LEADERSHIP

The Balance Needed to Lead Change by Christina Bielaszka-DuVernay

September 16, 2008

by Kerry A. Bunker and Michael Wakefield

One reason leading change is so difficult is the tension it sets up between managing

business issues (creating a vision, aligning resources, restructuring the

organization) and managing people issues (the legitimate concerns and feelings of

those who must carry out the change and deal with its ramifications day-to-day).

Most managers are adept at the business side of leading change. They are trained to

deal with structural and operational issues, and they are evaluated on and

rewarded for their ability to innovate and to deliver business results.

But the pressures generated by major structural or operational change compel

leaders to pay particular attention to what’s happening on the human side of the

organization. And it is here that many leaders fall short. The result? A destabilized

organizational culture, an erosion of trust, insufficient buy-in, and fear and

skepticism among employees at a time when a loyal, productive, and enthusiastic

workforce is essential for success.

So how do leaders address the people side of change without jeopardizing the

business side? How can they make tough decisions without losing sight of the

emotions and concerns of employees at all levels of the organization? At the Center

for Creative Leadership (CCL), we’ve found that the answer lies in building trust

through authenticity.

When leaders focus on establishing trust, they are better able to deal with both the

business and the human elements of change. They find they can be both tough

decision makers and empathetic people managers–committed to the plan, yet

understanding of the discomfort it might cause. They become agile and resilient,

able to rise to the challenges of innovation and change.

Striking the right balance To create and sustain an environment of trust during change, leaders must strike a

balance between these six pairs of opposites:

Balance #1: Catalyze change/Cope with transition. Catalyzing change involves the ability to manage an initiative, generate buy-in, and

maintain momentum. Coping with transition means recognizing and addressing

people’s feelings and opinions about the change and its possible fallout. Leaders

who are adept at both create a climate in which people can work together, even in

difficult times. They embrace the vision of change and can communicate that vision

with enthusiasm and energy.

At the same time, they give themselves and others permission to express doubt or

anxiety. Trust and commitment reach a higher level, and the change initiative gains

momentum as people work through the process.

Balance #2: Show a sense of urgency/Demonstrate realistic patience. One of the most critical tasks for leaders of change is communicating a sense of

urgency. A sense of urgency keeps positive energy flowing and increases

productivity.

Patience, however, is just as important. Realistic patience involves knowing when

and how to slow the pace so that people can adapt. A lack of patience with people

can undermine their commitment and impede the change process. Balanced

leaders don’t panic, overreact, or make everything equally important. They make a

conscious effort to provide support and guidance when it’s needed. They recognize

that people adapt to change in different ways. Some may require additional

training or time to meet new expectations; others may need a forum to air their

gripes. Realistic patience also means giving consistent, honest feedback. People

need to know what they’re doing well and what they can do differently.

Balance #3: Be tough/Be empathetic. Being tough involves facing challenges head on, being decisive, and taking a firm

stand in the face of resistance. Being empathetic means understanding and being

sensitive to the feelings and experiences of others.

Empathetic leaders are able to put themselves in other people’s shoes, consider

individual limitations, and value people as much as results. They know that a lack

of empathy can corrode morale and motivation.

These two competencies are among the most difficult for leaders to balance. Many

leaders have been taught to shut down their emotional responses in order to make

difficult decisions. They worry that letting their “soft side” show will communicate

weakness or lack of commitment. But connecting emotionally actually creates the

opposite effect in times of significant change or crisis. People want to know that

their leaders can be tough and decisive, but they want them to be human, too.

Balance #4: Show optimism/Be realistic and open. Leaders play a crucial role in maintaining optimism about major change. They need

to see its positive effects and convey that vision to others. When people are

stressed by change, they look to their leaders for energy and confidence. Optimistic

leaders are genuinely committed to the change at hand, and their optimism is

contagious.

But balanced leaders are not blindly optimistic. Their optimism is balanced with

realism and openness. They can clearly read a situation for what it is. They don’t

sugarcoat the facts, and they can admit their mistakes. Balanced leaders ask the

hard questions, deliver the news (both good and bad), and draw attention to

challenges and struggles. A balance of optimism and realism generates trust.

Balance #5: Be self-reliant/Trust others. Leaders who are self-reliant have confidence in their own skills and abilities. They

are accustomed to working independently and often pride themselves on “going it

alone.” Trusting others means allowing them to do their part of a task or project

without interference or overmanagement. In situations of complex change, it is

critical for leaders to trust others to bring their own perspectives and expertise to

the table.

