When you can’t go to the CEO, where do you go?

By TEC Chair, Dawn Russell

Succession-planning-key-executivesAs a key executive in an organisation, you want to make your mark. You want to contribute significantly to the overall mission and growth of the organisation and earn the respect of the CEO or Managing Director, as well as the respect of the people who report to you.

Chances are you’ll be shouldering considerable responsibility and making decisions that affect the future of the organisation and the lives of the people who work with you. And, as with any leadership position, there are always challenges.   The thing is, you can’t go running to the CEO every time there’s an issue. To start with, they’re more than busy enough without having to weigh into your issues; and secondly, what aspiring leader wants to be seen as incapable of handling situations that leaders face every day?

Perhaps you have a prickly staff member whose performance has dropped significantly over the last six months and you need to tackle an honest conversation with them. Perhaps you have a progressive idea for meeting your sales target, but want to test its robustness before you pitch it higher up. Perhaps one of your peers is making it difficult for your team to deliver to the expected standard and you need to “call” their behaviour. Or perhaps there’s a new process that is impacting negatively on your department, but challenging it is politically sensitive because its owner has the ear of the CEO.

Whatever the issue, you need a sounding board. As an influential CEO once said to me, “The worst decision I ever made was the one made by a committee of one – me!”

You need someone (or several someones) who will challenge your thinking and play Devil’s Advocate to help you see things from a different perspective. You need to tap into others’ experience when you’re faced with a situation you’ve never encountered before. It makes sense to call on the wisdom of others. The trouble is, whose wisdom do you call on?

You may decide to talk it through with your significant other or a family member. They may or may not have the necessary business acumen, but two things are for sure: they want you to succeed and they don’t want you to get hurt. But the trouble is, they have a natural bias. And because they love you, frequently they won’t tell you it the way it really is. They don’t want to hurt you; they don’t want to hurt your feelings. As a result, they’re not likely to really challenge your thinking or look for the flaws in your argument.

Alternately, you may feel safe enough bouncing ideas around with your colleagues…until the day something confidential finds it way into the greater populace at work, or until your idea is served up to the CEO by someone else as their own. And what will they think of you if you keep going to them for advice?

You may chat to your friends and mates outside of work about it, but do they really understand your role, your industry, your politics or the particular sensitivity of the issue? Besides, you won’t be considered such good company if they have to listen to you talking about work all the time!

Being in a leadership position is a challenge and it can be isolating. It’s also very easy to miss opportunities or reap a sub-optimal result when decisions are made by that “committee of one”. We are often best served by bouncing ideas around with others, but when you can’t go to the CEO, where do you go?

Find out more about KEY membership here

Isolation – Are you lonely at the top?

Business leaders often lament that it is ‘lonely at the top’; with few realising just how truly isolated it can be in the boardroom. But just how pervasive is this problem, what are its potential impacts and why does it need to be addressed?

Feeling distant and isolated at the top is not just a matter of people not understanding leaders’ positions and circumstances – it can lead to depression, stress and a whole host of mental and physical health problems. In order to truly feel appreciated, leaders can often benefit from outside advice that without prejudice challenge and deal with issues relevant to business.

This could be behind the prevalence of executive coaching and peer support schemes today. In its International Business Report from earlier this year, for example, Grant Thornton found that more than a third (35 per cent) of business leaders around the world said they have used a business coach at some point.

For business leaders who are struggling to cope with the lack of support and peers at the very top, seeking the assistance of an executive coach or support group can be a wise step to take.

Why loneliness hurts

For many leaders, constant loneliness can accumulate and spiral into problems far deeper than most people believe. This was highlighted in a May 14 2014 LinkedIn article by Thomas Gelmi, in which the author referenced the suicides in quick succession of two top Swiss executives. As such, Gelmi claimed that personal support “is no longer a luxury” for business leaders, and executives would do well to forge relationships with “sparring partners” who can act as a source of mutual support.

The link between isolation in the workplace and depression is not new, and is something that needs to be given more attention if loneliness at the top is to be successfully addressed. UK organisation Depression Alliance investigated the matter in a study earlier this year, in which it surveyed more than 1,000 employees on how they coped with depression.

Depression is the biggest mental health challenge among working-age people and often leads to considerable loneliness and isolation at work

The survey found that a staggering 83 per cent of respondents said they have experience isolation or loneliness at work due to factors such as depression and stress. However, they may not be coping with it adequately – less than half of those who felt isolated said they confided in a colleague about the situation.

