Required ResourcesTextLondon, M., & Mone, E. (2012).Leadership.docx

Required Resources
Text
London, M., & Mone, E. (2012).Leadership for today and the
future [Electronic version]. Retrieved from
https://content.ashford.edu/
· Chapter 5: Leader Organization - attached
Recommended Resources
Articles
Gavetti, G. (2011). The new psychology of strategic
leadership. Harvard Business Review, 89(7/8)118-125.
Retrieved from https://hbr.org/
Prokesch, S. (2009). How GE teaches teams to lead
change. Harvard Business Review, 87(1) 99-106. Retrieved
from https://hbr.org/
Welter, C. (2014). Leadership lesson: Keeping strategic focus in
a changing environment. (Links to an external site.)Links to an
external site.Forbes. Retrieved from
http://www.forbes.com/sites/johnkotter/2014/04/14/leadership-
lesson-keeping-strategic-focus-in-a-changing-environment/
Each part must be a minimum of 250 words
Part 1:
Leading Organizational Change
As this week’s material points out, we are living in times of
immense change. One of the essential tasks of an organization’s
leadership is to lead organizations in a way that ensures that the
entire organization is committed to the change and that support
mechanisms are in place to sustain change. Research several
online industries that are currently stressed by changing
marketplaces and demographics: the newspaper and publishing

Industries, entertainment media outlets, brick and mortar retail,
and even campus bookstores.
· Choose an organization within one of the industries listed
above, or one of your own choosing that is currently impacted
by a changing marketplace.
· How would you apply Kotter’s eights steps toward leading
change within that organization?
· Provide examples of the desired outcomes and support
mechanisms you would utilize.
Cite your sources appropriately to include the recommended
readings and the textbook.
Part 2:
Adaptive Leadership
Adaptive work is accomplished by finding a solution to
seemingly intractable problems facing leaders; the solution is
neither technical, nor obvious. As the material illustrates,
leaders must motivate organization members to face demanding
situations that arise from the organization’s own culture and
values. Using the organization you chose within this week’s
first discussion, analyze an adaptive challenge facing this
organization.
· Describe the adaptive work that needs to be accomplished.
· Analyze your approach to resolving the problem. Be certain to
include questions that would arise, and what trade-offs may be
required in your analysis.
· Describe the desired outcome.
Cite your sources appropriately to include the recommended
readings and the textbook.
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5 Leading Organizations
Learning Objectives
After reading this chapter, you should be able to
Explain threeareasof focus for organization leaders:
ef�iciency and process reliability, adaptation
and innovation, and human resources and human
relations.
Apply strategic approaches to team leadership,
speci�ically collaborative and adaptive leadership.
Explain the leader's role in creating the key
components of the organization's strategic plan.
Discuss organization change and the leader's role in
managing change efforts.
Discuss organization culture and how leaders create
cultures that embody employee engagement,
innovation, ethics, and a feedback focus.
Describe succession planning and leadershipdevelopment
and what it takesfor leaders to make
those processes effective.
Analyze the challenges facing leaders today.
Tomohiro Ohsumi/Getty Images News/Getty Images
AsiaPac
4/10/2018 Print

The hierarchical approach to organization leadership
empowers from the top down. The "emergence"
approach
involves empowering employees to organize at
every level.
denis_pc/iStock/Thinkstock
Introduction
There are two general ways to frame leadershipat
the organizational level. One is a top-down
hierarchical approach. This is the way we
commonly thinkabout
organizational leadership. Executives at the top of
the organization, led by the CEO, chairman of
the board, member of the executive team, or
head of a business
unit, create the vision, make decisions, and set
action strategies.Heads of smaller
organizations make similar decisions and set
actions in motion, even though
they might not necessarily have the whole support
structure of a Fortune 500 company.
Another way to view organizational leadershipis from
the perspective of emergence, where
the leader acts by enabling employees to self-
organize at every level. From this perspective,
leaders provide organizational members with the
resources and authority to act (Burnes,
2005; Smith & Graetz, 2011). Morning Star, a

largetomato processor and food manufacturer,
works this way. Employees at Morning Star manage
themselves, initiating communications
and coordinating with their colleagues without
management control. They establish personal
mission statements and negotiate commitments with
the associates who are most affected by
their work, so everyone knows what is expected of
him or her (Hamel, 2011). These
statements and commitments change from year to
year as employees accept more
responsibility and shift their job assignments to match
company needs and their career
interests. Morning Star business units operate the same
way, with employees negotiating
customer-supplier agreements with each other, paying
attention to the unit's pro�it and loss.
Of course, the preferred leadershipmodel is not
one or the other. Remember our discussion
of
balanced team leadershipin Chapter 4. Leaders balance
creating the vision with recognizing
team members' vested interests. Leaders balance
maintaining control with engaging team
members to act. And leaders balance acting with
taking time for re�lection about what is
working well and what can be improved. Organizational
leaders engage in a continuous
balancing act because organizations are in an
ongoing state of action, reaction, and
accomplishment, and organizational routines constantly
undergo adjustments to better �it
changing circumstances (Weick, 2001). The hierarchical
approach must be balanced with
emergence.

So we begin this chapter with the following
question: What does it take to be an
effective leader of organizations? In this
chapter, we discuss a number of
considerations for effective organizational leadership.
First, we provide an overview of threebroad
areaseffective leaders focus on to help ensure
organization
success. Then, we discuss strategic approaches to
leadershipthat are particularly relevant to leading
organizations. Recall that Chapter 1 introduced
you to three
strategic leadershipapproaches: full range leadership,
balanced leadership, and principled or ethical
leadership. Our discussion in this chapter
will add two
more approaches to your repertoire.
The majority of this chapter, however, will be devoted
to the four key competencies that leaders must
demonstrate in the role of leading
organizations:
1. Leading the strategic planning process and
knowing how to create the organization's
mission, vision, strategies,goals, and core values
2. Leading organization change
3. Leading culture change and knowing how to
create cultures that embody employee engagement,
ethical behavior, innovation, and a feedback
focus
4. Leading succession planning and development
processes to identify and develop the next
generation of leaders

How well do you understand each of these
competencies? How well prepared are you to
demonstrate them when the opportunity arises?
Each competency will
be discussed,in turn, in the following sections,
providing you with insight and how-to suggestions
for using thesecompetencies as you consider
your role in
leading organizations.
Note that the focus of this chapter will be on
both emergent and assigned leadership. We will, of
course, touch on the competencies speci�ic to
C-level executives,
but we will also observe how lower-level
organizational leaders or the leadsof business
units and small businesses can contribute to
leading organizations. After
the competency discussion, the chapter will close
with a look at two timely and relevant
leadershipchallenges—leading a multigenerational
workforce and
leading in times of crisis and adversity.
Although this chapter is about the role of leading
organizations, you will �ind that it reinforces the
themes established for this book:
Leaders need to lead themselves, otherindividuals,
teams, the organization, and networks of
associates within and outside the organization.
Leaders need to assess their own skills, knowledge,
and abilities and those of others and
determine the gap between thesecompetencies and
the
competencies needed to be effective in their

organizations.
Leaders create the culture in their organizations; as
such, they can inculcate the kind of culture
needed to ensure organizational success.
Leaders need to use technology to communicate
effectively across cultural boundaries.
Leadership is a balancing act.
Ethical leadershipis critical at all times.
Before we begin, we must �irstlay somegroundwork.
As in previous chapters, the Mone-London model
will be used to depict and explain the
leadershiprole. We
applied this general model in previous chapters to
conceptualize how leaders lead themselves, their
individual employees one to one, and teams. In
this chapter,
the model describes the relationship among the
leader, the direction the leader sets for the
organization, and the leader's role in creating,
developing, and
managing performance (see Figure 5.1).
Figure 5.1: The Mone-London organization model
applied to leading
organizations
The Mone-London organization model illustrates the
cyclical process of
organizational leadership: The senior leadership, at
the top of the �igure, strives
for innovation, growth, and pro�itability and
determines the direction-providing
components (mission, vision, goals, strategies,and
core values) through the
strategic planning process. These direction-providing

components then drive
decisions for the role-performance components
(strategic planning, organization
and culture change, leadershipdevelopment, and sound
relationships), using key
performance enablers. The organization and its
members produce results, which,
4/10/2018 Print
in turn, in�luencethe senior leadershipin setting
future goals and strategies.All
of this takesplace in the context of the
environment.
As depicted in the Mone-London organization model,
the leader's role in leading organizations and
striving for innovation, growth, and
pro�itability is to use the
strategic planning process to provide direction:
creating a clear mission, vision, set of
strategies and goals, and core values to support
the organization's success
and its ability to adapt to changes in the
environment. The results of the strategic
planning process provide the guidance for how
the strategic business units and
different functional departments in the organization
stay aligned and contribute to the organization's
overall success. These strategic plans are

then interpreted
by executives and managers at lower
organizational levels and used to direct actions
and behaviors (performance) that ultimately produce
results. Situations in
the environment within and outside the organization
affect all of thesecomponents.
The components of the leader's role performance in
an organization include the action-based
leadershipcompetencies we will discuss in this
chapter. Today,
thesecompetencies may be used to support a global
enterprise, to recognize the value of a
diverse workforce at home and abroad, to
act ethically and in a
socially responsible way for long-term viability, and to
deliver on the promise of both employee and
customer satisfaction. In addition, these
competencies give
rise to a leadershipthat produces innovation,
sustains organizational growth, and plans for
the future.
In an organization, factors that can enable
performance include key performance measures
that are communicated and cascaded throughout
the organization
(as discussed in Chapter 3). In addition, the
organization has policies and programs that enable
leader and employee performance, thereby helping
leaders to
successfully carryout their roles. One example is a
performance management system, which
typically includes goal setting, feedback,
development, and

