Effective leadership and change management

Effective leadership and change management

In change management, effective leadership is essential as it is through good leadership and decision making that change becomes productive. Many organizations face various challenges because of leadership problems they encounter. This discussion is based on Marius Kloppers from BHP Billiton case study. The argument focus on the four forms of change to examine the scale and scope of change at BHP Billiton. Furthermore, analysis of Kloppers leadership against the four styles of management in relation to the issues that affects or confronts BHP Billiton is done.

Every leader adapts to a different leadership style that one renders appropriate to achieve ones goals and visions. Kloppers is one of the leaders that exhibit leadership styles of his own kind in ensuring that he achieves his goals. From this case study, Kloppers leadership style is projected as multifaceted as will be captured in the discussion.  All the styles of leadership have positive and negative sides.  For instance, dictatorial style of management does not require consultation or collaboration between the management and the subordinates. The leaders are the sole decision makers and are the final authority.  This kind of leadership style has positives such as it ensures that procedures are adhered to the later but also have negatives, as it is likely to lead to resentment and job dissatisfaction (Salih & Doll 2013, p. 32). In this case Kloppers need not to exemplify this leadership style, as those that need high independence would prefer democratic style of leadership. Kloppers even though is a courageous leader; he is a democratic leader as he allows his subordinates to take part in the decision-making. He prefers a rigid framework of authority where there is minimal consultation on issues that he deems more important and dear to achieve success in his leadership.

Leaders must acknowledge the fact that change is a dynamic process implying that when there is change in one dimension it compensates change in others (Schuh, Zhang& Tian 2013, p. 629). The four styles of change management that are dynamic and which often changes and are exemplified by leaders include collaborative, consultative, directive and coercive.  During changes, at least a leader will adopt or exhibit one of these styles of management or a number of them.  These styles of management are appropriate to various scales of change and help to identify the kind of the leader a person is. Tushman et al (1988) states that organizational model consists of periods of converging changes that is punctuated with frame breaking changes. The converging changes in the organization is twofold; fine tuning and incremental. These two types of changes aim at supporting a match between the strategy, structure, systems and process of an organization. According to Tushman et al (1998) the time for major changes in an organization   , incremental adjustment  cannot bring major charges in the  structure, strategy, people and processes  as they might be required to undergo a radical transformation. Frame breaking  changes are the radical changes  of the system which includes core values, reformed mission,  altered status and power,  reorganization   which includes  modification of  structures, procedures and systems , revision of procedures such as coming up with new procedures,  changing  of communication networks and  decision making patterns  and  recruiting of new  executives (Schoemaker, Krupp & Howland 2013, p. 131).

In the scale of change, Dunphy and Stace scale of change types are classified into four categories; type 1 is fine-tuning, type 2 is incremental-adjustment, type 3 is the modular-transformation and type 4 is the corporate transformation. According to Dunphy and Stace (1993), fine turning organizational change involves refining of the methods, policies and procedures, creation of specialized units and linking mechanisms to permit increased volume and giving attention to unit quality and costs.  It  also entails  recruitment an development of  personnel’s that are  able to achieve present strategy,  fostering  commitment of  individual and groups to the mission of the company and the success of a department,   clarification of  established roles and promotion of confidence in the  accepted norms, beliefs and myths (Schoemaker, Krupp & Howland 2013, p. 132).  This scope of change requires that leaders collaborate and consult others when providing leadership. Kloppers is a leader that fits in this category for the various characteristics that he exhibits in the way he manages BHP Billiton.  He is a leader that listens to others when it comes to making decision that pertains to the running of the organization. He is very instrumental too when it comes to spearheading the process of refining of organizational policies and procedures.   He played a key role in the mergers and acquisition process between BHP Billiton and Rio Tinto. The fact that he was appointed to succeed Chip Goodyear as the CEO of this company just to help it achieve its missions of  joint venture demonstrate how he is effective in collaboration and   negotiation at the time of change. The fact that he recognizes the contribution of others and expects them to take responsibility and be accountable is a demonstration of how he embraces others and supports participation in the operation of the organization.

Incremental adjustment involves various activities such as increasing sales territory, improving production process technology, shifting emphasis among products,   modification of statement of mission of employees, adjustment of organizational structure with or across divisional boundaries in order to attain better links in service or product delivery.  Modular transformation  scope of change involves  major  restructuring of  certain  divisions or departments,  reforming of  division or departmental goals,  changes in  managerial and executive appointments in  various arias,  productivity and work studies  that lead to reduction   or increase in workforce numbers,  introduction of new processes  technologies that affect  key department among many others (Sarwar 2013, p. 81). Leaders that fall in this scope of change are charismatic leaders.  Such leader are not authoritative or either democratic but make noble decisions that bring the leadership and the subordinate together. These kinds of leaders embrace communication and collaborate with the subordinates in reaching amicable solutions in an organization.  In the event that there is need to embrace change, the leaders do not make conclusions based on how he or she feels but solicits the views and opinions of the subordinates or other managers (Marx 2013, p. 12).  This kind of a leader therefore, reduces the level of conflicts between the leadership and the subordinates, as there is consensus between the two. Managing or providing leadership becomes easier.

