Chapter 13
Leading Change

The global leader of the future will be faced with new business challenges for which there is no established model of leadership. Although executive management models of the past provide some guidance for the leadership models of the future, in today's complex and ever-changing worldwide business environment, no specific, established model will fit the broad range of situations that global leaders will encounter.

Throughout this book you have considered traits that the global leader must have to some degree. Future leaders must excel in each of these areas, or they must be able to draw upon the collective expertise of those around them if they are to be successful in the future global marketplace. Some of these attributes, such as anticipating opportunities, creating a shared vision, and maintaining competitive advantage, are based on management models of the past. Those qualities that are becoming increasingly important are in the areas of building partnerships, encouraging constructive dialogue, sharing leadership, empowering people, thinking globally, appreciating diversity, and developing technologically savvy. It is in these arenas that global leaders will be looked upon to direct and guide their organizations through uncharted and often unanticipated global shifts, to bring value to their investors, employees, partners, and customers.

Change Is an Opportunity

Throughout most of corporate history, executives have derived power largely from their position and authority in the organization. Power was, and in many cases still is, vested in the job and formalized in an organization chart. Individuals have authority over those below them in the pyramid. This design works well as long as companies need workers to perform narrowly defined jobs under close supervision.

We are very specialized today. There are leaders who have people skills, leaders who have management skills, leaders who have financial skills, et cetera. The future leader will need to be a well-rounded leader and master all of these skills.^[1]

As the business environment changes, the complexity, speed, and scale demanded by global business make it more difficult for companies to go it alone with the traditional, vertically integrated structure. As a result, alliances, partnerships, virtual companies, joint ventures, strategic sourcing, and outsourcing are all growing fast as companies strive for access to the full range of skills, capabilities, and resources they need.

Global leaders of the future don't fear change. They cope with change and view it as a positive.^[2]

This new environment demands greater speed and dynamism. Next-generation companies derive the necessary fluidity and flexibility from organizations that are less structured and with fewer established lines of authority. Traditional functional boundaries are dissolving with the advent of process-oriented management operating in networks rather than hierarchies. Information flows in all directions, and people work in teams that form and reform with considerable autonomy.

The working environment will change. There will be tremendous growth in our company that we've never gone through before. I will not be able to ask older leaders for help, because they have not experienced what we will be experiencing. I will have to lead in the growth and rely on innovation.^[3]

The greatest constraint in creating a networked organization of specialized yet interdependent units is the shortage of executives with experience, skills, knowledge, and finesse to operate in a more tightly linked but less classically hierarchical global network, and herein lies a great opportunity for the global leader of the future.

The leader of the international division of an international hotel chain struggled to create such a network in order to build an American hotel name outside of the United States. His challenge was not due to a lack of talented leaders on whom to rely; his challenge came from his personal leadership style. This controlling leader had a great history of success in managing the franchise network and building relationships; however, he wanted to handle nearly every situation personally. The pace was too much, and the leader was forced to let go of some of his duties. Although it was a struggle, the leader has slowly changed his leadership style from telling to coordinating, from hierarchical to devolved leadership. He has hired local leaders whom he is comfortable with to make and implement decisions, rather than taking these decisions on as part of his own workload, and he has found leaders around the world whom he trusts to be part of his interdependent leadership network.

Leadership Versus Management: Challenging the Status Quo

As the pace and scale of change increases, the difference in the real world between a manager and a global leader becomes clearer. A manager is an organizer and problem solver. While this is an important business function, the reactionary skill sets of the traditional manager cannot be expected to solve the challenges brought about by such forces as technology and globalization.

The stereotype of the corporate leader as a middle-aged white male with a secretary and high blood pressure is obviously changing.^[4]

Traditionally, managers have been rewarded for being "on time and on budget" and for always having the answer. A national service entity in Canada takes this notion to the extreme. Each morning the top 30 executives of the 250,000-person company meet for one to two hours to discuss any problems of a consumer nature that may have arisen in the previous 24 hours and to answer questions posed regarding problems in each executive's area. Executives enter the meeting fully apprised and able to explain the "reasons why" there may have been a problem; not to do so would mean personal embarrassment in this goldfish bowl environment. Although the attention top management pays to customer satisfaction is laudable, the way in which issues are addressed is questionable. With modern technology, companies have the ability to record, analyze, categorize, and trend-analyze customer problem instances on a daily basis. The information can then be reviewed by employees in lower level positions. There does not need to be such high involvement by the senior management team. The cultural style driving the company, which is based on leaders' attention to the smallest of details, perpetuates leadership in which the manager is a reactionary organizer and the problem solver rather than an empowering and entrusting leader of change and anticipator of trends.

