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Functions of leadership

The leadership functions are closely related with the managerial functions. The
functions are different as well as overlapping in some ways. The leader working as
manager has to set the group goal, make plans, motivate and inspire subordinates ,
supervise performance but has to perform several other functions as leader of the group.
They are as follows:

To develop a direction, vision and values.

The function of leadership is to formulate the vision and values and lead the team
according to the set vision. The leader has to show the direction to his team members to
reach their vision.

To develop team work:

The basic function of the leader is to develop his work-group as a team. The
responsibility of a leader is to create a friendly work-environment by keeping a close
view of his subordinates competence, needs and potential abilities. The team leaders at
GE systems were successful by implementing self managed teams in their organisation.
This increased the productivity of the employees.

To act as a representative of the work-group:

The other function of leader is to act as a representative of the work group. The
leader of a work-group is to expect to act as a link between the group and top
management. The leader is expected to communicate the problems and grievances of his
subordinates to top management in desired circumstances.

To act as a counsellor of the people at work:

The function of leader is to act as a counsellor of the people at work. The leader is
expected to guide and advise the concerned subordinate when he is facing problems in
connection with their performance at the work. The concerned problem can be technical
or emotional in nature.

Time management:
The important function of leader is time management. The leader function is to
check the timeliness completion at different stages of work and also ensuring quality and
efficiency of work performed by the group.

Proper use of power:

The most important function of leader is the proper use of power. The leader
should be intelligible and observant enough to exercise his power in relation to his
subordinates in different ways as per the needs of the situation. The leader can use
powers like reward power, coercive power, or expert power, formal or informal power to
stimulate positive response from his subordinates.

Engage in strategic thinking and planning

The function of leadership is to engage him and team members in strategic
thinking and planning. The leader must not himself plan their group activities. He should
get the ideas from his followers and engage them in strategic thinking and planning.

Make things happen with effectiveness.

The main function of leadership is not just to assign the task and do his task. The
leader should make the things happen with effectiveness. The leader must clearly plan
and assign the task to his followers and must extend continuous assistance so that they
can accomplish the task most effectively.
Thus the Leader must have the ability to feel, understand, articulate, and
effectively apply the power of emotions as a source of human energy.
Challenges of leadership
Leadership begins with an inward journey as one develops the capacity to follow
through during challenging times. Leaders need space to learn how to solve problems, to
take responsibility for their actions, and to instill these values in others. The challenges of
leadership are as follows:

Managing group conflict

Conflict in any organisation cannot be prevented, the main challenge for the
leader is to handle or manage these conflicts in a productive way. What is crucial for
resolving conflict is developing an understanding of, and a trust, in shared goals. People
of different background, opinion come together in a team to achieve a purpose there
arises conflicts. So here the challenge for leadership is to get the confidence of team
members and reduce the conflict between the members.

Managing diversity in the organisation

It is another important challenge of leadership. In any organisation we find people
from different backgrounds working together. People may be diversified on the basis of
race, religion, caste, gender etc. Hence the leader should put all his effort in managing
this diversity in the organisation. He should make the people accept others in the
organisation and work co-operatively.

Implementing change management

Whenever a new technology is been introduced the employees in the organisation
are reluctant to change. Hence implementing the change in the organisation is the main
challenge for leadership. The leader must motivate his team members to accept the
change that is brought into the organisation. Earlier when computerization was
introduced in banks the employees resisted the changes but the managers acted as a
leader in convincing the employees the benefits of computerization.
To compete globally an organisation needs staffs that are excellent in their chosen
discipline. They should have a strong leadership ethic and capability. It is the challenge
for the leader to provide comfortable working environment in this global competition and
interacting with colleagues from across the globe and satisfy their needs.

Technology is not static. It keeps on changing and improving. Thus in the global
business environment technology has become a real challenge for the global leaders. As
leader he has to update himself with the changing technology and implement those to get
greater productivity.
Thus the leader must try to overcome all the above challenges and get the best out
of his team members.
Leader as change agent- change management and leadership

Change Management:

Change management or change control is the process during which the changes
of a system are implemented in a controlled manner by following a pre-defined
framework/model with, to some extent, reasonable modifications.

In an age of universally acknowledged change and uncertainty, people of all

walks of life are looking for guidance, security and support. Leadership is linked with
charisma and other personality traits. It is considered more inspiring than management.
Competitive spaces undergo change, new technologies emerge, and customers change.

According to Andy Warhol - They always say time changes things, but you
actually have to change them yourself. “A company that was great at one time and
doesn’t continue to change is destined to fail.”- Celia Kupersmith, CEO of the Golden
Gate Bridge Authority.

The main characteristics of change agents are being passionate, having vision and
being able to communicate. They are motivated by the challenges they face and have the
vision and passion to improve. Guiding, nurturing, and shepherding human capital are the
skills needed to ensure that organizational change is received and implemented
enthusiastically, rather than with distrust and fear. The degree to which leaders are able to
manage change, develop consensus, and sustain commitment determines the success or
failure of any financial management initiative or reform effort.