performance appraisal processes.The human resources
and training departments may develop these
systems, but it is up to individual managers to
implement
them. As discussed in prior chapters, leaders review
performance, provide feedback to direct reports
on a regular basis, and create a climate
in which their direct
reports can discuss performance issues with them
and together identify ways to improve.
Having an engaged workforce is another factor
that enables the leader to produce results. Of
course, the leader produces and supports an
engaged workforce
through performance management methods, a
respectful and considerate leadershipstyle, and
mentoring and coaching.
For more perspective, consider watching at least the
�irst5 minutes of this video on leading
industrial organizations: http://www.youtube.com/watch?
v=4zUq7tnKeD8
(http://www.youtube.com/watch?v=4zUq7tnKeD8) .
The video is from INSEAD, a leading
European business school located in France,
and it
contains an interview with Henri-Dominique Petit,
CEO of Bacou-Dalloz, a multinational company
that manufactures industrial safety equipment. In
the
interview, Petit describes characteristics that are needed
for leaders today at all levels of an
organization, not just at the CEO level. One
key characteristic he
mentions is the importance of building bridges

across the organization and with other
organizations, especially in our increasingly global
environment.
http://www.youtube.com/watch?v=4zUq7tnKeD8
4/10/2018 Print
This clip discusses why it is necessary for leaders to
have a
vision that can be shared by those who follow
them.
Adapting to Change
Adapt to Change
From Title: Nurturing Leadership
(https://fod.infobase.com/PortalPlaylists.aspx?wID=100753&xti
d=65018)
Critical Thinking Questions
1. What might happen if a leader
neglected to get
others on board with his or her vision?
2. As a leader, how would you help to
incorporate your

vision into the culture of your organization?
5.1 Performance Dimensions for Organization Leaders
To enhance organizational effectiveness and ensure
organization-level success, leaders at all
organizational levels in largeand small
organizations tend to focus
on threemajor areas, or determinants of
performance: ef�iciency and process reliability,
adaptation and innovation, and human
resources and human relations.
This idea is based on a theory developed by
Yukl and Lepsinger (2004) called �lexible
leadershiptheory, in which leaders are able to
alter behavior and action as
necessary in thesethreebroad areasto driveorganization
effectiveness.
The importance of theseareaswill vary by organization
and time,and theseareasare affected by the
external environment. They also interrelate, so
efforts to
enhance effectiveness in one organization factor
will affect the others. Flexible leaders need to
carefully monitor and evaluate thesethreeperformance
dimensions to determine when and where to
intervene and to understand the impact of
that intervention on all performance dimensions.
Leaders should
recognize that their direct task and relationship
behaviors will have a positive effect when
used appropriately within a performance
dimension, and that those
leaders' behaviors can be reinforcedand enhanced by

virtue of the implementation of various
supporting programs, processes,and systems. Each of
the
performance dimensions is discussed in the
following sections.
Ef�iciency and Process Reliability
Ef�iciency is the use of people and resources to
perform work in the organization in the most
cost-effective manner, avoiding waste and
unproductive activities.
Being ef�icient becomes more strategic when the
organization decides to compete on price.
Leaders can enhance organization ef�iciency in
a number of ways,
such as restructuring the organization by reallocating
personnel, redesigning processes to eliminate
redundancies, and improvingcoordination between
team
members. Leaders also enhance effectiveness through
the use of task-focused behaviors and styles
(see Chapter 1). Further, leaders can in�luence
ef�iciency
through the types of organization programs,
systems, and processes they implement and support
(for example, Six Sigma and outsourcing).
Process reliability refers to consistency in quality
or performance. It is necessary to ensure
thereare no delays in service, product defects,
or production errors.
Process reliability becomes most strategic when
unreliable processes could result in signi�icant
harmto employees (e.g., on-the-job
accidents), harmto

customers (e.g., Volkswagen's scheme to override
emission testing equipment, making its cars
seemmore ef�icient than they actually were), or a
major negative
impact on the bottom line (e.g., requiring costly
recalls or reducing sales). Leaders can
enhance process reliability by ensuring quality
and product standards are
maintained and by emphasizing a task focus.
Leaders can also introduce programs, such as goal
setting and recognition (see Chapter 3), that
emphasize safety
and process improvement.
Adaptation and Innovation
Adaptation is a response to the environment
that typically requires changes in the
organization's mission, strategy, overarching goals,
products, processes,or services. These
changes may be due to the identi�ication of
important threats or opportunities in the
environment; adaptation may also be proactive, as an
outcome of the organization's strategic
planning process, or reactive, as a response to
major organizational change. Leaders can help
position their organizations for greater adaptation by
promotingorganization learning,
knowledge sharing between team members, and
�lexible work processes,such as �lexible work
schedules to accommodate employees' personal needs.
Innovation is a form of adaptation that
involves modifyingor creating products and
services to
better meet current or evolving needs or, in

someinstances, to give birth to entirely new
markets (e.g., Apple's iPad). It involves both
continuous improvement and breakthrough
change. Sometimes this requires being inef�icient,
at least for a time.Often, a leader may
need
to be temporarily inef�icient in order to
facilitate innovation, and then buckle down to
turn
innovation into ef�iciency.
Innovation is most important in turbulent, uncertain
markets. For example, consider how
manufacturers of �lat-screen televisions sought to
survive increased competition by debuting
various innovations, particularly with an emphasis on
largescreens and 3D technology.
Innovation is oftendriven by signi�icant
technological change or the entrance of new
competitors and is used to differentiate the
company from its competitors. Leaders can drive
innovation through the implementation of
creativity and innovation programs and setting
goals
for innovation that can be tracked through
performance management systems. For instance, a
business unit might set up a research and
development team to review the competition
and
new technology and design product innovations. A
leader might aim to bring a new
product, or
a substantially revised product, to market within
a designated period of time,similar to
how
Apple introduces new iPhone models or how it

sought to develop a smart-watch. We address
how to builda culture of innovation in Section
5.5.
To better understand innovation, watch Carl
Bass's TED Talk about how innovation is
taking
risks and breaking the rules and how this happens in
companies—which by nature are risk
averse—by hiring the right talent. Bass is
president of Autodesk, a leader in 3D design,
engineering, and entertainment software. He talks about
how innovations create new
products and services that respond to what people
want and how organizations are doing
business differently:
https://www.youtube.com/watch?v=YKV3rhzvaC8
(https://www.youtube.com/watch?v=YKV3rhzvaC8) .
Human Resources and Human Relations
As we stated earlier, leaders at all
organizational levels, in both largeand small
organizations,
tend to focus on threemajor determinants of
performance: ef�iciency and process reliability,
adaptation and innovation, and human resources
and human relations. As the repeated use of
the word human suggests, the third determinant of
performance focuses on how well people
in the organization work together to accomplish
the organization's goals.
https://fod.infobase.com/PortalPlaylists.aspx?wID=100753&xtid
=65018
https://www.youtube.com/watch?v=YKV3rhzvaC8

4/10/2018 Print
Apple's iPad is an example of innovative change.
Can you think
of any otherproducts that exemplify innovative
change?
Westend61/SuperStockHuman resources refers to the
skills and experiences of organization
members that can help
the organization achieve its goals. Knowing what
work needs to be accomplished and
knowing how to accomplish it is strategically
important to the performance of all
organizations. Leaders can buildeffective human
resources through effective selection,
training, and employee development.
Human relations refers to the levels of
cooperation, trust, commitment, and engagement
in an organization. When team and collective
efforts are required for
success, more effective human relations result in
higher levels of performance. Leaders can
strengthen human relations by building trust
and empowering others
(see Chapter 3), creating a culture of engagement
among the people in an organization (see
Section 5.5), and using a measure for
evaluating those efforts.

Human resources and human relations skills are
most important when the work requires complex
skills, when the skills are dif�icult or
take signi�icant time to
develop or acquire, and when the requisite skills
and knowledge are not readily available or
prevalent in the laborforce. An organization
that has a competitive
strategy primarily based on the knowledge and
skills of employees, such as a consulting
�irm, demands strong human resources and
human relations.
Leaders can demonstrate relationship-focused behaviors
and styles to increase the effectiveness of
human resources and relations (see Chapter 1).
Leaders can
also buildtalent and enhance cooperation through
performance management practices, as well as
through leadershipdevelopment and succession
planning
programs.
Leadership in Review
Re�lect on your learning by answering the following
questions:
1. What are the threebroad areasof leadership
focus?
2. When is innovation most important?
3. Is process reliability important only in
manufacturing organizations? Why or why not?
4. What kinds of situations might demand
strong human resources and human relations?

4/10/2018 Print
Leaders are more effective when they use in�luence,
rather
than power.
Blend Images/Blend Images/SuperStock
5.2 Strategic Approaches to Organizational Leadership
Let's take a moment to consider the difference
between power and in�luence. In Chapter 1,
we de�ined power as "a person's capacity to
in�luenceothers" and
observed that power can stem from various sources:
Power can be described as reward, coercive,
legitimate, referent, or expert, and certain
types of power tend
to be more effective when leading others. While
the word in�luenceis used to de�ine power,
the word refers more to referent power. A
leader who uses in�luence
instead of power to direct followers' behavior is
able to inspire and motivate without forcing or
imposing her or his will or manipulating others.
Leaders will be

more successfulwhen they focus on in�luenceover
power and recognize the value of their
followers expressing their opinions and in�luencing
decisions. This is
true especially when followers' commitment and
expertise are needed for an organization to be
successfulas a whole. (For more perspective on
this, see
Spotlight: Bing Gordon and In�luence.)
The importance of in�luenceover power is
increasingly evident as leaders move upward
in an
organization's hierarchy and must focus on leading
over managing,as we noted in our
discussion of Hunt's framework in Chapter 1.
Why? When attempting to shape the
hearts and
minds of thousands of people, leaders are most
effective when they use transformational
behaviors, such as idealized in�luenceand inspirational
motivation (see Chapter 1). It is almost
impossible to motivate an entire organization of
employees through the use of contingent
rewards. The following is a list of tactics that
leaders at all levels can use to in�luence
others
(Yukl, 2010):
Use rational argumentsbased on logicor facts.
Show how taking an action is a positive
step for the person.
Appeal to the values and ideals held by the
person.
Be inclusive and participative regarding plans and
decisions.