Many leaders find this pair of competencies very hard to balance. The myth of the

heroic leader who remains strong, courageous, and self-reliant in the face of

extraordinary challenges is a deeply ingrained one. In reality, leaders are more

likely to rise to new heights when they confront complexity with a strong team of

allies. Whatever the challenge, a collaborative approach yields insight, innovation,

and action that even the most talented individual cannot generate alone.

Balance #6: Capitalize on strengths/Go against the grain. In times of crisis, leaders have a tendency to draw on the traits and abilities that led

to their success in the past. But overreliance on past behaviors can cement leaders

into strategies that no longer work, and the failure to recognize conditions that

demand a new approach can be disastrous. On an individual level, failure to adapt

is the main reason leaders derail. Leaders must have the ability to leave their

comfort zone and challenge preferred patterns–in essence, to go against the grain.

To balance their innate strengths with new skills, leaders must first assess their

strengths, weaknesses, preferences, and default behaviors. In CCL programs, they

do this through a combination of 360-degree assessments, feedback, and coaching.

Direct and honest feedback from bosses, colleagues, and direct reports can also

provide leaders with a clear picture of their own performance and behavior.

Such awareness allows leaders to identify their strengths, shore up their

weaknesses, and practice different behaviors. Self-awareness also allows leaders to

leverage the diverse talents, experiences, and opinions of others, eliminating tunnel

vision and groupthink.

The paradox of leadership Leading change requires managing the constant tension between business-driven

and people-focused priorities. Circumstances will sometimes demand that leaders

play harder on the business side. But when they have built a strong foundation of

trust, those who follow are more likely to do so in a spirit of cooperation and

teamwork.

It’s not possible to be perfectly in balance all the time. But wise leaders recognize

that it’s an ideal worth striving for.

* * * *

THE SIX TENSIONS OF LEADING CHANGE

I. Catalyze change Champion an initiative or a significant change, consistently promote it, and

encourage others to get on board.

vs.

Cope with transition Recognize and address the personal and emotional aspects of change.

II. Show a sense of urgency Demonstrate the need to take action; accelerate the pace of change.

vs.

Demonstrate realistic patience Know when and how to slow the pace so that people can cope and adapt.

III. Be tough Make difficult decisions without hesitation or second-guessing.

vs.

Be empathetic Take others’ perspectives into account; understand the impact of your actions and

decisions.

IV. Show optimism See the positive side of any challenge; convey that optimism to others.

vs.

Be realistic and open Speak candidly about the situa¬tion, and don’t shy away from dif¬ficulties; admit

personal mistakes.

V. Be self-reliant Be confident in your ability to handle new challenges.

vs.

Trust others Be open to others’ input and sup¬port; allow them to do their part.

VI. Capitalize on strengths Know your personal and organizational strengths; confidently apply them to new

situations and circumstances.

vs.

Go against the grain Show willingness to learn and try new things–even when the process is difficult or

painful.

Kerry A. Bunker is a senior enterprise associate and manager of the Awareness

Program for Executive Excellence (APEX) at the Center for Creative Leadership (CCL),

in Greensboro, N.C. Michael Wakefield is a senior enterprise associate at CCL, where

he designs and trains in a variety of programs. This article is adapted from their book

Leading with Authenticity in Times of Transition, published in 2005 by CCL Press.

Related Topics: Change Management | Managing Uncertainty

This article is about LEADERSHIP

 Follow This Topic

Comments

Leave a Comment

Post Comment

0 COMMENTS

POSTING GUIDELINES We hope the conversations that take place on HBR.org will be energetic, constructive, and thought-provoking. To comment, readers must sign in or register. And to ensure the quality of the discussion, our moderating team will review all comments and may edit them for clarity, length, and relevance. Comments that are overly promotional, mean-spirited, or off-topic may be deleted per the moderators' judgment. All postings become the property of Harvard Business Publishing.

