Setting Sail For Change

Executives facing a seemingly constant stream of complex change, may wish for a set of procedures and rules - a map which will guide them in unknown territory. We argue that although such a map may be unrealistic given the complexities of organisational change, critical guidance is possible and that through recognition and robust analysis of key intelligence areas, managers can significantly enhance their change leadership capabilities.

In 1939 Thomas Watson Senior said “IBM– is an institution that will go on forever”. Faced with constant change, few managers today can feel so confident about the future of their organisation, or indeed of their capability to lead it in changed circumstances.

Managers who previously were seen as rock solid successes can founder when faced with a challenging change agenda - old wisdom and rules do not always work sufficiently well, if at all, and timescales can be tight. Managers may crave a totally reliable compass to guide them through the uncharted waters of change, but they know this is unrealistic: change is too complex and context-specific.

However, through our work with many managers we have concluded that they can be helped to take a robust approach to change through the use of what we call the leadership compass. It can help managers to understand themselves better and gives them a clearer means to target strengths and areas for development in a balanced way. At an organisational level, the compass can open up and channel discussion on organisational needs and capabilities. The four points of the compass are shown in the diagram below.

Business Intelligence - requires the manager to recognise customer and market signals, to understand the nuances of the industry and the competition and translate this into solid delivery.

Spiritual Intelligence - underpins personal identity, values and sense of direction beyond the role you are asked to perform. It shows through in self-confidence and openness to new ideas and information.

Political Intelligence - enables you to steer the organisation, to overcome opposition, inertia or resistance, and to influence groups and opinion leaders diplomatically in the wider environment.

Emotional Intelligence - is the ability to work skilfully one-to-one, displayed by successfully reading others’ emotional states coupled with self-awareness and control. It shows in working in a trusting and skilled way at the emotional and interpersonal level.

Each of these four intelligencies can invoke criticism. While few would argue with the value of business insight and understanding, business intelligence is not timeless - managers can become too steeped in industry knowledge and norms so that they lose sight of new ideas or best practice elsewhere.

Spiritual intelligence can be greeted with derision by some hardheaded managers who see this as ‘woolly nonsense’, at a distance far removed from the real world. Such critics risk failure to deal with signs of dissatisfaction and rootlessness which have their foundations in people’s need to anchor their lives in a wider purpose which can be threatened by change at work.

Political intelligence is often characterised as Machiavillian self-interest. Yet political intelligence as we see it is about resolving conflicting interests and priorities and to take a lofty view on this is to ignore realities.

Emotional intelligence can be viewed as a mere optional extra. As one manager said to us, “In life often you just have to press forward, and disregard the niceties of people’s feelings”. Long term, however, ignoring emotional intelligence can result in change managers being left with a depleted and demoralised workforce.

How do we work with managers to develop the skills and insights required of the components of the compass? The first stage is frequently a self-audit, often using a simple questionnaire to help raise understanding of personal capability. This self-examination can be helpfully extended to include managers, staff and colleagues who come into contact with the manager.

On a development programme, we will sharpen business insight and motivation for change through strategic tools to compare customer perceptions of value against the competition, strengthened by an analysis of the wider environment using a PEST analysis, (political, economic, social and technological) and force field analysis, which describes relevant change forces.

Managers may well have come across these frameworks before – our task is to help them to make these into working tools which they can comfortably apply to their own situation.

Emotional intelligence can be developed through working intensively with individuals on personal development matters. We help managers to see themselves and others with a sharper lens through understanding themselves.

Political and spiritual intelligence can be developed through discussion, the use of models and ‘What if’ scenarios which explore relevant examples sometimes using actors. In one vivid role play an actor took the part of an all-knowing manager dealing with an inexperienced but highly skilled subordinate who was literally quaking in his shoes. We found ways to help the subordinate find expression for his power, yet be sensitive to the politics of the situation.

Programmes dealing with approaches to business-wide change can provide structure and strategies which can give method and impetus to the change process.

What can managers do to develop their change leadership capabilities?

Developing capabilities to manage change is neither quick nor particularly easy. Deeply embedded attitudes, paradigms and perceptions overlay and reinforce skills and behaviours. Some starting points for personal leadership development using the compass are to encourage a manager to seek feedback and compare the differing results and common themes. The manager can learn much from these comments, particularly if there is access to supportive facilitation and coaching. Managers often benefit from the motivation of focusing on specific change aspects through specific targets, with timescales.

Learning from a good role model and mentor can speed up the acquisition of change skills, particularly those all important company-specific knowledge and skills.

Participation on a development programme which focuses on insight and personal development can accelerate personal and managerial change. This is particularly so if help is given in setting and reviewing implementation goals.

Business Intelligence
Managers often need to get out more and see a wider context, for example by attending business conferences for fresh ideas or joining a network organisation to keep in touch with like-minded people and gain new insights into topics like change, customer relations and business trends.

Spiritual Intelligence
To foster this intelligence, managers require reflection time. For example, when there is conflict, we suggest stepping back to see the wider system as a whole. From this perspective, a manager is better able to assess what is needed to restore a healthy balance. Also those who have done it appreciate the value of taking time out to contemplate who they are and evaluate how they fit in to the scheme of things. (We can already hear the howls of protest on this one from action-focused managers!).

Political Intelligence
This intelligence can be enhanced by thoughtful communication with relevant groups of people. Whilst time-consuming, regular discussion will pay off with all sections of employees and particularly key stakeholders to establish their needs and maintain buy-in. Particular attention should be given to getting respected power players on board to help drive changes forward.

Emotional Intelligence
Personal example is critical, so emotional intelligence can be enhanced by promoting a positive and supportive team climate during change, taking time to tune in to what you are feeling and sharing this at the right moment in a non blaming way that invites others to support your needs.

Steve Macaulay, Executive Development Consultant, Cranfield School of Management. These ideas are expanded upon in his book 'Change Management Excellence: Using the Four Intelligencies for Successful Organinzational Change' by Sarah Cook, Steve Macaulay and Hilary Coldicott, published by Kogan Page 2004, ISBN 0-7494-4033-3. Steve can be contacted on Email: s.macaulay@cranfield.ac.uk
First published: 5 October 2005.
Last updated: 23 November 2005.