On the other hand, the proactive qualities of a global leader, such as sharing leadership, anticipating opportunities, and building partnerships, are absolutely critical to success in the future.

The future global leaders will need to be much more creative. They will have to take risks and use new models for success. They will not always be able to do what past role models have done in order to be successful.^[5]

Warren Bennis, one of the authorities on leadership, acknowledged in the second edition of his book, On Becoming a Leader,^[6] "I didn't put as much emphasis [in the first edition] on the distinction between 'leading' and 'managing' as I should have, because I did not fully anticipate the seismic shakes and quakes that would unhinge our world. Staying with the status quo is no longer acceptable," he says, so "followers need from people three basic qualities: they want direction; they want trust; and they want hope. That's what leaders must provide, whether we're talking about General Motors, a nation-state, or a nonprofit organization."

Tomorrow's global leaders are part of a new generation. We will be breaking free from stereotypes and from the traditional way of doing work.^[7] Strategic opportunities will undoubtedly arise unexpectedly and often amidst seeming failure brought about by adherence to the status quo, and the global leaders of the future will view failure [their own and that of others] as an opportunity for change.^[8]

This can be quite a difficult philosophy for leaders to incorporate into their leadership styles. For instance, even an R&D team, whose professional focus is change, risk, and experimentation, is likely to find it difficult to move away from the traditional management style of "always having the answer," as the authors found in their recent work with a pharmaceutical company. The R&D team of this company, while very comfortable with change and risk taking of an intra-human nature, such as experimentation to produce change of a drug-development nature, was very uncomfortable with change of an inter-human nature, such as changing relationships with each other as scientists or between the functional areas of the R&D system. Leaders need to be able to experiment and make mistakes; however, even groups that experiment and make mistakes as a profession will likely find it difficult to incorporate the value of failure into their leadership style.

Global leaders will be ready to quickly shift gears to pursue new goals. In such a turbulent and unexplored environment, there needs to be plenty of growing room so that global leaders can experiment and make mistakes and learn from them.^[9] IBM is a benchmark organization that has demonstrated the ability to successfully shift gears and enter a very different type of business. The IBM move into services can be a role model for other organizations with maturing technology.

As discussed earlier, developing and operating efficiently under new, complex, and shifting social architectures means that tomorrow's leaders will function inside of alliances, partnerships, and ventures like never before. Leadership in the future will require teams of collaborative leaders, each possessing many of those skills required for effective global leadership. As such, a bias toward the status quo is an unaffordable luxury. Global leaders of the future cannot stick to the old way of doing things.^[10] They will need to be less controlling, more emotionally astute, culturally attuned, and most important, willing to share authority and decision making. Extensive research on leadership effectiveness by the Alliance for Strategic Leadership has shown that leaders who are willing to change and are open to employee input will be consistently viewed as more effective than those who are not.^[11]

Flexibility

The global leader of the future will have to have a lot of flexibility and be very self-confident in order to create a 'win-win' solution.^[12] Flexibility is an admittedly broad term, but in the context of tomorrow's leadership, it has two distinct meanings:

1. the flexibility to work across cultures and around the world, and
2. the flexibility to deal with uncertainty, ambiguity, and change.

In terms of cultural flexibility, leaders will have to transcend cultural boundaries and embrace the wide variety of business approaches and social customs that are inherent to conducting business globally. They will have to understand that no single style of leadership will work in all cultures. As such, global leaders will have to modify their behaviors to suit their audience. For instance, Yo Miyoshi of the HB Fuller Company in Tokyo relayed that when he discusses an issue with leaders of the U.S. office, he tries to be "Western." However, when he deals with people at the Japanese office, he is Japanese. In other words, he alters his personal leadership style to handle the two cultures.^[13] Being different things to different people so that people can understand where the leader is coming from is a behavior that must be learned, by educating its leaders to understand and deal with a great diversity of people, is imparting to them just this lesson.

In some countries, the forging of personal relationships will be critical, while in others the ability to create contractual relationships will be of key importance; in some countries, fast action will be respected, while in others, deliberation and consensus-building will be needed.