Mega-consulting firms Arthur D. Little and McKinsey & Co. have studied
hundreds of companies that entered Total Quality Management programs, but about two-
thirds "grind to a halt because of their failure to produce the hoped-for results".
Companies that fail to sustain significant change end up facing crises.
Overcoming this resistance to change is one of the greatest challenges that leaders face.
At times companies fail to change and make the most of new opportunities. Instead, they
choose the more convenient and less risky option of trying to get the best out of the old
opportunities. People fear uncertainty. They fear that if they embrace change, their
current status maybe adversely affected. Defensive mechanisms stop an organization
from adapting to change.

Four Basic Definitions of change management

1. The task of managing change.

2. An area of professional practice.

3. A body of knowledge.

4. A control mechanism.

There are two types of work in an organization. They are the normal delivery
process where the main business of the organization is done and the change activities,
where necessary change is made to the business and the way it is done.

Process of managing change:

The process of managing change involves four steps. They are

1. Identifying opportunities for improvements

2. Assessing the pros and cons of change
3. Negotiating and agreeing the introduction of change
4. Implementing and evaluating changes.
Identifying opportunities for improvements

• keep up to date development in your sector

• consider the importance of these developments to your organisation
• pass information on developments to the appropriate people
• identify opportunities for improvements
• monitor and evaluate your operations continuously
• identify any obstacles to change
• learn from your experience

Assessing the pros and cons of change

• get complete and accurate information

• compare the advantages and disadvantages
• assess the implications of introducing changes
• take into account previous assessments of introducing change
• present your recommendations to the appropriate people
• amend your recommendations in the light of responses

Negotiating and agreeing the introduction of change

• present information on projected change to the appropriate people

• conduct negotiations in a spirit of goodwill
• make compromises where appropriate
• reach an agreement in line with your organization’s strategy
• keep records of negotiations and agreements
• Where you could not secure the changes you anticipated, tell your staff in a
positive manner.
• Encourage all relevant people to understand and participate in the changes
Implementing and evaluating changes.

• Present details of implementation plans to all concerned

• Encourage people to seek clarification
• Use resources in the most effective way
• Monitor the changes
• Evaluate the benefits of the changes
• Modify implementation plans and activities in the light of experience
• Review the change process

Heifetz's four principles for bringing about adaptive change:

1. Be able to recognize when the challenge requires adaptive work for resolution.
Understand the values and issues at stake in the situation.
2. Adaptive change causes distress in the people being led. Keep the distress in the
tolerable range for doing adaptive work. Too little stress does not motivate
people, while too much can defeating as well.
3. Keep the focus on the real issue. Do not get side-tracked by stress-reducing
distractions (such as denial, scapegoating, externalizing the enemy, etc). Such
distractions are "work avoidance mechanisms".
4. Ensure the people who need to make the change take the responsibility of doing
the work of change themselves.


Leadership refers to the process of influencing an organized group towards

accomplishing its goals. It is a process by which an agent induces a subordinate to
behave in a desired manner. The ends of leadership involve getting results through
others, and the means of leadership involve the ability to build cohesive, goal-
oriented teams. Good leaders are those who build teams to get results across a variety
of situations. Leadership represents a complex form of social problem solving.
Are all leaders change agents? Are all change agents leaders?

“Change agents by nature are leaders, but not all leaders are change agents.”
Change agents can be found at all levels of an organization. They can be leaders,
managers or employees. A change agent is someone who sees the need for positive
change, is willing to champion the cause and motivate people to see the benefits of
change. Change agents are risk takers and leaders by nature. Like leaders, change agents
look outward and into the future. A change agent will challenge the status quo. They have
a vision and know how to communicate this vision. Like managers, a successful change
agent will also look inward to understand their organization and employee culture in
order to achieve change. A change agent will get everyone involved and has a willingness
to engage diverse constituent groups and detractors.

According to Jim Simpson, Administrator for the Federal Transit

Administration (FTA),
• A change agent looks at a situation and can identify the problems that require
• A change agent doesn’t implement change for change sake.
• A change agent identifies the issue and figures out the resolution.
• A change agent also recognizes the need to not change anything. If everything is
working well, leave it alone.

In today’s fast paced, global economy, it is becoming more important for leaders
to be change agents. “Leadership is about coping with change.” Leading change is the
biggest thing about leadership. Leadership and change are synonymous. There are a lot of
leaders, not a lot of change agents.

