The crucial role of leaders in change processes

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The role of the manager or the CEO within complex change processes is a much discussed topic. The influence that he or she exerts and the resulting corporate culture are perhaps the most crucial aspects of guaranteeing long-term success.

How, then,is it possible that attention is still largely focused on the contents of the targeted changes.

For it can be extremely difficult for CEOs to look at themselves critically in the mirror or ask their management teams to find the courage to do the same and face the risks that this involves. Improvement is noticeable at these "reflection sessions" at the highest management level but, too often, we see they are not linked to the daily affairs of the company.

These same CEOs often ask Gwynt to help their companies achieve continued efficiency improvements. They have noticed that financial results always regress as soon as the pressure is off. Senior management complain about the quality of their people: "Our people do not take initiative. Good ideas are not communicated properly to the shop floor. Communication and project management is of a very low level. They spend more time in discussions with other departments than solving problems for the customer. "

We strongly believe that real change within a company can occur if the following elements are organized and synchronized:

• Operational processes
• Organization and Structure
• Understanding performance
• Vision, Mission and Strategy
• Leadership and culture

The illustration underneath shows the possible main themes for each transformation element.

Most questions are often focused on the first three transformation elements: "Make our processes more efficient, train our people in the new processes and in the implementation of improvements (project management, lean, Six Sigma) and give us the KPI reports to maintain control when you leave!"

Obviously, these are very relevant questions and essential for the success of the company. However, to achieve maximum and lasting improvements, it is advisable to first see if the existing processes and structures are in line with the mission and strategy of the company. Does the current strategy support the complexity and associated costs of the processes or could some elements be scrapped? Are there services or processes missing that are necessary to achieve the strategic goals? This strategic alignment is an exercise that is often carried out. For the management team and the CEO this is safe as it doesn’t tell anything yet about their personal functioning.

The most sensitive element is the fifth one. People are definitely willing to call for a change to the culture (of others) within the company: "There really must be more discipline. People must take responsibility and show initiative to carry out improvements ...." Unfortunately it is often the case that the CEO expects from his team members exemplary behaviour that is not always present within his own character.

Some examples:

The above examples show that unwanted behaviour is upheld by the company’s leader. It is, therefore, a huge challenge to keep holding up the mirror in front of him or her. The best way to do this is jointly with the management team. In doing so, efforts can be put into team building at the same time. This requires a lot of courage and a safe environment, yet under proper guidance, sessions can quickly lead to a collective improvement agenda and employees should notice that something has changed. Nonetheless, it is still important to watch out for the following:

• Regression will occur regularly whenever undesirable behaviour rears its head again. It is important to address such behaviour immediately.
• The organization may not always understand that a new wind of change is blowing through the company. Employees, too, must be guided with clear communication and perhaps even coaching. Undesirable behaviour should be identified and desirable behaviour encouraged.
• Limit the number of priorities for the organization. Show that, from now on, processes and projects will be finished.
• Be aware that it may be necessary to attract new people to fill a role which until now did not exist. Think carefully about the roles needed within the 'new' company.

If the situation allows, it is advisable to first run through the above processes before getting started with all the various efficiency improvements. This may seem to be a longer route but, ultimately, time will be more than made up during the implementation phase. In addition, resistance will be significantly lower.