For instance, in Latin America relationships are very important. Thus, the ability to make deals and negotiate terms is heavily predicated on an individual's ability to build trust with others, often very quickly, through paying attention to developing the relationship. This is counterpointed with the cultural styles of Germany and the UK, wherein relationships fall secondary to the high emphasis on getting to the facts. An important point to note is that in these more fact-oriented cultures, the greatest leaders are those who recognize what others need in a relationship sense. These leaders are very much aware of which relationship buttons they might press to influence others. This ability to influence better as a result of assessing and reacting to individual relationships and communication needs is called "self-monitoring." In other words, the leader orchestrates his or her own behavior in order to have the maximum influence on another individual.

For instance, in Churchill: A Biography, Roy Jenkins discusses Winston Churchill's lack of academic success but avid interest in the sensitivities, hot buttons, and personalities of others. Jenkins relays that Churchill, as a student of people, learned to be what he needed to be in order to establish the relationships necessary for "success" and in order to influence other leaders, such as George Patton, Franklin D. Roosevelt, and Josef Stalin.^[14]

In terms of being flexible in the face of change, global leaders will have to adopt a different mindset toward planning. Instead of planning and executing in successive steps, the global leader will have to be prepared to plan and then adjust the plan as it is executed—or even to plan and execute simultaneously. In order to be successful, leaders will have to adapt quickly to changes in the environment—faster than the competition.^[15] An unfortunate example of rigid adherence to plan involved the space shuttle Challenger, which ultimately exploded after takeoff on January 28, 1986. Rather than being open to new ideas and willing to change, leaders let adherence to plan override ability to listen to new input and respond. The result was a devastating tragedy and the loss of seven lives.

In today's rapid-paced business world, the global leader will not always have sufficient time to analyze and strategize. Decisions will have to be made sometimes without benefit of the supporting facts and analysis that make the leader feel absolutely comfortable. However, decisions have to be made—and made quickly. For this reason, the global leader of the future should be change-oriented, move quicker, and more flexible.^[16]

By being flexible about plans—and new ideas from new quarters—leaders are less likely to become complacent based on past success and are more likely to learn from and take advantage of the changes taking place in the world today.

This is especially difficult for leaders of family-run businesses, who often have the most difficulty creating change and avoiding complacency, because family pride is associated with company success. For instance, leaders of a Latin American business and a major hotel chain, both family owned, experienced difficulty making changes and getting past family politics and relationships. The leadership teams of both companies spent considerable time discussing the key business and leadership elements of their cultures. First, they explored what had made the companies successful, and a conscious effort was made to ensure that the companies kept the exceptional qualities they had demonstrated up to this point. Second, the teams looked at what might be added to these core elements to help deal with new market situations and to move forward into a successful future. Thus, both leadership teams demonstrated that while they had much pride in their successes to date, they were flexible enough to grow into the future.

It's important for companies not only to plan for future success, but also to take time to consider past successes. For example, if a company is highly successful, changing the core structure or modus operandi of the company is probably not going to work, and it will waste time and energy. Instead, the team leaders may choose to keep the operational foundation of the company as it is, because this is the basis upon which the company's success has been built and the reason for which the company has a presence in the industry. But, rather than be complacent in the company's success, the team leaders may opt to add onto, rather than reengineer, that structure in order to further the organization.

Encouraging Creativity

The global leader of the future who maintains the status quo will be easily defeated by competitors who are willing to try new ideas, to seek out new opportunities, and who are ready for change—within both the corporation and the industry. McDonald's has shown that even unquestioned industry leaders can lose market share to innovative, creative competitors who are willing to give consumers new products that meet changing needs. Creativity and innovation are key to the continued success of any organization, and using this key depends on global leaders who encourage and embrace the innovation and creativity of others.^[17]

Successful leaders will be known by how well we get people energized to do the job, ...how quickly change is coming, and how quickly we adjust to it.^[18]

Andy Grove, former chairman of Intel, once revealed that the company's most significant strategic decision was made by those managers on the frontlines who were actively involved in the corporation's marketing and investment activities rather than as a result of the corporate vision. To Harvard Business School's Christopher Bartlett and Sumantra Ghoshal, who quoted Grove approvingly, he is typical of the more successful, progressive leaders they have encountered who are striving to articulate a clear vision and letting individuals creatively interpret the company's objectives.

That may be a trifle idealized, but studies of such leaders' schedules show that they spend up to 90 percent of their time in face-to-face discussions with colleagues, contacts, and members of their teams. They are picking up the vital implicit knowledge, impressions, and ideas that no reporting system can reveal, but they also are winning support for their vision and purpose, which their followers will interpret and implement.