The most significant difference between a leader and a change agent is in how
they approach the challenges they are facing. When faced with a significant challenge, a
leader must rise up to the task. They do this by drawing from their own values and
capabilities’, operating in what Robert E. Quinn calls the fundamental state of
Rational approach to organization change and the interactional


1) Leader

 Environmental scans

 Visions

 Goals

 Change plan

 Leadership and management capabilities

2) Situation

 Crisis

 Consumer preference

 Market conditions

 societal shifts

 competitive threats

3) Followers

 dissatisfaction

 resistance

 technical/ functional capabilities

 loss of power, competence, identity, etc

Bass’s theory of transformational and transactional leadership

Bass believed that transformational leaders possessed those leader characteristics

described earlier and used perceptions and reactions of subordinates’ to determine
whether or not a leader was transformational.

Transformational leaders possess good visioning, rhetorical and impression

management skills and use them to develop strong emotional bonds with followers. They
are believed to be mire successful at driving organizational change because of followers’
emotional levels and their willingness to work towards the accomplishment of the leaders

Transactional leaders do not possess these leader characteristics. They are not able
to develop strong emotional bonds with followers or inspire followers to do more than
followers thought they could.

Transactional leaders were believed to motivate followers by setting goals and

promising rewards for desired performance. Transactional leadership could have positive
effects on follower satisfaction and performance levels, but they also stated that these
behaviours were often underutilized because of time constraints, lack of leader skills and
disbelief among leaders that rewards could boost performance.

John P Kotter's 'eight steps to successful change'

John Kotter is widely regarded as the world's foremost authority on leadership

and change. Kotter is the premier voice on how the best organizations actually “do”
change. Kotter (teaches Leadership at Harvard Business School) has made it his business
to study both success and failure in change initiatives in business. The change process
goes through a series of phases that, in total, usually require a considerable length of
time. Skipping steps creates only the illusion of speed and never produces satisfactory
results" and "making critical mistakes in any of the phases can have a devastating impact,
slowing momentum and negating hard-won gains.
Change is a series of phases which requires time. Skipping any steps to change
never produces satisfactory results.

1] Establish a Sense of Urgency

This step refers to inspiring people to move, make objectives real and

For change to happen, it helps if the whole company really wants it. Develop a
sense of urgency around the need for change. This may help you spark the initial
motivation to get things moving. This isn't simply a matter of showing people poor sales
statistics or talking about increased competition. Open an honest and convincing dialogue
about what's happening in the marketplace and with your competition. If many people
start talking about the change you propose, the urgency can build and feed on itself.

What you can do:

• Identify potential threats, and develop scenarios showing what could happen in
the future.
• Examine opportunities that should be, or could be, exploited.
• Start honest discussions, and give dynamic and convincing reasons to get people
talking and thinking.
• Request support from customers, outside stakeholders and industry people to
strengthen your argument.

2] Form a Powerful Guiding Coalition

This step refers to getting the right people in place with the right emotional
commitment, and the right mix of skills and levels.

Convince people that change is necessary. This often takes strong leadership and
visible support from key people within your organization. Managing change isn't enough
- you have to lead it.
You can find effective change leaders throughout your organization - they don't
necessarily follow the traditional company hierarchy. To lead change, you need to bring
together a coalition, or team, of influential people whose power comes from a variety of
sources, including job title, status, expertise, and political importance.

Once formed, your "change coalition" needs to work as a team, continuing to

build urgency and momentum around the need for change.

What you can do:

• Identify the true leaders in your organization.

• Ask for an emotional commitment from these key people.
• Work on team building within your change coalition.
• Check your team for weak areas, and ensure that you have a good mix of people
from different departments and different levels within your company.

3] Create a Vision

This step refers to get the team to establish a simple vision and strategy,
focus on emotional and creative aspects necessary to drive service and efficiency.

When you first start thinking about change, there will probably be many great
ideas and solutions floating around. Link these concepts to an overall vision that people
can grasp easily and remember.

A clear vision can help everyone understand why you're asking them to do
something. When people see for themselves what you're trying to achieve, then the
directives they're given tend to make more sense.

What you can do:

• Determine the values that are central to the change.

• Develop a short summary (one or two sentences) that captures what you "see" as
the future of your organization.
• Create a strategy to execute that vision.
• Ensure that your change coalition can describe the vision in five minutes or less.
• Practice your "vision speech" often.

4] Communicate that Vision

This step refers to Involving as many people as possible, communicate the

essentials, simply, and to appeal and respond to people's needs. De-clutter
communications - make technology work for you rather than against.

When you first start thinking about change, there will probably be many great
ideas and solutions floating around. Link these concepts to an overall vision that people
can grasp easily and remember.

A clear vision can help everyone understand why you're asking them to do
something. When people see for themselves what you're trying to achieve, then the
directives they're given tend to make more sense.

What you can do:

• Determine the values that are central to the change.

• Develop a short summary (one or two sentences) that captures what you "see" as
the future of your organization.
• Create a strategy to execute that vision.
• Ensure that your change coalition can describe the vision in five minutes or less.
• Practice your "vision speech" often.

5] Empower Others to Act on the Vision

This step refers to Removing obstacles, enable constructive feedback and lots
of support from leaders - reward and recognise progress and achievements.

