Introduction to Leadership Concepts Homework Questions

9 I Leading Change

After studying t h is c hapter. you will be able t o : 1. Identify forces for change and the role of culture in change.

2. Describe types of change; apply Lewin's change model and explain the change

process.

3. Summarize the reasons for resistance to change and apply possible solutions.

4. Present the practices necessary to lead change including the following:

Creativity and innovation

Changing the organizational culture

The role of vision and exemplary leadership

Creating learning organizations

THE LEADERSHIP QUESTION Change is hard and most people will resist it. Given this, should leaders simply push change through ( get it over with) or should they take time, introduce things slowly and

give followers time to adjust?

"Permanent white water" and "turbulent" are some of the terms used to describe the environment that today's organizations face. Their environment is changing at a rapid pace, leading to the need for flexibility, innovation, and ni~blen_e~s. The effectiveness and very survival of our organizations depend on their ab1hty to successfully adapt to environmental changes while still maintaining ~nternal health. Leading change is therefore one of the leader's most challe~gmg ~nd vital responsibilities. Whether implementing new technology, updatmg ex1_st- ing products or services, launching new ones, or p~tting i~ place new admm- istrative and management systems, leaders must gmde their followers thr_ough change, which is more often than not perceived as painf~l, often. resisted, and difficult to implement. Whereas managing change well 1s essential to the

Chapter 9 • Leading Change 279

survival of the organization, various studies indicate that 60 to 70 percent of organizational change efforts fail (Cheese, 2013; McKinsey, 2013). Additionally, many organizational lead- ers are not satisfied with how well their organizations can innovate and adaptto change, and they fully realize that implementing change is a long-term process with many risks of failure (McGregor, 2007).

This chapter looks at the change process and the role that leaders play in leading and implementing change in their organizations.

FORCES FOR CHANGE

Change is the transformation or adaptation to a new way of doings things. Innovation is the use of resources and skills to create an idea, product, process, or service that is new to the organiza- tion or its stakeholders.

Internal and External Forces

When do organizations change? What makes leaders decide to implement change? Forces for change are both external and internal (see Figure 9-1). Environmental forces include factors such as social trends, cultural and demographic changes, political shifts, the economy, and technological advances. For example, in the United States and in many other parts of the world, demographic diversity related to both ethnic groups and age forces organizations to consider new ways of addressing their constituents' needs. The case of Avon (Leadership in Action in Chapter 6) shows how the company had to change because, in part, demographic and social changes led many women to work outside of the home, disrupting the home-based distribu- tion of the company's products. As a result, Avon focused on introducing new distribution and marketing methods, changing how employees think about the products, and had to work on getting them to accept the changes. Similarly, the public interest in sustainability and demand for ecologically safe products have triggered the growth of organizations such as Ecover, the Belgian-based company, which is now the world's largest producer of ecological household cleaners and products. The success of Ecover, in tum, has forced changes in other consumer- good companies. Changes in the local and global political environments compel organizations to look for innovative ways of dealing with new problems. JetBlue (Leadership in Action in Chapter 1) was one of the first airlines to install reinforced doors to their planes' cockpits in

External Forces Internal Force& • Economic and political • Low performance • Cultural and social • New leadership • Demographic • Low satisfaction • Industry • New mission • Technology • Conflict

FIGURE 9-1 Forces for Change

278

280 Part III • Leading

response to the terrorist attacks of 2001. To take advantage of the Internet to connect with young voters, political candidates all over the world actively use social networking tools to campaign, pushing their political organizations to change.

The internal forces for change closely follow external forces. For example, Apple's iPhone has forced all other cell phone companies to change how they design and produce their phones. Amazon has redefined online customer service. A new service from one hospital will push others to consider changing their offerings and how they recruit and train employee. Wide uses of new technology such as the Web, or poor economic conditions, may lead city and state governments to expand their online services, requiring new hires, training, and new management processes. One of the most common forces for change inside organizations is the pe,formance gap-the difference between expected and actual performance. Another potent internal force for change is new leadership at any level. Therefore, not only do leaders guide organizations through change, but they are also frequently the cause of change (see the Best Buy case in Leadership in Action at the end of this chapter).

