| Richard L. Daft one of the country's recognized | | | | habits and they have no independent existence apart |
| academic leadership experts raises the question, | | | | from the work processes in which they appear. They |
| "What kind of people can lead an organization | | | | are difficult to identify but they are extremely |
| through major change?" A Turn-A-Round | | | | important. They affect the form, the substance and |
| restructuring qualifies as major change and requires | | | | the character of the work processes themselves. |
| transformational leadership. Daft points out that this | | | | They actually affect the way the work process is |
| type of leader is characterized by the ability to bring | | | | carried out. They are different from culture because |
| about change through innovation and creativity. This | | | | they represent more than just values and beliefs. |
| type of leader motivates people to not only follow | | | | They actually are involved in the sequences |
| their lead but to believe in the vision of corporate | | | | producing work. The decision making process is a |
| transformation, the need for revitalization, to sign on | | | | major characteristic of the behavioral process. The |
| for the new vision and to help institutionalize a new | | | | decision making process is a much studied process |
| organizational process." Daft points to four principles | | | | beginning with the studies of Chester Barnard and |
| in discussions about leading an organization through | | | | Herbert Simon who argued that organizational |
| major change. These four principles are the | | | | decision making was a distributed activity, extending |
| foundation of the restructuring Turn-A-Round | | | | over time and involving a number of people. In other |
| process.1. Create a compelling vision2. Create a new | | | | words, decision-making is not the personal |
| organization3. Mobilize commitment, Empowerment4. | | | | responsibility of a single manager but a shared, |
| Institutionalize a culture changeCaution------Beware of | | | | dispersed activity that they only need to orchestrate |
| the DipA "Transitional Performance Dip" is common | | | | and lead. This is still a surprising and often unaccepted |
| when introducing major change accompanied by a | | | | theory of managers today.The Eight Road Blocks to |
| culture shift. Performance most commonly gets | | | | the Change Process1. The lack of a sense of |
| worse before it gets better. There are four phases | | | | urgency2. The lack of buy-in, a coalition of support3. |
| of the transitional dip with associated cause. They | | | | An unclear vision4. Failure to communicate the vision5. |
| include:Denial--- Confusion exists, feelings of being | | | | Failure to provide resources and remove obstacles6. |
| overwhelmed, acting like nothing is different & | | | | Not systematically planning and creating short term |
| checking out are common employee reactions in this | | | | wins7. Declaring victory too soon8. Failure to anchor |
| phase. Communication and sharing of information is | | | | change in the culture as it is occurringSense of |
| critical to overcoming this type of employee | | | | UrgencySuccess at anything requires a sense of |
| reactionResistance--- Complaining, blaming others, | | | | urgency, a commitment to accomplishing something. |
| spreading rumors, frustration, anger and erratic | | | | If employees don't have this sense of urgency, |
| performance are common employee reactions. Again, | | | | complacency can become an issue. To meet difficult |
| communication, understanding and listening skills are | | | | challenges, to excel at anything, to create |
| critical during this phase of the | | | | competitive advantage it is absolutely essential that |
| transition.Acceptance--- Renewed energy starts to | | | | employees release their discretionary energy toward |
| become evident, optimism appears and doubt begins | | | | achieving company objectives. Discretionary energy is |
| to dissipate. Excitement and risk taking become | | | | that extra that you can't ask an employee to give |
| evident. This is when the vision must be restated and | | | | but is automatically given by those employees that |
| shared with every employee taking the time for full | | | | have a sense of urgency. Of course, no employee |
| explanation and answering all questions.Commitment--- | | | | will release that discretionary energy for a leader that |
| Discretionary energy is released. Employees become | | | | has not earned their trust and their respect. A leader |
| action oriented toward new goals. Ownership of the | | | | will not be respected by the employee until he shows |
| vision is now company wide. Rewards and | | | | respect for the employee. A leader will not be |
| reinforcement are essential during this stage.The | | | | trusted by the employee until he shows trust in the |
| length of time or "depth & width of the dip" depicting | | | | employee.Forming a Powerful Guiding |
| this phenomenon cannot be accurately predicted due | | | | Coalition:Success is not an individual accomplishment. |
| to the complexities that determine it. Factors | | | | Initiating change requires buy in and agreement. A |
| contributing to the length of time before the change | | | | group of believers, achievers and team players must |
| efforts begin to show improvement can be impacted | | | | be assembled to not only support the change |
| by the following factors:- Magnitude of the structural | | | | process but to drive the process. The group must |
| changes- Success of the communication to all | | | | function as a unit showing unilateral support of the |
| employees- External environment factors- Critical | | | | change process. Examination of market and |
| mass of the company itself- Competency of the | | | | competitive reality is part of the challenge as well as |
| middle management group and their experience with | | | | identifying and discussing potential crisis, critical |
| structural and cultural change- Competency of the | | | | constraints and major opportunities.Creating a |
| executive staff and their people skills- Effectiveness | | | | Vision:Success at initiating change starts with the |
| of leadership at all levels- Severity of the financial | | | | creation of a compelling vision that provides a |
| crisis or level of financial success- TimingChange | | | | roadmap for the change. This roadmap clearly |
| ProcessThe restructuring change process begins with | | | | answers the question "What's in it for me". WIIFM. |
| the strategic restructuring of the organization, which | | | | The vision is supported by the development of |
| is required to "Stop the Bleeding." This process starts | | | | strategy and action planning to achieve the |
| with the immobilization of the old culture. This is | | | | vision.Communicating the Vision:Success requires |
| mandatory, as introduction of change into any | | | | leadership and leadership without communication is like |