Global leaders need to be flexible enough to allow lots of different "how's" to get to the same "what." These leaders need to let go of the more superficial trappings of organizations, such as dress codes and office codes, and focus more on the outcomes.^[19]

Global leaders need to structure their companies so that they facilitate creativity from the lower ranks. The restructuring of many organizations reflects this need. As the traditional hierarchical pyramid, with layer upon layer of carefully delineated management to turn the central strategy into detailed action plans, gives way to flatter, broader shapes based on processes rather than functions, it becomes apparent that the trend is to streamline companies in order for individuals to make an impact in their organizations.^[20] Karen Garrison, a key executive at Pitney Bowes has created an environment where every level of employee knows they have an open invitation to express their opinions to her. This leadership style leads to both commitment and personal ownership on the part of all employees.

However, although it is widely believed that global companies should decrease the layers between the CEO and entry-level workers, because entry-level workers are the frontline employees who directly affect the business,^[21] the vertical dimension is still significant, but with expansion and with internal organizations now resembling networks more than chains of command, the qualities of empowerment, encouragement, and understanding are at a premium. In short, networked leadership is required at an all-time high. For instance, in the healthcare industry, drugs are no longer developed by scientists working with other scientists in laboratories. They are developed by comprehensive teams of scientists and business leaders who represent the entire spectrum of the corporation.

Translating Ideas into Results

There is little doubt that the networked, outsourced, allied company is the pattern of the future. However large the leading oil and motor corporations, or the pharmaceutical, software, finance, and telecommunications groups may become, their internal structures and external links make the task of leadership different in kind than in the past. The Northrop Grumman Corporation, in recognition of the key role of network relationships with suppliers, has made commitment to suppliers one of its key corporate values.

The future leaders need to have a scope of vision that is broad enough to see what's available to them. They must take on risks.^[22]

Conclusion

As the international business network expands, it incorporates many different national cultures, meaning that attitudes to authority differ and assumptions and ambitions vary. Leaders must adapt to these differences, and they must also cope with the ambiguities of an unavoidably complex international structure. The challenge for global leaders today is to guide and direct their organizations and employees in this era of unprecedented complexity and fast-paced world change. This chapter has illustrated that in order to effectively lead change, the global leader must have a proactive and positive mindset. Global leaders must be open-minded, prepared, flexible, and farsighted if they are to effectively guide their organizations to achieving desired results.

Resource Section: Leading Change

ITEM 54: Sees Change as an Opportunity, Not a Problem

WHAT TO DO

• Realize that to effectively manage change, it's important to understand your own reactions to change.
• Realize that change is an ongoing process for improvement.
• Convey a positive attitude toward change.
• Anticipate the possible consequences of the change.
• Develop a plan to implement the change.
• Involve people who will be affected by change in the planning and execution process.
• Share as much information as you can with people during the process of organizational change.
• Identify the opportunities for change, and tell people what you think the change will mean for them.
• Expect people's resistance to change.
• Be open to listen to people's reactions to the proposed change.
• Develop strategies to deal with the resistance to change.
• Realize that it takes time to work through the resistance to change.

HOW TO DO IT

• Think about past changes that have created opportunities in your job and in your personal life. Recall how you felt and reacted during these changes.
• Analyze the causes of your reactions to change, and evaluate what you did to successfully manage the change. Use those successful strategies to manage future changes.
• Be honest and straightforward in explaining the change.
• Convince key individuals in the organization to view change as opportunity, and gain support and commitments from them.
• Discuss the proposed change with key individuals. Solicit their input regarding the rationale for change, the potential benefits, and the execution plan.
• Encourage people to openly express their feelings about the change.
• Carefully listen to people's concerns about change, understand the reasons for resistance, and deal with the problems in a timely manner.
• Study books or take courses to learn how people change and how to better manage change.
• Develop formal communication channels such as emails, frequently asked questions databases, and other electronic forms of communication or a departmental bulletin board to keep people informed on the change.
• Talk with managers who have implemented change successfully. Learn the steps they have taken to solve problems, and seek specific advice for your own situation.

HOW TO USE THIS SKILL FURTHER

• Volunteer to work on a task force at your company that deals with organizational change.
• Volunteer to help a nonprofit organization manage change.

RESULTS YOU CAN EXPECT

• The transition process may be smoother.
• People may ask you for advice to deal with change.