Corporate transformation entails reformed organizational core values and mission, re-organization that involves changes in the systems, structure and products across the entity. It further entails alteration of power and status that affect distribution of powers in an entity, changes in interaction patterns such as changes in the wok flows, new procedures,   decision-making patterns and communication networks in the organization and introduction of new essential executive in the managerial positions.

Transformed organization is more flexible and this makes it to have the capacity to act and to achieve its objectives. Transformation is a developmental process that must take quite some time for it to be realized. One of the ways an organization is transformed is through improvement of its service through mergers. Such initiatives are essential in driving the organization forward and enabling it to record growth and development.

Leadership style is one of the most essential aspects that characterize organization as it concerns the role of leadership as it relates to the organization life and change.  Leadership   entails or concerns influencing other in pursuit to achieving the goals of an entity (Watson, 1983).  There are traits that make a leader suitable and have the capability to perform his or her duties. The two approaches or theories  that  attempts opt provide an answer to this are the  theory that provides  a universal view and looks at the unique characteristic  or traits  and behaviors  thetas  leaders need to have. The traits focus on the personality characteristics and physical characteristics, skills and abilities, social factors such as sociability and socio economic position and interpersonal skills among others (Schoemaker, Krupp & Howland 2013, p. 133).

Another comprehensive framework of the leadership behaviors is categorized under transformational leadership theory. Bass (1990)   describes two behavioral types of leadership including transactional and transformational leaders. These two kinds of leaders have different behavioral traits that are distinct from each other. Transactional leaders provide contingent rewards as well as recognize accomplishments. Leaders that adapt to this style usually manages through exception by watching and searching deviations for the standards and rules and taking corrective action if need arises.

In contrast to transactional leaders, according to Tichy and Ulrich (1984),   transformational leadership entails dramatic organizational changes that include development and implementation of a vision (Du et al 2013, p. 156).  They instrumentally help to realign the norms and values of an entity and even accommodate and promote both internal and external changes. Charismatic leaders on the other end provide the vision and sense of the mission, gains respects, instills pride and gains trust.  Kloppers is also a transformation leader as manifest through his achievements at the BHP Billiton.   Having been appointed to the company, he manages to drive an acquisition and transforms the organization by helping in breaking down barriers and building trust.  This is not an easy task but regardless of the challenges, he is devoted to transforming the facility into a different institution.

Like any other company or organization, BHP Billiton is marred with a number of challenges that requires demonstration of competent and skilled leaders to handle amicably. Some of the issues that faced this company were its quest to acquire Rio Tinto and improve in its performance in terms of profitability.  For these objectives to be achieved, the four styles of management must come into play. These four styles are, collaborative, consultative, directive and coercive.  In his leadership, Kloppers has exhibited some of these styles of management in the quest to achieve his goals and objectives.

A leader that collaborates is the one who solicits other people’s views and opinions in making decisions that pertains to a certain change or aspects in an organization (Bess & Goldman 2001, p. 419). This leader cherishes the views of others and also is convinced that change is something that should be well understood and supported by the entire team for it to succeed. Consultative leaders or managers also take their time to consult on certain aspects before imposing them to the people. They want to find out from other people whether their views are in tandem with others (Ertureten et al 2013, p. 205). Such leaders do not want to make mistakes and this is the reason as to why they will go out of their way to seek more advice and different perspective about their ideas and views about certain aspect. Directive managers are more or less authoritative and they give direction to what should be done. This kind of leaders will not listen to the subordinate but rather will just offer direction of what needs to be done without necessarily allowing others to question (Bschyns et al 2011, p. 397). Coercive managers are dictatorial and authoritative and will not compromise when it come to embracing change. These kinds of leaders will require that all the subordinates and other people abide by what the leaders says and wants to be done. This management style is viewed as dictatorial and is one of the leadership styles many people do not like.

It is evident from this discussion, that an individual or a leader can have different styles of management (Ohman 2000, p. 32). Kloppers has different styles of management as depicted through the way other people view, him and the way he perceives himself as an individual.  Kloppers is a transformation leader as depicted from his courage and aggressiveness to change the organization. He is very courageous as well as intelligent and this enables him to spearhead the acquisition and merger of his company with Rio Tinto. This is an obligation that he is recruited for, an obligation that has taken ten years for the company to accomplish. He is also well equipped with appropriate strategies to run and operate a company.  A company is geared to become competitive if the strategies that are adopted to operate it are appropriate to ensure that the company succeeds (Graetz & Smith 2009, p. 3). One of the strategies that Kloppers uses is to bring people together and to enable them feel satisfied and motivated. He then enhances their trusts in the organization, which helps them to feel part of the entity. He also brings down bureaucracy in the entity, something that has continued to bring down the company. People are therefore, liberated and given the freedom to raise their issues as they perform their duties.