Those feeling depressed at work may certainly find it beneficial to have an ear that can listen to them, as 71 per cent of respondents who did confide in a peer said it helped.

Emer O’Neill, chief executive of Depression Alliance, said finding support is key for depressed and isolated workers.

“Depression is the biggest mental health challenge among working-age people and often leads to considerable loneliness and isolation at work,” she said.

“However, many companies aren’t properly equipped to manage employees who suffer from depression so providing support to these individuals in the workplace is essential.”

Such is the impact of isolation in the workplace that a study from the University of British Columbia suggested it is more harmful than bullying or harassment, and can lead to dissatisfaction and health issues.

“Ostracism actually leads people to feel more helpless, like they’re not worthy of any attention at all,” noted Professor Sandra Robinson, co-author of the study.

Given the potential harm that isolation and depression can bring, it’s essential that business leaders know what steps to take to overcome the problem.

What leaders want

So what should leaders be doing to reduce the chances of becoming lonely at the top? According to the 2013 Executive Coaching Survey led by Stanford University, while the vast majority of CEOs today want advice and support, not many are actually getting it.

Even the best-of-the-best CEOs have their blind spots and can dramatically improve their performance with an outside perspective weighing in.

The study found that nearly two-thirds of business leaders do not receive external leadership advice or coaching. However, practically all respondents admitted they would be “receptive to making changes based on feedback”.

“Given how vitally important it is for the CEO to be getting the best possible counsel, independent of their board, in order to maintain the health of the corporation, it’s concerning that so many of them are ‘going it alone,'” explained Stephen Miles, CEO of The Miles Group, which also played a role in conducting the survey.

“Even the best-of-the-best CEOs have their blind spots and can dramatically improve their performance with an outside perspective weighing in.”

But does having an external leadership coach really generate results? Apparently so, according to the ‘Lonely at the Top: The Importance of Mentoring for Chairmen, CEOs and the C-suite‘ study by IMD and CMi. In the study, the two organisations surveyed a range of business leaders across the UK and Europe and found that 82 per cent reported that receiving mentoring “led to improved leadership behaviours and ability to manage key relationships”.

Mentoring was also helping in other business areas, such as improved strategic performance (71 per cent) and better decision making (69 per cent).

Even in an increasingly time-pressured business environment, CEOs need not go at it alone. By seeking assistance from outside coaches, mentors and support groups of like-minded leaders, they can stay healthy, develop as a leader and drive their organisation to success.

Is company culture holding back your organisation?

Company culture can be a difficult thing to quantify and measure, especially for an SME that is looking to become more innovative.

While CEOs and company leaders will play a major part in establishing and maintaining a strong internal culture, there are still issues which derail these initiatives.

This is especially challenging if it means that companies cannot remain competitive and stay ahead of the opposition. Innovation is just one area where company culture can play a major role in long-term success or failure.

This issue was recently explored in the Culturing Success report from Microsoft into how widespread innovation is within a small business and what is setting apart high-performers in this space. The research reported that nearly 70 per cent of SMEs in Australia are finding it difficult to become more innovative because of company culture.

According to the report, there are four cultural issues which are undermining the performance of Australian firms. These four are; working in silos, employee distrust, poor collaboration and a fear of failure.

The importance of innovation was underscored by Microsoft Australia’s Managing Director, Pip Marlow, who stated that “innovation is vital to the success of any business, no matter how big or small.”

“However, our research reveals that many businesses find it difficult to develop a culture of innovation.”

While there is clearly a lot of room for Australian companies to improve their processes, the report did highlight features that set highly innovative companies apart from the competition. The 33 per cent of firms that fell into this highly innovative category possessed five key features, including:

A strong customer focus
Awareness of and appetite for innovation
Visible and involved leaders, which in turn create engaged employees
Authentic internal dialogues
A supportive working environment

The result of implementing these processes is a considerable improvement in the performance of an organisation. According to the research, 39 per cent of high-performing firms reported above average growth, compared to less than a quarter of those who are poor innovators.

So how can companies achieve this new focus? The report suggested four strategies that companies can embrace to move closer to the example set by highly innovative organisations:

Attract new staff

The study emphasised that attracting the right staff is an important part of building an innovative business. By bringing in new perspectives, organisations will be able to create great ideas and subsequently see them through to completion.

The advantages of attracting the right staff go beyond boosting innovation, they can also play an important role in realising customer engagement.