Consider the forces that pushed the U.S. Federal Bureau of Investigation (FBI) to undergo extensive changes with varying degrees of success since the 9/11 attacks on the United States. The external forces for change were global politics, considerable political pressure in the United States, public demand for security, and changing technology among others. Internally, the FBI faced a performance gap (a glaring failure by some accounts), presence of old technol- ogy, antiquated management and administrative systems, and extensive employee dissatisfaction (Brazil, 2007). In addition, the agency has shifted its focus from reactive criminal investigations to proactive intelligence and greater emphasis on terrorism prevention, according to Thomas Harrington, the FBI's associate deputy director (St. Martin, 2011). Former U.S. Attorney Dick Thornburgh, who chaired a panel that reviewed the FBI, stated, "It's almost a total transforma- tion of what the bureau does and how it does it. It's staggering" (Brazil, 2007) . FBI Director Robert Mueller, a decorated ex-marine who took leadership a week before the 9/11 attacks and retired in 2013, was in charge of orchestrating the massive transformation. Talking about the challenges of transforming the organization, he stated: "I've come to find that one of the most difficult things one has to do is to bring an entity through the development of a change of business practices" (Ragavan, 2005). The case of the FBI illustrates the many forces that push organizations to change.

Culture and Change

As pressure for change increases from inside and outside organizations, not all leaders react and respond the same way. Some perceive the pressure as a threat; others see it as an opportu- nity. In addition to their personality, one factor that influences how leaders and their followers perceive pressures for change is culture, both at the national and organizational levels (we con- sider the importance of organizational culture later in this chapter). From a broader perspective, national cultural values of tolerance of ambiguity and perception and use of time can shape how leaders view change. in cultures such as Greece, Guatemala, Portugal, or Japan, where people do not easily tolerate uncertainty and ambiguity, change can be seen as a threat and is either ignored, resisted, or carefully planned and managed. A Japanese business leader is likely to manage change through extensive and detailed long-term planning and forecasting supported by governmental organizations such as the Ministry of International Trade and Industry (MITI). MITI targets certain industries for growth and supports them through various economic and political actions, thereby reducing the potential negative impact of change triggered by global

Chapter 9 • Leading Change 281

competition. Similarly, in countries such as Malaysia and Thailand, with cultures that are risk averse, governmental centralized planning helps support business leaders reduce uncertainty and ambiguity. On the other end of the spectrum, in Sweden, the United States, and Canada, where change is tolerated and perceived as an opportunity, leaders deal with change by making quick changes to their organizations and implementing short-term strategies that address the immedi- ate pressures relatively more quickly than in other cultures.

The perception of time further affects how leaders implement change. Leaders from pres- ent-oriented cultures, where time is linear, are likely to react fairly quickly to change and focus on short-term planning. The short-term orientation leads to a state of constant change that many U.S. organizations are experiencing. For example, when, in 2000, James McNerney became the first outsider to lead the 100-year-old 3M company, he immediately announced that he would change the DNA of the company. He implemented substantial changes that deeply affected 3M and left four years later to lead Boeing (Hindo, 2007). Leaders from past- and future-oriented cultures are less likely to react quickly to change, taking time to plan and to consider the long- term impact of their actions.

TYPES AND PROCESS OF CHANGE

Change is stressful and usually met with some resistance, as you will read later in this chapter. Different types of changes, however, affect people differently and require different types of lead- ership. Change that is sudden and drastic is more likely to cause stress and resistance, whereas gradual and programmed change is easier to implement.

Types of Change

In some cases, leaders can carefully plan and execute change; in others, leaders and followers are caught by surprise and have to react without specific preparation. Table 9-1 summarizes the different types of changes organizations face.

