Adapt and Thrive

We are living through one of the most significant and disturbing periods of organisational life that I can remember. Global economic and social change, such as rapid technological developments, volatile oil pricing, changing demographic trends, new emerging political structures and chaotic financial markets have created a turbulent, unstable and highly competitive environment in which organisations must adapt and change faster and more profoundly than ever before. Transactional

Management has traditionally been concerned with the day to day operational requirements of the organisation focusing on planning, organising, controlling; rewarding or penalizing those handling the daily transactions. This is no longer enough.

The deeply unstable environment requires organisations to constantly recreate themselves, their products and their services. Transactional Management is still needed but we need a new model based on Transformational Leadership which can anticipate technological and market changes while showing insight and concern about the strategic direction the organisation must take and having the skill and passion to convince others for the need to change.

Let me compare the fortunes of the electronic giants Sony and Samsung. A decade ago

Sony strode the world as leader in its field. It was innovative, profitable and a brand to be proud of. Samsung operated in its shadow. I can remember Samsung being talked about in quite a derisory manner. In July this year Sony posted its fourth straight annual loss of many millions of dollars while Samsung’s Q2 earnings came in at $5.86 billion operating profit. This is a profound change in only a decade.

Consider the recent history of mobile phones. I think it is fair to say that Motorola pioneered the mobile phone and was market leader in the 1990’s. It lost market share and after being split off and rebranded as Motorola Mobility in 2011, was acquired by Google a year later. Its role as market leader was taken by Nokia who burst on the scene almost out of nowhere with great innovation and creativity. After a stellar rise Nokia too has dramatically declined forecasting a major loss making it its sixth quarter loss in a row.  Though the world’s biggest volume maker of handsets, Nokia lost the top spot in the smartphone market to Apple and others last year owing in part to its weak performance in the US where its smartphone market share fell to less than 1%. Current hopes lie in its recent tie in with Microsoft.  What is happening to Apple, the new kid on the block – well even Apple is under fierce competition from Samsung in the inevitable rise and fall of great companies. In the past this process took decades; now it takes a few years. All the companies mentioned are, or have been great companies packed with talent and the capability to operate effectively and efficiently. Transactional Managers have historically been able to focus and manage these businesses in the more stable environment of the past. It is not now enough.

Transformational Leaders need to focus on the leadership skills that enable them to establish and communicate vision and goals, guiding and empowering others to accomplish them. Transformational Leadership requires us to take risks, think creatively and courageously, be decisive, and communicate the vision of where we are going and how we are going to get there. This approach and the skills required are quite different from the traditional skills of management.

Ultimately Transformational Leadership is about change and four stages of change have been identified. First it is necessary to make a compelling case for change. Second it is important to inspire a shared vision, seeking broad input and encouraging everyone to think of a new and better future. Third, change needs to be led. A sense of urgency must be instilled. Collaboration has to be encouraged and the self-confidence of followers must be increased. Finally, change needs to be embedded. This is achieved by, for example, monitoring progress, changing appraisal and reward systems and hiring staff with a commitment to empowerment and collaboration. Transformational Leaders articulate their vision in a clear and appealing manner, explain how to attain the vision, lead by example and empower followers to achieve the vision.

In summary, Transformational Leaders promote new possibilities and generate a compelling vision of the future. They manifest passionate inspiration and visibly model appropriate behaviours. Their goal is change and their energy, enthusiasm and vision opens up new and exciting possibilities within their organisations. 

Article Contributed by Chris Fenney, Co-founder and Director of Training Edge International

Email:chris.fenney@trainingedgeasia.com
Website : www.trainingedgeasia.com



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