Organisational Change & Transformation

As is often the case with many organisations impacted by growth and significant change the realisation that “what got you here will not get you to where you need to go” presents many challenges and opportunities for growth on multiple levels.

 

Human capital as competitive advantage

People (human capital) have become the primary source of competitive advantage.

  • 1982: 62% of an organisation’s market value was its tangible asset base and 38% intangible (it’s people)
  • 2002: 80% intangible and 20% tangible
  • Engagement: the fuel that drives intangible assets
  • Appealing to the head and the heart
  • One million workers studied by Gallup researchers Wagner and Harter (2006) identified lack of soft skills (emotional intelligence) as one of the top two problems facing leaders and managers today

the task of the leader is to get his people from where they are to where they have not been

Henry Kissinger once stated “the task of the leader is to get his people from where they are to where they have not been”. Kissinger knew that it was no great feat to get people to do something they had done before – real leadership skill is getting them to move towards a strategic vision by doing something they haven’t necessarily done or know how to do. It makes sense therefore to consider the current reality as well as the desired reality. The space in between is used to identify the required changes mindset, behaviours and skills required to enable the strategic vision.

Much research suggests that it is pointless to assume success or attempt to introduce significant strategic change to an organisation unless the fundamental leadership and cultural aspects that underpin organizational cohesion and effectiveness have been addressed. This is particularly the case in service-based customer-centric organisations where human capital is the primary source of competitive advantage. Most would be aware of some of the many well-documented cases of failed strategic initiatives where this is not the case. Harvard Professor John Kotter’s research shows that 27% of strategic change initiatives fail because of an ineffective culture, employee resistance and insufficient capability and an additional 23% fail because management behaviour does not have the depth of leadership skill to support change. From this we can see that ineffective leadership and cultural issues alone reduce the likelihood of success in executing strategy and effectively dealing with significant forces of change by 50% if not consciously addressed.

At InsideOut our uniquely transformative approach develops, enables and enhances leadership effectiveness, ultimately adding high capability and value to the human capital of the organisation.

We create a uniform and unique platform of skills, values, language, behaviour, expectation and accountability across the leadership. Conscious leaders are born, and as they are skilled drive and introduce greater organisational dexterity and innovative capability now and into the future.

 

 

 

Source: Development Dimensions International in “Employee Engagement: The Key to Realising Competitive Advantage.” Gallup Journal, December,2003. Accessed online 23/05/2010 http://www.ddiworld.com/pdf/ddi_employeeengagement_mg.pdf
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