By: Allison McCarthy, MBA | amccarthy@barlowmccarthy.com
My father said a business is either growing or shrinking. It can never stand still. Either leadership is intentionally moving forward, or the environment is pushing the direction of change.
Successful change requires a careful implementation process. But, it also depends on leaders who harness specific skills to navigate the transition – whether it be a reorganization, quality improvement initiative, financial turnaround, merger or acquisition, contract renegotiation, or cultural shift.
Beyond the plan and implementation process, change efforts are heavily people-centric. An effective change leader recognizes human nature’s reaction to these shifts. The leader uses influencing skills to manage key stakeholders, adapt the approach and messages as needed to drive the change, and to bring the necessary resolve to see change through to the end. More specifically, successful change leaders exhibit:
- Vision – The leader can see the benefits or rewards of change and the high-level objectives to get there. While a change manager will facilitate the particulars, the change leader connects the specific initiative with the broader strategic agenda.
For example, a VP of Business Development knows the benefits of acquiring a medical practice (revenue, referrals, expertise). They delegate the tactical details to others, but they know that legal, operations, marketing, human resources, etc., must be engaged and working in sync. The leader’s responsibility is “sell” the opportunity to peers to the degree that functional representatives work attentively through the onboarding process. Barriers from any area put the integration effort and organizational return on investment at stake.
The leader also knows some stakeholders will be resistant to change. In the example above, the practice staff faces a new employer, the transition for physicians from ownership to employment, and the different functional demands on resources and time. By making themselves available to the stakeholders when needed, and staying engaged in the onboarding process, the change leader manages issues and concerns, so they don’t come to life.
- Proactivity – Leading a change effort is anything but passive. The leader may be separated from the details but ensures there is an action plan with milestones, timelines, accountabilities, and metrics. The leader also advocates for the change team when resources are needed. And, they check in at regular intervals to address barriers and reestablish priorities.
For example, when leading a new employee onboarding process, the Talent Acquisition Director will rely on the front-line managers to identify and implement the new procedures. But the leader attends meetings to identify barriers, answer questions, advocate for new tools, and ensure key metrics are in place to measure success. The Director’s participation reinforces to the team the importance of the effort and retains the momentum needed to anchor the improvements.
- Decisiveness – Change is hard. Beyond the natural resistance that arises from a change, unforeseen factors come into play. Richard Rumelt, in his June 23rd Harvard Business Review article, describes these unknowns as gnarly situations – scenarios that don’t have an obvious choice or action. Instead, multiple dynamics are at play, requiring the leader to take a position so that the change effort can move forward, such as:
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- Distinguishing the priority issues from all others
- Choosing to address an issue head-on or move around it
- Eliminating distractions to maintain focus and prevent resource waste
- Communication – while somewhat obvious, this skill is critical when leading a change effort. The leader must describe the rationale of the change clearly and frequently – not only at the outset and with the change team – but at regular intervals to remind stakeholders of the benefits of change and the connection to the larger strategic agenda. John Kotter in “Leading Change” notes that leaders must constantly convey a “sense of urgency” to buffer the natural tendency to address other priorities and push the change off to the side. The leader must be the message champion on why this change, who benefits and how, and the support required to make it happen.
Change management concentrates on the actions and tasks required in the change process, completing the necessary steps on time and within budget. Change leadership centers around the bigger picture – casting the change vision, continuously communicating the need and benefits of the change, ensuring the necessary people and resources are involved, making the “gnarly” decisions, and being in front of the change effort to ensure its success.
Coaching can be a tremendous support for leaders working through change efforts. If you believe coaching could be a benefit to you and you want to explore it further, email amccarthy@barlowmccarthy.com to schedule a complimentary coaching session.