 Join The Conversation

LEADERSHIP

Strategic Leadership: The Essential Skills by Paul J. H. Schoemaker , Steve Krupp and Samantha Howland

From the January–February 2013 Issue

T he storied British banker and financier Nathan Rothschild noted that

great fortunes are made when cannonballs fall in the harbor, not when

violins play in the ballroom. Rothschild understood that the more

unpredictable the environment, the greater the opportunity—if you have

the leadership skills to capitalize on it. Through research at the Wharton School

and at our consulting firm involving more than 20,000 executives to date, we have

identified six skills that, when mastered and used in concert, allow leaders to think

strategically and navigate the unknown effectively: the abilities to anticipate,

challenge, interpret, decide, align, and learn. Each has received attention in the

leadership literature, but usually in isolation and seldom in the special context of

high stakes and deep uncertainty that can make or break both companies and

careers. This article describes the six skills in detail. An adaptive strategic leader—

someone who is both resolute and flexible, persistent in the face of setbacks but

also able to react strategically to environmental shifts—has learned to apply all six

at once.

Do you have the right networks to help you see opportunities before competitors

do? Are you comfortable challenging your own and others’ assumptions? Can you

get a diverse group to buy in to a common vision? Do you learn from mistakes? By

answering questions like these, you’ll get a clear view of your abilities in each area.

The self-test at this article’s end (and the more detailed test available at

hbrsurvey.decisionstrat.com) will help you gauge your strengths and weaknesses,

address deficits, and optimize your full portfolio of leadership skills.

Let’s look at each skill in turn.

Anticipate Most organizations and leaders are poor at detecting ambiguous threats and

opportunities on the periphery of their business. Coors executives, famously, were

late seeing the trend toward low-carb beers. Lego management missed the

electronic revolution in toys and gaming. Strategic leaders, in contrast, are

constantly vigilant, honing their ability to anticipate by scanning the environment

for signals of change.

We worked with a CEO named Mike who had built his reputation as a turnaround

wizard in heavy manufacturing businesses. He was terrific at reacting to crises and

fixing them. After he’d worked his magic in one particular crisis, Mike’s company

enjoyed a bump in growth, fueled in part by an up cycle. But after the cycle had

peaked, demand abruptly softened, catching Mike off guard. More of the same in a

down market wasn’t going to work. Mike needed to consider various scenarios and

gather better information from diverse sources in order to anticipate where his

industry was headed.

We showed Mike and his team members how to pick up weak signals from both

inside and outside the organization. They worked to develop broader networks and

to take the perspective of customers, competitors, and partners. More alert to

opportunities outside the core business, Mike and the team diversified their

product portfolio and acquired a company in an adjacent market where demand

was higher and less susceptible to boom-and-bust cycles.

To improve your ability to anticipate:

Talk to your customers, suppliers, and other partners to understand their

challenges.

Conduct market research and business simulations to understand competitors’

perspectives, gauge their likely reactions to new initiatives or products, and predict

potential disruptive offerings.

Use scenario planning to imagine various futures and prepare for the unexpected.

Look at a fast-growing rival and examine actions it has taken that puzzle you.

List customers you have lost recently and try to figure out why.

Attend conferences and events in other industries or functions.

Challenge Strategic thinkers question the status quo. They challenge their own and others’

assumptions and encourage divergent points of view. Only after careful reflection

and examination of a problem through many lenses do they take decisive action.

This requires patience, courage, and an open mind.

Consider Bob, a division president in an energy company we worked with, who

was set in his ways and avoided risky or messy situations. When faced with a tough

problem—for example, how to consolidate business units to streamline costs—he

would gather all available information and retreat alone into his office. His

solutions, although well thought out, were predictable and rarely innovative. In the

consolidation case he focused entirely on two similar and underperforming

businesses rather than considering a bolder reorganization that would streamline

activities across the entire division. When he needed outside advice, he turned to a

few seasoned consultants in one trusted firm who suggested tried-and-true

solutions instead of questioning basic industry assumptions.

Through coaching, we helped Bob learn how to invite different (even opposing)

views to challenge his own thinking and that of his advisers. This was

uncomfortable for him at first, but then he began to see that he could generate

fresh solutions to stale problems and improve his strategic decision making. For

the organizational streamlining he even assigned a colleague to play devil’s

advocate—an approach that yielded a hybrid solution: Certain emerging market

teams were allowed to keep their local HR and finance support for a transitional

period while tapping the fully centralized model for IT and legal support.

To improve your ability to challenge:

Focus on the root causes of a problem rather than the symptoms. Apply the “five

whys” of Sakichi Toyoda, Toyota’s founder. (“Product returns increased 5% this

month.” “Why?” “Because the product intermittently malfunctions.” “Why?” And

so on.)

List long-standing assumptions about an aspect of your business (“High switching

costs prevent our customers from defecting”) and ask a diverse group if they hold

true.