Even though many organizations carefully analyze their environment and internal condi- tions, through methods such as marketing intelligence, customer- and employee-satisfaction sur- veys or complex performance measures, in order to foresee changes and to plan their course of

Types of Change

Type of Change Description

Planned Change that occurs when leaders or followers make a conscious effort to change in response to specific pressure or problem. ·

Unplanned Change that occurs randomly and suddenly without the specific intention of addressing a problem.

Evolutionary Gradual or incremental change.

Revolutionary or frame breaking Change that is rapid and dram~

Sources: Partially based on M. S. Poole and A. H. Van de Ven (eds.). 2004. Handbook of Organizational Change and Innovation. Oxford, England: Oxford University Press; and by M. L. Tushman, M. L., W. H. Newman, and E. Romanelli, 1986. "Convergence and upheaval : Managing the unsteady pace of organizational evolution," California Management Review, Fall : 29-44.

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action, they still face changes that they do not expect or are unable to anticipate. In addition, both planned and unplanned changes may happen, either gradually or rapidly, leading to dramatic impact on the organization. In the 3M example presented earlier, James McNerney planned the cultural and structural changes he wanted to implement to move the organization to improved efficiency through careful monitoring, measurement, and implementation of a process called Six Sigma, which relies on precision, consistency, and repetition (Hindo, 2007). The existing 3M culture, known worldwide for its ability to be creative and innovative, was based on experimen- tation and tolerance for trial and error, all factors that eventually led to innovative products and process (Winston, 2012). For example, all employees were encouraged to use 15 percent of their time to be creative (Goetz, 2011). McNerney moved to remove any variability from organiza- tional processes, focusing instead on analysis, control, and efficiency. Although it was planned, the change was revolutionary and involved a complete cultural transformation (Hindo, 2007).

The different types of change may require different actions from leaders. For example, in the case of planned and evolutionary change, a leader's ability to structure tasks may be important. When facing unplanned and revolutionary change, charismatic, transformational, or positive leaders who make an emotional connection with followers and help them weather the change may become more central. In addition, based on the change process considered in the next section, the options that are available, and actions that are required from a leader may be different in each type of change.

Lewin's Model for Change

Understanding the process and course of change can help leaders plan and implement change more successfully. In the 1950s, social psychologist Kurt Lewin proposed a theory of organiza- tional change that continues to influence current thinking (Lewin, 1951). Lewin's Force Field theory proposes that organizations face forces that drive change and forces that resist change see (Figure 9-2). When the two forces are balanced, the organization maintains its status quo. When the forces for change are stronger than those that resist change, leaders can overcome inertia and implement changes. If forces against change are stronger, the organization is not likely to implement change successfully. So, when implementing change, leaders must either increase and bolster the forces for change or reduce and neutralize the forces that resist change.

Lewin further suggests that change takes place in a three-stage process (see Figure 9-3). In the first, unfreezing state, the existing practices and behaviors are questioned and motivation to change develops. Unfreezing is likely to be easier when the forces for change, whether internal or external are strong and organizational members and leaders are aware of them. One of the major tasks of any leader is to help followers "unfreeze" and realize that there is a need for change. Consultant and executive coach Ray Williams argues that the key to successful organizational change is con- vincing thousands of employees to think differently about their job; they have to believe in the need for change. He says that employee: "to embrace change, must also engage in a process that changes how they think about themselves, not just their jobs (Williams, 2010). For example, when British Airways undertook a successful structural change that involved privatization and layoffs, the lead- ership of the organization made particular efforts to repeatedly communicate why the changes were essential (Faucheux, 2013). In the 3M case, the company's growth had slowed and the stock was performing poorly, prompting McNerney to implement drastic changes such as laying off 8,000 employees (11 percent of the workforce) and putting controls on the creative inventors (Hindo, 2007). The pressure for change may have been real, but based on all accounts , the employees never quite fully grasped the need for change; there had been no "unfreezing."

