BMG554M2 Business Improvement Lecture Week 3

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BMG554M2Business ImprovementLecture Week 3

• Characteristics of Effective Managers

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Learning Outcomes

• By the end of this lecture the student will be
  able to
• Apply knowledge and understanding of current
  management thinking and issues.
• Demonstrate an ability to learn through critical
  reflection on the characteristics of modern
  managers.

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Themes of Lecture

• Personal Credibility (Klaus Moëller)
• Seven Habits of Highly Effective Managers.
  (Stephen R. Covey)
• Management vs Leadership
  (John P. Kotter)

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Personal Credibility

• Set standards and lead by example
• Personal Quality
• Parachute Packer?

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Character vs Personality Ethic

• Character Ethic First 150 years of Literature
• Integrity, Humility, Patience, Fidelity,
  temperance, courage, justice, modesty
• Personality Ethic Since WW1
• Success a function of personality and public
  image, skills and techniques that lubricate the
  processes of human interaction.
• PE without CE seen as manipulative or faking it

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Principles

• Fairness, Integrity, Honesty, Service,
• Human Dignity, Quality, Excellence, Patience,
  Nurturance and Encouragement
• Principles are guidelines for human conduct.

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Seven Habits of Highly Effective People

• Dependent (You)
• Be Proactive - take responsibility
• Begin with the end in mind
• Put first things first
• Independent (Me)

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Seven Habits of Highly Effective People

• Independent (Me)
• 4. Think Win-Win
• 5. Seek first to understand, then to be
  understood
• 6. Synergise
• Interdependent (Us)
• 7. Sharpen the saw

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Seven Habits of Highly Effective People

• Dependence
• Independence
• Interdependence

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Seven Habits of Highly Effective People

• Habit 1
• Be Proactive - take responsibility

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Seven Habits of Highly Effective People

• Habit 2
• Begin with the end in mind

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Seven Habits of Highly Effective People

• Habit 3
• Put first things first

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Seven Habits of Highly Effective People

• Habit 4
• Think Win-Win
• Win - Lose
• Lose - Win
• Win - Win or No Deal

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Seven Habits of Highly Effective People

• Habit 5
• Seek first to understand,
• then to be understood

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Seven Habits of Highly Effective People

• Habit 6
• Synergise
• 1 1 3

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Seven Habits of Highly Effective People

• Habit 7
• Sharpen the saw

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The Importance of Leadership in bringing about
Organizational Change Work of John Kotter
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Introduction

• Engine that drives change is leadership
• Purely managerial mindset inevitably fails
  (regardless of the quality of people involved).
• Downside of change is inevitable (human pain).
• Waste and anguish normally experienced is
  avoidable.
• Many errors are made.

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Past Learning - Errors
Error 1 Allowing Too Much Complacency Error
2 Failing to Create a Sufficiently Powerful
Guiding Coalition. Error 3 Underestimating the
Power of Vision Error 4 Under communicating the
Vision by a factor of 10 (or 100 or even
1,000). Error 5 Permitting Obstacles to Block
the New Vision. Error 6 Failing to Create
Short-Term Wins Error 7 Declaring Victory too
Soon. Error 8 Neglecting to Anchor Changes
Firmly in Corporate Culture.
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Change Problem and Its Solution
These errors are not inevitable. With awareness
and skill they can be avoided or at least greatly
mitigated. The key lies in understanding why
organisations resist needed change, what exactly
is the Multi-Stage Process that can overcome
destructive inertia, and, most of all, how the
leadership that is required to drive the process
in a socially, healthy way means more than good
management. Kotter Leading Change Harvard
Business School Press 1996
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Management vs Leadership

• Leadership is a set of processes that adapts
  organisations to significantly changing
  circumstances.
• Leadership defines what future should look
  like.
• Aligns people with that vision.
• Inspires them to make it happen despite
  obstacles
• Four Traits of Good Leaders
• 1. Drive and energy .
• 2. Intelligence.
• 3. Mental and emotional health
• 4. Integrity.

