Change Management - Leadership

EXECUTIVE SUMMARY

All leaders have three responsibilities: instill self-confidence and self-esteem in constituents and make them feel good about themselves; keep up constituents’ spirits and morale and develop constituents by helping them learn their responsibilities and grow and develop as individuals. -Marvin Bower, 1996

Management decisions are different from personal decisions. They involve or should involve a logical process and deliberate choice of means to ends. Making decisions and enforcing them are crucial elements of knowledge management.

To meet the changing demands of their customers, companies need to be agile and constantly find and discover innovations. Corporate culture plays an incredibly special role in meeting these demands. Culture can be a decisive factor in whether people embrace a change.

It is the job of leaders to manage change in creating a new culture. In order to make a difference when implementing change in corporate culture, the right strategies should be chosen to ensure that management and employees adopt this issue.

1- Strategic Management Literature Overview

Strategic management, which has become a concept that is known today, is, in fact, a very new management practice and strategic management of the development process can be monitored from a recent date. In 1950, while the companies continue their activities with guidance, it is known that this is not enough, and a long-term plan began to look more distant points. In the 1965s, the inadequacy of the plan was made to realize the business department and institutional plan that covers the entire organization was created. In the 1970s, all this structure does not eliminate the difficulties of the company to be successful, and strategic planning period, including the destination, are included.

In subsequent years, the implementation of strategic management first started to evaluate the organization's strategic plan and the need to reform itself. This period can be divided into two categories: the 'strategy of competition' period, the dominant approach between 1980 and 2000, and the 'core competencies' strategy appeared period after 2000.

Strategic management, which has developed in this way in the historical process, is now divided into sub-areas. According to the Strategic Management Society, one of the most esteemed organizations in this discipline, strategic management covers twelve sub-groups:

1-?????Behavioral Strategy

2-?????Competition Strategy

3-?????Cooperation Strategy

4-?????Corporate Strategy

5-?????Entrepreneurship and Strategy

6-?????Global Strategy

7-?????Knowledge and Innovation

8-?????Stakeholder Strategy

9-?????Strategic Human Resources

10-?Strategic Leadership and Governance

11-?Strategy Practice

12-?Strategy Process

Johnson et al. (2014) stated that strategy is "the direction and scope of an organization over the long term, the pursuit of excellence in a changing environment through the configuration of resources and competencies in order to meet the expectations of stakeholders."

According to Mintzberg et al(1998) there have been ten distinct points of view in the review of the large body of literature, most of which are reflected in management practice. Each of them has a unique perspective that focuses, like each blind person, on one key aspect of the strategy development process. On the one hand, each of these perspectives is narrow and exaggerated. He says there are ten different strategy schools:

1-?????The Design School:

2-?????The Planning School:

3-?????The Positioning School:

4-?????The Entrepreneurial School

5-?????The Cognitive School:

6-?????The Learning School:

7-?????The Power School:

8-?????The Cultural School:

9-?????The Environmental School:

10-?The Configuration School:

Strategic management is a series of administrative decisions and actions that appoint the long-term performance of the company. This includes environmental analysis (external and internal), strategy formulation (long-term or strategic planning), application strategies, monitoring, and control (Wheelen&Hunger, 2012). The Strategic Management Report, therefore, emphasizes the monitoring and analysis of potential opportunities and risks, considering the strengths and weaknesses of the organization.

The study of strategic management, therefore, emphasizes the monitoring and evaluation of external opportunities and threats considering the strengths and weaknesses of the corporation. Strategic management emphasizes long-term performance. Many companies can manage the short-term bursts of high performance, but only a few can sustain it for prolonged periods of time.

Strategic management consists of five fundamental elements:

1.?????Environmental Analysis

The marketing atmosphere consists of a micro-environment and a macro-environment. The micro-environment (SWOT) consists of the actors getting ready for the corporate that affects its ability to serve its customers-the company, suppliers, marketing intermediaries, client markets, competitors, and therefore the public. The macroenvironment (PESTEL) consists of forces greater social micro-environment that affects the demographic, economic, natural, technological, political, and cultural forces (Kotler et al, 2012).

2.?????Strategy Formulation (Swot, Mission, Vision, Objectives, Strategies: “Corporate Strategy, Business Strategy, Functional Strategy, Individual Strategy”, Policies)

The approach is to establish a long-term plan for the effective management of environmental opportunities and risks, considering the strengths and weaknesses of the organization (SWOT). It involves identifying a corporate mission, establishing objectives that can be met, developing strategies, and setting policy guidelines.