Provide an appropriate "quid pro quo."
Make a personal appeal (for example, "Do it
for me as a favor").
Offer sincere praise that recognizes the other's
ability to carryout a dif�icult task.
Rely on the support of others to persuade the
person to take action.
Spotlight: Bing Gordon and In�luence
According to Bing Gordon, a graduate of
Stanford Business School, the former chief
creative of�icer at video game company
ElectronicArts, and now a
partner at venture capital �irm Kleiner Perkins
Cau�ield & Byers, leadershipis about being
a teacherconsultant more than a wielder of
power:
There's a cost to having power, which is
that the people you have sway over actually own
you, especially if you're in a business where
thereare
more jobs than thereare good people. I like having
in�luence. I like being with interesting
people and helping them become better and
being part
of the �low of ideas. And that's a little bit
uncomfortable as a boss.It doesn't make
sense to people that the boss,who is kind of
a �igurehead and
maybe a con�idence-giving parent �igure, just
wants to be an experienced helper.
(Bryant, 2011a, p. BU2)
Of course, Gordon is a venture capitalist, which

is a different sort of leadershiprole, one that
requires nurturing good ideasand the people who
develop
and implement them. A venture capitalist needs
to be a "guide on the side"for those he
or she invests in, rather than someone who
directs their
performance. However, the people who work in the
venture capital �irm for Gordon also have
their own ideas, contacts, goals, and strategies.
Gordon
recognizes that thesecharacteristics bring value to
the �irm and need to be tightly integrated
with the �irm overall. However, theseideas,
contacts, goals,
and strategies depend on individuals' drive,
intelligence, and insight. Thus, Gordon aims to
in�luenceand shape their direction, as opposed to
exerting
power.
Re�lection Questions
1. What can leaders do to be teacher-
consultants to their subordinates?
2. How can leaders at the top of their
business unit or organization encourage all leaders
in the organization to be teacher-consultants?
3. How does being a teacher-consultant as a
leader add value to an organization?
Discussing power and in�luencedemonstrates how
organization-level leaders must sometimes take a
different approach to leadershipor account for
different
factors. Recall how we talked about strategic

approaches to leadershipin Chapter 1,
speci�ically full range leadership, balanced
leadership, and ethical
(principled) leadership. Unlike leadershipstyles,
which describe what leaders should do,
strategic approaches to leadershipprovide a
higher-level framework
for considering how to approach the problems and
challenges leaders face in organizations. In
this section, we discuss collaborative and
adaptive leadership, two
strategic approaches that are particularly applicableto
Collaborative Leadership
Collaborative leadershipis an approach that emphasizes
using leadershipskills across functional and
organizational boundaries. The goal is to create,
through
collaboration, more value than one could create
acting alone. Business leaders oftenform
alliances in response to the competitive
business landscape in the
United States and globally. Leaders at all levels
need to have a collaborative mindset and always
be on the lookout for potential partners. At
the executive levels,
collaboration can eventually lead to mergers,
buyouts, or closely knit customer-supplier
relationships (see, for example, Spotlight: Chris
Viehbacher and
Collaborative Leadership).
Anyone can be a collaborative leader by
promotingcloseworking relationships. At the lower

levels, collaboration can buildrelationships
between leaders and
between units and teams, both within the organization
and between organizations (e.g., customers and
suppliers). Collaborative relationships at any
level of the
organization can increase the likelihood of shared
goals, clear communication, and avoiding
misinterpretations or assumptions that lead to
costly mistakes.
Finding a Partner
4/10/2018 Print
In order to collaborate successfully, partners
must have
chemistry.
Westend61/Westend61/SuperStock
The �irststep in successfulcollaboration is to �inda
good partner. Note that a good partner is
not simply someone who wants to collaborate
with you. David Archer and Alex Cameron, in
their book Collaborative Leadership: How to Succeed in
an Interconnected World (2008),
speci�ied that leaders should recognize that thereare
somepeople or organizations that they
just can't partner with.Instead, leaders should have

the courage to act for the long term. In
otherwords, partnership is a two-way street.
Leaders should �indpeople who want to
collaborate. If the prospective business partner is
not responsive, move on, just as you would
in a personal relationship. The individual may not
see the value or may have othergoals to
accomplish that are different from the shared goals
that could result from collaboration. Or, at
least, the prospective partner fails to see the
bene�it of collaboration at the time when
the
leader suggests a partnership.
Rosabeth Moss Kanter, whose 1994 Harvard
Business Review article about collaborative
leadershipis now a classic, has indicated that there
are threekey ingredients to a successful
collaborative relationship. First, the partners need to
know themselves and, if they are high-
ranking executives, their industries. They need a
clear and accurate self-analysis to know
what they are capable of accomplishing. Second, the
partners need chemistry—rapport that
makes them believe they can work together. As Archer
and Cameron (2008) noted, leaders
should �ind the personal motive for collaborating.
Having common personal and social
interests can help buildthis rapport. Third, the
partners must be compatible: They must have
common experiences, values, and principles, as
well as shared goals for the future. At
the
organization level, it is of course of utmost
importance that the partners have �inancial

compatibility, which is oftendetermined by
the companies' �inancial
analysts. Executives usually need to focus on
evaluating the less tangible aspects of
compatibility.
For Kanter, a business or corporate collaboration is
much like a romantic partnership.
"Relationships between companies begin, grow,
and develop—or fail—
much like relationships between people," she wrote
(1994, p. 98)—and it is true that couples'
patterns of courtship and engagement are not
unlike those of
organizational partnerships. In her article, Kanter
outlined eightcharacteristics of an effective
collaboration—"eight I's that create successful
we's" (1994, p.
100):
1. Individual excellence. Both partners are strong
and have positive reasons for entering into the
alliance.
2. Importance. The leaders recognize the strategic
advantages of the alliance.
3. Interdependence. The leaders need each other.
4. Investment. The leaders are willing to invest
in each other.
5. Information. Both partners engage in ongoing
communication and information sharing.
6. Integration. The partners share ways of
operating for smooth interaction of work
processes.
7. Institutionalization. The responsibilities of each partyin
the alliance are clear.
8. Integrity. The leaders are honest with each other

(theydo not mislead or misuse information).
Implementing and Integrating
Like a newly married couple, partners must set up
housekeeping after entering into a collaboration. In
otherwords, thereneeds to be operational
integration,
meaning ways to carryout the collaborative work on a
dailybasis. This requires explaining and
involving others in the organization who need to
be committed to
the alliance, understand its purpose, and envision its
potential to create future value for all
the parties involved. Employees or direct
reports on both sides
usually will need to collaborate, sometimes
merging or sequencing work processes,sometimes
relinquishing responsibilities in favor of one
partner or the other.
For instance, in an international alliance, employees
may need training and support in communication
skills and cultural awareness to bridge
differences and
gain an understanding and appreciation of language
and cultural differences. Employees can be
empowered to do what is necessary to make
the partnership a
success, but they also need resources for learning support
and cross-functional teamwork. Perhaps due to
the multitude of ways we communicate
electronically,
thereare also more chances for miscommunication and
more ways for employees to undermine the
collaborative effort if they are not fully on
board. Archer and
Cameron (2008) recommended that leaders �ind ways of

simplifying complex situations for their people,
prepare for how they are going to handle
con�lict well
in advance, and actively manage the tension
between focusing on delivery and focusing on
building relationships, including strong personal
relationships at all
levels.
In short, collaboration requires elements of
transactional and transformational leadership.
Any collaboration, especially a complex corporate
merger, has
thousands of details largeand small to orchestrate.
These details are all part of a backdrop of
cultural differences—national culture, language
differences, and
corporate culture. Success also depends on overcoming
uncertainty, fear, and resistance to the status
quo. People at all levels need to accept
the challenges, be
fully engaged, and work willingly with others. Leader
behaviors need to be transformational in nature
to help employees to ultimately see the value
in the
alliance, to be committed to the overarching
goals, and to be highly motivated to achieve
them. Archer and Cameron (2008) suggested
leaders inject energy,
passion, and driveinto their leadershipstyle, have the
con�idence to share the credit generously,
and continually develop their interpersonal skills,
in particular
empathy, patience, tenacity, the ability to hold
dif�icult conversations, and the ability to build
coalitions.

