Going through a transformation

The initial stages of transformation are not difficult, as individuals and employees do not feel the effect directly. But as reality sinks in, the initial euphoria gives way to rationalisation and denial, covert and overt blaming.

All of us are familiar with these comments - 'The numbers are wrong. The comparison is wrong. Our situation is so different. It is someone else's fault'.

The real outburst happens when deeper analysis reveals specific issues or 'dogmas'. Then people get personal. 'You don't understand. We are different. Who are you to say such things? Has the company lost all respect for human dignity? Why are we doing all this anyway?'

Usually senior managers who are likely to be most affected lead this outburst. Leaders bold and strong enough to push through this stage finally arrive at the lowest point - depression!

This is also the first sight of the end of this horrible tunnel. As a few instances of the new successful future emerge, people begin to believe in the promise of a good future.

Leaders must learn to anticipate these emotions, have the courage and wisdom to cope with them. In each phase, the individual or corporate leadership task is different and roles change, with every stage of the process.

In leading an organisation through the transformation process, leaders have three options. First, they can deny the need for transformation and continue with business as usual. Second, they can muster up the courage to initiate the transformation process and to live through the trauma. Third, the individual or corporate can make way for another person with more courage and grit to take on the mantle of leadership and initiate the transformation journey. At each stage the task of leaders is different.

Complacence and denial

Leaders must be brutal in their challenge. They must confront with information, project the consequences of 'business as usual' and provide illustrations of these consequences. Comparative data, competitor benchmarks, internal employee feedback, and market surveys are essential to reveal the truth. If required, leaders must also publicly acknowledge their own failings which led to the need for transformation.

Anger and depression

Here a heavy hand will merely destroy. In this phase the need is for empathy and understanding and a collective sharing of grief if necessary. Leaders must listen to not only what is being said but also what is not said. They need to show personal commitment. Some people must be allowed to exit gracefully.

Exploration

Here the organisation will have a rush of incoherent energy. There will be a confusion of multiple initiatives, chaos of diverse projects and different styles of leadership.

At this stage the need is to prioritise all effort to educate people, improve the quality of analysis and manage the short term goals to direct the process.

The butterfly emerges

Here the role of leadership evolves into setting long term goals and of rebuilding teams and trust. Gradually those who have led the process so far, must step back from the front line, let others take on visible leadership roles, while the front-liners retreat into the background role of embodying and projecting the vision and values of the company; coaching new leaders to play their new roles.

Sanjiv Anand is the managing director and Rajesh Iyer is director at Cedar Management Consulting International.