Chapter 7 / Role of the CEO in Successful Organisational Change One key to successful leadership is continuous personal Change. Personal Change is a reflection of our inner growth and empowerment. ~ Robert Quinn ~

PHASES OF CHANGE 2 Identify the need to change Communicate the need to change Handle Resistance to Change Supervise the change at the unit level Implement the Change Drive the Change Overall project Evaluation Change Accomplished! PHASE 2 PHASE 1 Y PHASE 5 PHASE 4 PHASE 3 PHASE 7 PHASE 6 A B C X PHASES OF CHANGE Y Axis: Phases of Change X Axis: Levels of Management A: Lower Level Management & Line Employees B: Middle Level Management C: CEO and Top Level Management

ROLE OF CEO IN SUCCESFULL ORGANISATIONAL CHANGE 3

PAINTING A POWERFUL VISION The role that a CEO plays in creating an effective vision is Communicate a powerful TRANSFORMATION STORY Make the communication PERSONAL Tie it with organisational CULTURE AND VALUE The power of the CEO’s transformation story also depends on its ability to balance reality and dreams CEO’s personal involvement either through his physical presence or vocally, can send across a very positive signal about the importance of change Employees identify best with organisational culture and values because these ideas form the basis of their informal organisation 4

INSPIRING PEOPLE The CEO’s role in motivating the organisation is Communicating the vision or the need for Change Role Modelling Behaviour Personal Engagement in work floor issues Building a Strong Top Team In order to inspire or motivate change, it is important to prepare people mentally for the change, and sustain their change efforts, besides communicating the need to change Always under the spotlight, the CEO is literally required to be the change he wishes to see 5

GATHERING POLITICAL SUPPORT Power Play, Change and the CEO Secure the support of the Board, senior management and key power players Involve power players at all key stages in the process Appreciate, evaluate and act upon their suggestions or recommendations Power comes from knowledge, experience and expertise; it also comes from personal qualities such as an ethical, upright personality, honesty and integrity In a scenario of change, it is the ones in power who exercise authority over these resources and therefore to ensure the success of your project, you must ensure the support of all key power players like the Board, senior management etc 6

SUSTAINING THE ENERGY Various factors such as strong resistance to change, sudden resignation of key people or shift of focus on other exigencies that need immediate attention, may impede the momentum of change efforts Major responsibility of the CEO and top management is to sustain the energy of team members, and steer the process through difficult times CEO’s who can withstand the pressures of a delayed reflection of change initiatives in financial reports and instead appreciate individual efforts during this phase can miraculously step up energy levels 7

MANAGING THE TRANSITION PHASE As a change process sets in, the transition from the old to a new set of circumstances stands out as the toughest challenge Managing transition also includes taking stock of the gap between perceived and achieved goals CEO can organise review meetings to understand the gap between the original plan and the current status, detect the root cause of operational issues and explore strategies to resolve them The key role is to ensure that all decision making is anchored only in facts, and that there is a healthy balance between attainment of short term goals and long term objectives in the process of driving change 8

BASIC SKILLS OF CEOs TO SUCCESFULLY HANDLE CHANGE Goal Setting and Leadership Skills refers to the ability to proactively judge present developmental needs and strategically decide upon an appropriate change initiative Planning Skills good planning skills are required to enable the attainment of goals Problem Solving Skills as and when the change progresses, new problems are encountered and these must be timely settled to effectively steer change Integrity and Charisma a dynamic, magnetic personality is more capable of influencing others to follow direction than a passive and unapproachable one 9

BASIC SKILLS OF CEOs TO SUCCESFULLY HANDLE CHANGE (Cont..d) Communication Skills nurturing trust, handling difficult people, motivating others, providing an honest feedback, all fall under the purview of effective communication that forms the link between the CEO and his people Team Building Skills and Directing Work the CEO must have a clear picture of how the humongous task of change can be best carried out through delegation of activities Supervising and Evaluating Skills the CEO must be able to evaluate progress along the correct dimensions 10

© Copyright 2011 The Art of Change Management Implementing Change from the Top ISBN: 978-93-80227-60-3 Published by Embassy Books, India. www.artofchangemanagement.com Author: Percy Agreras Dastur www.percydastur.com Email: contact@percydastur.com