L4 Leading Change Flashcards
How is leadership different to management - name the different approaches/objectives for each? 4
Leadership:
Sets direction, develops vision and strategies to achieve the vision
Aligns people, communicates vision and strategy to all those involved
Motivates and inspires people to overcome major barriers to achieving the vision
Produces change – sometimes dramatic – creates disorder
Management:
Plans. Budgets, establishes detailed steps and timetables to achieve results, allocates resources
Organises, staffs, sets up structures, delegates, implements, develops policies and procedures
Controls, solves problems, creates monitoring systems, measures results against plans
Delivers key results expected by stakeholders, creates predictability and order
Kotter 1990
Why Change?
Evolve or Die: the need to maintain a competitive advantage
Internal Sites of Change (Senior ,2002) 6
Corporate and organisational culture Structure or location Leadership Systems Processes Technologies Strategy Human resources
Give 3 examples when change has been necessary and 2 examples when change has failed?
Good:
BA
Lego
Bad:
Dame Cressida Dick Replace as Chief Police Commissioner
Detail the BA change example:
In 1981, British Airways appointed a new chairperson, John King. Early on, it was noticed that the company was extremely inefficient and a lot of valuable resources were being wasted.
To help the organisation become more profitable, the chairperson decided to restructure the entire business. He decided that the most efficient way to do this was through a change management plan.
The organisation soon began to reduce its workforce. However, before this was completed, the chairman - through his change management leadership - provided the business with reasons for restructuring British Airways to help prepare them for the upcoming change.
His plan saw him axe 22,000 jobs - including half of the board - replace older planes with modern jets and eliminated unprofitable routes.
Details of the successful changes implemented at LEGO:
From 1932 until 1998, Lego had never posted a loss. By 2003, it was an entirely different story. Sales were down by 30% year-on-year and the brand was $800 million in debt. What didn’t help their situation was that Lego hadn’t added anything of value to its portfolio for a decade.
So, what happened between Lego’s CEO, Jørgen Vig Knudstorp, admitting that the brand is running out of cash and he wouldn’t survive, and when it overtook Ferrari as the world’s most powerful brand in 2015?
Much like Netflix, Lego eventually realised that its lifespan of physical products wasn’t going to have an infinite interest. After a period of expansion, this beloved toy company was near bankruptcy in 2004. With this realistic yet disastrous outcome on the horizon, Lego decided it was time to start restructuring.
To begin, the business implemented digital transformation. Instead of putting their sole focus on physical toy products, Lego is increasingly concentrating on bridging the physical and virtual augmented reality (AR) experiences.
By finding new sources of revenue, LEGO has managed to transform its brand and keep up with the requirements of its target audience today.
Why is Leading Change quite complex?
What authors ?
Lots of Terms are used interchangeably, for example:
Planned Emergent Evolutionary Revolutionary Developmental Transitional Transformational
(Senior and Swailes, 2010)
Two types of approaches to a need for Change:
Proactive and Reactive
3 types of Leading Change Approaches:
Developmental
Transitional
Transformational
What is Developmental Change?
Improving of existing situation
What is transitional Change?
Implementation of a known new state; management of the interim transition state over a controlled period
What is transformational change?
Emergence of a new state, unknown until it takes shape, out of the remains of the chaotic death fo the old state; time period not easily controlled
Simply describe the difference between Leadership and Management (2 lines)
Management produces orderly results which keep things working efficiently whereas leadership creates useful change.
Describe the Lewin (1951) Change Process Model
Unfreezing - preparing people, understanding the need for change
Changing - implementing the change
Freezing - Providing support to assure the change becomes permanent
What does the coping model involve and what does it help achieve?
Kubler-Ross (1969) suggest the coping cycle model which helps managers and leaders track the potntial emotional impact of change on the people involved.