If you follow these steps and reach this point in the change process, you've been
talking about your vision and building buy-in from all levels of the organization.
Hopefully, your staff wants to get busy and achieve the benefits that you've been

But is anyone resisting the change? And are there processes or structures that are getting
in its way?

Put in place the structure for change, and continually check for barriers to it. Removing
obstacles can empower the people you need to execute your vision, and it can help the
change move forward.

What you can do:

• Identify, or hire, change leaders whose main roles are to deliver the change.
• Look at your organizational structure, job descriptions, and performance and
compensation systems to ensure they're in line with your vision.
• Recognize and reward people for making change happen.
• Identify people who are resisting the change, and help them see what's needed.
• Take action to quickly remove barriers (human or otherwise).

6] Plan for and Create Short-Term Wins

This step refers to Setting aims that are easy to achieve - in bite-size chunks.
Manageable numbers of initiatives. Finish current stages before starting new ones.

If you follow these steps and reach this point in the change process, you've been
talking about your vision and building buy-in from all levels of the organization.
Hopefully, your staff wants to get busy and achieve the benefits that you've been

But is anyone resisting the change? And are there processes or structures that are getting
in its way?
Put in place the structure for change, and continually check for barriers to it.
Removing obstacles can empower the people you need to execute your vision, and it can
help the change move forward.

What you can do:

• Identify, or hire, change leaders whose main roles are to deliver the change.
• Look at your organizational structure, job descriptions, and performance and
compensation systems to ensure they're in line with your vision.
• Recognize and reward people for making change happen.
• Identify people who are resisting the change, and help them see what's needed.
• Take action to quickly remove barriers (human or otherwise).

7] Consolidate Improvements and Keep the Momentum for Change Moving

This refers to Foster and encourage determination and persistence - ongoing

change - encourage ongoing progress reporting - highlight achieved and future

Kotter argues that many change projects fail because victory is declared too early.
Real change runs deep. Quick wins are only the beginning of what needs to be done to
achieve long-term change.

Launching one new product using a new system is great. But if you can launch 10
products, that means the new system is working. To reach that 10th success, you need to
keep looking for improvements. Each success provides an opportunity to build on what
went right and identify what you can improve.

What you can do:

• After every win, analyze what went right and what needs improving.
• Set goals to continue building on the momentum you've achieved.
• Learn about kaizen, the idea of continuous improvement.
• Keep ideas fresh by bringing in new change agents and leaders for your change

8] Institutionalize the New Approaches

This step refers to Reinforcing the value of successful change via

recruitment, promotion and new change leaders. Weave change into culture.

Kotter argues that many change projects fail because victory is declared too early.
Real change runs deep. Quick wins are only the beginning of what needs to be done to
achieve long-term change.

Launching one new product using a new system is great. But if you can launch 10
products, that means the new system is working. To reach that 10th success, you need to
keep looking for improvements. Each success provides an opportunity to build on what
went right and identify what you can improve.

What you can do:

• After every win, analyze what went right and what needs improving.
• Set goals to continue building on the momentum you've achieved.
• Learn about kaizen, the idea of continuous improvement.
• Keep ideas fresh by bringing in new change agents and leaders for your change
John Kotter's 8 step process - an overview
Steps Transformation Suggestions
• Examine market and competitive realities
• Identify and discuss crisis, potential crisis, or major
1. Increase urgency
• Provide evidence from outside the organization that
change is necessary
• Assemble a group with enough power to lead the change
2. Build the Guiding • Attract key change leaders by showing enthusiasm and
Team commitment

• Encourage the group to work together as a team

• Create a vision to help direct the change effort
3. Get the Vision Right
• Develop strategies for achieving that vision
• Build alignment and engagement through stories
• Use every vehicle possible to communicate the new
vision and strategies
4. Communicate for
• Keep communication simple and heartfelt
• Teach new behaviors by the example of the guiding
• Remove obstacles to the change
5. Empowering Action
• Change systems and / or structures that work against the
• Plan for and achieve visible performance improvements
6. Create short term
wins • Recognize and reward those involved in bringing the
improvements to life
• Plan for and create visible performance improvements
• Recognize and reward personnel involved in the
7. Do Not Let Up
• Reinforce the behaviours shown that led to the
• Articulate the connections between the new behaviors
8. Make Change Stick
and corporate success
Role of leaders in change management
If Change Management is really the "people side of change", then senior managers must
be included - especially in large-scale transformational changes. How they initially
choose to be involved is not always what change managers want. Here's what I hear
from debaters that I think sums up the topic:

• Senior managers span the continuum from wanting active involvement to

keeping an arm's length in Change Management initiatives.
• Senior managers have different comfort levels, time constraints, and abilities
when it comes to Change Management.
• Research shows that executive involvement is the greatest contributor to change
management success. These are very compelling findings.
• Senior managers' roles include leading, coaching, empowering, and support.
Sometimes these roles can cause conflicting interpretations from change
• Sometimes senior managers must distance themselves from a particular project
for reasons that are not fully understood by the change management team
(politics, PR, economic outlook, stock price, etc.). This could be the "good guy -
bad guy" approach where the Change Management team has to take the heat.
• Some senior managers may not be exactly "passionate" about the change
initiative. There has to be a WIIFM - What's In It For Me - for them, too. Some
won't be on the train when it pulls out of the first station. You need to get them on
board as soon as possible.
• There are tools and methodologies that the team can use which can make
Change Management work and build executive sponsorship. Take advantage of
these tools. Many concrete steps were provided by Tim and Melissa.

