LEADING IN TRANSFORMATIONAL TIMES The scene of action

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

CV q  Professor, ESCP Europe ü  My field – Strategic Leadership ü  My research – Top Management Team Leadership, Adaptation Processes, Agile Organisations, Governance.

q  Entrepreneur (www.bessonpractice.com) and Top Executive Coach ü  Supporting TMT in Transformational Situations. ü  With a science-based approach.

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

1 – WHAT IS TRANSFORMATION

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

MACRO TRANSFORMATIONAL TRENDS The emergence of a new world q  q  q  q  q  q 

Trend 1 – Globalisation Trend 2 – Regulation Trend 3 – Innovation Trend 4 – CSR Trend 5 – Digitalisation Trend 6 – ….

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

MACRO TRENDS AT THE MICRO LEVEL Testing situations q  q  q  q  q  q  q  q  q  q  q  q 

Merging two companies. Turning a public administration into a competitive company. Making an NGO more effective and efficient. Developing a new business model based on services within a very successful product company. Implementing an ERP system or a CRM system. Implementing a BSC system in the European division of a US company. Implementing a « mice accounting » in the Canton of Geneva. Becoming global for a french company. Becoming global for a french « école de commerce ». Becoming customer centric for a pharmaceutical company. Constructing a global partnership between a german and an indian companies. …..

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

2 – WHY TRANSFORMATION IS A NEW LEADERSHIP CHALLENGE Organizing trends

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

TRANSFORMATIONAL TIMES 1 – Keep moving

q  The recent explosion in the number of influential stakeholders and the subsequent increasing in strategic diversity lead to a profound transformation of our socioeconomic systems. ü  The stakeholders’ era

q  The basics of these new business operating principles are increased uncertainty, volatility and instability.

q  Build-in obsolescence strategies are at the heart of the new firm political economy. ü  Speed, speed, speed….

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

TRANSFORMATIONAL TIMES

2 - Rebalancing organizing processes

Transformation initiatives are: Ø  Bigger than ever Ø  More and more risky Ø  Very common nowadays (vs. exceptional)

Transformation initiatives lie at the heart of strategy management. Besson P., Organisational Transformation – Moves and Rhythms in Bournois F et alii (eds), Handbook of Top Management Teams, Palgrave Macmillan, 2010. Besson P., Soulerot M., Building Competitiveness Over Time – The Ambidexterity Factor in Organizing and Managing in the Era of Globalization, P. Singh, S. Verma (eds.), Sage Publications, 2009, p. 171-188.

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

TRANSFORMATIONAL TIMES 3 – Heroes are edgy

Evolution

Modification

Innovation

Incremental Change

Revolution Disruptive innovation Radical Change

Turnaround Continuous Improvement

Business Transformation

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

TRANSFORMATIONAL TIMES The CEO’s revolutionary agenda Please the shareholders ROCE = 15%

Globalize risk management

Increase productivity

Prepare for the next crisis

From 2/3%/year to 5/7%/year

Develop information integration Move people, trap knowledge

THE OBSESSION Breakdown the patterns of the old organisation

Rebuild the local/global balance Leverage synergies

The fear to lag behind

Manage stakeholders Reach out to the company’s constituents

Get out of nationalistic cultures From exportation of product to HR globalisation

Leading in Transformational Times

Patrick Besson

Speed up innovation

Besson Practice©2013. Tous droits réservés

TRANSFORMATIONAL TIMES 4 – Followers are cynical

Vision statement Balanced Scorecard

360°

TQM

Knowledge management

They are very creative up there! What’s next?

ABC/ABM

Six Sigma Reengineering Merger

EVA Besson P., Mahieu C. (2011), Strategizing from the Middle in Radical Change Situations: Transforming Roles to Enable Strategic Creativity, International Journal of Organizational Analysis, Vol.19, 3, 2011, 176-201.