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FIGURE 9-2 Force Field Model for Change

. . The s~cond stage, according to Lewin, is the change itself, where new practices and policies are implemented and new behaviors and skills are learned. The change can involve tech- nology, people, products, services, or management practices and administration . The leader's role co~tinues to be essential, supporting followers, emphasizing the importance of the change, correctm~ course a~ needed, and so forth. Most organizations focus on this stage, making the change without paymg enough attention to preparing the organization either for the change or to the last phase.freezing. In the last phase of change, the newly learned behaviors and freshly im~l~':1ented practices are encouraged and supported to become part of the employees' routine act1v1t1e_s. The leader's role in this stage is providing resources, coaching, training, and using appropnate reward systems to help solidify the changes that have been implemented.

. All ch~nge takes time, but giving the organization time to settle down after a change is part1~ularly important. Organizational researcher Kim Cameron believes that managing change requires fixed points without which organizations cannot steer (Cameron, 2011). He states,

FIGURE 9-3 Lewin's Stages of Change

0

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" Unfortunately , when everything is changing, change becomes impossible to manage. Without a stable, unchanging reference point, direction and processes are indeterminate" (Cameron, 2006: 317). Although change is essential to survival, constant change that is not given time to take hold is likely to be ineffective. It is important for employees to know what is not changing and to be allowed to practice the new behaviors long enough to learn them before something new is introduced. According to Harvard Business School professor John Kotter, a well-known authority on organizational change, leaders must also celebrate early successes and short-term progress to keep followers motivated (Brazil, 2007). In the case of the FBI, the ongoing transfor- mation that took place had a negative impact on morale, causing heavy turnover (Brazil, 2007). For 3M, although the implementation of the new efficiency-oriented sy stems lasted for four years and stock prices did rebound , the architect of the change, McNemey, left, and most long- time employees did not fully adopt the change. The CEO who replaced McNemey was George Buckley, a soft-spoken company insider, who corrected course to refocus on the innovation process that 3M is so famous for. He said: "Perhaps one of the mistakes that we made as a com- pany . .. is that when you value sameness more than you value creativity , I think you potentially undermine the heart and soul of a company like 3M" (Hindo, 2007). He also made leadership training a priority, slowing the pace of moving top executives around and allowing them to savor their successes and learn from their mistakes before they were moved (Jones, 2009b ). Inge Thulin, CEO since 2012, is following a similar strategy. He states: "I believe that what is driving this company in terms of return for us is the investment in research and development, and every time we do it we know that we have a competitive advantage" (Caruso-Cabrera, 2013).

Lewin ' s model of change has four implications for leaders:

1. Leaders must take time to prepare their followers for change and persuade them of the need for change.

2. No matter what the change, there will be resistance. 3. Leaders must invest resources to support the change and allow time for it to take hold. 4. Pacing change rather than piling one after another is likely to be more effective.

The typical model for implementing planned change and ways of managing unplanned change are presented next.

Process of Planned Change

Planned change follows a general process outlined in Figure 9-4. The process has six steps, each of which requires different types of resources and leadership skills. Peter Cheese who worked for over 30 years at the consulting firm Accenture identifies the reasons why change typically fails, all of which fall into the process for planned change. He says : "The typical culprits tend to fall in one of four categories: A lack of vision, middle management permafrost, a lack of understanding about change, and a lack of good methods to measure and implement change" (Cheese, 2013). The first step in the process mirrors the unfreezing phase of Lewin' s model. Leaders and follow- ers must become aware of the need for change and recognize its importance to the organization's effectiveness or survival. There may be a performance gap , or employee dissatisfaction, or exter- nal pressure from customers or competitors.