Encourage debate by holding “safe zone” meetings where open dialogue and

conflict are expected and welcomed.

Create a rotating position for the express purpose of questioning the status quo.

Include naysayers in a decision process to surface challenges early.

Capture input from people not directly affected by a decision who may have a good

perspective on the repercussions.

Interpret Leaders who challenge in the right way invariably elicit complex and conflicting

information. That’s why the best ones are also able to interpret. Instead of

reflexively seeing or hearing what you expect, you should synthesize all the input

you have. You’ll need to recognize patterns, push through ambiguity, and seek new

insights. Finland’s former president J. K. Paasikivi was fond of saying that wisdom

begins by recognizing the facts and then “re-cognizing,” or rethinking, them to

expose their hidden implications.

Some years ago Liz, a U.S. food company CMO, was developing a marketing plan

for the company’s low-carb cake line. At the time, the Atkins diet was popular, and

every food company had a low-carb strategy. But Liz noticed that none of the

consumers she listened to were avoiding the company’s snacks because they were

on a low-carb diet. Rather, a fast-growing segment—people with diabetes—

shunned them because they contained sugar. Liz thought her company might

achieve higher sales if it began to serve diabetics rather than fickle dieters. Her

ability to connect the dots ultimately led to a profitable change in product mix from

low-carb to sugar-free cakes.

To improve your ability to interpret:

When analyzing ambiguous data, list at least three possible explanations for what

you’re observing and invite perspectives from diverse stakeholders.

Force yourself to zoom in on the details and out to see the big picture.

Actively look for missing information and evidence that disconfirms your

hypothesis.

Supplement observation with quantitative analysis.

Step away—go for a walk, look at art, put on nontraditional music, play Ping-Pong

—to promote an open mind.

Decide In uncertain times, decision makers may have to make tough calls with incomplete

information, and often they must do so quickly. But strategic thinkers insist on

multiple options at the outset and don’t get prematurely locked into simplistic

go/no-go choices. They don’t shoot from the hip but follow a disciplined process

that balances rigor with speed, considers the trade-offs involved, and takes both

short- and long-term goals into account. In the end, strategic leaders must have

the courage of their convictions—informed by a robust decision process.

Janet, an execution-oriented division president in a technology business, liked to

make decisions quickly and keep the process simple. This worked well when the

competitive landscape was familiar and the choices straightforward. Unfortunately

for her, the industry was shifting rapidly as nontraditional competitors from Korea

began seizing market share with lower-priced products.

Janet’s instinct was to make a strategic acquisition in a low-cost geography—a yes-

or-no proposition—to preserve the company’s competitive pricing position and

market share. As the plan’s champion, she pushed for a rapid green light, but

because capital was short, the CEO and the CFO resisted. Surprised by this, she

gathered the principals involved in the decision and challenged them to come up

with other options. The team elected to take a methodical approach and explored

the possibility of a joint venture or a strategic alliance. On the basis of that analysis,

Janet ultimately pursued an acquisition—but of a different company in a more

strategic market.

To improve your ability to decide:

Reframe binary decisions by explicitly asking your team, “What other options do

we have?”

Divide big decisions into pieces to understand component parts and better see

unintended consequences.

Tailor your decision criteria to long-term versus short-term projects.

Let others know where you are in your decision process. Are you still seeking

divergent ideas and debate, or are you moving toward closure and choice?

THIS ARTICLE ALSO APPEARS IN:

Determine who needs to be directly involved and who can influence the success of

your decision.

Consider pilots or experiments instead of big bets, and make staged commitments.

Align Strategic leaders must be adept at finding

common ground and achieving buy-in

among stakeholders who have disparate

views and agendas. This requires active

outreach. Success depends on proactive

communication, trust building, and

frequent engagement.

One executive we worked with, a chemical company president in charge of the

Chinese market, was tireless in trying to expand his business. But he had difficulty

getting support from colleagues elsewhere in the world. Frustrated that they didn’t

share his enthusiasm for opportunities in China, he plowed forward alone, further

alienating them. A survey revealed that his colleagues didn’t fully understand his

strategy and thus hesitated to back him.

With our help, the president turned the situation around. He began to have regular

face-to-face meetings with his fellow leaders in which he detailed his growth plans

and solicited feedback, participation, and differing points of view. Gradually they

began to see the benefits for their own functions and lines of business. With greater

collaboration, sales increased, and the president came to see his co

Related Tags