I think that the Change Management team has the responsibility to try to enlist senior
management's support. If senior management is not supportive, then the team must not
view managing change as an event. Continue working with your executive team,
understand that they are real people, and work patiently to build their competency in
managing change as executive sponsors.

Successful change management requires a large commitment from executives and

senior managers, whether the change is occurring in a department or in a complete
organization. One recent survey respondent said, “a change effort cannot be optional for
senior staff. They must lead or get out of the way. The new system will ultimately have to
stand on its own feet, but every new system needs support and nurture.”

Senior leaders can do the following for successful change management.

• Establish a clear vision for the change management process. Paint a picture of
where the organization will end up and the anticipated outcomes. Make certain the
picture is one of reality and not what people “wish” would occur.

• Appoint an executive champion who “owns” the change management

process and makes certain other senior managers, as well as other appropriate
people in the organization, are involved.
• Pay attention to the changes occurring. Ask how things are going. Focus on
progress and barriers for change management. One of the worst possible scenarios is
to have the leaders ignore the process.

• Sponsor portions of the change or the change management process, as an

involved participant, to increase active involvement and interaction with other
organization members.

• If personal or managerial actions or behaviors require change for the

changes to take hold in the organization, “model” the new behaviors and actions.
(Walk the talk.)

• Establish a structure which will support the change. This may take the form of a
Steering Committee, Leadership Group, or Guiding Coalition.

• Change the measurement, reward, and recognition systems to measure and

reward the accomplishment of new expectations.[/l

• Solicit and act upon feedback from other members of the organization.

• Recognize the human element in the change. People have different needs and
different ways of reacting to change. They need time to deal with and adjust to
change. (Read Downsizing Survivors for additional information about the impact of
change on staff.)

• Senior leaders must participate in the training that other organization members
attend, but, even more importantly, they must exhibit their “learning” from the
sessions, readings, interactions, tapes, books or research.

• Be honest and worthy of trust. Treat people with the same respect you expect
from them

Change management process

The change management process is the sequence of steps or activities that a change
management team or project leader would follow to apply change management to a
project or change. Based on Prosci's research of the most effective and commonly
applied change, most change management processes contain the following three

Phase 1 - Preparation, assessment and strategy development

Phase 2 - Detailed planning and change management implementation

Phase 3 - Data gathering, corrective action and recognition

Case study

Changing Culture at IBM - Lou Gerstner Discusses Changing the

Culture at IBM

Lou gerstner was the chairman and CEO of IBM. IBM was in deep trouble when
Louis V. Gerstner came on board as chairman and CEO almost a decade ago. Gerstner
being pursued for the top IBM job by Jim Burke who was a former Johnson & Johnson
executive and was heading up the executive search committee. Gerstner was not
interested in the job, believing that, as a nontechnical person, he was unqualified.
Gerstner was looking for an exit from RJR Nabisco, where he was chairman and chief
executive. After months of courting, Gerstner took over as chairman and CEO of IBM on
April Fools' Day of 1993.

How Gerstner he managed to change a culture at IBM that he generously describes

as "inbred and ingrown."

First order of business was making the company solvent. Under his guidance, IBM cut
billions in expenses and raised cash by selling assets. Gerstner says that few people even
understood how perilously close the firm was to running out of cash.
He famously put the brakes on a plan, which was already well under way, to break up the
company into several operating units. Gerstner characterizes this as "the most important
decision I ever made--not just at IBM, but in my entire business career."

The rationale behind it was

 To leverage all of the pieces of IBM--hardware, services and software-
 To deliver top-to-bottom technology solutions.

Gerstner may have expressed total confidence to colleagues, but here he concedes he
didn't know how the company might deliver on the potential of that "unified enterprise."
He decided that the whole of IBM was greater than the sum of its parts. But its many
parts were operated independently, with little accountability. Rather than work together
as a team, divisions competed against each other both internally and in the field.
Gerstner and his advisers decided to tie employee compensation to the performance of
the whole company rather than to the employee's particular division.