What have you seen,and what is your experience
with collaborative leadership? Consider the
following questions:
Haveyou ever been in an organization that was
involved in an acquisition or merger, or a
strategic partnership? How would you characterize
the
behavior of the senior-most leaders during that
change? Was their behavior effective?
Haveyou ever led a team, or been on a team,
that acquired new members? What leadershipskills
did you draw on, or did you see the leader
draw on, to
make everyone feel comfortable?
Some leaders may fear that building cross-
organizational alliances will weaken integration of
work processes within each partner organization.
Kanter believes
otherwise. She discovered that alliances can
strengthen the local unit, as they prompt
employees to acknowledge between-unit
differences, respect local norms,
and communicate frequentlyand clearly within each
partner organization at all organizational levels
(Kanter & Dretler, 1998). For example, the
partnership may
stimulate employees to analyze their work �lows
within the organization to understand how
they can best interface with those associatedwith
the alliance.
For further perspective on the bene�its of
collaboration, consider watching the following video

featuring former Cisco CEO John T. Chambers:
http://www.youtube.com/watch?v=9WX7BNnYTf8&feature=rel
mfu
(http://www.youtube.com/watch?v=9WX7BNnYTf8&featur
e=relmfu) . Chambers explains
how abandoning "command-and-control" leadershipenabled
this dynamic and pro�itable company to
innovate more quickly, using collaboration and
teamwork,
as the Internet evolved.
http://www.youtube.com/watch?v=9WX7BNnYTf8&feature=rel
mfu
4/10/2018 Print
Adaptive leadershiprequires the ability to adjust to
changing
circumstances.
Hofred/iStock/Thinkstock
Spotlight: Chris Viehbacher and Collaborative
Leadership
In February 2011, Chris Viehbacher, the then-
chiefexecutive of Paris-based drug maker Sano�i-
Aventis SA, announced that his company was
purchasing
Genzyme in Cambridge, Massachusetts, for $20.1
billion. Genzyme is the world's largest maker

of biotech drugs for inherited diseases. This
was the
biggest drug acquisition sinceMerck & Co. agreed
to buy Schering-Plough Corp. for $47.1
billion in 2009. Viehbacher explained that
Sano�i was paying a
premium pricefor Genzyme because the company wanted
access to the best researchers and leading
products.
This was the 29th and largest deal made under
Viehbacher's relatively shorttenure at Sano�i; he
had joined Sano�i in December 2008.
However, in just 2
years, Viehbacher made a wide range of
acquisitions, including Gold Bond medicated
powder, Chinese cough remedies, and an Indian
vaccine maker. This
was part of his plan to expand the �irm's revenue
base,a strategy Viehbacher viewed as critical
because Sano�i's bestselling pharmaceuticals,
including its
blockbuster blood thinner Plavix, faced generic
competition (Mullin, 2011). Viehbacher
understood the critical nature of
collaboration. To make this
collaborative venture successful, his board of
directors, executives, and employees throughout
the �irm, as well as their counterparts in
the acquired �irms,
needed to understand it as well. In fact,
Sano�i's board members felt that Viehbacher
had acted without them and further objected to
Viehbacher
initiating layoffs in France and moving his own
of�ice to Boston. As a result, Viehbacher

was ousted from Sano�i in 2014 (Herper, 2014)
and in 2015 was
hiredto head a health care fund to invest in
biotech and life science �irms.
Re�lection Questions
1. What do you thinkwas required of CEO
Viehbacher as a leader to convince his
many stakeholders—from stockholders to
executives within Sano�i
and his merger partners—that this aggressive merger
and acquisition strategy made sense? His
experience shows this isn't always easy.
2. What leadershipskills are needed to make
thesecomplex collaborations successful?
Adaptive Leadership
Adaptive leadershipis an approach that engages and
empowers followers to own and solve problems
collectively, as a community, and to tackle
problems that
are hard to de�ine and have no clear, available
solutions. For example, consider a community in
which water is being polluted by local
industry, though the
community heavily depends on the jobs that the
industry provides (Heifetz, 1994). Or consider
Social Security in the United States, in
which thereis con�lict
between those who feel entitled to receive
bene�its and those who are anxious about
the growing de�icit. Both of theseexamples are
complex, nonroutine

situations that reveal the importance of adaptive
work, in which having all parties
involved and engaged in the solution is
essential to �inding resolution.
Thus, adaptive leaders oftenavoid using their
own authority to solve the problem because
the problem itselfis not sharply de�ined and no
ready, clear solutions
are available. Instead, leaders energize and mobilize
followers, helping them to engage in and face
the realities and con�licts necessary to resolve
thesedif�icult
problems. This might involve motivating organization
members to face dif�icult situations, such as
making the necessary trade-offs to bring closure
to the
situation, addressing con�licts in values, or
mitigatingthe gap between the values they hold
and the reality they face in the organization.
Leaders might need to
evaluate the failure of the organization's culture to
address problems, which might stem from the
organization's own culture and values. Adaptive
leaders
become expert at provoking learning by asking
dif�icult questions and by creating the expectation
that the followers will develop their ability to
create a solution.
According to Heifetz (1994), who �irstput forth
this adaptive leadershipmodel, "In situations that
call for adaptive work . . . social systems
must learntheir way
forward" (p. 87). In the end, leaders and followers
share a joint responsibility for success.

Heifetz (1994) offered �ive strategic principles for
the work of adaptive leadership:
1. Identify the adaptive challenge.
2. Keep the level of stress and discomfort at
optimal levels so the adaptive work can
continue.
3. Maintain the focus of attention on engaging
issues and not on distractions that may arise.
4. Ensure the work is absorbed by the people
involved at a rate they can manage.
5. Provide protection for those without leadership
authority who raise the hard questions and challenge
the status quo.
Essentially, adaptive leadershipis knowing what to
do, when. As we noted in Chapter 1,
full
range leadershipis adaptive leadership: A leader
must know when it is more appropriate to
use transactional behaviors and when to use
transformational behaviors. Flexible leadership,
discussed in Section 5.1, is also adaptive: Leaders
must know what behaviors and actions to
implement to support the threebroad areasof
focus. Adaptive leadershipprovides leaders
with a framework for thinking about how and
when to exercise their authority. When
problems are routine and can be solved by current
methods and technologies, leaders can
more effectively rely on their legitimate power.
However, when problems are hard to de�ine
and clear solutions are unavailable, leaders need to
engage and empower followers to own
and solve the problems collectively, as a
community, an effort that is more

transformational in
nature. When goals are clear, all parties
agree to them, and the method for
achieving them is
determined by the available technology, then leaders
should use a computational approach to
decision making. In otherwords, they should
calculate the best alternative choice from the
methods available. However, if goals are clear and
agreed to but methods are complex and
uncertain, leaders will need to exercise their judgment.
As an example, consider a newly appointed chief
information of�icer (CIO) who wants to
upgrade the technology throughout her organization
by introducing an enterprise-wide
system that integrates key aspects of the
organization's operations, including budgeting and
�inance, human resource systems, and project
management. She meets resistance from
department heads who have invested in their own
systems and do not see the value of a
single
system that allows relating thesedifferent aspects of
operations. As an adaptive leader, she
can allow the department heads and their people
to discuss opportunities for system integration,
observe how it works in otherorganizations,
and consider how
they might improve their existing systems to
accomplish someof the same goals if
possible. The CIO not only listens to concerns,
but also engages these
stakeholders in the process of evaluating what is
needed, designing customizations that could make
them more ef�icient now and assessing whether an

enterprise-wide system is indeed right for the
organization. Although she believes such a system
is the best solution, she is willing to adapt
by recognizing
different perspectives, expertise, and needs and
empowering the stakeholders to arrive at
their own solution with her and her staff's
guidance and support.
Measuring the Gap in Strategic Leadership
4/10/2018 Print
A leadershipapproach must be effective in producing
the desired outcomes. For example, a collaborative
leadershipapproach is useful when faced
with mergers,
acquisitions, or joint ventures. What determines
the effectiveness of collaborative leadershipis
the extent to which the given partnership
produces the desired
results. If the results are not achieved, thereis a
gap in leadership. Measures, such as �inancial
measures, market share measures, and others,
are helpful for
determining business results. Other measures, such as
employee survey-based measures, can help to
determine the extent to which the new
organization culture
is positive and includes a spirit of cooperation.

Adaptive leadershipis useful at all organizational
levels when faced with differences of
opinion or resistance to change. What
determines the effectiveness of
adaptive leadershipis the ability to recognize other
points of view and ways others can contribute,
as well as the ability to be �lexible enough
to not just consider
others' ideasbut be willing to implement them.
This shows trust in others, recognition of
others' expertise, and a willingness to
compromise. However, the
adaptive leader does not just give up in the face of
opposition. Rather, the leader may use a
variety of strategies to allow others to
express their opinions, test
their ideas, and consider alternatives. The gap in
adaptive leadershipcan be measured by the extent
to which organization problems are resolved to
the
satisfaction of all parties.
To be successfuloverall, leaders need to establish a
map for guiding the organization, which also
establishes the requirements for using one or
more of the
various leadershipapproaches. This map is the
organization's strategic plan, which is the result
of the organization's strategic planning process.
Leading this
process is discussed in Section 5.3 and is one of
the key competencies in the leading organization
role.

questions:
1. How would you de�ine collaborative
leadership, and when is it most effective?
2. How would you de�ine adaptive leadership,
and when is it most effective?
4/10/2018 Print
The strategic planning process must include the
organization's
goals, its core values, and its mission.
amanaimagesRF/Thinkstock
5.3 Strategic Planning
Regardless of whether leaders are in a
changing or a relatively stable environment,
the
direction for the future of the organization should
be driven by the organization's strategic
planning process. We introduced the idea of a
strategic plan in Chapter 1 and discussed the
fact that the plan should include the following

components:
Statement of the organization's core values
The organization's mission
The organization's vision
Strategies for achieving the mission and vision
Overarching goals
Long-term objectives critical to organization
success, based on core values and
derived from the mission and vision
In this section, we brie�ly describe the important
components of a strategic plan and describe
what it takesto create each component. Knowing
how to develop each of thesecomponents is
a leadershipcompetency for the role of leading
organizations. For the entire enterprise,
leaders take a hands-on role in developing the
strategic plan, although outside consultants
may also be utilized in various stages of the
strategic planning process. Mostlarge
organizations will schedule and trackthe process and
timeline for plan completion in the
corporate calendar, which includes key actions and
events for the organization such as
executive team meetings and budgeting. Regardless,
senior leaders in most organizations,
such as those heading largefunctional groups or
business units, are almost always expected to
carryout the strategic planning process for their
direct
organizations, in alignment with the overall enterprise
direction.
How Core Values Are Developed

