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«MICHAIL MAVROMATIS JOHAN OLOFSSON Department of Civil and Environmental Engineering Division of Construction Management CHALMERS UNIVERSITY OF ...»

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Figure 2 Explanation of Theory E and Theory O and how to combine them (Beer and Nohria 2000, pp. 135) Successful leadership stage model This model is developed by Collins (2005), and relies on the fact that great leaders have a paradoxical combination of deep personal humility and intense professional will. A professional humility is defined as where the person demonstrates a compelling modesty towards others including not blaming other peoples or external events if projects fail to deliver, acting with quiet and calm determination and not inspiring charisma to motivate the organization, channelling ambitions into the organization instead of taking own advantage of it and preparing the succession for even more greatness within the next generation of leaders. A professional will is defined as one creating superb results during the transformation from a good to a great organization, demonstrating determination to what must be produced in the long-term even if the process is hard, setting high standards of what is needed of the organization to succeed, and giving credits to those contributing to the success of the company.

Leadership can, according to this model, be divided into five stages or levels, with

level one as the not so good leaders and level five as the ones transforming good organizations into great ones. The different levels, according to (Ibid) are:

Level one: high capable individual; makes productive contributions through talent, knowledge, skills and good work habits.

Level two: contributing team member; contributes individual capabilities to the achievement of group objectives and works effectively with others in a group setting.

Level three: competent manager; organizes people and resources towards the effective and efficient pursuit of predetermined objectives.

Level four: effective leader; catalyzes commitment to and vigorous pursuit of a clear and compelling vision, stimulation higher performance standards.

Level five: executive; builds enduring greatness through a paradoxical blend of personal humility and professional will.

CHALMERS, Civil and Environmental Engineering, Master’s Thesis 2013:120 Another view of this is presented by Miller (2001), who has made a four-stage model directly referring to change leadership. This assumption is based on personal change adaptability, which leads to a four-stage framework ending in successful change leadership behavior.

The top-line indicators for personal adaptability are optimism, self-assuredness, innovative, collaborative, purposeful, structured and proactive. Optimism is defined by an upbeat about the future, learning from situations and does not allow problems to dampen enthusiasm and the person’s genuine optimistic view of the world. Selfassuredness is defined by a high self-esteem grounding in the knowledge of one’s own abilities and confidence, ending in a feeling of being in control of upcoming events.

Innovation is defined as having a fresh look at occurring problems and challenging status quo. Collaboration is defined by a look at others as resources to be called upon when encountering problems or difficulties. Purposeful meaning that one has an understanding of priorities and an ability to maintain focus and discipline towards goal achievement. Structured persons are organized, methodical and use existing systems.

Proactive, meaning that one takes quick decisions and seizes opportunities due to fast thoughts and reactions.

These indicators of adaptability can be combined with different leadership change beliefs, or different change leaders. Change leaders can be clasified in four stages, where stage one leaders is not so good and stage four leaders are the one preffered for leading a change program to success. The different stages is presented below.

Stage 1. Leaders at this stage do believe that personnel will change as soon as they understand the logic behind the change or that people will change when told to change.

These leaders also rely on written business cases in the communication, resulting in an assumption that little planning are necessary, but that the communication has to be very clear and logic. The underlying assumption for the leader is that people are rational and will follow their self-interest when it is presented to them, and if they do not understand then will organizational power or sanctions ensure them to do it.

Stage 2. Leaders at this stage believe that people will change through using of powerful communication and symbolism.

They also believe that change itself will make people change, wherefore the planning will focus on different change techniques, such as group meetings and change symbols like t-shirts or videos. The underlying assumption is that personnel will change once the benefits of the change is presented to them, also here will organizational power or sanctions ensure them to change if not adapting to it by own will.

Stage 3. Leaders at this stage believe that people may not be willing, able or ready to change, wherefore they prefer the use of external consultants that will build a change plan that they can implement within a clearly defined budget and time-frame.

As a result of this, they tend to dislike the change plan if they have to change themselves or their behaviors or skills. The underlying assumption is that personnel will become committed to change when time passes and the plan is implemented.

Stage 4. Leaders at this stage concern of the personnel’s ability to absorb the change and that they may not be willing, able or ready to change.

A vital part of the planning is to plan how people shall implement the change, wherefore leaders are involved in the planning themselves, being willing to devote their time and energy when developing it. The underlying assumptions are that commitment must be built and that sanctions will not be effective and that different people needs different amount of time to adapt what is changing.

CHALMERS, Civil and Environmental Engineering, Master’s Thesis 2013:120 9 2.3 Change management When organizations face change events, there are many aspects to consider when maximizing the chances for success. For example, Beer and Nohria (2000) state that as many as 70% of the change initiatives fail to deliver the estimated result. Keller and Aiken (2009) suggest that the chance of project success can be improved through close management of employee’s attitudes and the management’s behavior. This section therefore describes the general theories about how to manage a change process.

Thereafter a description of how leaders can identify the magnitude of the change event and another section that describes how change shall be implemented in order to minimize the anxiety within the organization. Lastly, there is a description of how to sustain the implemented changes.

2.3.1 The change process The change process can be seen as a journey between a current state and a future state.

The most common model is the Lewin model (Higgs and Rowland 2005), which is seen in Figure 3. The model suggests that there is a current state that is unfreezing, followed by a movement phase and thereafter a refreezing of the desired outcome.