The second step involves developing alternatives and ideas for change. This step can be done by organizational leaders at different levels, through small groups or teams, or even with participation of outsiders. Any process that encourages participation and input from those who are affected most by the change is likely to facilitate the implementation process. For example,

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2. Develop1. RecognizeCURRENT Ideas for the Need for STATE ChangeChange

0

0 3 Adopt One Resources 4. Implement5 Allocate or More Idea Ideas

0 6. Evaluate [)

FIGURE 9-4 The Process of Planned Change

most municipalities systematically gather input from the public about projects such as parks, freeways, or other developments. Similarly, school boards ask for feedback from parents when planning changes. The use of team and empowerment in organizations can be one mechanism for allowing input into the development of alternatives . In addition, although there may not be a choice on whether or not to change, there are always many alternatives and paths to accomplish the goals; step two of the change process is an ideal opportunity to get involvement and buy-in.

The next two steps are adoption of ideas and implementation of the change plan. These two steps mirror Lewin's change phases. The fifth step is allocation of resources to support the change. Leaders have to either allocate new resources or shift current resources to help imple- ment change and "freeze" the change. For example, FBI Director Mueller shifted resources from fighting crime to counterintelligence to support the new direction , and the FBI started training its executives through additional weeklong courses on leading strategic change (Brazil, 2007). The allocation of resources is a powerful message from leadership that the change matters and should be taken seriously. Finally, the last step in the process is evaluation of the change process and its outcomes. The process of planned change is a continuous and dynamic loop. After change is implemented, the organization must review and evaluate its effectiveness and assess whether the objectives are met. Did the performance gap narrow or close? Are various constituencies, includ- ing employees, more satisfied? Did the new products and services address stakeholders' needs? Are processes more efficient? Does the new technology work? If the goals are not achieved, the change process starts over with the recognition once again that change is needed.

The process of change either can take place in top-down manner with leaders initiating and driving the process or can be bottom-up with individuals and teams throughout the organization starting and implementing the process. A top-down change fits well with traditional, hierarchi- cal, command-and-control organizations and tends to force rapid change. However, it also may engender more resistance. The bottom-up approach creates more involvement and participation, thereby reducing resistance. Yet, the risk of such an approach is not enlisting leadership support, which is essential to the success of any change. The case of Toyota taking over one of the lowest

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performing and most hostile Chevrolet plants from General Motors in Fremont, California, in the 1980s, is a case in point. No one expected much success. After renaming the plant New United Motor Manufacturing, Inc., or Numrni (sounds like new me) and keeping the same workers and the same technology, it took three months after the plant started to roll out cars again with almost no defects (the plant had previously averaged 40 defects per car; Deutschman, 2007). Absenteeism and costs dropped dramatically. The key to the successful change was that the workers came up with ideas on how to change things, improve quality, and cut costs (Deutschman, 2007). This bottom-up approach to change, fully supported by top management, was the magical ingredient. Although Numrni pro- duced some of the highest quality cars and had the lowest defects of any Toyota plant, it was closed in 2010, some suspect because of problems between the union and the company (Gonzales, 2010).

Dealing with Unplanned Change

Whereas models of planned change help leaders chart the course for change, change is frequently sudden, unpredictable, and not planned. The economy changes, competitors come up with a new product, an environmental disaster happens, or unions go on strike. Managing unplanned change falls into the domain of crisis management. A crisis occurs when leaders and their organization substantially misread their environment or are caught off guard by events they could not have foreseen. Once crisis occurs, it is difficult to control. The cost to the organization, its employees, and its various stakeholders is likely to be high. Leaders can manage unplanned change to some extent by taking the following steps before a crisis develops (Mintzberg, Quinn, and Voyer, 1995; Starbuck, Greve, and Hedberg, 1978). As you will see, the steps have much in common with learning organizations, a topic we review at the end of this chapter.

• A void becoming too formal, hierarchical, rigid, and inflexible. • Regularly infuse moderate amounts of uncertainty, unpredictability, and spontaneity into

decisions to help prevent complacency. • Stay on the offensive and be proactive with introducing new strategies, products, services,

or processes. • Replace and rotate leaders to bring in fresh ideas, methods, and visions. • Experiment often with new methods, products, processes, structures, and so forth to help

followers practice dealing with change.

