established for a 12-month goalstarting in January 2013.

By what date does my leadership team want to achieve ourmeasureable goal?

Month, day, and year: __________________________________________

What is our rationale for selecting this particular date?

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Examples:

* September 1, 2011-Beginning of the fiscal year

* April 7, 2012-Published deadline to submit proposal

* May 16, 2011-The date of a sporting event

* November 5, 2011-The date you desire to achieve a health or fitness goal

WHO IS RESPONSIBLE FOR ACHIEVING THE GOAL BYTHE DEADLINE?

It is important to designate one key member of the leadershipteam who is accountable for making sure each measurable goal isaccomplished. This person may personally oversee the accomplishmentof the initiative and/or function as a team leader for the organization.

Goals are rarely achieved by one person alone. More frequently, theassistance and participation of others at work or home (maybe both) arerequired.

Whose help does our leadership team need to accomplish our goals?

1. _____________________________________________________________

2. _____________________________________________________________

3. _____________________________________________________________

4. _____________________________________________________________

5. _____________________________________________________________

Examples:

* Sales employees

* Business consultants

* Managers

Who are the most trusted members of our leadership team? List theirnames and current responsibilities.

1. _____________________________________________________________

2. _____________________________________________________________

3. _____________________________________________________________

4. _____________________________________________________________

5. _____________________________________________________________

How will our leadership team monitor the progress of the neworganizational change?

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Who are other key stakeholders in my organization that need to beinvolved when implementing the change?

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