Figure 3 Lewin’s three-phase model of change (Higgs and Rowland 2005, pp. 122)

This model is supported by Nadler and Tushman (1997) who suggest that the change process is ranging from a current state to a future state, via a transition state, as seen in Figure 4 where the current state needs to be changed in order to meet the organizations vision, the so-called future state. This is done through a transition of the organization, or an implementation of the desired changes. It is during this phase that many of the problems occur, and is therefore vital to manage.

Figure 4 The model of organizational change as transition (Nadler and Tushman 1997, pp. 596) Both these models propose that the first step involves an identification of the current state, and those aspects that need to be changes through picturing a desired end-state, or a vision for the organization. During the next phase, the movement, or transition phase, participation and involvement amongst the personnel leads towards a move to a new state, which is followed by a stabilization, or refreezing of the result or the new state of affairs, through setting new policies, rewarding successes and establishing new standards (Weick and Quinn 1999). A vital part of the change process is the change agents that shall, according to Armenakis and Bedeian (1999), lead and influence the change process through handling the resistance, lead the exploration and gain commitment within the organization. These agents can be either external consultants or an internal leading person (Saka 2003).

CHALMERS, Civil and Environmental Engineering, Master’s Thesis 2013:120 The risk of thinking of change as a straight line of events, instead of seeing it as a journey which does not has to be a straight chain of events (Cameron and Green 2012), is that the organization might use the models as a planning tool instead of an development process (Ibid). The unfreezing phase becomes planning, the transition becomes a sole implementation and the refreezing phase becomes a review, which leads to ignoring the fact that it is people that change and not just the organization (Ibid). Alänge and Steiber (2009) state that the board and the chief executive officer have an important role during the whole process; but that they shall take a step back after the implementation and let the organizational structure and its governance go through working behaviors.

In order to manage the transition phase there are three grounding theories about how to manage change, namely Kanter et al’s (1992) ten commandments for executing change, Kotter’s (1996) eight steps for successful organizational transformation and Luecke’s (2003) seven steps. These theories are supported and validated by Oakland and Tanner (2007), who have developed these theories into seven steps to reinforce the cycle of change and obtain continuous improvements within the organization.

Kanter et al’s (1992) Ten Commandments are:

1. Analyze the organization and its need for change Understand the organization’s operations, how the business environment is, what its strength and weaknesses are and how they will be affected by the change.

2. Create a vision and a common direction Unite the organization around a central vision that reflects the core values of the organization, it will articulate what is about to come and guide behaviors that will help achieving the vision.

3. Separate from the past Disengage the current behaviors and engage into a new reality through embracing the new vision and isolation of past structures and routines.

4. Create a sense of urgency Convincing the organization that change is necessary for rallying the organization behind the change initiative. If there is not an immediate risk of bankruptcy or similar, there is a need to artificially generate some kind of emergency.

5. Support a strong leader role An advocate of change that guides inspires and drives the process through setting the vision, creating the organizational structure and motivation of employees to embrace the vision.

6. Line up political sponsorship A major change must have broad support throughout the organization to succeed. Not just only leaders and managers have to support the change, it is also important that change implementers and recipients of change accepts and embraces the changes.

7. Craft an implementation plan CHALMERS, Civil and Environmental Engineering, Master’s Thesis 2013:120 11 A detailed plan which specifies how the implementation shall be conducted, consisting of everything from meeting times and dates through which efforts that is needed and how these shall be made, to the exact date when the vision of the change hopes to be achieved.

8. Develop enabling structures Challenging the status quo through the creation of mechanisms for implementation, which are crucial for the organizational transformation. The new structures can be both parts of the already existing corporate structure or a freestanding part and they shall highlight the practical and symbolical necessity of change, such as workshops, kick-offs, training programs and new reward systems.

9. Communicate, involve people and be honest Change leaders shall communicate as openly as possible to involve and gain trust from the peoples throughout the organization, creating involvement, communication paths and minimizing disclosures and to overcome resistance.

10. Reinforce and institutionalize change Leaders and managers has to make it their top priority to prove commitment to the transformation process, reward risk taking and reinforcing and incorporate new behaviors into the day to day work within the organization.

Kotter’s (1996) eight steps for leading change are:

1. Establish a sense of urgency Examine the existing markets and competitive realities in order to find potential risks or possibilities, convince managers that status quo is more dangerous than change, and understand the risks of driving people out of their comfort zone.

2. Create a guiding coalition A dedicated group shall be assembled, which share commitment and has enough power to lead and influence throughout the change effort.

3. Develop a vision and a strategy Create a vision focused to the change and develop strategies to reach that vision and keeping it simple and easy to communicate.

4. Communicate the change vision Use all possibilities there are to communicate the vision of change and the strategies developed, teach new behaviors through the guiding coalition.

5. Empower broad-based action Empower others to act on the vision through removal of old structures that undermines the change vision, also removal of powerful individuals that resist change and encourage risk taking.

6. Generate short-term wins CHALMERS, Civil and Environmental Engineering, Master’s Thesis 2013:120 Identify and create short-term wins, which do not have to be monetary, make them visible as performance improvements for the employees and recognize and reward those who reach these improvements.

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