Business Transformation

Leading in Transformational Times

Patrick Besson

ERP/CRM

Besson Practice©2013. Tous droits réservés

TRANSFORMATIONAL TIMES 5 – An inconvenient truth

q What was the rate of failure of: ü  Reengineering initiatives between 1991/1996 = ? ü  ERP initiatives between 1995/2001 = ? ü  CRM initiatives 2000 – 2005 = ? ü  E-business initiatives 1998/2002 = ? ü  Mergers & Acquisitions initiatives = ? ü  Moving from a product based Business model to a solution based business model = ?

Besson, P. (1999), Les ERP à l'épreuve de l'organisation, Systèmes d'Information et Management, 4, 4, p. 21-51; Besson, P.; Rowe F. (2001), ERP Project Dynamics and Enacted Dialogue : Perceived Understanding, Perceived Leeway, and the Nature of Task-Related Conflicts, The Data Base for Advances in Information Systems, 32, 4, p. 47-66.

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

CONCLUSION 1 The new leadership mandate

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

THE MEANING OF THE SELECTION PROCESS Fitting the situation

q  The two killer questions ü  Do you understand our challenges? ü  Are you the right person to deal with these challenges and to engage us into a successful transformation?

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

TRANSFORMATION

The rules of the leadership game q  Strategy driven q  New core task ü  You are selected to transform

q  New conditions of effectiveness ü  Multi-stakeholders, contradictory claims, volatility, …

q  New career path ü  Make or break situation ü  Up or out

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

CONVERSATION 1 Understanding transformation

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

UNDERSTANDING TRANSFORMATION q  Question 1 – Why transformational times are challenging for top leaders? 1. 

Develop two perspectives to explore this question •  The leader’s perspective •  The follower’s perspective 2.  What are the leadership consequences of this new context of action? v  Method recommended – List the reasons (i.e. brainstorm), classify them (i.e. put into categories), comment.

q  Question 2 – Propose a model (a 2.2 boxes) to help a top leader to make her/ his mind about transformation initiatives. 1.  Define operational vs. institutional changes. 2.  Give examples coming from your experiences in each box of the model. 3.  For each box fill in the risks and tactics you do recommend. 4.  Can you propose another 2.2 model? 5.  Draw 2/3 lessons to lead in transformational times.

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

UNDERSTANDING TRANSFORMATION For each box, fill in: •  the difficulties/risks of the situation •  the tactic you do recommend

Depth of change

Institutional change

Operational change

Anticipation

Reaction

Timing of change

Besson P., Rowe F. (2011), Perspectives sur le phénomène de la transformation organisationnelle, Système d’Information et Management, Vol. 16, 1, 3 – 34; Besson P. et al., Conduire la transformation – Faut-il mettre le feu pour transformer son entreprise ?, Dunod, Paris, 2011; Besson P., Rowe F. (2012), Strategizing information systems-enabled organizational transformation: A transdisciplinary review and new directions, Journal of Strategic Information Systems, Vol.21, 103–124. Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

UNDERSTANDING TRANSFORMATION q  Question 3 – Why are there so many failures with transformation initiatives? Where are the major leadership risks? How can an organisation reduce these leadership risks of failure? Ø  Do a quick post-mortem of 2/3 transformation initiative failures drawn from your experiences. Ø  List the causes of failure (in general), classify them and comment. Ø  Recommend key actions to reduce the risks of failure of a transformation initiative. Ø  Draw 2/3 lessons to lead in transformational times.

q  Directives –  Timing: 2.30 hours. –  Prepare a presentation (20 mn/question, 1 team/question). –  After the course you will have to make a power point copy of your slides and email me your work after having improved it ([email protected]).

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

A SELECTED BIBLIOGRAPHY q  The classics Ø  Cummings Thomas G., Worley Christopher G., Organization Development & Change, Tenth Edition, Cengage Learning, 2013. Ø  Harvard Business Essentials - Managing Change and Transition, 2003. Ø  Kanter, R.M., Stein, B.A., Jick, T.D., The challenge of organizational change: how companies experience it and leaders guide it, New York, The free Press, 1992. Ø  Kotter John P., Leading Change, HBS Press, 1996. ü  Pettigrew, A.M. , The awakening giant: Continuity and change in Imperial Chemical Industries, Oxford Oxfordshire and New York, NY, Blackwell, 1985. ü  Tichy, N.M., Managing strategic change, New York, Wiley, 1983.

q  Other authors Ø  Beer M., Nohria N. (eds.), Breaking the Code of Change, Boston, M.A., Harvard Business School Press, 2000. Ø  Burke W. Warner, Organization Change – Theory and Practice, Sage Publications, 2002..