In that vein, IBM consolidated its many advertising agencies down to one, Ogilvy &
Mather. The goal was to create one common brand message for all IBM products and
services around the world. IBM began rewarding teamwork and essentially put an end to
consensus building.
Leadership in the 21st century
A great leader is one who has got followers. In the olden days, a
leader was like the captain of a ship where he used to remain calm & composed. But if
we have to talk about the leader in the 21st century, the qualities which he has to possess
are being more human & he needs to be a part of the situation & not apart of the situation.
A company’s culture is moreover influenced by the leadership & not by the management.
Workplace leadership in the 21 st century is not simple but it is
rather becoming more complex & challenging as the cultural diversity in the workplace
increases. There is now a call for leaders to look at the make up of the modern work
environment & to uncover new strategies. As the world becomes so interconnected & as
more people want to work abroad, work teams are becoming more multinational. Seeing
people from different continents & nations working alongside with eachother is no longer
unusual. With the globalization of the world economy, no manager or leader can afford to
ignore the cultural influences on leadership. Almost everywhere it is now a big advantage
for leaders to possess an understanding of culture. Leadership in some respects may be
non-country specific & non-cultural.
Tomorrow’s HR professionals, managers & leaders need to be
conversant in engendering creativity, innovation & involvement in a multicultural
workforce. Effective leaders will have to develop a vision that has significant appeal for a
large majority of their followers who come from diverse backgrounds & cultures. The
vision have the potential to transform the collection of individuals into a group that can
accomplish tasks with a sense of continued commitment & satisfaction. In a nutshell, the
mission of the globalized organization must incorporate diversity of thought.
As we enter the 21st century, the role of "alpha persons" is very
much in question. No doubt traditional leadership (and traditionally minded books on
how to lead) will continue. But the following seem the best predictions as to how the
concept of leadership will develop:

Leadership is for everyone. No doubt some people are better flutists than
others, but almost everyone can learn to play the flute. In the modern organization,
everyone is a team member and every one is a project manager. So everyone needs to
learn and to exhibit leadership.

Leadership involves learning. The leader is one who uncovers new

knowledge and knows how to share it with others. More than ever before, knowledge
is truly power. More than ever before, leadership will be shown by spreading

Leadership is team based. Hierarchy will continue to exist. But the

best organizations will be those that empower their members to be leaders. No one
will want to work as an underling when they can work somewhere else and be treated
as an equal.

Leadership is not authoritarian. In the 21st century, one’s authority

comes from what one says, not who one is. Leaders will communicate with, not to,
people. New methods of communication will result in new styles of leadership.

Leadership includes followership. Some people will have more

leadership responsibility than others, but everyone will learn from everyone else.
With teams as the norm, everyone will have the experience of being a contributor.
The best leader will be the one who is best of developing, listening and empowering.

Change management as a consulting practice became an

important specialized area in the late twentieth century. Rapid technological change and
ideas such as Total Quality Management and delayering has made organizations more
aware of the usefulness of advice and assistance on implementing change. In addition,
many change efforts led to new management practices; and it became increasingly seen
that changing management styles was a goal in itself. But in many cases (downsizing
being perhaps the most notable example) these change efforts seem to have done more
harm than good. Change management, as Kotter so well describes in his classic paper,
"Why Transformation Efforts Fail," frequently, if not generally, fails because
organizational development factors are an add-on rather than in control, because
resistance to change is devalued, and because responsibility for the change is wrongly
seen as belonging to only some levels of the organization. As we contemplate the lessons
learned in the last two decades, the following principles will guide successful twenty-first
century change management:

Change management is ongoing. In this century, fast paced change is the

norm. Conceptualizing change management as a specialized practice area or skill is
therefore no longer valid. The need is not so much for campaigns to implement
change are not what are needed, but rather for building a capacity for change into the

Change is for everyone. Management is no longer the business of a

specialized caste. Every job and every unit is subject to change. Hence everyone
needs change management skills and everyone is a change agent.

Change should be welcomed. From a view of change management based

on overcoming resistance, we have advanced to one that sees change as a negotiable
process. The logical corollary is that resistance to change, while normal, need not be
the key concern because the organizational culture views change as positive and
because change is no longer carried out as something imposed from outside. Indeed,
resistance should be seen not so much as a danger to be avoided but more as an
indicator of issues that need to be faced.

Change can have negative effects. The "advertising" methodology of change

management tended to delegitimize peoples' concerns by putting the focus on
acceptance of the message rather than on employees' reaction to it. The history
downsizing presents vivid and drastic cases of change with lasting negative results
because organizational development factors and ethical considerations were ignored.
A good organization has to be honest and proactive about the pain as well as the gain
from change.

Change management in the traditional sense is still a valid concern,

though change management as integral part of day to day business ought to be the goal.
However you conceive change, we would urge you to think broadly about what you are
doing, why you are doing it, and how you are going to do it. And we would be glad to
help you if you want to do things the best way. Talent & leadership are becoming even
scarcer resources than ever before. This scarcity results from the dramatic changes in the
complexities of business & the expectations of employees.
There is a new era emerging that requires a new breed of leader. This
new leader needs to have the ability to change and adapt quickly-with a future smart eye
on what's possible. The 21st Century Leader recognizes that without keeping an eye on
the future you may be doomed to remaining a prisoner of the past. With this eye on the
future, the 21st Century Leader welcomes innovation, embraces change and thrives on
chaos. The 21st Century Leader recognizes that only the smartest will survive the
immense challenges of the future. The good news is that by preparing today we can
successfully meet the challenges of the future. But what skills are necessary to survive in
the future? What do you need to do today? How will this affect you? Why should you be
concerned now?

