Leadership Challenges - Managing Change in Organizations
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Keywords
Chris Argyris, John P. Kotter, market share, ROE, Coalition, Vision, Strategy for Change, communication
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How can one create a sense of urgency?
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Creating urgency demands bold and risky actions. Such actions might include drawing up a balance sheet reflecting losses accurately. Other hard options would be to sell luxurious headquarters, which the firm can no longer afford. Or to tie 50% of top management salaries to the organization's meeting its market share targets or ROE targets. To establish a sense of urgency, the leadership in the organization needs to remove the factors that breed complacency. Some steps that can bring in urgency in place of complacency are: |
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• Distributing data on customer satisfaction, particularly data that concentrates on the organization's weaknesses compared to the competition, to as many employees and managers as possible.
• Asking consultants to participate in managerial meetings, so that the managers at the meeting get to know a different perspective from their own.
• Highlighting future opportunities, and the current inability of the firm to capitalize on those opportunities.
Earnest steps in this direction can minimize the levels of complacency in an organization.
Creating a Guiding Coalition
Often, programs aimed at change or renewal get the support of only a few people and resources. In the initial stages this may be sufficient, but to progress, and attain successful change, wider support through additional resources and people are essential. Generally, a coalition is formed to guide change in an organization. This coalition usually comprises the CEO and his team of senior managers, and other managers and employees. The coalition should be powerful enough, in terms of titles, information, expertise, reputations and relationships, to guide change in the organization. Whenever possible, the coalition should try to engage board members, union leaders, and even key customers, to gain backing for bringing in the necessary changes. The guiding coalition in a firm does not always include the senior management. Some times it has to operate outside the normal hierarchy (a coalition outside the normal hierarchy is chosen because the hierarchy no longer meets the purpose). Such a coalition has to operate beyond set boundaries, expectations and protocol. This way of operating may pose additional challenges.
A sense of urgency among managers eases the process of creating a guiding coalition. This sense of urgency at the managerial level helps the top leadership to bring suitable managers together, and promote a shared understanding of company's problems and threats. Such an understanding creates trust and facilitates clear communication among the coalition members. Undertaking an offsite retreat for two to three days is a popular method for promoting a shared understanding. Organizations that succeed are characterized by teamwork at the top. The highlevel team is led by a powerful line manager, and not by a staff executive. Without a powerful leader at the top and an equally powerful coalition, the forces opposing change can easily defeat the forces for change.