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

A SELECTED BIBLIOGRAPHY q  Academic articles in the field of organizational change ü 

Bartunek, J.M., Changing interpreting scheme and organizational restructuring: the example of a religious order. Administrative Science Quarterly, 1984, 29, 355–372.

ü 

Crossan M.M., Berdrow I., Organizational learning and strategic renewal, Strategic Management Journal, 2003, Vol. 24, 1087-1105.

ü 

Denis, J.L., Lamothe L., Langley A., The Dynamics of Collective Leadership and Strategic Change in Pluralistic Organizations, Academy of Management Journal, 2001, 44, 4, 809-837.

ü 

Dutton, J., Duncan, R., The creation of momentum for change through the process of strategic issue diagnosis. Strategic Management Journal, 1987, 8, 279–295. Greenwood, R., Suddaby, R., Hinings, C.R. , Theorizing change: The role of professional associations in the transformation of institutionalized fields, Academy of Management Journal, 2002, Vol.45, p. 58-80. Plowman, D.A., Baker L.T., Beck T.E., Kulkarni M., Solansky S.T., Travis D.V., Radical Change accidentally: the emergence and amplification of small change, Academy of Management Journal, 2007, Vol.50, n°3, 515-543. Porras J.I., Silvers R.C., Organization Development and Transformation, Annual Review of Psychology, 1991, 42, 51-78. Romanelli, E., Tushman, M.L., Organizational transformation as punctuated equilibrium: an empirical test. Academy of Management Journal, 1994, 37 (5),1141–1166. Weick K.E., Quinn R.E., Organizational Change and Development, Annual Review of Psychology, 1999, 50, 361-386.

ü  ü  ü  ü  ü 

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

A SELECTED BIBLIOGRAPHY q  q  q  q  q  q  q  q  q  q  q 

Besson P., Rowe F. (2012), Strategizing information systems-enabled organizational transformation: A transdisciplinary review and new directions, Journal of Strategic Information Systems, Vol.21, 103–124. 20th anniversary special issue. Besson P. et alii. (2011), Conduire la transformation – Faut-il mettre le feu pour transformer son entreprise ?, Dunod, Paris. Besson P., Mahieu C. (2011), Strategizing from the Middle in Radical Change Situations: Transforming Roles to Enable Strategic Creativity, International Journal of Organizational Analysis, Vol.19, 3, 176-201. Besson P., Rowe F. (2011), Perspectives sur le phénomène de la transformation organisationnelle, Système d’Information et Management, Vol. 16, 1, 3 – 34. Besson P. (2010), Organisational Transformation – Moves and Rhythms in Bournois F et alii (eds), Handbook of Top Management Teams, Palgrave Macmillan. Besson P., Soulerot M. (2009), Building Competitiveness Over Time – The Ambidexterity Factor in Organizing and Managing in the Era of Globalization, P. Singh, S. Verma (eds.), Sage Publications, 171-188. Besson P., Mahieu C. (2008), Fabriquer des stratèges ordinaires – Caractérisation d’une posture managériale émergente, Management & Avenir, 16, 68 – 84. Besson P., Mahieu C. (2006), Construction d’un acteur stratège: dialogue stratégique et transformation organisationnelle in La fabrique de la stratégie, D. Golsorkhi (éd.), Vuibert, Paris, 123-145. Besson P., Mahieu C. (2003), Politiques du changement stratégique en entreprise : l’approche par le programme d’organisation, Gestion 2000, 3, mai-juin, 61-77. Besson P., Rowe F. (2001), ERP Project Dynamics and Enacted Dialogue: Perceived Understanding, Perceived Leeway, and the Nature of Task-Related Conflicts, The Data Base for Advances in Information Systems, 32, 4, 47-66. Besson P. (1999), Les ERP à l'épreuve de l'organisation, Systèmes d'Information et Management, 4, 4, 21-51.