3.?????Strategy Planning and Implementation (Plans, Budget, and Procedures)

Implementation of the strategy is the method within which methods and policies are placed into action through the event of programs, budgets, and procedures. This method could involve changes in culture, structure, and/or the management system of the whole organization.

4.?????Evaluation and Control

Evaluation and control are a method during which the company's activities and performance results are monitored so the performance will be compared with the required performance. Managers in the slightest degree levels use the ensuing data to require corrective action and resolve the matter.

5.?????Feedback / Learning Process (Learning Organization)

We need to consider that the strategic management model includes process feedback/learning. Arrows are drawn out of every part of the model and take information from every part of the previous models. As a company or business unit to develop strategies, programs, and the like, often must go back to revise or correct decisions made earlier in the process.

According to Mintzberg strategy formulation is usually not a daily, continuous process: “It is most frequently irregular, discontinuous method, continuing in fits and starts. There are area unit periods of stability in strategy development, however, additionally, there are unit periods of flux, of groping, of a piecemeal amendment, and of world amendment.”

2- Leadership and Change Management

After decades of dissonance, leadership scholars agree on one thing: They could not produce a common definition of leadership. Due to factors such as growing global influence and generational differences, leadership will continue to have different meanings for different people. The bottom line is that leadership is a complex concept whose definition is determined may belong in flux. (Northouse, 2016) But leadership is different from management. Management was created as some way to scale back muddle within the organization, to create them simpler and more economical. The leading function of management is planning, organizing, staffing, and controlling. These functions still represent areas of management.

For the formation of leadership, where the formal organization is not required. There are leaders who, despite having wide powers, cannot use them and cannot lead the group behind them, as well as the leader who led the people in the back without official authority. Not every manager can be a leader. Leaders set their guiding quality than their official position and authority. What makes a leader is a leader of courage and the ability to manage risk in extreme situations. True leaders are those who not only give authority to their subordinates but also try to turn them into leaders to act. We can define that leadership as a process by which a person influences a group of individuals to achieve a common goal.

Leadership is about the ability to influence others, a willingness to influence others, and the way that they buy involuntarily. When we are influential in shaping the behavior and values of others, we think of it as "leadership" and create conditions for the formation of a new culture. We bring to our culture from our past experiences, but we continually reinforce the culture or construct new elements as we meet new people and have new experiences.

One of the strategic roles of each general and useful manager is to use all the information, energy, and enthusiasm to produce strategic leadership for his or her subordinates and develop high-performing organizations. Many authors have known some key characteristics of decent strategic leaders that resulted in high performance: (1) The vision, fluency, and consistency; (2) The articulation of the business model; (3) Commitments; (4) were well informed; (5) a disposition to delegate and empower; (6) the employment of clever power; and (7) of emotional intelligence.

Leaders measure the ability to manage amendment ought to come back up with a collection of approaches that square measure completely different from the classical leadership approach and highlight several of their personal characteristics. As a result, people who travel in unknown directions would like a frontrunner to convey their hope and spirit. The effective leader changes folks and organizations, restructures heads, and hearts, broadens their visions, raises their level of information and understanding, clarifies goals, and aligns them with principles and values; it creates permanent, self-sufficing changes that accelerate development. Leadership models in the historical process can be listed as follows:

1-?????Great Man Theory (1840’s): The Great Man theory assumes that the traits of leadership are intrinsic. That simply means that great leaders are born.

2-?????Trait Theory (1930’s-1940’s): The character of treat leadership theory believes that individuals' agency is either born or created with sure qualities that may build them stand out in leadership roles.

3-?????Behavioral Theories (1940’s-1950’s): Behavioral theories supply a replacement perspective, which focuses on the activity characteristics of a frontrunner as opposed to mental, physical, or social.

4-?????Contingency Theories (1960’s): There is no single approach to leading in which every form of leadership ought to be supported by specific circumstances, which indicate that there are folks that perform at the most level in sure places; however, on a minimum performance was once taken out of their component.

5-?????Transactional Leadership Theories (1970's): Transactional theory, also known as the exchange theory of leadership, is characterized by transactions conducted between leaders and followers. In fact, the theory of the value of a positive and mutually beneficial.

6-?????Relationship / Transformational Leadership Theories (1970s): Transformational Leadership Theory states that this is the process by which a person interacts with others and be able to create a solid relationship that produces a high percentage of the trust, which will result in increased motivation, both intrinsic and extrinsic, both leaders and followers.