Core values are the deeply held beliefs that
characterize and de�ine the behaviors necessary to
ensure organization success. Some leaders
need to be convinced
that it is important to identify and communicate
the company core values, while others invest
in cascading a 360-degree feedback process,
along with
professional coaching, to managers throughout the
organization to ensure that the managers' actions
are aligned with the company's new core values.
In fact,
core values serve a speci�ic role in helping to
shape the culture of the organization. Schein
(1987, 2010) described core values as
espoused beliefs—what
leadershipsays about how employees will work and
act together. Ideally, theseespoused beliefs will be
consistent with leadership's underlying and taken-
for-
granted beliefs and assumptions. According to
Schein, core values are the deepest level of
culture, meaning that they underpin the entire
organization and will be
expressed in all visible aspects of the
organization, from its structure to its systems,
processes,and policies.
Strategic planning starts with articulating the core
values and behaviors that will underlie the
organization's mission and how it is
accomplished. Leaders start
by discussing what they thinktheir core values are or
should be. As a result, the core values
will be based in part on the leaders' cultural
background and in part

on the leaders' beliefs and conception of the
type of company or business they want to lead.
For example, Western culture emphasizes the
values of
individualism, creativity,and equality (Hofstede,
Hofstede, & Minkov, 2010; House, Hanges,
Javidan, Dorfman, & Gupta, 2004). Values
emphasized in Eastern
cultures include team-above-self (collectivism), respect
for authority, and delaying grati�ication. Corporate
values may incorporate such culturally based
values
and integrate values from different cultures, especially in
a multinational corporation.
Onceleaders have determined a proposed set of
values, they can choose to further engage
others for feedback by sharing and discussing
them with their direct
report teams or by engaging HR to conduct
focus groups with employees about the
appropriateness of the values. Being as
inclusive as possible when soliciting
inputon the proposed draft of values and behaviors
will go a long way in making sure employees
commit to them.
Table 5.1 shows an example of one global
Fortune 500 company's core values and
samples of de�ining behaviors. Note how the
company—one of the companies
we worked with as consultants—chose to incorporate
values from different cultures (e.g., the values
innovation and working with others).
Table 5.1: Fortune 500 company core values and

related behaviors
Core values Sample behaviors
Innovation
We are constantlylooking for ways to innovate and
improve. We embrace
change as an opportunity.
Challenges current ways of doing things and
offers creative,
alternative approaches
Identi�ies opportunities and takesthe initiative to
create new
products, services, systems, processes,etc.
Anticipates and looks for creative ways to meet
customer needs
Pursuit of quality
We have a passion for pursuing continuous quality
improvement and strive
for excellence in all we do. We measure our
progress and take fact-based
action.
Maintains an optimistic outlook and demonstrates a
high energy level
Delivers results with ef�iciency and effectiveness in
all areasof job
performance
Focuses on ensuring a quality customer experience
that exceeds
expectations
Working with others
We communicate actively and openly and buildtrust by

keeping our
commitments. We respect and value diversity.
Collaborates effectively within and across
departments to accomplish
shared goals
Communicates openly and clearly with people at all
levels in the
company
Shows respect for others and their ideasregardless of
department,
position, or background
Acting with integrity
We are honest in all interactions. We earn our
reputation by adhering to the
highest standards of ethics and integrity.
Is open and honest in dealing with others
Makes decisions and acts responsibly, considering
short-term and
long-term results
Operates within the letter and spirit of the
law
4/10/2018 Print
Performance above expectations
We strive for, recognize, and reward outstanding
performance. We hold

ourselves and each otheraccountable for achieving our
goals.
Provides feedback to others to improve performance
Sets clear performance and development goals and
assesses own
performance against those goals
Owns, takesaccountability for, and achieves results
Articulating thesevalues is the start of developing
a values-driven strategic plan. Not articulating
thesevalues at the outset of the planning
process can
contribute to disagreements among the leaders or
owners of the business. Even for individual
proprietorships, not recognizing the values
that underlie what
they aim to accomplish may lead to goals and
decisions that are confusing or con�licting. In
addition, articulating the values helps leaders
to be clear about what
outcomes are of utmost importance to them and
what types of decisions and behaviors determine
how they will go about accomplishing their goals.
See
Considering HR's Role in Developing Core Values
and Behaviors for a look at how HR
professionals can play a role in developing a
company's core values and
behaviors.
Considering HR's Role in Developing Core Values
and Behaviors
HR professionals are called upon to re�ine the
core values and further clarify and develop

the de�ining behaviors. This is typically done
because those in
HR will normally be expected to use the values
and behaviors as the basisfor 360-degree
feedback processes,performance appraisals, and
leadership
development programs. Through statistical analysis, HR
professionals can ensure that each core value
and its respective behavior set aligneffectively,
providing a validand reliable base upon which to
buildthe performance management and development
processes and programs, as well as others.
Oncere�ined and clari�ied, the set of core values
and behaviors is reviewed, analyzed, and discussed
again by the executive team to ensure
agreement
with and commitment to the values. This is an
extremely important step because the values need to
be accepted by people in senior leadership
positions.
Employees will look to them to see if their
behavior is consistent with the values, or in
Schein's framework, to determine if the basic
assumptions and
visible behaviors of those in leadershipare
consistent with their espoused values. This is how
employees determine the integrity of the
leadershipwithin
the organization. In otherwords, do the leaders do
what they say is important to do?
How the Mission Is Developed
Mission is what the organization does to make
the vision a reality, or what it strives to

create. In Chapter 1, we de�ined mission as
"the fundamental purpose of
the organization, or its reason for being—the
business that it is in." As Abrahams (1995)
wrote, "Every company, no matter how big or
small, needs a mission
statement as a source of direction, a kind of
compass, that lets its employees, customers,
and even its stockholders know what it stands
for and where it's
headed" (p. 33).
Mission statements may come in a variety of
forms. For example, a mission statement might
be a shortstatement,such as A�lac's: "To
combine aggressive
strategic marketing with quality products and services at
competitive prices to provide the best
insurance value for consumers"
(MissionStatements.com, n.d.,
para. 8). (For more mission statements, see
https://www.missionstatements.com/fortune_
500_mission_statements.html
(https://www.missionstatements.com/fortune_500_mission_state
ments.html) .) Or, a mission statement might be
a shortstatement followed by a number of
qualifying
statements, which are oftenabout the nature of
the company's employees, its customers,
and the marketplace. Mission statements may
also include statements
related to the company's shareholders, communities
they serve, business partners, and society as a
whole. At one point, for example, the Baldor
Electric
Company's mission statement read as follows:

Our mission is to be the best (as determined by
our customers) marketers, designers and
manufacturers of electric motors and drives. To
achieve this
we must: provide better value to our
customers than any of our competitors; attract
and retain competentemployees dedicated to
reaching our goals
and objectives; produce good, long-term results
for our shareholders. (Funding Universe, n.d., para. 1)
Who should have inputon writing the mission
statement? Mission statements should be
considered individually by each executive team
member in preparation
for a detailed discussion with the full executive
team. The full team will usually set asidetime to
brainstorm elements of the mission statement
and then leave
the drafting of the statement to one of the team
members. Alternatively, someexecutive teams go
through arduous discussions and then draft several
versions
for the team to review and decide upon. Often
during the process, the executive team will solicit
inputon the drafts from their direct report
teams to test the
meaningfulness of the mission statement.Some
organizations may do somethingsimilar to what
was described by Hempel (2006) as a "values
jam" at IBM, with
the top executive involving the entire employee
population in an interactive, online
dialogue to vet the mission statement.This latter
technique can also be used

for soliciting inputon the vision statement,which
we discuss next.
How the Vision Is Developed
In Chapter 1, we de�ined vision as the
organization's "picture of the future, which
clari�ies the direction for the organization in a
high-level, general way." The
vision addresses future aspirations and desired
outcomes and oftenre�lects the emotions and passion
that organizational members feel, especially the
leadership(Burke, 2008). In addition, visions
typically have a horizon of 3 to 5 years
and act, in someways, as a stretch goal
for the organization.
Drawing on Kotter (1996), consider the following as
characteristics of an effective vision:
It should be imaginable. It should convey a
picture of the future— what it will look like.
It should be desirable. It should appeal to all
those who have a long-term interest or stakein
the organization (employees, industry analysts,
investors,
bankers, customers, business partners).
It should be feasible. Although it should pose a
challenge or stretch for the organization, it
still needs to be realistic and attainable.
It should be focused. Along with the mission
and othercomponents of the strategic plan, it
should be clear and plainenough to provide
guidance to
employees, managers, and leaders when making
decisions.