READINGS

• Business Climate Shifts: Profiles of Change Makers. W. Warner Burke, Richard Koonce, & William Trahant. 1999. Butterworth-Heinemann: Woburn, MA, ISBN 750671866.
• Control Your Destiny or Someone Else Will: Lessons in Mastering Change—From the Principles Jack Welch Is Using to Revolutionize GE. Noel Tichy & Stratford Sherman. 1999. HarperBusiness: New York, ISBN 887306705.
• Gung Ho! Turn On the People in Any Organization. Ken Blanchard & Sheldon Bowles. 1997. William Morrow: New York, ISBN 068815428X.
• Hidden Value: How Great Companies Achieve Extraordinary Results with Ordinary People. Charles O'Reilly & Jeffrey Pfeffer. 2000. Harvard Business School Press: Boston, ISBN 875848982.
• In The Face of Uncertainty. Editor Martha I. Finney. Contributor John Alexander. 2002. AMACOM: New York. ISBN: 0814471617
• Leading Change. John Kotter. 1996. Harvard Business School Press: Boston, ISBN 875847471.
• Managers As Mentors: Building Partnerships for Learning: Chip R. Bell : 1998: Berrett-Koehler: San Francisco, ISBN 1576750345.
• Organizing Genius: The Secrets of Creative Collaboration. Patricia Ward Biederman & Warren G. Bennis. 1998. Perseus: New York, ISBN 201339897.
• Playing For Keeps: How the World's Most Aggressive and Admired Companies Use Core Values to Manage, Energize, and Organize Their People, and Promote, Advance, and Achieve Their Corporate Missions. Frederick Harmon. 1996. John Wiley & Sons: New York, ISBN 047159847X.
• Taking Charge of Change: 10 Principles for Managing People and Performance. Douglas Smith. 1997. Perseus: Reading, MA, ISBN 201916045.
• The Dance of Change: The Challenges to Sustaining Momentum in Learning Organizations. Peter Senge, Art Kleiner, Charlotte Roberts, George Roth, Rick Ross, & Bryan Smith. 1999. Doubleday: New York, ISBN 385493223.

ITEM 55: Challenges the System When Change Is Needed

WHAT TO DO

• Recognize that innovation and change are vital to continuous improvement efforts.
• In order to stay competitive, managers need to let go of the status quo in favor of strategies that can increase benefits. Challenge yourself and challenge others to do the same.
• Provide others with sufficient information to permit them to develop creative yet workable ideas.
• Find and leverage trusted peers to communicate among constituents—peers who deliver messages about issues will have a better adoption rate by their cohorts (constituents).
• View past practices as a place to start rather than as "the way we always do it."
• When making decisions, try to be less conservative and more willing to take risks.
• Remove obstacles or barriers in your organization that interfere with new initiatives to make needed changes.
• Try to understand why others are against innovation or resist changes.
• Be willing to stand up for what you believe in, even under pressure.
• Be aware of those who are afraid of change or are always happy with the status quo. Find other ways that they can be productive without standing in your way.
• Develop a positive attitude when facing objections.
• View the objections or obstacles as opportunities to find innovative solutions.
• Identify areas in which changes are needed; encourage and support others to seek improvements in those areas.
• Develop action plans and set deadlines to implement the change.

HOW TO DO IT

• When considering making changes, ask yourself and others "Why not?" instead of "Why?"
• Communicate the change with confidence, and convey a can-do attitude.
• When presenting a new initiative, provide as much background information as possible to your work group.
• Interview others who have been successful outside or inside your industry, or use consultants to help you find those who are willing to share.
• Identify one or two people in your organization who can help you make the change a reality.
• Work to gain support and cooperation from the key individuals in your organization.
• Don't hesitate to ask for advice or help.
• Use benchmark data from associations in which you have access to it.
• Hold regular meetings with others (managers, peers, and employees) to share information and data, and identify possible areas for improvement.
• Make sure that others have a clear understanding of their customers' needs and requirements. Provide a communication link between them.
• Read the works of visionary writers to develop a sense of how to deal with ambiguity, map the environment, and open your mind to new ways of seeing and thinking.
• Identify an innovative company and think about the differences between its management's involvement and yours. Talk to managers and employees to identify all the differences you can. Work with others to identify and make appropriate changes in your own organization.
• Model the behavior of making sound decisions and taking appropriate risks; act on new ideas without delay.

HOW TO USE THIS SKILL FURTHER

• Try making changes in your personal life by focusing on problems you have been trying to solve.
• Help someone else act on a new idea or approach they want to try out.
• Volunteer to lead projects involving change management.
• Strive for a win-win solution—one that meets the needs of both sides as much as possible.

RESULTS YOU CAN EXPECT

• Customer expectations may continue to be met or exceeded using new and better ways of working.
• You may be seen by others as a change agent.
• You may feel more in control and less like a victim.
• Others may come to you for support.

