change,culture & leadership © professor malcolm higgs 2007 raf leadership centre change,...

Change,Culture & Leadership

© Professor Malcolm Higgs 2007

RAF Leadership Centre

Change, Culture & Leadership: Can Changing Culture Facilitate the Leadership of Change?

Leadership Conference

July 18/19 2007

Professor Malcolm Higgs

Henley Management College




Scope of the Presentation

The Challenges of Change

Approaches to Change

Change Leadership

Relationship between Culture & Change

Further Developments in Thinking around Change Leadership




The Challenge of Change




The Reality is that 70% of Changes Fail !!

In 2004 in the UK it has been estimated that $6 billion was spent on Change

So $4.2 billion was wasted !!!!




The Challenge of Change

The Key Questions:

If 70% of Changes Fail:

• Why?

• What makes the others succeed ?




What Really Happens?What Really Happens?




One Look

Distributed

Simple Complex

Change Approaches

© RFLC 2005




One Look

Distributed

Simple Complex

Change Approaches

© RFLC 2005

Directive

Self-Assembly

Master

Emergent

“I can manage change”

“Launch enough Initiatives & something will stick”

“I trust my people to solve things with us”

“I can only create the conditions for change to happen”




One Look

Distributed

Simple Complex

Change Approaches

© RFLC 2005

Directive

Self-Assembly

Master

Emergent

•High magnitude: 48%

•High scope: 42%

•Low scope, int. source +ve


•All correlations -ve

•Long term: 21%


•All correlations +ve

Key:Green = positive relationshipRed = negative relationship% = amount of variance between success and failure explained in that context




One Look

Distributed

Simple Complex

Change Approaches

© RFLC 2005

Directive

Self-Assembly

Master

Emergent

Doing Change To

Doing

Change

With




Leading Change in Practice




“We cannot change unless we learn and grow”

“Without me, nothing will happen”

“With clear boundaries, people can be free to contribute”

Leadership Behaviours

©RFLC 2005

Shaping Framing Creating




“We cannot change unless we learn and grow” “Without me, nothing will happen”“With clear boundaries,

people can be free to contribute”

©RFLC 2005

Impact of LeadershipCreating Framing Shaping

• Successful • Successful • Unsuccessful




Why is Culture so important?

How do culture and leadership interrelate?




Leadership

Performance

Culture

60%80%

?

Leadership and Culture Make a Difference

?




The Challenge of Change70% of Change Initiatives Fail

Aspects of Corporate Culture have a significant impact on the success/failure of Change

Understanding the Culture of an organisation is key to change

Making Change work often entails making some change to aspects of the culture of an organisation




CULTURE determines:

The way we address problems

Our receptivity to change

The way we deal with each

other

The way we deal with

stakeholders

Our commitment to strategy

The Impact of Culture on Performance




The Goffee & Jones Model

Solidarity

Sociability




SolidarityLo

Lo

Hi

Hi

Soci

abil

ity

-ve Success

+ve Success

+ve Shaping

-ve Shaping+ve Framing

? Communal as best culture




SolidarityLo

Lo

Hi

Hi

Soci

abil

ity

Fragmented

Networked Communal

Mercenary

The Goffee & Jones Model




Know where you are starting

Know where you need to go (from a business perspective)

Identify the levers which need pulling

Pull the levers

Managing Cultural Change




Increasing Sociability Increasing Solidarity

•Promote the sharing of ideas, interest and emotions by recruiting compatible people

•Increase social interaction among employees by arranging casual gatherings inside and outside the office

•Reduce formality between employees

•Limit hierarchical differences

•Act like a friend - set the example

•Develop awareness of competitors through briefings, e-mail, newsletters, etc.

•Create a sense of urgency

•Stimulate the will to win

•Encourage commitment to shared corporate goals

Changing Culture The Goffee & Jones Model




We cannot change unless we learn and grow

“Without me, nothing will happen”With clear boundaries, people can be free to contribute

©RFLC 2005

Study 2

Shaping NegativeFraming strongly Positive

Creating positive

A combination (Framcap) strongly positive in all Contexts




Attractor

Creates an energy for the change

Edge & Tension

Amplifies disturbance around the change

Creates a Container

Holds the tension around the change

Transforming Space

Creates movement

© RFLC 2006

Behaviours which Make a Difference




AttractorCreates an energy for the change

•Connects with others at an emotional level, embodies the future intent of the organisation

•Tunes in to day to day reality, sees themes & patterns that connect to a wider movement, and from this creates a compelling story for the organisation

•Uses this to set the context of how things fit together, working the story into the life of the organisation so that every conversation & decision “makes sense”

•Visibly works beyond personal ambition to serve higher purpose, the organisation, and its wider community

• Is consciously aware of one’s own leadership and adapts this for a specific purpose

© RFLC 2006




Edge & Tension Amplifies disturbance around the change

•Tells it as it is – describes reality with respect yet without compromise

•In times of turbulence, has constancy; does not withdraw from the tough stuff; keeps people’s hands in the fire

•Can spot and challenge assumptions – creates discomfort by challenging existing paradigms and disrupting habitual ways of doing things

•Sets the bar high and keeps it there – stretches the goals & limits of what’s possible

•Does not compromise on talent – pays attention to getting and keeping “A” players

© RFLC 2006




Creates a Container Holds the tension around the change

•Sets & contracts boundaries , clear expectations & hard rules so that people know what to operate on (performance expectations) and how they need to operate (values & behaviours)

•Is self assured, confident, and takes a stand for one’s beliefs – is non-anxious in challenging conditions

•Provides affirming & encouraging signals; creates ownership, trust & confidence

•Makes it “safe” to say risky things & have the “hard to have conversations” via empathy & high quality dialogue skills

•Creates alignment at the top to ensure consistency & constancy of approach

© RFLC 2006




Transforming Space Creates movement•Demonstrates a commitment that engenders trust, enabling the system to go to new places, learn about itself, and act differently

•Frees people to new possibilities through making oneself vulnerable and open

•Understands what is happening in the moment & breaks established patterns and structures in ways that create movement in the “here and now”

•Powerfully inquires into ripe systemic issues to enable deep change to happen

•Creates time and space (including attending to its physical quality) for transforming encounters

© RFLC 2006




Attractor

Creates an energy for the change

Edge & Tension

Amplifies disturbance around the change

Creates a Container

Holds the tension around the change

Transforming Space

Creates movement

© RFLC 2006

A combination of these factors explained nearly 50% of the variance in change success




Attractor Edge & Tension

Creating a Container

Transforming Space

© RFLC 2006

Putting it all Together

Understand & Incorporate Wider Context

Build Leadership Teams

Work on the Underlying System

Patient with People

Display Self-Awareness

Set Tangible Measures




Creating a Positive Climate for Change




Questions?

change,culture & leadership © professor malcolm higgs 2007 raf leadership centre change,...

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