It should be �lexible. As a high-level guidepost,
it should not be constrictive, as it needs
to allow for employee autonomy and initiative
across the
organization.
It should be communicable. It should be easy to
describe and understandable to those outside
the business, as it needs to be discussed
and shared over
and over again.
https://www.missionstatements.com/fortune_500_mission_state
ments.html
4/10/2018 Print
An organization's vision re�lects the driveand
direction of its
members and, in particular, its leaders.
Culture Limited/Cultura Limited/SuperStock
This clip discusses why it is necessary for leaders to
have a
vision that can be shared by those who follow
them.
Leading with a Vision
Vision
From Title: Nurturing Leadership

(https://fod.infobase.com/PortalPlaylists.aspx?wID=100753&xti
d=65018)
Critical Thinking Questions
1. What might happen if a leader
neglected to get
others on board with his or her vision?
2. As a leader, how would you help to
incorporate your
vision into the culture of your organization?
Cirque du Soleil is an example of an
organization that adopted
the blue ocean strategy. Besides Apple and Google,
can you
name any otherorganizations using blue ocean
strategic
planning?
WaelHamdan/age fotostock/SuperStock
One good example of a shortvision statement is
the following: "To revolutionize the way IT
powers business agility." Similar to the mission
statement,the vision statement is generally
discussed by the senior executive team and drafted by
one of its members, and additional
inputis oftensought from direct reports and
employees.
How Strategies Are Developed
At the organization level, strategies answer the

question "How will we achieve our mission
and
vision and lay the groundwork for setting
organizational goals?" You may recall from Chapter
3
that goal statements de�ine the end result and
strategies de�ine how the goals will be
achieved.
At the organization level, the mission and vision
act as high-level goal statements, which then
require the crafting of an initial, high-level
strategy. Oncethat high-level strategy is determined,
establishing more speci�ic goals, strategies,tactics,
activities, and measures of success (as we
discussed in Chapter 3) will follow. Strategies are
determined at the overall corporate level for
the entire organization and also at the level of its
strategic business units; however, business
unit strategies must complement one another and be
congruent with and supportive of the
corporate strategy.
Managers and leaders are oftenconfused about what a
strategy is, as well as how to construct
one. An effective strategy is neither too abstract
nor all encompassing; it should be speci�ic
and
clarify the major priorities for the organization.
For example, a company that wishes to achieve
its vision by having the right people and
organization in place might de�ine its
initial, high-level
strategy as "Build a talented, global workforce
and an organization with the capability to learn
and grow." From that statement,high-level goals
would be developed and the unique, speci�ic

strategies put in place. Essentially, the leader is
working backwards by developing these
strategies from the organization's overarching goals,
which is the topicof the following section.
Strategies are usually derived as a result of
discussion among the organization's leaders
based
on the analysis of data (e.g., available market
share), number and size of competitors in a
product area, market needs, and the like. The
discussion would focus on de�ining the
current
business, performing external and internal audits of
how well things are working now and
where they are working better (e.g.,
competitors), and formulating a new direction
(Dessler,
2011). There are a number of strategic areas
for companies to consider as they develop
their
strategies.For example, Tregoe and Zimmerman (1980)
presented nine basicstrategy areas,
grouped into threemajor categories:
Products/markets: products offered, market needs
Capabilities: technology, production capability,
method of sale, method of distribution,
natural resources
Results: size/growth, return/pro�it
However, theseand most othercurrent strategic planning
processes revolve around industry
boundaries. A boundary for the fast-food industry,
for example, is that fast food is sold largely
through fast-food restaurants; you won't �ind a

Big Mac on the menu at a Four Seasons
Hotel.
These boundaries are de�ined and accepted as
the status quo, with known rules of
engagement, or how companies will compete with
each other. So, for example, the fast-food
industry competes on priceand speed of service.
Companies will try to win from each othera
"bigger piece of the pie" or market share,
which becomes increasingly harder to
accomplish.
Kim and Mauborgne (2005) referred to this
approach as the red ocean strategy (working in
a
red, or limited, body of water). Although it is
important to compete in a red ocean, Kim
and
Mauborgne suggested pursuing a blue ocean
strategy, where companies focus on
untapped
market space (blue, unchartered waters), where
they can create demand and the opportunity
for highly pro�itable growth. Companies
following a blue ocean strategy are often
outgrowths
of expandingred ocean industry boundaries. For
example, consider Cirque du Soleil, which
does not compete against Ringling Brothers and Barnum
& Bailey in the strongly held market
for children. Cirque du Soleil revamped the
standard circus offering and now successfully
serves the adultand corporate client market. Apple
and Google are two other�irms that have
been successfulin blue ocean strategic planning.
How Overarching Goals Are Developed

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=65018
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At the organization level, overarching goals
de�ine the high-level results the organization
and
business units and departments within it commit to
and expect to achieve. These are established
at the top of the organization and begin
the process of
empowering others at all levels of the
organization through goal setting, which we
discussed in Chapter 3.
The head of human resources may contribute to
drafting the organization's overarching goals.
The goals typically include the �inancial targets,
and the board of
directors ultimately approves the goals with or without
somemodi�ication. Recall the four goal statements
for a top executive presented in Chapter 3:
Ramp up growth
Delight all customers
Become a thought and technology leader
Develop employees and the organization
Oncethesegoals are in place and communicated by

the CEO and the leadershipteam, the entire
process of cascading the goals and aligning
the efforts of all
employees with the strategic direction of the
business can be successfully achieved.
Measuring the Gap in Strategic Planning
The ultimate success of a company's strategic
plan can be measured by the extent to which
it was achieved. However, senior leadershipis
also accountable for
the overall effectiveness and logicof the strategic
plan.
To evaluate whether the plan itselfwas successful, it
is important to validate the logicand alignment of
the core values, mission, vision, strategies,and
goals. This
is helpful to determine whether the fault lies with
the plan or with the execution of the plan. To
determine this logicand alignment, one might
ask questions such
as the following:
Are the strategies aligned with achieving the vision?
Are the goals aligned with the strategies?
Are the goals focused on what it takesto be
successful?
Are the core values helping to guide appropriate
and necessary behavior?
Plan success is typically measured by objective
�inancial results. However, the goals of the
organization must go beyond the �inancial,
and the achievement of all

the goals should be measured. Therefore, all
metrics, even more subjective ones such as a
company's annual employee opinion survey,
should be identi�ied in the
strategic planning process.
One outcome of the strategic planning process can be
a need for organization change or a change
in the organization's culture. Organization change
is addressed
in Section 5.4, and a speci�ic discussion of
organization culture change follows in Section
5.5.
questions:
1. What is the primary purpose of strategic
planning?
2. What role do an organization's core values
serve?
3. What is an organization's mission statement?
4. What is the purpose of an organization's
vision?
5. What is an overarching goal?
4/10/2018 Print

Leading change is embedded in the history of
industry;
therefore, the ability to effectively manage change
is crucial to
leading an organization.
Hero Images/Hero Images/SuperStock
5.4 Leading Change
Leading and managing change in organizations was
not always a high priority, but it became
much more of one beginning in the late 1970s
with the onset of global competition and
major
structural changes to various industries, such as
the telecommunications and auto industries.
Today, the business world is growing increasingly
complex, with a global economy and an
oftenturbulent environment across most industries.
Indeed, leading change is probably the
most critical competency necessary for the role of
Change in an organization can run the gamut
from a modi�ication to one small system,
such as
the processing of customer invoices in the sales
department, to changes in the organization's
mission, vision, leadership, or culture, which
are more signi�icant in that they affect the
fundamental way things are done across the entire
organization. Just consider the impact on

the United States when a new president is
elected—a change in leadership—and the
widespread rami�ications experienced not only in
the United States, but around the world.
Types of Change
Change can be planned. Apple's iPad is certainly
the result of a planned change to
introduce
an exciting new product to the marketplace.
According to Burke (2008), planned change
is
de�ined as a deliberate, proactive, conscious
decision to change. Unplanned change is an
organization's response to unanticipated external events.
For example, the introduction of the
inexpensive digital watch in the 1970s with
ongoing changes up to the smartwatch of
today
radically reshaped the Swiss watchmaking industry.
Swiss watchmakers, known for expensive
watches such as Rolex and Breguet, eventually
had to change their
strategy and instead successfully market their
complex, mechanical watches as heirloom luxury
goods that are passed down from generation
to generation. We
focus in this section on leading planned change,
given that the signi�icant task when leading
organization change is ensuring that the entire
organization is
aligned around the change and that the necessary
mechanisms are in place to support and
drivethe change to a successfulconclusion.

The challenge of leading and driving planned change
has been an important topicin the organization
development (OD)literature for sometime.In fact,
one of
the founders of the OD �ield, Dick Beckhard, wrote
in 1969, "A universal preoccupation of
enterprise managers is to develop and adapt
their organizations to
better cope with and shape the environment in
which the enterprise operates" (p. 2).
When planned change efforts focus on
modifyingexisting characteristics in an
organization, such as changing the sales commission
process or offering
leadershiptraining, it is considered to be
incremental change, or transactional change.
Fundamental or transformational change is a
radical planned change
in the organization's mission, vision, strategy, culture,
or leadership. Table 5.2, adapted from Burke
(2008), depicts the various descriptions of
change based on
the type of change (incremental or fundamental)
and whether it is planned or unplanned.
Table 5.2: Types of organization change
Type of change Planned change Unplanned change
Incremental Transactional Evolutionary
Fundamental Transformational Revolutionary
Source: Adapted from Organization change: Theory
and practice (2nd ed.), by W. W. Burke, 2008,