Many leaders in business today seem so overwhelmed with their

current workload that suggesting they prepare for the future may seem impractical. Just
the opposite is true. By preparing today to meet tomorrow's challenges, we set in motion
a new leadership paradigm, one that will help leaders better cope with today.

By developing a futurist-leaders' perspective, managers will learn

new strategies for dealing with people and organizations. To improve your marketability
and performance as a futurist-leader you need to understand: the nature of the future
leadership challenges, the changing workforce, changes in your organization and how
you can enhance your leadership ability.

We cannot hold back the forces of change. We cannot deny that our
society and the very nature of business is changing daily. Yet some leaders resist change.
Global commerce is redefining business in a virtual borderless world. But regardless of
all of these changes organizations will still need leaders to lead. The role of the leader in
the 21st century will be even more critical to the success of the organization than it is
today. Business will become more stressful, competitive and chaotic. Leaders will be
called upon to find order in chaos, fulfill customers and employees, plan for today and for
tomorrow. It is the leaders who are the glue that will hold together the organization. Their
intelligence and above all their ability to adapt will be a valuable asset.

There are leaders today that feel out of step with the future world
that is growing up around them. These leaders need to learn new skills and new mindsets
if they are to survive today and in the 21st century. It would be safe to assume that the
21st century will not be an easy, enjoyable stress-free time for business. But it shall also
be a time of great challenges, opportunities, profits, innovation and imagination. Those
leaders who understand this and have the foresight to prepare today to lay a foundation
for learning, will be ahead of the game. Those that operate business as usual will be left
behind. Preparing today for future challenges is a strategic endeavor worth every leader's
effort. Rather then deny the change forces that are ushering us into the 21st century,
leaders need to learn to ride these waves. By using change as an ally, even chaos can be
instrumental to a leader's game plan.

Above all else the leader's ability to adapt to change will be a

learning process. Much of the learning technology needed to fully cope with the
challenges of the 21st century have yet to be developed. Nevertheless, a leader's openness
to change, a capacity to take risks, an ability to experiment, keeping an open mind to new
ideas and having an appetite for innovation will greatly help. This is an exciting time to
be a leader. The 21st century welcomes us.

We need to develop a strategy so that we can navigate through

these uncertain times. Remaining cautiously optimistic is not enough. A 21st Century
Leader needs a 21st century strategy. Regardless of how chaotic, confused or stressful the
21st century will be, by preparing today, leaders can successfully meet the challenges of
the future. Don't wait for the future to sneak up on you. A changing workforce, increased
competition, a shifting marketplace and a lackluster economy will all contribute to the
high stress roller coaster ride into the 21st century.
Qualities of a global leader
Due to the globalisation of business, international assignments are now essential
components of many managerial careers. There are three cross-cultural competencies that
will differentiate a global manager from a local manager.
1) Cultural awareness & sensitivity: For a successful global leader, general multi-
cultural awareness & regional or country-specific awareness are essential.
Successful global leaders possess what is called “cultural diversity consciousness”
that is the ability to question one’s own cultural values & at the same time be
open & sensitive to the cultural values that are different from one’s own. Today’s
leader should be like a jack of all trades. Global leaders need to develop cultural
diversity consciousness so that they can interact more effectively & more
confidently with people from different cultures.
2) Cultural knowledge & understanding: Global leaders need to know the
business customs & practices, values & beliefs, social interactions, tax & legal
structures, compensation & benefits practices, labour regulations, geography &
climate of various countries & regions. The purpose of acquiring this knowledge
is to help the leader to adjust in a practical way to the new culture, work
environment & personal work situation.
3) Cultural adaptability: Successful global leaders are culturally adaptive &
culturally adventurous. They are driven by a sense of adventure & they possess a
strong desire to experience new cultures. The global managers who display these
traits are called “cultural entrepreneurs”. Successful global leaders seek
opportunities in new cultures. They know how to communicate, negotiate &
resolve conflicts in different cultures.
For leadership in a culturally diverse workplace, leaders need:
1) A fresh perspective for developing leadership traits
2) The drive & motivation to work in countries where the culture is very different
from their own.
3) The social skills to deal with people of different races & religions
4) A commitment to high levels of integrity as it is defined differently in different
5) An openness to get to know the rights of employers & duties of employees for in
many cases these differ from country to country.

