BITS Pilani

Pilani Campus

Leadership and Management of Change

Sidharth Mishra
Lecture –I, 11.01.2019
Course Objective

• Develop leadership skills

The challenges of leadership

• Ranjan Jaiswal was a successful sales executive at ACL Ltd.. The company was a prominent
manufacturer of Personal computers in India and was giving stiff competition to multinational
manufacturers like HP, IBM (before the sale of PC business to Lenovo) among others in the early
part of the first decade of the millennium. Ranjan was posted in Mumbai where he was the star
salesman in the ten strong team. He alone used to account for nearly one third of the brand’s sale
in the city.
• As a reward for his performance he was promoted and made an Area Manager with two people
reporting to him. Unfortunately, the promotion did not prove successful. It was found that Ranjan
had virtually abandoned the two reportees and was falling back more on his sales skills to meet
the now increased target.
Analysis

• Ranjan was still a star salesman. The senior management continued to treat his opinion with
respect. But his abandonment of his juniors was getting too stark to be noticed. He was the
protective elder brother to them. But in sales review meetings his subordinates were turning out as
people who lacked confidence and information and were completely dependent on Ranjan’s selling
skills to bail them out.
• The following points were noted.
• Ranjan was in love with his image as a gifted salesman. He did not want to share that image
with any one.
• He lacked the patience to train and sought to cover up his junior’s weaknesses.
• He was a “nice” man who did not want to challenge his subordinates.
Leadership for change

• In 1976 Steve Jobs and his friend Steve Wozniak founded Apple Computers to manufacture
personal computers. The company was fabulously successful.
• In 1985 he had to leave the company as a result of a disagreement with its Chief Executive. During
the next 12 years Steve set up a number of ventures the most notable of which was Pixar Studios
– a company making animated films.
• In 1997 he returned to Apple was the company was losing market share and focus. Steve Jobs is
credited with reinventing Apple and making it into the world’s most valuable company by leading it
to create world class products noted as much for their aesthetics as their technical excellence.
Course Plan

• Understanding Change
• Leadership styles
• Systems Thinking
• Change Management Framework
• Contemporary Challenges
Learning Resources

• Books
• Leadership and Change management - Annabel Beerel, Sage Publication
• Leading Change – John P Kotter, Harvard Business Press
• References
• Leadership by Richard Daft
• Organization Development and Change by Thomas G. Cummings, Christopher G. Werky, 10th
Edition , Cengange Learning
• Others*
• Julius Caesar, Macbeth, Anthony and Cleopatra etc. by Shakespeare among others
• Movies – Nayakan, Thalapathy, Godfather
• Biographies – Churchill, Gandhi etc.

* These resources shall be specified.

Cases

• Illustrative Cases / Cases as problems

• Close Ended / Open Ended Cases
• Situation Analysis, Problem Defined, Criteria for Evaluation, Evaluation, Risk
Factors and Contingency Plan
The change paradigm

Identify,
New Realities Name and
Reframe

Reality test
Stakeholders
Change with
affected
stakeholders

Identify the adaptive challenge.

Impact on Who has what to gain, give up,
Value Tension
stakeholders learn

Challenge to
Gains and Open system
values , meaning
Losses approach
and behaviour
Bareilley Garments
• Bareilley Garments, as the name indicates is a shop selling garments in Bareilley,
a small, sleepy town in Western Uttar Pradesh whose only claim to fame is the
mention of its name in a famous Bollywood song. The proprietor of the shop is Mr.
Ram Aggarwal, a septugenerian gentleman who has only known one business all
his life. The shop was bequeathed to him by his father.
• Ram Aggarwal has been a conservative man all his life. He was not a big believer
in educating his daughters and got them married off as soon as they finished their
intermediate courses. He was vehemently opposed to women wearing western
clothes, especially T-shirts and jeans and for a long while, did not keep them at his
store. The two employees at the store, who shared Ram Aggarwal’s beliefs also
followed his example.
• Unfortunately, even in relatively small cities like Bareilley, the demand for jeans
and T-shirts is increasing among girls. Despite his irritation, Ram has been forced
to stock those items in his shop. His salespersons find it strange when women
come in groups and check out these clothings inside the shop for which he had to
construct a trial room. He and his salespersons sometimes talk about the good old
Application Gender Empowerment