READINGS

• Beyond Certainty: The Changing Worlds of Organizations. Charles Handy. 1998. Harvard Business School Press: Boston, ISBN 875847633.
• Business 2010: Positioning Your Company and Yourself in a Rapidly Changing World. Frederick Harmon. 2001. Kiplinger Books: Washington, DC, ISBN 938721844.
• Evolve!: Succeeding in the Digital Culture of Tomorrow. Rosabeth Moss Kanter. 2001. Harvard Business School Press: Boston, ISBN 1578514398.
• Fumbling the Future: How Xerox Invented, Then Ignored, the First Personal Computer. Douglas Smith & Robert Alexander. 1999. iUniverse.com: Silicon Valley, CA, ISBN 1583482660.
• Imagination Engineering: Your Toolkit for Business Creativity. Paul Birch & Brian Clegg. 2000. Financial Times–Prentice Hall: Upper Saddle River, NJ, ISBN 0273649299.
• Intrapreneuring in Action: A Handbook for Business Innovation. Gifford Pinchot & Ron Pellman. 1999. Berrett-Koehler: San Francisco, ISBN 1576750612.
• Linkage Inc.'s Best Practices in Leadership Development Handbook : Case Studies, Instruments, Training. 2000. Editors Louis Carter, David Giber, Marshall Goldsmith. With Warren G. Bennis. Jossey-Bass: San Francisco. ISBN: 0787952370
• Reengineering the Corporation: A Manifesto for Business Revolution. Michael Hammer & James Champy. 2001. HarperBusiness: New York, ISBN 66621127.
• Seize Tomorrow, Start Today: Renew Your Vision, Revitalize Your Organization, and Stay Ahead of the Future. James A. Belasco & Jerre L. Stead. 2000. Warner Books: New York, ISBN 446676047.

ITEM 56: Thrives in Ambiguous Situations (Demonstrates Flexibility When Needed)

WHAT TO DO

• Maintain a positive attitude toward ambiguous situations.
• Be willing to listen and stay open when dealing with ambiguity.
• Realize that understanding others' thinking may enhance your own ideas and help you make the right decision.
• Keep your sense of humor.
• Analyze and prepare for the possible consequences of an ambiguous situation.

HOW TO DO IT

• Analyze your own reaction to ambiguity, and learn to see ambiguity as a challenge, not a threat.
• Think about past changes (both positive and negative) that you have encountered on your job and in your personal life. Recall how you felt and reacted during these uncertain situations.
• Analyze the causes of your reactions to ambiguity, and evaluate what you did to successfully manage the situation. Use those successful strategies to manage future changes.
• When dealing with ambiguous situations, have more one-on-one meetings with key stakeholders to share information, establish rapport, and learn others' viewpoints.
• Schedule listening time with key members of your team, leaders in the organization, or external constituents.
• Observe people who are flexible and open minded; ask them for tips.
• Tell others you want to improve your listening skills.
• Ask for feedback on your openness to new or different ideas. Solicit suggestions that could develop your skill.
• Study books or take courses to learn how people deal with change and how to better manage ambiguity.
• Talk with managers who have demonstrated flexibility in ambiguous situations and handled change positively. Learn from them.
• Analyze "what if" situations and prepare several approaches to deal with problems that may occur.

HOW TO USE THIS SKILL FURTHER

• Volunteer to work on a task force at your company that deals with organizational change.
• Volunteer to help a nonprofit organization manage change.
• Serve as an alternate channel for complaints and questions for other manager's associates.

RESULTS YOU CAN EXPECT

• The process for change may be smoother.
• People may ask you for advice in dealing with ambiguity.

READINGS

• Age of Unreason. Charles Handy & Warren Bennis. 1998. Harvard Business School Press: Boston, ISBN 875843018.
• In The Face of Uncertainty. Editor Martha I. Finney. Contributor John Alexander. 2002. AMACOM: New York. ISBN: 0814471617
• Leading Change. John P. Kotter. 1996. Harvard Business School Press: Boston, ISBN 875847471.
• Reengineering the Corporation: A Manifesto for Business Revolution. Michael Hammer & James Champy. 2001. HarperBusiness: New York, ISBN 66621127.
• Relax, It's Only Uncertainty: Lead the Way When the Way Is Changing. Randall P. White & Philip Hodgson. 2001. Financial Times–Prentice Hall: Upper Saddle River, NJ, ISBN 0273652419.
• Surfing the Edge of Chaos: The Laws of Nature and the New Laws of Business. Richard Tanner Pascale, Mark Milleman, & Linda Gioja. 2000. Crown: Victoria, BC, ISBN 0812933168.
• Taking Charge of Change: 10 Principles for Managing People and Performance. Douglas K. Smith. 1997. Perseus: Reading, MA, ISBN 201916045.
• Thriving in 24/7: Six Strategies for Taming the New World of Work. Sally Helgesen. 2001. Free Press: London, ISBN 684873036.
• Who's Running Your Career?: Creating Stable Work in Unstable Times. Caela Farren. 1997. Bard Press: Marietta, GA, ISBN 1885167172.