7-?????Skills Theory (1980’s): This theory states that learning the knowledge and skills acquired / capability is a significant factor in the practice of effective leadership.

Leadership is not a "one size fits all" phenomenon. Leadership style should be selected and tailored to fit the organization, situation, groups, and individuals. Below are a number of leadership styles articulated:

1-?????Autocratic Leadership Style

2-?????Bureaucratic Leadership Style

3-?????Charismatic Leadership Style

4-?????Democratic/Participative Leadership Style

5-?????Laissez-Faire Leadership Style

6-?????Transactional Leadership Style

The starting point of any effective change effort starts with a business problem. Today, the factors that force organizations to change are so strong that the phenomenon of change has become a necessity for organizations. In the face of this pressure, organizations are turning to change efforts consciously or unconsciously, and change efforts gain continuity under the influence of new conditions. In this context, continuous improvement and development programs are implemented to achieve better results and create a competitive advantage (Garvin, 1993).

Miles and Snow (1984) argue that rather than wondering about harmony as a state (for excellent alignment is seldom achieved), is additional productive to consider it as a method that involves a search that may fit between the organization and the environment and between the various internal components of the organization.

Key steps in change management:

1-?????Recognizing the need for change and starting the change process

2-?????Diagnosing what needs to be changed and formulating a vision of a preferred future state

3-?????Planning how to intervene to achieve the desired changes

4-?????Implementing plans and reviewing progress

5-?????Sustaining the changes

6-?????Leading and managing the people issues

7-?????Learning (Hayes, 2014)

To manage change and implement a change strategy, it is important to avoid applying methods that are irrelevant or random and try to focus on a suitable plan of action. Let's look at five main change models:

1-?????Lewin’s Change Management Model: Lewin state that successful change requires a three-step process that involves unfreezing, moving, and refreezing. Managing change, therefore, involves helping individuals, groups, or organizations:

??Unfreeze or open an existing level of behavior

??Move to a new level

??Refreeze behavior at this new level.

2-?????McKinsey 7S Model: McKinsey 7-S framework or model is one of the few models that have managed to survive even when other people come in and go out of trend.

3-?????Kotter’s 8 Step Change Management Theory: This theory of change management is divided into eight stages in which each of which focuses on the key principles associated with the response of people to change.

4-?????Nudge Theory: Nudge theory or a concept that finds use in behavioral science, economics, and political theory but can be applied to change management in organizations and businesses as well.

5-?????Adkar Model: Adkar a model or theory of change is a goal-oriented tool or a model that allows for a variety of change management teams to focus on the steps or activities that relate directly to the goals that want to achieve.

3- Discussion: How Must Be Characteristics of Successful Strategic Leaders

"Leadership" is a fundamental and relational term. It describes the dynamics of the inevitable form of social interaction with the naming of the relationship between certain individuals (and groups) and the people they affect and by whom they are affected (Merrill, 2010). Characteristics of a Successful Leader:

??Interpersonal skills

??Credibility

??Courage

??Introspective

??Authentic

??Know how and when to be quiet

??Create an environment

??Approachable

??Lead by influence

??Empower those around then

??Set an example of excellence

??Visionary

75% of the Stanford Graduate School of Business Advisory Council recommends that self-awareness is the most important asset for a leader to develop (MITSloan).

The manager and the leader are different notions. The manager administers; the leader innovates. Management guru Peter Drucker summarizes leadership as follows: “The task is to guide individuals. And the goal is to form the merchandise and the specific strengths and data of everyone.” While management and leadership area unit completely different activities, complementary and each are necessary for achievement in a very dynamic business setting. Bolden (2004) argues that it is often confusing to place confidence in managers and leaders as if those who are completely different and are not compatible.

According to Kotter, it is the managers who have the best chance of providing leadership that will make change successful. However, it is not possible to say that it is necessary to have a label such as senior or intermediate level to be able to provide leadership. Although the most prominent ones in the success of companies are mostly senior executives, it is not essential to have a titer for leadership.

Andrew Grove, the previous Chief Executive Officer of Intel, identified Porter's 5 forces model as ignoring the sixth power: strength, passion, and abilities. Complements could be a company that sells merchandise that adds worth (complements) to the merchandise of the corporate within the trade because once used along, the merchandise that higher meets client demand.

Most seen in recent years charismatic leadership theory explains what is expected of both leaders and followers. Charismatic leadership is a leadership style which identified but can be felt by the less tangible than other leadership styles (Bell, 2013). Often called transformational leadership, charismatic leaders inspire their team spirit and are energetic in motivating employees to move forward.