Many Australian companies are already aware of the challenges that come alone with attracting and retaining valuable staff members. For fast-growing SMEs like Enablis, finding the right staff members has been the core challenge when trying to scale the business to handle further expansion.

Collaborate with external partners

Creative ideas and innovative solutions don’t just come from within a business – in many situations, creative ideas will actually come from tapping into the skill sets of other firms and working collaboratively.

Business collaboration is also becoming increasingly important across new technology, with collaboration over cloud technologies predicted to double over coming years, according to a study from Research and Markets.

Evaluate performance

Companies that are looking to become more innovative will need to have established and concrete processes to measure performance. Microsoft suggested organisations can audit themselves to understand exactly how well they are realising an innovation strategy at each stage.

One option that companies can use is the assessment tool provided by Microsoft. This quick test was designed to accompany the research and allows businesses to measure how innovative they really are. This sort of information can then be used to identify the areas an SME will need to work on if they want to move up the scale.

The benefits of this system were also highlighted by Pip Marlow, who emphasised the advantages of taking this assessment for small-business owners.

“Microsoft’s new self-assessment tool is the first of its kind to help small and medium-sized businesses identify their culture-related obstacles and then implement tangible solutions to become true innovation leaders,” stated Ms Marlow.

Build a flexible workplace

Staff will often perform better if they have the opportunity to get out from behind their desk and work in a way that best suits them. Not only can making this change ensure that staff are thinking creatively, it can also reduce the amount of stress they feel outside of work.

Solutions like working from home and employees choosing their own hours are easy ways for small businesses to introduce more flexibility, and thinking along these lines is a key ingredient in building an innovative company.

A flexible workplace can also involve introducing new processes to reduce the amount of time spent working on menial or repetitive tasks. For TEC member Alister Haigh, introducing ‘Baxter’ – a robot  designed to take over menial processes – has introduced a new level of flexibility into his family’s chocolate business.

Of course, none of these approaches alone is going to transform a business into an innovative organisation. But, by combining these different factors into a single coherent strategy, businesses will be well-placed to become a highly innovative firm that is also a leader in their industries.

For small businesses, building this sort of culture is going to require constant attention and maintenance. While this might sound daunting, the benefits for SMEs that can embrace this way of thinking are certainly going to be considerable.

Are you a successful leader of change?

It’s certainly true that in order to evolve and adapt to an increasingly complex future, businesses have to be constantly changing. Whether it’s implementing new technology, processes and ways of working or seeking new markets to explore, companies need to continuously think about the routes they’ll take.

Of all the major organisational projects that business leaders have to oversee, one of the most challenging can be change management. How do you promote a culture of constant, productive change, while still keeping everyone on board and without jeopardising the harmony of your organisation?

Change management is therefore one of the skills every executive should work on developing, given the massive implications it can have on the very future of the business. As recent research suggests, however, today’s organisations, managers and employees may not be entirely ready to embrace change.

Change still a stumbling block for many

Of course, to enable smooth and effective organisational transformation, a culture of change must be embedded across the enterprise. This involves having the people, strategies and tools required to drive change – but how many companies today can claim to be adequately equipped?

According to an Association for Talent Development survey of 765 professionals, 60 per cent of respondents said their business faces “three or more major changes” every year. Meanwhile, one out of four respondents said they face twice as many changes than that per year.

Despite this obvious need to make change management a top priority, the survey went on to reveal that fewer than one in five (17 per cent) said their organisation is effective at managing change.

Furthermore, less than a third (30 per cent) of respondents reported that their company actually has a change management team in place, while twice that proportion pinned their hopes of successful change on the CEO. With so few organisations having the necessary personnel to lead change, this signals a clear area for improvement for companies across the board.

However, that isn’t the only thing preventing many organisations from successfully enacting change.

What else is holding them back?

As outlined in the Katzenbach Center’s comprehensive 2013 Culture and Change Management Survey, there are myriad factors precluding modern organisations from fully embracing the prospect of change. The survey, which polled well over 2,000 people around the world, canvassed their opinions on the importance of transformation in the organisation, who is leading it and the obstacles that hamper lasting change.

When asked about the top barriers to change, the two most prominent responses were that clashing priorities lead to “change fatigue” and that the systems, processes and incentives in place do not support change.

A large part of the problem may also be behind the attitudes of the employees themselves. The survey revealed that the top three reasons staff resist change are because failed efforts in the past have made them sceptical, they don’t feel involved in the process and they do not understand the reasons behind the change.