Thousand Oaks, CA: Sage Publications.
The Change Process
Change involves altering or radically modifyingsome
aspect of the organization, from its processes
and systems to its more fundamental direction-
providing
components described in the Mone-London organization
model. However, change also needs a
process—a way for it to be planned,
implemented, and sustained
by the leaders of the organization. Figure 5.2 is
a model that simpli�ies the overall change
process.
According to Beckhard and Harris (1977), leaders
begin the change process by determining
the future state,
or the vision, as discussed in Section 5.3. The
vision should clearly de�ine the direction
for the organization; it
is the outcome or the result leadershipwants to
achieve after the change is completed. Once
the vision is
de�ined, leaders need to turn their attention to the
present state of the organization to determine
what
aspects of the organization need to change to
make the vision a reality. For example, a
vision that focuses on
expansion into global markets may require
strengthening the competency cultural intelligence
(the
knowledge necessary to interact effectively across
cultural situations) throughout the

organization's middle
management ranks. Finally, and this is where
the majority of the change effort is
required, leaders must
manage the transition from the current state to the
future state. The transition state is
characterized as the
period of time it takesfor the organization to
successfully make the change. For
transformational change,
success may take a minimum of 3 to 5 years.
How does a leader "lead" the change process?
Kurt Lewin (1958) provided the essential three-
step framework
that many have discussed and enhanced (e.g., Burke,
2008; Schein, 1987) or expanded (Kotter,
1996). We will
review �irstLewin's seminal framework and then
Kotter's eight-step model for leading change
efforts in
organizations.
Lewin on Leading the Change Process
Kurt Lewin proposed that change involves unfreezing
the organization (helping employees to let go
of the
past), moving or changing the organization
(helping employees to learnnew ways of
thinking and acting), and
refreezing the organization after the change (reinforcing
the new ways of thinking and acting).
Unfreezing involves creating the motivation and
readiness for change. Change usually involves
the need to

alter, radically change, or at least unlearn or let
go of currently held perspectives, attitudes, values,
or
behaviors, so employees must feel a sense of
disequilibrium or pain to prompt the change.
One way of helping
Figure 5.2: Basic model of change
management
The change process can be simpli�ied into
threesteps.
4/10/2018 Print
1. Create a sense of urgency. Leaders
need to be sure that as many people as
possible within the organization recognize the
need for the change.
2.Build a guiding team. Out of the
sense of urgency, leaders need to create
respected and credible teams to guide the
change initiative.
to unfreeze the organization is for leaders to
create a sense of urgency, a "do or
die" feeling about the need for
the change. Employees must believe the organization
may not be able to survive without undergoing
the

proposed change. At the same time,it will be
important for leaders to share a compelling
vision to help pull
the entire organization to the desired future
state.
Changing is similar to Beckhard and Harris's (1977)
transition state and involves making the changes
necessary to achieve the vision. During this phase,
leaders help employees to see and learnthe
new
perspectives, attitudes, values, and behaviors that are
important to achieving the vision. Leaders do
this by
acting as role models, demonstrating the new
expectations, and in particular by demonstrating
more
charismatic and transformational leadershipbehaviors,
inspiring action by appealing to employees'
emotions
and values. During this phase, leaders may also
see employees in various stages of
reacting to the "loss" of
what was, stages best articulated by Kübler-Ross
(1969) as shock and denial, anger,
bargaining, depression,
and acceptance.
Refreezing requires reinforcing how the organization
will operate in a way consistent with the vision
by
altering the processes or systems to help sustain
the new perspectives or attitudes. For example,
the
organization can be restructured to ensure a
desired enhanced focus on customers. The

performance
management system can be modi�ied to emphasize
evaluating and appraising leaders on a
new set of
competencies, such as cultural intelligence. The
management incentive plan can be changed to tie
a greater
percentage of an individual's bonus to the
ability to work effectively in a new team-
and matrix-based
organization.
Leaders, therefore, have to be sure they can motivate
their employees to change, help them to change,
and
then sustain the changes in their attitudes and
behaviors. This,of course, requires many of
the competencies
discussed in earlier chapters, including the cognitive
ability to deal with complex change and the
emotional
intelligence to be sensitive to how others feel as
they undergo change. Leaders also need to have
resilience to
deal with obstacles that they might face, including
resistance to the change, and the ability to
deal with
ambiguity as they take their organizations on long-term
journeys to new ways of operating and delivering
results. Leaders will need the savvy to identify
and reward those who are meeting the new
expectations, using
a variety of methods such as merit increases,
bonuses, and promotions to high-level, critical
roles. They also
need the courage to remove those who are not in

support of the change, particularly the most
senior leaders
who refuse to get on board and whose actions
are widely visible to all and potentially
quitedetrimental to the
success of the change.
Kotter on Leading the Change Process
John Kotter's eight-stage model (Kotter, 1978,
1996, 2008; Kotter & Cohen, 2002;
Kotter & Whitehead, 2010)
can be divided into threephases (see Figure 5.3).
We now discuss each phase and the stages it
includes.
Figure 5.3: Adaptation of Kotter's eight-stage
process
Kotter's eight-stage model can be divided into
threephases, which parallel Lewin's unfreezing,
changing,
and refreezing stages.
Source: Adapted from Kotter, 1978, 1996, 2008;
Kotter & Cohen, 2002; Kotter &
Whitehead, 2010
The �irstphase involves creating a climate for
change. The leader's main goal is to make
the organization aware of the need for change
and prepare the
organization to act. This phase is similar to
Lewin's unfreezing stageand includes the �irst
threestages of Kotter's change process model:

4/10/2018 Print
3.Develop a vision and strategy. Leaders
need to provide a clear target or vision
for the organization's future and to ensure
thereare clear strategies that show
employees how the vision will be achieved.
4. Communicate the change vision. Leaders
need to overcommunicate, using a variety of
media, to ensure employees understand
the vision, to gain greater
commitment to the vision, and to overcome any
signsof resistance.
5. Empower broad-based action. Leaders
need to remove barriers to implementing the
change. Barriers might include formal
structures that get in the way of
acting, a lack of skills to take needed action,
unsupportive managers, and misaligned information
systems.
6. Create short-term wins. Leaders need to
generate wins to be sure the vision and
strategies are on trackand to make any
necessary modi�ications, to further
prove the viability of the change effort, and to
create momentum for behaving in new ways.
7.Don't let up. Given the connectedness of

various systems and processes across the
organization, leaders need to continue to engage
their employees in the
change and to sustain and broaden the change
effort as appropriate throughout the
organization.
8.Make the change stick. Leaders need to
ensure the change is sustained in the
organization, that it becomes a part of the
organization's fabric. This is
accomplished by making the necessary widespread
changes in the organization's structure, systems,
processes,and, most of all, norms and values.
This will
guide how people act and ultimately embed the
change in the culture.
Oncethe climate for change is established, leaders
begin the next phase, engaging and enabling
the whole organization to make the change.
This phase is similar
to Lewin's changing stage. The leader's main goals
in this phase are to ensure all employees
understand the vision and direction for the
change, feel enabled and
empowered to act in new ways consistent with the
vision, and see earlysignsof success for their
efforts. Leaders engage the entire organization
in stages 4, 5,
and 6:
Kotter's last two stages are focused on
implementing and sustaining change. Change often
fails because people growtired, give up,
continue to resist the change

effort, or get distracted with new problems and
challenges. Leaders need to �irmly anchor
the change in the culture as the new way of
doing things. Stages 7 and
8 are as follows:
Table 5.3 offers key questions leaders can ask
themselves as they proceed through each stageof
the change. Leaders will need to take the
necessary action where
they can't answer a question with a resounding
yes.
Table 5.3: Key leading change questions
Major phase Stage Key questions
Create a climate for change. 1.Create a sense
of urgency. Do we have a burning platform?
Can we explain the critical reasons for the
change?
Are we shaking up the status quo?
2. Build a guiding team. Have we selected a
"leading" team?
Are the team members committed, focused, and
accountable?
Do the members work well together?
3. Develop a vision and
strategy.
Can we convey a clear picture of the organization
after the change?
Is the vision inspiring and achievable?
Do we have clear strategies for achieving the vision?

Engage and enable the whole
organization.
4. Communicate the change
vision.
Can we communicate the vision in a concise,
heartfelt, and candid way?
Are we using a variety of media?
Is our communication two-way?
Are we addressing concerns?
Is our behavior consistent with our message?
5. Empower broadbased
action.
Havewe identi�ied and aligned efforts?
Havewe provided bold goals?
Havewe removed barriers to success?
Havewe provided the support systems and training
necessary?
Are we recognizing and rewarding behavior in support
of the change?
6. Create short-term wins. Have we created
and communicated short-term wins?
Are we rewarding those who make short-term
wins possible?
Implement and sustain change. 7.Don't let up. Are
we maintaining the sense of urgency?
Are we persistent in assessing and monitoring our
progress and our goals?
Are we improvingour processes by eliminating
unnecessary work and

interdependencies?
Are we rewarding and promotingsupporters of the
change?
8. Make the change stick. Are we creating new
operating norms and practices to support the
vision and
strategies?
Are we continuing to recognize, reward, and
promote those who adopt these
norms and practices?
Addressing Resistance to Change
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Measuring change requires a commitment to
seeing long-term
plans through.
Westend61/Westend61/SuperStock
As should be evident from the discussion of
Lewin's and Kotter's models, leaders typically
encounter various forms of resistance to the
change throughout the
change process. Dealing with resistance is the main
focus of both Lewin's �irstphase of change,
unfreezing, and Kotter's �irststage, create a
sense of urgency.