Bill George, former CEO of Medtronics, further suggests that crises often present oppor- tunities for organizations to change course for the better and for leaders to focus on their most important values (George, 2009). Whether planned or unplanned , and even with the most careful implementation, people are likely to resist change. The next section considers resistance to change, its solutions, and the role of leaders in the process .

RESISTANCE TO CHANGE AND SOLUTIONS

Change is one of the main causes of stress in our lives. Even positive changes such as receiving a pro- motion or getting married can create anxiety, lead to stress, and therefore engender resistance, which stops or slows the mqvement forward. Making major changes in one's life, for example changing your lifestyle after having a heart attack, are extremely difficult (Deutschman, 2007). Although peo- ple adjust to minor changes after a brief period of time, large-scale changes in life or work require long adaptation periods and much encouragement and support. Therefore, all changes, especially large-scale ones, meet with some resistance, especially when people do not feel ready for the change.

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TABLE 9-2 Causes of Resistance to Change

Organizational Causes Group Causes Individual Causes

Inertia Group norms Fear of the unknown

Culture Group cohesion Fear of failure

Structure Leadership Job security

Lack of rewards Individual characteristics (personality; culture)

Poor timing Previous experiences

Causes of Resistance

Three general causes explain resistance to change: organizational factors, group factors, and individual factors. (Table 9-2 presents the causes of resistance to change.) While planning and implementing change, leaders must consider all three causes. The primary organizational cause for resisting change is inertia, which is a tendency for an organization as a whole to resist change and want to maintain the status quo . Closely related to inertia are the culture and structure of the organization, which , if well established, are hard to change

In addition to inertia, culture, and structure, organizations can provide barriers to change by not rewarding people for change or implementing change at inappropriate times , for example when the previous change has not had time to "freeze. " Other causes of resistance to change are related to group norms and cohesion. Cohesive groups with strong norms present many ben- efits. Members stick together, work well together, and can provide a supportive environment for learning. The same cohesive group can also be a formidable obstacle to change (Judson , 1991). In addition , the presence of strong leaders while a factor for change in some cases, can be a strong obstacle if the leaders do not support the change (Levay, 2010).

The final causes of resistance involve individual factors, such as fear of the unknown, of fail- ure, and of job loss. Individual characteristics can also play a key role. For example, proactive indi- viduals, those who are open to new experience, or are high self-monitors (see Chapter 4), are more likely to be comfortable with change and able to adapt to it more quickly. Similarly, entrepreneurs, who tend to be characterized by flexibility and willingness to try new ideas, are more comfortable with change. In addition, a person's culture, particularly the degree of tolerance of ambiguity, may play a role. Finally, the person' s previous experience with change may be the cause ofresistance. If an individual has experienced job loss or has been through other painful organizational changes in the past, he is more likely to be wary of implementing change in the future.

WHAT DO YOU DO?

You have the task of implementing a change in your team's work process. You have a very short deadline from your boss and you personally agree with the change. Half of your team is on board and ready to go. The other half is very skeptical about the change. What do you do?

Solutions

Steve Denning, author of The leader's guide to radical management: Reinventing the workplace for the twenty-first century (2010), suggests that organizations have three sets of tools available to them when managing change: leadership tools, management tools, and power tools. The leadership tools

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provide inspiration through persuasion, role modeling and support. The management tools provide information through training and various HR organizational processes. Finally, the power tools intimidate employees through coercion, threats, and punishments (Denning, 2011). The leader of an organization can do much to initiate change, inspire followers to implement it, and reduce resis- tance to change through inspiration, improvisation, creativity, and motivating followers. Overall, resistance can be reduced if employees learn to change their perception of change as negative and instead reframe it by seeing its potential benefits. Such change in perception can be encouraged by engaging employees in the change process and by rewarding behaviors and norms that support the change. Several specific methods for managing resistance are presented in Table 9-3.