Growing multinationals, whether they are based in the United

States, India or elsewhere, all face a common problem: developing leaders who can
manage global enterprises and take advantage of strategic opportunities. But do global
leaders require a set of skills entirely different from those needed by their domestic
counterparts? And what are the main issues global leaders face when they move beyond
domestic markets?

Global leadership "is not about doing business abroad. It's about
managing an integrated enterprise across borders where you encounter different cultural,
legal, regulatory and economic systems," says Stephen Kobrin, a Wharton professor of
multinational management. "It's about operating in multiple environments trying to
achieve a common objective."

To achieve that common objective, Wharton management

professor Larry Hrebiniak suggests that leaders focus on the same issues they would
focus on with any type of diversification: planning and implementation. "Consider
carefully the country or countries you are going into. What are the barriers to entry? Who
are the competitors and what is the degree of concentration in the industry? Who are the
customers? What cultural issues are relevant and what government regulations apply?
Should I consider alliances or joint ventures, or is it more logical to make an acquisition
in order to acquire the distribution channels I need to compete?"

Once these and other due diligence issues have been

settled, Hrebiniak says, leaders must address the implementation phase: "How do we
control performance? Do we use expats or country managers, and what incentives must
be developed to ensure attention to both global and local needs? Do we have worldwide
systems, and are modifications to our IT processes necessary to support those systems?
What kind of organizational structure should we have? What decisions are made at
headquarters and which ones are made at the country level?" For example, if a company
is a multinational with many divisions and a diverse product line, the answer might be to
have a global structure where divisions are independent and relatively self contained. But
if there is a need for a coordinated global strategy, similar to that of [Zurich-based] ABB,
P&G or Citibank -- "in many different countries with many different pieces of product or
information that move across borders to be part of a larger product or service -- this
would require a matrix-type structure with a lot more coordination and integration."

Improving leadership development

The main challenges of leadership development are

• Globalization (Diverse workforce) – Communication skill, Cultural
knowledge and global mindset
• Technological change- adaptation problem- Developing change masters is a
challenge. Fast changing global tech environment
• Lack of qualified/experienced trainers,
• High cost and – and exposure in many country is needed.
• Time constraints- Because, mere class room training is not sufficient
Providing financial rewards for good leadership development
1) Using assessment centres to evaluate employee’s leadership skills
2) Developing company-specific leadership seminars with the help of external
3) Measuring leadership skills through 360-degree feedback
Top executives in Canada & US are starting to recognize
that one of their primary responsibilities are developing leaders. Improving
leadership development also emerges as a key issue because the nature of
leadership in itself is changing. The traditional Command-and-Control approach
of management is giving way to a more supportive & collegial approach but it is
not well understood how companies can make this transition. Public companies
are also facing new competition for leaders from leading private-equity players
which offer rich compensation packages. In china, global companies are more
active than local companies in improving leadership development. While both
global & local companies need senior managers with soft skills & leadership
capabilities, a higher percentage of global companies are performing 10 out of
the13 actions relating to improving leadership development.
To improve leaders, companies rely mainly on providing
internal coaching from their own top management & 360 degree feedback
throughout the organization. In all regions, companies expect to increase the
frequency of almost all actions that pertain to improving leadership development
by 2015. The use of external leadership seminars is the notable exception with
executives in 6 of the 7 regions expecting this action to decline in the future.

Necessary attitudes
• The key competencies to develop a global leader are open-mindedness & a
generally broad perspective, an appreciation of other’s perspectives & an ability
to deal with cognitive complexity.
• The next level of competencies cover personal stability & this is achieved through
personal autonomy, Perceptual acuity & emotional resilience.
• The pinnacle of successful global leadership is an ability to work with global
• Beyond this, the individual must have professional confidence & this is reflected
through balancing contradictions & a willingness to make risky decisions.

Selection process of a global leader

Though developing truly global leaders & managers
remains a challenge, the selection for identifying potential global leaders &
mangers in the past decade has been becoming increasingly sophisticated. It is
still a work-in progress though. The focus in the selection process is often directed
at the individual’s orientation to global issues. Other positives that are usually
looked for include an ability to adapt, communication skills & personal
motivation to succeed in a global or international context. Of course, selection
also needs to consider family circumstances & support. If there is no total
agreement among all family members beyond the initial thrill of an overseas
posting or assignment, then a global career is doomed to failure from the start.The
importance of cross-cultural understanding cannot be overlooked. Serving in
overseas assignments is the best single way of developing the executive
leadership skills needed for the decades ahead.

Developing a global leader to manage across cultures is not an
easy task. Besides from understanding the role of being a leader which is a challenging
task in itself, adding the global dimension introduces even greater complexity. Top
companies realize the importance of creating a workforce as broad & diversified as the
customer base they serve. Today’s migration & globalization of diverse population’s
demands intercultural dialogue & the commitment from top executives to create &
manage diverse & inclusive workforces in all areas of business. Thus, the need for
leaders who can communicate & motivate culturally diverse work groups is greater than
ever before.