Based on Burke (2008) and others, resistance
can appear in different forms:
A low tolerance for change, or blindresistance.
The leader's role is to reassure employees
and allow time to pass.
A desire not to lose somethingof value, or
political resistance. This is not necessarily
resistance to the change itself; the leader's
role is to make clear to
employees what they receive in return for making
the change.
A belief that the change does not make sense
for the organization, or ideological resistance.
This revolves around having honest differences;
leaders will
need to persuade employees using data and facts.
Experiencing a lack of choice, or control
resistance. This involves employees reacting to
the imposition of change; leaders need to
seek inputfrom and
engage employees in the change.
A misunderstanding of the change and its
implications, or uninformed resistance. The
leader's role is to educate employees about
the change and to
communicate more regularly and effectively.
Finally, thereare certain "do's and don'ts" for leaders
dealing with resistance and promotingchange. Use
thesechecklists to be sure your behavior effectively
drives change versus creating dissatisfaction and
discontentwith the change.
As a leader faced with resistance to change, do

Listen to what your employees have to say.
Dialogue �irst, problem solve second, persuade
last.
Connect the vision to the interests of your
employees.
Reward and recognize earlyadopters of the change.
Provide hands-on experience for employees to be
engaged in the change.
Honor the past. Don't be too critical of how
things were; focus more on the more
appropriate vision for the future.
As a leader faced with resistance to change,
don't
Discount the feelings employees may express about
the nature of the change or their own
dif�iculty in trying to make the change.
Try to forcethe change on employees with logic
and data.
Continue to change your focus and priorities once
the change is launched.
Ask others to make any changes without �irst
asking yourself to make those changes.
Ask for the "new" behaviors and efforts but still
focus on measuringthe "old" ways of doing
things.
Measuring the Gap in Change Leadership
When you are leading change, measures for its
effectiveness have to take a longer-term focus.
The purpose of measuringchange is not to achieve
short-term results and then alter company
direction again because the initial change was
not followed through on. This is a common

occurrence, but it is not an effective approach.
Kotter's stepscan be used to evaluate the progress of
a change effort, asking whether
leadershipwas effective at each step and if all steps
were addressed. The best measure is one
based on Kotter's eighth step—making the change
stick. Why? Because this step suggests that
the change won't last if the new ways of
operating and behaving and the systems and
processes to support those new ways are not
embedded in the culture. Of course, somemight
argue that change is successfulif the company
achieved somestated �inancial targets. While
achieving results is important, results can be
achieved—to someextent—even if the change is
not successfully completed.
questions:
1. What are the different types of organization
change?
2. What are the threestepsto change as
identi�ied by Kurt Lewin?
3. What are the eightstepsto John Kotter's
approach to leading change?
4/10/2018 Print

Changing the culture in an organization requires
strategy and
an awareness of the existing culture.
Violetkaipa/iStock/Thinkstock
5.5 Changing the Culture in an Organization
Leaders are likely to invest in strategic
planning to develop an organization's mission,
vision,
strategy, and goals. However, they oftenpay less
attention to the organization's culture, when
it is having the right culture that enables success
consistent with an organization's strategic
plan. If the culture does not support employee
engagement, innovation, ethical behavior, and
feedback for performance and development, the need
for culture change becomes apparent
over time,even if the strategic plan is sound and
valid. In this section, we address the process
of culture change and ways to create and assess
a culture that supports organization success.
Of course, leaders have a clear role when it
comes to changing and building organization
culture. Much to the surprise of many
managers and leaders however, culture change
cannot
be mandated;culture change must be modeled. Among
otherthings, culture change requires
leaders to ensure that their fundamental beliefs

are appropriate, that their values and
behavior are consistent with those beliefs, and that
the right processes (or cultural artifacts)
are in place to driveand sustain the desired
culture. For example, if organization leaders
want
to create a culture of engagement, they must
truly believe in employee engagement, discuss
its importance in a deeply heartfelt way, and
then take action to put the right processes in
place to develop an engaged workforce. As
Schein (1992, 2010) noted in his
comprehensive
look at culture, if leaders are unaware of their
true, fundamental beliefs and assumptions, it is
likely that their behavior will be inconsistent with
what they say is important. In otherwords,
therewill be a clashbetween their espoused theories
and their theories-in-use (see Chapter
3). In thesecases, even if leaders put cultural
artifacts in place, such as incentives for
innovation or for encouraging feedback, the
processes will fail owing to lack of true
support.
Approaches to Culture Change
Just as thereis an organization change process,
thereis also a culture change process. As
Kotter (1996) outlined in his eight-stage
organization change process,
changes to culture and behavior come at the
end of an organization change process, as
part of the eighth step: Make the change
stick. (If needed, review Kotter's
model in Section 5.4.) For culture change to be

successful, the new behaviors, systems,
processes,and so on must be embedded in the
culture. In order to
effectively embed or anchor the new ways in
the culture, Kotter suggested the following:
Demonstrate and help people to see that the new
behaviors, processes,etc. work better than the
old.
Communicate the importance of the new practices
and support them.
Identify and remove those who truly stand in
the way and are preventing or stalling the
change in culture.
Change the appraisal, reward, recognition, and
promotionprocesses to support the new culture.
Cameron and Quinn (2006) and Cummings and
Worley (2009) recommended a more step-bystep
process for culture change. Table 5.4
presents a summary of
their culture change steps.
Table 5.4: Processes for culture change
Cameron and Quinn (2006) Cummings and Worley
(2009)
1. Reach consensus on the current culture.
2. Reach consensus on the desired culture.
3. Determine impact of change.
4. Identify illustrative stories.
5. Develop a strategic action plan.
6. Develop an implementation plan.
1. Formulate a clear vision, mission, strategy,

and values set.
2. Demonstrate executive-level support for and model
commitment to
the culture.
3. Alter organization structure, processes,and systems
to support
change.
4. Select and hire those who �it, and remove
those who do not �it the
culture.
5. Increase awareness of potential ethical and legal
issues.
The two approaches have much in common and
bear somesimilarity to Kotter's recommendations.
Here is a brief summary and integration of
the
recommendations of Kotter, Cameron and Quinn,
and Cummings and Worley:
Recognize that leadershipplays an important role. As
we noted earlier in this section, leaders
have a clear role when it comes to culture
change.
Leadership must be engaged in the change and
own the change from the very beginning,
deciding on what to change and what not to
change. Cameron
and Quinn suggested that it is important for the
senior-most organization leaders to agree to
the desired culture; Cummings and Worley
suggested that
those in senior leadershippositions are responsible

for both developing the vision of the change
and demonstrating their commitment by managing
the
change from the top of the organization and then
modeling and communicating the change through
their own actions and behaviors.
Understand the impact of the change. Cameron
and Quinn recommended carefully determining
what needs to change and what needs to
remain the
same. For example, leaders would consider
whether employees need to be more customer
focused or perhaps more focused on innovation.
Cummings
and Worley emphasized ensuring that necessary
alterations are made to current processes
and systems to support the new culture.
Point to visible signsof change. Again,
leadershipmust demonstrate its commitment to
the change, which also includes taking visible
action such as
changing out senior leaders. Cameron and Quinn
suggested identifying stories about employees'
efforts with customers and leaders, and managers'
efforts in their organizations that clearly illustrate
the new behaviors; Cummings and Worley
said that the replacements for those who stand
in the way
of the change should be visibly touted.
Be intentional when taking action. A change
and an implementation plan for the change
must be developed and communicated to help
employees engage
in the process. Cameron and Quinn highlighted
the need to focus on a few key priorities.
They also recommended ensuring that stepsfor

implementing
that action plan are identi�ied and in place—this
becomes a change management plan. Cummings
and Worley pointed out that leaders need to be
sensitive when changing values. New values might
set certain expectations, and therewill likely be
a cost if those promised expectations are
not met.
Next, we look at how leaders can buildcultures
that emphasize engagement, innovation, ethics,
and a feedback focus, all of which are
important to organization
success in the global marketplace.
4/10/2018 Print
Creating a Culture of Employee Engagement
Research has shown that employee engagement leadsto
higher levels of productivity and �inancial
success for organizations (Storey et al., 2009;
Gibbons, 2006).
We have discussed engaging employees in earlier
chapters, but what exactly is employee engagement?
It has been de�ined and measured in many
ways; however,
a reasonably fair de�inition by Storey et al.
is that employee engagement is "a set of
positive attitudes and behaviors enabling high job

performance of a kind
that is in tune with the organization's mission" (2009,
p. 302). Mone and London (2010) offered
the following research-based de�inition of
employee
engagement: "when employees are involved,
committed, passionate, and empowered and
demonstrate those feelings in the workplace"
(p. xvi).
As Mone and London (2010) reported, a valid
measure of employee engagement can serve as
the basisfor measuringengagement. In their study,
statistical
analysis was applied to a highly reliable set of
questions from an employee opinion survey to
identify the drivers of engagement. The actions
(drivers) identi�ied
in their study are, in fact, similar to those
reported by others (Macey & Schneider,
2008; Gibbons, 2006). According to Mone
and London, managers and leaders
can take the following actions to buildand create a
culture of engagement:
Build a foundation of trust and empowerment,
promotingeffective employee–manager relations.
Ensure employees have challenging and meaningful
work and clarify its value and importance to
the organization.
Regularly communicate with employees to help ensure
their work is aligned with corporate objectives,
helping to make their efforts meaningful
and
valuable, while encouraging innovation and
creativity.

Establish clear performance goals for employees
that are challenging and aligned with overall
workgroup and organization goals.
Foster team-level learning and development in
support of group-level engagement and
performance.
Establish clear development goals for employees
and help them to understand career growth
opportunities available to them.
Provide ongoing coaching and feedback to employees
to ensure performance and development are on
track.
Recognize employees for their achievements and
successes.
Conduct fair and effective performance appraisal
discussions and writeeffective appraisals.
Monitor the overall climate and efforts of
individuals and teams, ensuring engagement
does not lead to burnout.
Note that many of theseactions contain the
components of performance management
discussed in Chapter 3. In fact, when
performance management is done
well, it serves to buildengaged employees (Mone
& London, 2010). Use Assessment 5.1 to
measure your own engagement—or to builda
survey to measure
employee engagement at your own organization.
Creating a Culture of Support for Innovation
Innovation is more important than ever given the
changing global business environment. Recall
from Section 5.1 that focusing on innovation
and adaptation is

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