Organizations must re-invent themselves or they will be at risk of becoming stagnant, or irrelevant. History is full of examples where a failure to adapt to changing market conditions results in complete disintegration and subsequently disappearance from the corporate arena altogether. Successful organizations are therefore always on the look for transformational leaders who can champion the process of transition from stagnation to agility, growth and profitability.
One of the key ingredients for a successful transformation is a clear and compelling vision; a vision that defines the perfect world with clear principles and that guides the transformation effort to be developed. Such a vision should not only constitute a shared image for a desired future state, but also inspire and motivate workforces to give everything in their power. Thus ultimately leading to achieving grand strategic objectives for the organization.
A superior and well-defined vision encompasses a sense of urgency to overcome any complacency that might be exhibited by stakeholders. It clarifies the general direction for a change. It also inspires and motivates people to act in the right direction and helps align employees' actions with the organization's strategic goals. For maximum effectiveness, the vision needs to be clear, focused and easy to communicate.
A successful transformational leader would have certain qualities. A prominent quality is the ability that enables him/her to guide and influence others to bring about fundamental change, not only to the external world, but also to internal processes. Another quality which a transformational leader must possess is the capability to formulate and spearhead a compelling vision, as well as the skill to organize and manage the 'change' process. Such skills may not be acquired by a single person, but by a multi-disciplinary team.
In addition to developing and communicating the vision to all stakeholders, the transformational leader is responsible for: articulating a consistent transformation plan, maintaining a clear focus on transformation goals and managing external changes to complement internal ones.
The transformational leader plays a pivotal role by articulating his/her vision of the organization's future as well as inspiring and motivating employees and management alike. The leader's ownership of the transformation process is prerequisite, without which becomes a futile exercise. The leader should send out the right signals and messages that the transformation is a critical component of the entire organizational strategy. He/she must establish a structure to encourage creativity and innovation, by 'thinking outside the box'.
The transformational leader pays a careful attention to the human capital aspect of the organization. He/she influences their workforce to change, to increase their awareness of the necessity to excel at what they do, to encourage personal growth and accomplishment and to motivate them to work for the good of the organization as opposed to personal gain.
Transformational leadership is necessary for three stages of change management demand, including (a) motivating changes in behavior and overcoming resistance; (b) managing the transition to ensure control; and (c) shaping the political dynamics so that power centers can develop that support change. For a maximum participation in the transformation process, the organization structures and processes must be aligned with the organization's vision.
For a large-scale alignment, five transformational activities are required: (a) finance reform; (b) re-alignment of human capital; (c) development of performance measures; (d) adoption of information technology; and (e) identification and implementation of evidence-based practices. The administrative and accounting structures should be aligned with the central administrative units (so they do not undermine the change strategy).
In a globalized knowledge-based economy, Human Capital constitutes a certain critical asset. In many cases, it can be viewed as a real differentiator that must be nurtured and empowered in order to enable the organization to compete. Increasing numbers of companies have recognized this edge and are harnessing an enormous source of power to improve organizational performance. With the right Human Resource structure and a well-communicated vision, organizations can mobilize the majority, if not all, of the workforce to help provide leadership to accomplish much needed changes.
Corporate culture has a significant influence on human behavior and can be very powerful especially if employees are well-selected and coached. Such culture exhibits itself through the actions of all its employees. The effects happen without conscious intent and thus are difficult to challenge or even discuss.
It is imperative to comprehend that transformation is an ongoing process and can be permanent in nature. The change process is intended to create or anticipate the future. It simultaneously deals with the evolution of interconnected concepts, processes, organizations and technologies wherein a change in any one of these necessitates a change in all. Despite the challenges, visionary leaders do spearhead cultural change within their organizations. Leaders of transformation efforts should realize that success hinges on creating a culture of innovation that encourages and rewards those who embrace innovative risks.
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