| existing culture is difficult at best. Introducing change | | | | a gun without a bullet. It looks impressive but it can't |
| into a losing or stagnant culture is almost impossible. | | | | do anything. A specific communication strategy must |
| This change must deal with organization theory, social | | | | be outlined and acted upon to insure that all |
| psychology and business history. It must be dynamic | | | | employees are aware of what the vision is and how |
| and include the introduction of fresh new leadership. | | | | it is expected to be accomplished including defining |
| This is a behavioral process. People can create | | | | individual roles and contributions. It's about buy |
| change but people also resist change. The change | | | | in.Empowering Others to Act on the Vision:When |
| process introduced must answer the question, "How | | | | critical constraints or roadblocks are identified, they |
| do we get from here to there?" The answer to that | | | | must be removed or overcome quickly. This means |
| question is your new vehicle for success.This vehicle | | | | allocating resources accordingly. Systems or structure |
| includes the restructuring plan, individual one-year | | | | that can undermine the change must be eliminated. |
| departmental plans and every strategic initiative | | | | Empowerment involves trust and allowing people to |
| developed by the new management team. Most | | | | use their initiative and creativity.Planning for and |
| importantly, this new vehicle is submerged in the | | | | Creating Short-Term Wins:Milestones need to be set |
| empowerment theory releasing individual employee | | | | up to mark progress and allow victory celebration |
| initiative. The plans must be unified, simple, consistent | | | | along the change path. Success breeds success and |
| and universally understood by everyone. Most of the | | | | excitement breeds' excitement. Create that success |
| change that has been introduced must be induced | | | | and excitement by setting interim goals that can be |
| change versus autonomous change. Autonomous | | | | achieved and celebrated. Recognize and reward |
| change has a life of its own. It proceeds due to | | | | employees accordingly that are part of the |
| internal dynamics and follows its own course. It is not | | | | accomplishments.Declaring Victory too Soon:Interim |
| easily controlled as it forms its own dynamics. | | | | success and short term victories are important but |
| Induced change is calculated and planned. It can be | | | | don't spike your own Kool Aid. Be realistic and keep |
| controlled if buy in is generated through sincere | | | | your long term goals in sight. Consolidate those short |
| communication and employee involvement. Each step | | | | term improvements to produce continuing change. |
| along this path will be accompanied by distinct | | | | Use increased credibility to change systems, |
| challenges. As questions arise, management must be | | | | structures, & policies that don't fit the vision. Hiring, |
| prepared to answer openly and honestly. While the | | | | promoting, & developing employees who can |
| old culture is suspended, change can thrive under the | | | | implement the vision is essential to continued success |
| right circumstances. It is the responsibility of the | | | | during a major change effort. Reinvigorate the |
| executive team to insure that these circumstances | | | | process with new projects, themes, and change |
| exist. The primary ingredients that create the right | | | | agents.Institutionalizing New Approaches:Success |
| circumstances include open honest communication, | | | | must be anchored as it occurs and then built upon by |
| empowerment, risk taking, acknowledgment and | | | | articulating the connections between the new |
| reward.Organizational Behavioral Process (OBP)This is | | | | behaviors and corporate success. Leverage this |
| basic to creating change, and it becomes an | | | | success to ensure leadership development and |
| important part of the new vehicle for success. OBP | | | | succession.Make no mistake, effective leadership is |
| may be described as the wheels of the new vehicle. | | | | about creating change. This is true in every |
| This process will carry the organization on to new | | | | circumstance, whether a company is facing |
| heights, new accomplishments. Organizational behavior | | | | restructuring or dealing with the challenge of |
| has its roots in organizational theory and group | | | | accelerated growth. Change is the defining moment |
| dynamics. People are the most important ingredient | | | | that identifies true leaders from imposters. To |
| to every organization and the organizations behavior. | | | | become an effective leader, understanding change, |
| People and how they are treated will reflect the | | | | creating change and most importantly managing |
| organizational characteristics, the way it acts and | | | | change is the first prerequisite.Dr. Eric "Rick" Johnson |
| interacts with its own people.Empowerment, the | | | | () is the founder of CEO Strategist LLC. an |
| decision making process and the communication | | | | experienced based firm specializing in Distribution. CEO |
| channels are examples of how the organization | | | | Strategist LLC. works in an advisory capacity with |
| interacts with its people. Organizational behavior is not | | | | distributor executives in board representation, |
| easy to change. That is why it is so important as | | | | executive coaching, team coaching and education and |
| mentioned earlier to immobilize the old culture to | | | | training to make the changes necessary to create or |
| introduce change. (E-mail for a list of immobilizers) | | | | maintain competitive advantage. You can contact |
| The behavioral process of the organization can | | | | them by calling 352-750-0868, or visit for more |
| withstand personnel changes. In other words, | | | | information.Rick received an MBA from Keller |
| changing out management does not guarantee | | | | Graduate School in Chicago, Illinois and a Bachelor's |
| change in organizational behavior. You must take | | | | degree in Operations Management from Capital |
| proactive steps designed to create new | | | | University, Columbus Ohio. Rick recently completed |
| organizational behavior. The new vehicle is part of | | | | his dissertation on Strategic Leadership and received |
| that. It includes, focused specific objectives, open | | | | his Ph.D. He's also a published book author with four |
| channels of communication, empowerment and a | | | | titles to his credit: "The Toolkit for Improved |
| sincere respect for the individual employee and his | | | | Business Performance in Wholesale Distribution," the |
| contribution to the organization.Organizational | | | | NWFA & NAFCD "Roadmap", Lone Wolf-Lead |
| behaviors become generalizations. They are | | | | Wolf-The Evolution of Sales" and a fiction novel |
| discovered from observations of everyday work | | | | about teenagers called "Shattered Innocence. |