ITEM 57: Encourages Creativity and Innovation in Others

WHAT TO DO

• Create an atmosphere that encourages people's creativity and contrasting ideas.
• Value those who can think outside the box. Maintain an atmosphere in which these people feel safe to innovate, and provide the support they need.
• Value the input of others. Don't hesitate to change your strategies if someone else comes up with a better idea. Consider all your options, and don't be afraid to take one step back if it will lead you two steps ahead.
• Show interest in gathering and developing ideas of others.
• Identify and reward those who are self-starters and can "go with the flow."
• Identify areas in which creativity and innovation are appropriate; encourage and support others to seek improvements in those areas.
• Establish an objective, consistent way of gathering and evaluating ideas.
• Let others know they can question and disagree.
• Concentrate on ideas, not on personalities.
• Ask probing question when others seem reticent.
• Be open to the risks and possible mistakes that new ways of working can create.

HOW TO DO IT

• Keep your innovators sharp by having them attend workshops, seminars, and other opportunities to network and exchange ideas. Encourage their involvement with customers, various committees, and brainstorming sessions.
• Get associates together for brainstorming sessions to generate creative ideas.
• Collect ideas from people who normally don't deal with the problem.
• Include subject matter experts where appropriate (academics and consultants).
• When others disagree with you, respond in a nondefensive manner; this gives people permission to question and come up with alternative solutions.
• Ask open questions that require more than a yes or no response.
• Get support from customers, peers, and subordinates for new ways of doing work by discussing change ideas with them and getting their input.
• Investigate and practice various techniques for generating new ideas.
• Promote the idea of "white space" in which people can have some time to strategize, think, or plan without having to attend meetings or work on "today's deadline."

HOW TO USE THIS SKILL FURTHER

• Volunteer to plan and participate in brainstorming sessions.
• Ask for assignments that require creativity.
• Take a class on developing creativity.

RESULTS YOU CAN EXPECT

• You may implement more innovative approaches.
• You may be asked to join new projects or task forces.
• Productivity of your group may increase.

READINGS

• Corporate Creativity: How Innovation and Improvement Actually Happen. Alan G. Robinson & Sam Stern. 1998. Berrett-Koehler: San Francisco, ISBN 1576750493.
• Imagination Engineering: Your Toolkit for Business Creativity. Paul Birch & Brian Clegg. 2000. Financial Times–Prentice Hall: Upper Saddle River, NJ, ISBN 0273649299.
• Intrapreneuring in Action: A Handbook for Business Innovation. Gifford Pinchot & Ron Pellman. 1999. Berrett-Koehler: San Francisco, ISBN 1576750612.
• Managing for Excellence: The Guide to Developing High Performance in Contemporary Organizations. David L. Bradford & Allan R. Cohen. 1997. John Wiley & Sons: New York, ISBN 0471127248.
• Positive Turbulence: Developing Climates for Creativity, Innovation, and Renewal. Stanley Gryskiewicz. 1999. Jossey-Bass: San Francisco, ISBN 0787910082.
• The Age of Innovation: Making Business Creativity a Competence, Not a Coincidence. Felix Janszen. 2000. Financial Times–Prentice Hall: Upper Saddle River, NJ, ISBN 0273638750.

ITEM 58: Effectively Translates Creative Ideas Into Business Results

WHAT TO DO

• Recognize that innovation and change are vital to value-generating efforts.
• Provide others with sufficient information to permit them to develop creative yet workable ideas.
• Identify areas in which creativity and innovation are appropriate; encourage and support others to seek improvements in those areas.
• Review and discuss all risks (the probability of failure and the consequences of failure) before implementing a new idea.
• Make sure the impact of new approaches on other operations and other work units is fully explored and resolved before a new idea is implemented.
• Make people aware that they are accountable for their decisions.
• Develop action plans and set deadlines to implement new ideas.

