19 April 2022
The Leadership of Change

The Leadership of Change

Introduction

The Leadership of change has become a major preoccupation for Leaders and no matter what activities a Leader becomes involved in, from strategy implementation to making simple amendments to an administration system; all these activities require change management skills. Every time a leader makes a decision, some type of change occurs.

Whilst understanding the key drivers of change in the modern business environment and their effects on organisations is important, Leaders also need to know the key influences that will determine the success or failure of any change initiative. Organisations are made up of human beings and here lies the real complexity of change. Therefore, an understanding of how people react psychologically to change and the impact of their attitudes to change are essential prerequisites for effective change management.

Change is a fact of life in all organisations. There are various levels of change, which range from a minor change in a work procedure to a major revamping of the organisation’s structure.

The Dimensions of Change

In exploring the techniques and principles of managing change it is important to understand the various characteristics of change and the varying dimensions of the impact of change on both the organisation and the individuals. Most people would suggest that major or dramatic changes are the most complex to handle but experience shows that even the simplest of changes can produce complex and sometimes, costly consequences.

Case Study: The Water Coolers

Elaine is a new Director of a small but thriving organisation. The Board have told her that her first task is to cut costs. So, after looking over the accounts (and after nearly falling over dozens of empty containers) she decided to reduce the number of water coolers in the office from three to one. This was a small thing, but Elaine felt it sent the right message and it saved a little needed cash. The response from the staff was instantaneous and fierce. People were upset and angry; comments included “well this shows what they think of us,” “what’s next – salaries” and “She is penny-pinching – but I bet she didn’t take a cut in her package.”  One staff member told her manager that she was certain this was a sign that the organisation was going out of business and that she was looking for a new job.

Did people over-react? But this is a good example of how a relatively minor change, which was designed to reduce cost and improve storage space, can have a significantly disproportionate effect in comparison to the magnitude of the change. It is, therefore, important before engaging in any form of change initiative that the effects and consequences of the change are fully analysed.

There are two methods that can be used when trying to analyse the characteristics and effects of change. The first is to assess the characteristics of change at the individual, group, and organisational levels and then secondly, to determine the degree of change required by those affected by the change.

Change at the Individual Level

Unless the individual has a significant impact on the performance of an organisation, changes at the individual level do not usually have major implications for an organisation. Exceptions of course would be where perhaps; a key technical specialist leaves the organisation to join a competitor, or a new Managing Director is appointed. Simple changes for an individual such as taking on some new job tasks, gaining an additional qualification, or obtaining a promotion may have significant implications for the individual but are unlikely to have much impact on the organisation.

If, however, we think of an organisation as a system of interrelated departments or processes, we can see how change at the individual level, particularly if the change is major; can impact the whole organisation. Within an organisation, each function or department is mutually reliant on others for services, information, or support.

Taking this thinking down to the micro-level, if a change impacted one of the buyers in purchasing, for example, they went off ill or were sent on a training programme, and then the department would be undermanned for some time. This might have the effect of slowing down the processing of purchase orders. Here we have an example of an individual change now potentially producing a group effect. Extending this further, if the slowdown in the purchase orders system resulted in critical dates in the production schedule being missed, then we could see how a minor change at the individual level could produce a change at the organisational level.

Therefore, using the system concept when analysing the impact of change, shows that no matter how simple or inconsequential the change may appear to be, the further and wider ramifications of that change need always to be considered.

Changes at the Group Level

In terms of their effect, changes at the group level can have quite a major impact on organisations. The simple reason for this is that today most organisations comprise groups and teams. These groups could be individual departments, functional groups within a department, work or project team, or the plethora of informal groups that can exist within an organisation.

Changes at the group level can affect workflow, communications patterns, job design, social relationships and the influence and power structures within an organisation. Whilst these changes might be driven in a coherent and planned way by the formal requirements of the organisation, the impact of the reaction to change from the informal groups cannot be ignored.

Change at the Organisational Level

Overall organisational change is often referred to as ‘Organisational Development’ and the ‘Management of Change’ is a small but incredibly significant part of the organisational development process.

Organisational development (OD) is concerned with a set of wide-ranging issues on which changes decisions need to be based. These issues can range from gaining an understanding of the present position of an organisation concerning its’ strategic options for change to the structure culture and management style of an organisation.

Decisions regarding OD and the changes that can result from the process are made by an organisation’s Leadership. The implementations of any proposed changes are seldom the responsibility of an individual manager and are more usually organisation-wide initiatives. Such initiatives take place over extended timeframes as they could include such things as a major reorganisation of the organisation’s structure, significant events such as a merger or acquisition or the major re-focusing of the organisation’s business objectives.

You can register online right now or request a paper registration form by calling us at +971 4 427 5400.  For more information about “Certificate in Organisation Development & Change” training course click here. Bookings are essential as places are limited, and to reserve your place, contact reg@aztechtraining.com or call +971 50 195 5668

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