TABLE 9-3 Methods of Dealing with Resistance to Change

Methods Advantages Disadvantages

Leadership tools

Vision, persuasion, and story telling

Helps in the unfreezing stage to explain need for change; provides a new frame

Time commitment from leader; requires communication skills

to support the change

Role modeling "Walk-the-talk" can inspire followers and build commitment to change

High time commitment and requires communication skills from leaders

Participation and employee involvement

Lead to commitment and can provide richer alternatives and ideas

Time consuming; risk of inappropriate change being implemented

Management Tools

Facilitation and support The only option when adjustment is the cause of resistance

Time consuming and high-risk of failure

Training and incentives Easy to implement; part of ongoing organizational efforts

Can be costly and time consuming

Negotiation with key parties and agreements

Relatively easy to implement; only option when parties have equal power

Can be expensive, time consuming, and lead to continued and further negotiation

Power Tools Can lead to mistrust and Manipulation and Relatively quick and inexpensive resentmentcooptation

Command and orders Quick implementation; quick short-term Can lead to resentment and prevent long-term success; noresults employee buy-in

Can lead to resentment and morale problems; only effective

Explicit or implicit Can be fast and effective in short term to

coercion and threats end resistance in the short run

Sources: Based on J. P. Kotter and L.A. Schlesinger, 1979. "Choosing strategies for change," Harvard Business Review, March-April; and S. Denning, 2011. "How do you change an organizational culture," Forbes, July 23. http://www.forbes.com/sites/steveden n ing/2011 /07 /23/how-do-you-change-an-orga n izationa 1-cultu re/ (accessed

August 3, 2011).

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Leaders can prevent, manage, or reduce resistance to change by using a variety of these methods. The advantages of using leadership and management tools rather than power tools are very clear. A global survey conducted by McKinsey indicates that one of the keys to successful change is engaging employees to work collaboratively through the transformation (McKinsey, 2010). The next section focuses on the role of leaders in the successful implementation of change in organizations.

LEADING CHANGE: CREATIVITY, VISION, ORGANIZATIONAL LEARNING, AND ORGANIZATIONAL CULTURE

Change Track Research, an Australian organization that keeps a large database of organi- zational change, reports three key factors in successful organizational change: Change must be meaningful; trust in leadership is essential to success; and "one-size" does not fit all organizations (Three fundamentals of successful change, 2012). The role of leader in success- fully implementing change is undeniable. Leaders must provide inspiration and vision for fol- lowers and put in place processes for changing organizational culture that successfully change their organizations.

Leaders are the guides as well as the role models for followers in implementing change. They must show followers through their own actions how change can be implemented and how it can successful.

Creativity

Creativity, also called divergent or lateral thinking, is the ability to link or combine ideas in novel ways (see Chapter 4). Creativity for leaders and followers is a key factor in organizational ability to innovate and change (see Self-Assessment 9-2). Creative people tend to be confident in the paths they select and are willing to take risks when others give up. They focus on learn- ing and are willing to live with uncertainty to reach their goals. They are able to come up with new solutions to old problems. Kirthiga Reddy, director of Facebook online operation in India, and named the 4th most creative leader for 2013 by Fast Company, was able to grow the Indian Facebook users from 8 to 71 million in just two years. To achieve this, she used her deep knowl- edge of her culture and of Facebook, challenged the typical hierarchical Indian organizational culture, and encouraged her employees to be creative. She says: "You're not here to do just what you're told. You're here to see gaps and to act upon them." (Chu, 2013) . Reddy was further able to reimagehow people use Facebook in India differently than those in the United States, often as a substititue for text or phone calls.

Creativity that allows people to think of new ways of addressing issues is at the heart of successful change. For P&G's cognitive science group, creativity sometimes means borrowing ideas from others. Pete Foley, the group 's associate director, found some answers to challenges in the feminine products division in the San Diego Zoo by considering the biomimickry of geckos (Heath and Heath, 2009). Instead of inventing new solutions, this form of creativity involves looking for existing solution in other areas. Harvard professor Karin Lakhani says that people are not aware of other perspectives and being able to see things from a differ- ent point of view could make problems much easier to solve (Heath and Heath, 2009 : 83).