This Process is about 70 Leadership and 30
Management. Manage Change to keep it under
control.
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Management vs Leadership

• Only leadership
• can blast through many sources of inertia.
• can motivate actions needed to alter behaviour
  in significant way.
• Can get change to stick by anchoring in culture
  of organisation.
• Solution to change problem is not one
  larger-than- life individual.
• Modern organisations far too complex
• Many people need to help with leadership task
  in their sphere of activity.

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The Eight Stage Process

• Steps 1 - 4 The Transformation
  Process Helps to defrost hardened Status
  Quo.
• Steps 5 - 7 Introduce New Practices
• Steps 8 Ground changes in the Corporate
  Culture.
• Primary purpose of first six stages is to build
  up sufficient momentum to blast through
  dysfunctional granite walls found in so many
  organisations.
• Successful change goes through all eight stages.
  Skipping even a single step or getting too far
  ahead without a solid base almost always creates
  problems.

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The Eight Stage Process for Leading Change

• 1. Establishing a Sense of Urgency
• Never underestimate the magnitude of the forces
  that reinforce complacency.
• Demands bold or risky actions that are normally
  associated with good leadership.
• Crucial to gaining needed co-operation.
• 2. Creating a Guiding Coalition
• Building such a team is an essential part of
  the early stages of any effort to re-structure.
• Powerful force required to sustain process
• With four key characteristics
• a) Position Power b) Expertise
• c) Credibility d) Leadership.
• Guiding Coalition with good managers but poor
  leadership will not succeed.

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The Eight Stage Process for Leading Change

• 3. Developing a Vision and Strategy
• In a Change Process a good vision serves 3
  important purposes a) Clarifies
  general direction for changes b) Motivates
  people to take action in right direction c)
  Helps co-ordinate actions of different people
  (clarity of direction).
• Leadership Vision A sensible and appealing
• Creates picture of the future
• Strategies A logic for how the vision
• can be achieved.
• Management Plans Specific steps and timetables
• Creates to implement the strategies.
• Budgets Plans converted into financial
• projections and goals.

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The Eight Stage Process for Leading Change

• 4. Communicating the Change Vision
• Keep it simple direct and simple.
• Use metaphors, analogies, examples.
• Use many different forums.
• Repeat, repeat, repeat.
• Walk the talk and lead by example.
• Explicitly address seeming inconsistencies.
• Listen and be Listened to.
• 5. Empowering Employees for Broad Based Action
• Removing Structural Barriers.
• Providing needed training.
• Aligning Systems to the Vision
• Dealing with Troublesome Supervisors
• Tapping an Enormous source of Power.

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The Eight Stage Process for Leading Change

• 6. Generating Short-term Wins
• Major change takes time, sometimes lots of
  time.
• Good Short-term Win a) Visible b)
  Unambiguous c) Clearly related to change
  effort.
• Role a) Re-enforcement - sacrifices are
  paying off. b) For drivers, opportunity to
  relax and celebrate. c) Test Vision d)
  Quick Performance improvements undermine
  cynics. e) Visible results retains support of
  bosses. f) Builds necessary momentum.
• Plan vs Praying for Results

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The Eight Stage Process for Leading Change

• 7. Consolidating Gains and Producing More
  Change.
• Problem of interdependence.
• Every element interconnected.
• Ultimately change nearly everything.
• Long Road
• 8. Anchoring New Approaches in the Culture.
• Killing off old culture and creating new is
  difficult - In many transformation efforts, the
  core of the old culture is not incompatible with
  the new vision. The challenge is to graft new
  practices onto the old routes while killing off
  the inconsistent pieces.
• Comes at end of transformation, not the
  beginning.
• Only after successfully altered peoples action
  and behaviours.

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Organisation of the Future

• Persistent sense of urgency.
• Teamwork at the Top
• People who create and Communicate vision
  life-long learning.
• Broad based empowerment.
• Delegated Management for Excellent Short-term
  Performance.
• No unnecessary Interdependence.
• An adaptive Corporate Culture
• Organisations cannot succeed with Incremental
  Change.