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

INSIGHT 1 The leadership enigma in transformational times

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

Warren. Bennis, On Becoming a Leader, 1989, The leadership enigma q  q  q  q  q  q  q  q  q  q  q  q 

Managers administer, leaders innovate Managers ask how and when, leaders ask what and why Managers focus on systems, leaders focus on people Managers do things right, leaders do the right things Managers maintain, leaders develop Managers rely on control, leaders inspire trust Managers have a short-term perspective, leaders have a longer-term perspective Managers accept the status-quo, leaders challenge the status-quo Managers have an eye on the bottom line, leaders have an eye on the horizon Managers imitate, leaders originate Managers emulate the classic good soldier, leaders are their own person Managers copy, leaders show originality

Zaleznik, A., Managers and leaders; are they different?, Harvard Business Review, 1977

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

A WELL-KNOWN DEFINITION q  « Leaders are people who do the right thing, managers are people who do things right », Bernis W.G., Nanus B. (1985), Leaders: The Strategies for Taking Charge, Harper & Row.

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

THE LEADERSHIP LIST (1) q  Creativity ü  To be able to see the big picture and contribute to the visioning process

q  Courage ü  To be able to honor the past, yet also to shake things up, speak out, take risks

q  Perseverance/Motivation ü  To keep trying and to have personal committment and enthusiasm

q  Tolerance of ambiguity ü  To be able to juggle many changing or unclear priorities

q  Flexibility ü  To be able to recognise and seize opportunities as they arise, and let go of avenues not yielding results

q  Political judgement ü  To be able to judge the political landscape and influence others, awareness to manage up

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

THE LEADERSHIP LIST (2) q  Common touch ü  To be capable of dealing with people at all levels

q  Visibility ü  To be visible as a role model and show how the changes add value

q  Persuasiveness ü  To be able to sell and negotiate with others

q  Networking ü  To have and be able to leverage multiple strong networks

q  Team building ü  To be able to develop a team

q  Communication awareness ü  To be able to communicate the same message through many channels, using a mix of verbal, written and symbolic communications as and when appropriate.

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

TRANSFORMATIONAL TIMES The core leadership capabilities 1.  Getting attention. 2.  Controlling meaning. 3.  Building trust. 4.  Projection of authority ü  ü  ü  ü 

Self-awareness: know your strenghts/weaknesses Self-esteem: know your own worth Self-control: keep the necessary emotional distance Reflexivity: keep learning

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

INSIGHT 2 The leadership enigma in transformational times

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

UNDERSTANDING TRANSFORMATION For each box, fill in: •  the difficulties/risks of the situation •  the tactic you do recommend

Depth of change

Institutional change

Operational change

Anticipation

Reaction

Timing of change

Besson P., Rowe F. (2011), Perspectives sur le phénomène de la transformation organisationnelle, Système d’Information et Management, Vol. 16, 1, 3 – 34; Besson P. et al., Conduire la transformation – Faut-il mettre le feu pour transformer son entreprise ?, Dunod, Paris, 2011; Besson P., Rowe F. (2012), Strategizing information systems-enabled organizational transformation: A transdisciplinary review and new directions, Journal of Strategic Information Systems, Vol.21, 103–124. Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

INSIGHT 3 Look at the world as it is

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés

TRANSFORMATIONAL TIMES The real world out there q  q  q  q  q  q  q  q  q  q  q 

Attachment to tested task routines. Mistrust inside and between organizational units. Information withholding. Feudal or Parochial management. Distrust of top management. Defensive communication and scapegoating. Arrogance and contempt. A confused strategy, ill explained, ill understood, not shared. Inconsistency and confusion in execution. Operational overloading. Reward systems not linked with performance contribution, especially when it comes to the group performance.

Leading in Transformational Times

Patrick Besson

Besson Practice©2013. Tous droits réservés