New Realities Women

• Demand for work clothes
• Women as decision makers Empowerment

Customer
Individualistic,
Stakeholders Discerning, Confident
• Customer Employee
• Employee Change Conservative, Paternalistic.
• Shareholder Dismissive
Shareholder
Proprietorial

Invest in new merchandise

Identify the adaptive challenge.
Who has what to gain, give up,
Impact on stakeholders Value Tension
learn

Challenge to
values , meaning Gains and Open system
and behaviour Losses approach
The change paradigm

Identify,
New Realities Name and
Reframe

Reality test
Stakeholders
Change with
affected
stakeholders

Customer
Modified Retail Experience
Impact on Employee
Value Tension
Stakeholders Learn to handle more independent
customers
Shareholder
Invest on merchandise

Challenge to
Gains and Open system
values , meaning
Losses approach
and behaviour
New Realities and the human response

• We need to CHANGE in order to deal with new realities.

• CHANGE often involves a shift in consciousness.
• Good CHANGE keeps us relevant on the face of new realities.
• Often change stimulates fear.
• A fear of loss.
• A fear of the unknown.
• A fear of transformation that involves learning which needs adaptive work.
Primary Goal of Organization

• To stay relevant
• Relevance is engaged power
• Power is relational.
• The key challenge the leader faces is to ensure that the organization stays
relevant so that they have the power and resources to do meaningful things.
• Staying relevant needs an appreciation of current and new reality,
• Auto makers today must appreciate the current reality that the customers prefer
fuel efficient cars while remaining tuned to the fact that electric cars may be the
norm in the near future.
Five Sources of Power

• Legitimate Power
• Power of a legitimately appointed manager.
• Coercive Power
• Power to punish
• Referent Power
• Power built through relationships and personal charisma
• Expert Power
• Power of a special skill or knowledge.
• Reward Power
• Power to reward with a bonus, promotion.
Pervasiveness of change

• Change is the only constant. – Heraclitus over 2000 years ago,

• If we want to make the world a better place we need to understand change.
• If uncontrolled, change would lead to entropy (disorder) and a consequent loss of
productive energy.
Different Dimensions of Change

• Change that is internally determined vis-à-vis change that is environmentally

influenced
• Change that is radical versus incremental.
• Change driven by management in a top driven manner.
• Change that is event specific to one that is in continuous motion
Change The Four Waves

• Agriculture
• Industrialization
• Development of the steam engine
• Interconnectedness
• Development of PC, Internet

• Integration
• Increasing homogenization of the world
The locus of change

• There is a fear of change ?

• New Realities appear on many fronts.
• Relevant Realities
• The risk of ignoring
• IBM, Microsoft, Google, Nokia
• Capturing change in case of an organization.
• Evolved processes
• Environmental Screening
• Strategic Planning
• Evolved consciousness of all associates
• The elusive nature of change
• Obscure (green energy), Deceptive (internet bubble), Fragmented (fashion), Misleading (fax
technology,e-commerce?), Difficult to absorb (the economic liberalization of India)
Signals of Change
• Nascent Industries Emerging
• Solar power?
• Non traditional competitor start to appear.
• Ecommerce to challenge traditional groceries
• New technology upsetting the price-performance relationship
• Automobiles
• Existing business model getting stressed
• STD Booths
• Competitor positions change
• Fountain Pens
• New customs emerge.
• T shirts, Indo-Western Clothing
• Customer needs and satisfaction levels change.
• E-learning would put pressure on traditional tutors.
• New (seemingly distant) Legislation appears
• Pollution laws
Complexity of Organizational Change

• Power Hierarchy
• Power Dynamics
• Exposure that leads to vulnerability
• Fear of job loss
• Fear of organization survival
• The new, raised stake
Management of change

• Reactive
• Prefer the past
• Inactive
• Resist the new reality
• Simply do nothing about it.
• Pro active
• View change as an opportunity
Management of Change

• Good change management

• Reinforces organization worth to its employees.
• Advances the adaptive capacity of the organization
• Sets the company on a forward looking and healthy trajectory
• Bad change Management