HOW TO DO IT

• Use benchmark data from associations in which you have access to it.
• Hold regular meetings with others (managers, peers, and employees) to generate and share creative ideas for improving business results, and develop business plans to implement the ideas.
• Work with your group to develop specific action plans, assign responsibilities within the team, and set a realistic timeline to complete the task.
• Supply the resources and information others need to implement creative ideas and deliver business results.
• Follow up regularly to ensure the ideas are implemented as planned.
• Make sure that others have a clear understanding of their customers' needs and requirements. Provide a communication link between them.
• Maintain objectivity when reviewing new ideas and decisions.
• Determine the "area of freedom" for new ideas—where ideas can be tried out without violating any contractual, safety, or other nonnegotiable requirement.
• Identify an innovative company and think about the differences between its management's involvement and yours. Talk to managers and employees to identify all the differences you can. Work with others to identify and make appropriate changes in your own organization.
• Model the behavior of making sound decisions and taking appropriate risks; act on ideas without delay.
• Keep a file entitled "New Ideas." Each time you hear or see something related to your job, write it down and file it. Periodically review the file.
• Devise alternative, more effective, and efficient methods for handling your routine job responsibilities.

HOW TO USE THIS SKILL FURTHER

• Try out some of your own creative ideas on problems that you have been trying to solve.
• Help someone else act on a new idea or approach they want to try out.

RESULTS YOU CAN EXPECT

• Your work group may generate and implement more creative ideas to improve business results.
• Customer expectations may continue to be met using new and better ways of working.
• Your group may make more mistakes than before, but may experience more successes.

READINGS

• Corning and the Craft of Innovation. Margaret B.W. Graham & Alec T. Shuldiner. 2001. Oxford University Press: Oxford, England, ISBN 195140974.
• Freedom and Accountability at Work: Applying Philosophical Insight to the Real World. Peter Koestenbaum & Peter Block. 2001. Pfeiffer & Co.: New York, ISBN 787955949.
• In Praise of Good Business: How Optimizing Risk Rewards Both Your Bottom Line and Your People. Judith M. Bardwick. 1998. John Wiley & Sons: New York, 047125407X.
• Innovation: Breakthrough Thinking at 3M, DuPont, GE, Pfizer, and Rubbermaid. Rosabeth Moss Kanter, Fred Wiersema, John J. Kao, & Tom Peters. 1997. HarperBusiness: New York, ISBN 088730771X.
• Leading on the Creative Edge: Gaining Competitive Advantage Through the Power of Creative Problem Solving. Roger Firestein. 1996. Pinon Press: Colorado Springs, ISBN #0891099751.
• Make Success Measurable!: A Mindbook-Workbook for Setting Goals and Taking Action. Douglas K. Smith. 1999. John Wiley & Sons: New York, ISBN 471295590.
• Organizing Genius: The Secrets of Creative Collaboration. Patricia Ward Biederman & Warren G. Bennis. 1998. Perseus: Reading, MA, ISBN 201339897.
• The Creative Priority: Putting Innovation to Work in Your Business. Jerry Hirshberg. 1999. HarperBusiness: New York, ISBN 0887309607.

Endnotes

1. Products and services, United States, 41.

2. Technology, Poland, 39.

3. Healthcare, United States, 33.

4. Products and services, Brazil/United States, 29.

5. Investments, United States, 27.

6. Warren Bennis. On Becoming a Leader. Perseus: New York. Copyright © 1989, 1994.

7. Government, Canada, 34.

8. Research and development, United States, 56.

9. Non-profit, United States, 24.

10. Products and services, United States, 32.

11. See "The Impact of Direct Report Feedback and Follow-up on Leadership Effectiveness," a study by A4SL, which involved more than 8,000 respondents.

12. Products and services, Brazil, 49.

13. R. T. Moran. "Handling Two Swords at the Same Time." International Management. July 1986.

14. R. Jenkins. Churchill: A Biography. Plume/Penguin Putnam Inc.: NY 2002.

15. Products and services, Switzerland, 45.

16. Telecommunications, United States, 34.

17. Technology, South Korea, 43.

18. Products and services, 45, Switzerland.

19. Pharmaceuticals, United States, 41.

20. Technology, United States, 34.

21. Pharmaceuticals, United Kingdom, 30.

22. Transportation, Canada, 47.

23. Information and quotes taken from interview with Eric Greenberg conducted by Cathy Greenberg. May 2002.

24. Interview with Eric Greenberg, chairman and founder of Scient, January 11, 2000. http://leadership.wharton.upenn.edu/ecommerce/interviews/greenberg.shtml. The Wharton School at the University of Pennsylvania.