Strategic leadership theory has seen organizations as a reflection of senior executives, especially CEOs. Numerous CEOs have adopted their strategic leadership responsibilities on their own. As the strategic leaders of organizations, the main task of CEOs is to select a vision for their organizations and to create conditions for achieving this vision. Especially when these elections resulted in financial success, key strategic leaders were recognized as heroes of companies. He is still the CEO of the company that comes to mind first in the success of an organization. Therefore, although there are several types of leadership at every level in an organization, the leader is seen by the outside world as usually the top manager of the company.

Such leaders have three main characteristics. The first is that they set a superior goal for the organization. The second characteristic of the strategic leader is that it offers a model to be followed by its followers. The third feature is that the strategic leader sets ambitious standards of performance, but also trusts the skills of his followers to meet these standards.

Elon Musk, for example, takes his leadership power from his mastery of technical issues, his overwork ("I will solve it if I work hard enough"), and his imagination of the impossible. Leaders like Musk to focus on what they don't like, not what they like most about their products. Failure is certainly not an obstacle for him. It has the power and belief to see this situation as a process and continue its way. It has an overly optimistic character. It has a futurist perspective that challenges the status quo. We can say that it has disruptive innovation-oriented entrepreneurship.

But such managers have a weak side. They want to carry all the workload. Such leaders assume a great duty and responsibility. On the one hand, this will be appreciated. However, these leaders often ignore the human potential. Because they are trying to do a lot on their own, they do not use their full potential and cannot contribute to their work at the maximum level.

With the development of artificial intelligence technologies, there will be fundamental changes in the business culture and leadership styles. There is no leadership pattern that brings strategic success to everyone. A withdrawn, shy person can be a great leader. Great and successful leaders have sometimes created environmental conditions, sometimes the difficulties the leader has experienced himself, and sometimes a strong dream and a desire for entrepreneurship. Today, success in organizations depends on the skills, qualifications, and leadership characteristics of senior managers.

Conclusion

Change is the most important fact of our epoch. Everything is changing fast, and organizations are struggling to keep up and survive this rapid change. However, adaptation to this change is exceedingly difficult and requires strategically planned work. There is also a need for well-equipped leaders. It is not possible to realize organizational change with ordinary executives. Leadership characteristics required for the realization of organizational change and transformation may vary according to the environment, objectives, and structures of the organizations. However, leaders still; have virtue, vision, enthusiasm, and common characteristics such as curiosity, risk-taking, good training, and belief in teamwork.

There is no area that does not effect change. The most affected by the rapid change of scientific and technological developments in organizations. The organization must adapt to this change to achieve its objectives. However, it is exceedingly difficult to achieve organizational change with ordinary managers. For this reason, leaders are needed for organizational change and transformation. Leaders use a variety of tools or methods to implement organizational innovation and change to reach organizational objectives more adequately. Organizational change is made easier by dynamical structure culture and using incentive tools. By using this method, the leader can change the organizational structure, understanding, and philosophy. These two tools used by the leader are about people. No leader can achieve organizational change without their support or change.

Leaders will build the use of varied strategies and tools to comprehend the organizational amendment. This kind of amendment is often achieved a lot simply by dynamical the company culture and incentive tools. These two methods are related to employees. The leader will simply attain organization modification with the assistance of those tools. In a rapidly changing world, a learning leader/founder not only has to have a vision but can also be good to impose and develop further as external circumstances change. Just as new members of an organization arrive with previous experience and cultural organizations, a set of assumptions can only be forged by a clear and consistent message in group meetings and survive the crisis itself. Leaders of cultural creation, therefore, need perseverance and patience, but a student must be flexible and ready to change.

Learning and change cannot be imposed on people. Their involvement and participation are needed in diagnosing what is happening, figuring out what to do, and in the actual process of learning and change.

Every CEO must spend an enormous amount of time shuffling papers. The question is, how much of your time can you leave free to think about ideas? To me, the pursuit of ideas is the only thing that matters. You can always find capable people to do everything else.”

The leader ought to be sincere to the followers. Their behavior ought to accommodate usually accepted moral norms. The leader ought to be truthful, sharing, honest, humble, peaceful, and optimistic, and set an honest example for the workers together with his behavior. To extend productivity, the leader should produce healthy environments during which staff can increase their loyalty, develop their creativeness, be excited from their work, be pleased with their success and contribute to their colleagues. In short, the leader should mobilize ideas, skills, and energy.

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