The world that we live in today is vastly different and more complex than the world that we inhabited just 15-20 years ago. Pace and scale create uncertainty, directly impacting every aspect of a business – including its workforce.
“As the geopolitical arrangement inevitably changes, we’re starting to see alliances that look and feel quite different to what we are accustomed to. That change is creating a whole new level of global uncertainty and in some cases, instability,” says Nona Sichinava, a Partner for Gerard Daniels. “We are also living in a world that's being challenged from a technology perspective and nature of this transformation is in many ways unprecedented with outcomes that are hard to predict.”
Just as many nations went through election cycle last year, businesses and boards need to be prepared to have leadership that is able to navigate through the landscape of uncertainty. “While we don't know which direction much of this uncertainty will lead, we do know that good leadership is key – making the ability to lead effectively through change and transformation an increasingly valuable set of skills to have,” Nona continues.
Leadership skills, experience and attributes
There are some important skills and attributes and to look for in determining the ability to lead effectively through change and transformation.
Aptitude for change
Many different work and life experiences shape and demonstrate an individual’s relationship with change. “For example, when an individual has moved across industries, it may indicate that they are nimble and have the skills to understand and make their way in the new environment,” says Nona. “Experience working in different regions can also reveal the ability to adapt to different cultures, languages, value systems and climates – all of which bode well for the ability to lead through change.”
While leaders must be willing to change and adapt to changing circumstances, Nona cautions against leaders that seem too comfortable existing in firefighting mode.
“Some leaders are perpetually delivering on change. Others may embrace change but don’t stick around to see it through. Then, there is a category of leaders who simply cannot establish the proper governance frameworks that establish some predictability – and as a result, put themselves in a constant firefighting mode,” says Nona. “These scenarios suggest that the leader has not fundamentally delivered on the required change; that they have become accustomed to a reactive state; or that they lack grit, choosing to move on when the going gets tough.”
“The challenge with such leadership is that typically their teams are impacted and dragged into situations where instead of delivering on strategy or operating, they end up wasting valuable resources,” Nona continues. “Context here is equally important, because there are leaders who are known for the ability to come into organisations for a short period of time when stabilisation is needed, to turn the business around and then move on. Only by understanding the work history and broader context, can you understand an individual’s true skillset when it comes to change.”
Setting clear vision and goals
Leading through change is much more difficult when there are different agendas at play and pressure coming from different angles. When change looks like this, having well-defined achievement criteria is crucial in determining success.
“Before embarking on any change or transformation journey, you must be clear on the timeframe; milestones to be achieved; and the best way to get the organisation there. This requires you to have a small number of agreed and well-defined criteria on which to measure progress and performance,” she says. “You must also be strategic in defining a vision that delivers on both the immediate need while balancing the future business requirement.”
Communication
Communication is critical in leading teams successfully through change as it helps to negate some of the discomfort that people naturally feel.
“People generally don’t like change as there’s usually an associated people cost (for example, divestiture, and/or redundancies and structuring). But when leaders communicate effectively it builds assurance through understanding; improves employee buy-in; and limits much of the resistance that inevitably comes with change,” says Nona. “Good change communication requires leaders not only to be clear on what isn’t working but also on what the organisation is trying to achieve; clear definition of roles and expectations; how progress is tracking along the way; and what support can be provided in the form of coaching and/or mentoring.
Patience
Achieving effective and sustainable change requires patience and change advocates at all levels of the organisation. “There will always be early adopters, but it’s the followers that often need more attention and patience from business leaders,” says Nona. “Change is generally more easily blocked at the mid and lower levels, due to a lack of inclusiveness and communication. To progress change at these levels, the ELT and Board must clearly communicate and demonstrate the benefits of the change.”
Strategic alliances
Change is a collective effort, which makes building the right relationships and alliances key to achieving good business outcomes. “When change is needed, alliances help to determine the new strategic direction and the individuals best suited to leading the organisation on this journey,” says Nona. “These relationships also become particularly important when you’re dealing with competing priorities.”
“As a leader, your alliances will be shaped by the environment that you are in; by what you’re trying to achieve; and whether you’re looking to build support up, down or across the organisation,” says Nona. “Understanding and building these alliances requires leaders that are great communicators, strategic and forward thinking – always looking two steps ahead.”
Looking below the surface
Executive search firms are often asked to include change and transformation in the selection criteria to attract leaders with proven ability in this area. But it’s not always immediately obvious if someone has what it takes to lead effectively through change.
“In my experience, it’s always worth looking a bit more closely at each candidate, because a summary of their work history won’t always tell you whether they have the desire, experience and attributes to lead effectively through change,” says Nona. “Some candidates may not at first appear to be the obvious choice. But by asking the right questions and digging a little deeper, you develop a better sense of the individual and what they’ve been exposed to; what’s shaped their experience; and the value that they bring.”
How prepared are you to lead through change?
Being self-aware enough as a leader to understand your own strengths and limitations is an important part of successful leadership and something that organisations should address at all leadership levels.
“As a leader it’s really important to understand whether you are fit-for-purpose to lead in an environment that requires significant change,” says Nona. “Not all senior leaders are skilled or enjoy this aspect of their role, but it’s much better to acknowledge this and do something about it, before the stakes are high and the skillset becomes business critical.”
Regardless of how change comes about, the same principles and skillset largely apply. “Taking a consistent approach is the most impactful way to manage change,” says Nona. “The only real difference is how much warning you have and how quickly individual leaders can begin to lead the organisation through change.”
The important role of the Board
While the Board is not responsible for executing on change, it has a vital role to play in keeping it on track.
“When change is happening, it’s important that everybody in the organisation understands their role and what’s required of them,” says Nona. “To achieve this, the Board must be available to provide guidance and support the Executive Leadership Team (ELT). The Board also has a responsibility to hold the Executive to account, with oversight for appointing the right CEO to deliver on change, when required.”
To develop your leadership team and talent pipeline, connect with Nona or reach out to your local Gerard Daniels team.