He is also a leader that is authoritative as depicted from his coercive and direct styles of management. Kloppers is attributed to poses different traits and characteristics but one thing that comes out clearly is that he faces situations with bold. He is an individual that enjoys making decisions especially when he feels that it is appropriate for him to do that. The strategy that has enabled him to retain the command and the leadership mantle of the group he is leading (Changing minds 2013, para. 5). His description as an intense, tough volatile, intimidating, authoritarian and aggressive person    makes him fit in the category of a coercive leader. He is a person that has his own views points and he stands in what he deems appropriate. This has been strength and well as a weakness because, he is not sure about which is which. On the same note, Kloppers is also categorized as    gentle man a rational thinker and a methodical person. His gentleness is manifest through how he talks and interacts with the people. He expresses his love of the people and the fact that he creates some time to visits his subordinates and even relates with them without discrimination. Kloppers is also strict person who adheres to the set laws and standards.   When embracing change, it is very important for the leader to be able to sick to the laws to ensure that the changes adopted comply with the law.

Change management is also an important aspect   that leaders must endeavor to factor in when instituting change. There is need to plan well to understand the areas that require change and the costs or the logistics required to ensure that change is achieved.  The most important aspect is to understand the change and to inform the people in advance to prepare them psychologically that the change is going to affect them. In most case, most leaders will first consult amongst themselves and then allow the subordinates to   give their views and opinions. This strategy is effective as it allows the subordinates and the other stakeholders to understand he changes and at the time they are introduced they already know what they entail (Choudhary, Akhtar & Zaheer 2013, p. 433). It is also essential to understand the set up and the capability of the entity to support the changes. There needs to be enough resources and any other things that are essential to ensure success. The change should be sustainable to ensure that it provides positive impact to the organization.  For instance, in the case of Kloppers, he is in charge of the changes and it is his obligation to ensure that the changes implemented are reinforced and remains so.  He also needs to ensure that the changes are working effectively.

Another important aspect that relates to leadership is mentoring.  In an organization set up, employees require mentoring to remain focused and to be reenergized to remain committed to the organization. Mentoring is achieved through various strategies. One of the ways to mentor the subordinates is by allowing them to participate in decision-making and other innovations that they have (Battilana & Casciaro 2013, p. 62). They should also be motivated by outside speakers that speaks to them on various aspects that concern live such as how to live a health live and how they can improve their productivity at their work place among many other. In mentoring, the employees must take part in these mentorship programmes by remaining committed towards achievement of their objectives and goals.  This case of mentorship is also manifest in Kloppers case. He is role model and a mentor as well because of the role he has played. One of the roles that he has played that makes him to be a mentor is helping to build trust and to do away with bureaucracy. He has also managed to establish positive rapport with the children something that is going to remain entrenched in the lives of the subordinates making them productive people in the future. During change it is important to ensure that change is not resisted a lot. The only way that this can be reduced is through education and self-awareness. These initiatives are imperative because it allows the person to be safe. Therefore, as a leader, ensuring that initiatives works better is to put in place mechanism that does not allow such.   It is also important that every person nowadays comes from different cultural backgrounds and this therefore indicates the strategies between these people are different and should be factored.

A leader has also the responsibility to ensure that change is properly managed. In an organization, there are different kinds of changes that require different leadership styles. Some changes are complex while others are not that complex and difficult to accommodate. These variations call for strategic management of these changes to ensure that they are well implemented as expected.  In this case, changes such as changes in the bureaucracy and the way the people interact is a change that will require a lot of attention to ensure that it is enforced and operative. Consequently, close monitoring is expected to ensure that this change is not reversed. As earlier stated, decisions making is important in an organization. The ways decisions are made do vary between one organization to another and it is what helps to determine the style of leadership (Kamisan & Brian 2013, p. 107).  In an organization, decisions are made at different levels such as top management level, middle management levels and subordinate level. At every level, consensus is reached in a better way. However there are circumstances where as leaders, one is expected to make decisions pertaining to a certain phenomena.  A leader consequently needs to have the ability to make independent decisions because he or she is answerable to certain aspect that occurs in the organization.  So far, Kloppers has proven to be an effective decision making person through the way he relates with his subordinates and in his usually working practices.

In conclusion, leadership is one of the most important aspects that matters a lot when it comes to the operation and management of an entity. As depicted from this case study of Kloppers, it is evident that scopes of changes are many and that people exhibit different traits that categorize them in different traits. Likewise, the four styles change management collaborative, consultative, directive and coercive are manifested in many people, Kloppers included.  People may exhibit one of the four styles or any as it also depends with the individual himself.  The parting shot is that, leadership is essential and that it is prudent for leaders to endeavor to perform his or her duties diligently.

 

 

 

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