Organisational Change Management Volume 2

Leadership Compared with Management

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. Leadership competencies are about stretching, inspiring and creating, while management competencies are more about organising, controlling and maintaining

. Management is transactional, ie operates in a currency of co-operation; leadership is transformational, ie out to change the currency of operations

. Management is a set of processes that can keep a complicated system of people and technology running smoothly ie planning, budgeting, organising, staffing, controlling and problem-solving

. Leadership is a set of processes that creates organisations in the first place or adapts them to significantly changing circumstances, ie defines what the future should be like, aligns people with that vision, and inspires them to make it happen despite the obstacles

. Usually leadership competencies can build on existing management competencies rather than replacing them

. In change, people want a leader to tell them what to do, but a change leader does not do this. The leader's job is to establish the processes and environment by which people learn together. The relationship between leaders and followers must be one of trust and shared values

. An effective change involves 70 to 90 % leadership, but only 10 to 30 % management

. Too much past success and growth within large organisations reinforces the need to manage, rather than lead

. Only leadership can blast through the many sources of inertia, and it can begin with one or two people. At the same time, competent management is needed to stop the change getting out of control. Thus, leadership and management must work in tandem

. Leadership involves dual roles: being the agent of disturbance, ie upset and challenge status quo, and simultaneously being the agent of alignment, ie shared vision. Another way of stating this is "creation and destruction", ie supporting initiatives while breaking down bureaucracy and cynicism.

Supporting this concept:

Jack Welch of GE observed

"...an institution ought to stretch itself to the point where it almost comes unglued..."

Peter Drucker stated

"...an organisation regularly needs to re-invent itself..."

DeSimone of 3M decreed

"...30% of the company's sales must come from products younger than four years ‐ a 50% increase over the old targets..."

Anita Roddick of The Body Shop believes her the organisation is designed

"...to maintain a constant sense of change, even anarchy..."

(sources: HBR, 1998a, b & c)

. In addition to the need to continuously challenge dogma and the assumptions underlying it, it is vital that top management identifies the key projects or proposals that will lift the organisation into orbit. This can involve existing core businesses, eg Intel sacrificing its original memory chip business for micro-processor technology

. Leadership and authority are based more on empowered competence and knowledge, skills, wisdom, perspectives and experience, and this will replace the dominance of coercive power. This new type of leadership has been described as

- servant leadership (those who seek to empower others rather than to control them)

It is
"...the leader focusing on helping followers to do their jobs and help them reach beyond themselves; rather than the leader directing and controlling the followers in their actions..."
KPMG as quoted by Tony Boyd, 2016
Personal development is about having the right conversation with staff, ie
  i) What things are you interested in?
  ii) What else can I do to support you in your career development?
iii) What kind of things will be motivating for you?
  iv) Do you want to go overseas to live and work?
v) Would you like a secondment?
  vi) Do you want to run some innovative with our customers or clients?
  viii) Do you want to do some pro-bono/volunteer type activities?
. Leadership is an art and a science with data and analytics part of the science.
. Most senior managers are "male, pale and stale"

Leadership is an art and a science with data and analytics part of the science. Most senior managers are "male, pale and stale"

- sapiential authority (people and communities are empowered by having the power, including the resources and ability, to make their own choices more often). The use of new electronic tools, especially the Internet, is helping this empowerment to gather momentum.

. Despite autocratic and coercive leadership being effective in the short-term, generally the benefits disappear in the long term.

 

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