All in all, half (48 per cent) of respondents said the critical capabilities required to sustain change are not in place.

Business leaders who can relate to these challenges and feel they are present in their organisation may want to take action immediately, as ineffective change management can have dire effects.

The consequences of poor change management

So what are some of the things that can happen if change is not properly managed in an organisation?

This was explored in Right Management’s ‘Ready, Get Set…Change!’ study, which provided some damning findings on the potential consequences of poor change management. As expected, the majority of the impact falls on employees – according to the study, companies that don’t manage change well are four times more likely to lose talent.

Additionally, of the respondents in the study who said their organisation’s change management is poor, three-quarters (75 per cent) reported being concerned with the company’s ability to attract talent in the future. A third (32 per cent) said they harboured negative feelings about whether they could hold on to their job in 12 months’ time.

As can be seen here, poor change management can have pervasive effects around the organisation, and business leaders need to think seriously about whether they are directing change in the right manner.

What are the best steps forward?

Of course, getting on the right path to change management can be a long process that takes time and effort – but it can help to know where the best places to start are.

McKinsey & Company provides one such perspective. Following extensive global research into the subject, it has come up with a list of what it purports to be the keys to transformation success.

According to the firm, companies that have been successful in transformational change have traditionally demonstrated behaviours such as making roles and responsibilities clear, engaging continuously through ongoing communication and tasking the organisation’s best talent with the most crucial change activities.

Leaders, obviously, have an important part to play too – they should make sure that frontline staff feel ownership for the change and role-model the desired changes.

Change should not be daunting to any organisation – in fact, if managed right, it can turn into a massive step forward for your company. Are you making sure your business is primed for change management success?

6 reasons why introverts make excellent leaders

When imagining a successful leader, many people automatically envisage someone with a bold personality, charisma, and a knack for public speaking and commanding social situations. This bias has also existed in businesses for many years, with organisations typically looking to promote extroverts to leadership positions rather than staff who are prone to introversion.

A 2006 USA Today study revealed that 65 per cent of senior executives believed introversion to be a barrier to effective leadership. In fact, only 6 per cent said introverts make the best leaders.

However, the list of frequently cited introverts who have made successful leaders is long, including modern names such as Bill Gates and Warren Buffett, as well as historic faces like Gandhi and Abraham Lincoln.

Therefore, what traits make introverts powerful and motivational leaders? Particularly when they face the stereotype of being quiet, shy and reserved. To answer that question, here are six reasons why introverts could be the right choice for leadership positions at your organisation.

1. New perspective

If your business only promotes extroverts to leadership roles, it can be difficult to gain a different perspective on problems or issues. Introverts can bring new ideas and suggestions to the table that offer fresh direction.

A mixture of introverts and extroverts can optimise brainstorming sessions and other meetings by combining two sets of talents in a way that is mutually beneficial for the creative process.

2. Careful preparation

Introverts like to be prepared, especially for social situations where they may otherwise feel uncomfortable, such as presentations, business meetings, networking events or speeches.

Any additional time spent researching, practising and understanding goals and strategies often pays dividends. Extroverts, while often naturally charming, can be guilty of ‘winging it’. This could cost them opportunities if colleagues or potential customers feel they have more style than substance.

3. Calming influence

Bringing together a room full of extroverts can mean emotions occasionally spill over, which could result in heated arguments and process delays.

Introverts, on the other hand, are usually more reflective and less likely to be directly confrontational. This can help to calm passions and temper egos when meetings spiral out of control.

4. Better at leading proactive teams

Research published in the Harvard Business Review shows that introverts are often better leaders for naturally proactive employees.

This is because they tend to be more receptive to a team’s ideas, which motivates and galvanises staff who are already passionate about their job. However, in the same study, extroverts were found to be more effective at leading passive teams that needed more direction.

5. Keen sense of self

Introverts tend to be better at self-evaluation, meaning they are adept at identifying the positives and negatives in their performances and making adjustments to improve.

An extrovert’s extreme self-confidence could lead them to ignore or not notice flaws in their skills and abilities, or worse, lay the blame elsewhere.

6. One-on-one skills

Whereas extroverts are comfortable flitting between social contacts and talking to a number of different people, individually or in groups, introverts often prefer building strong one-on-one connections.

The advantage is that interpersonal relationships are deeper and often longer lasting. Suppliers, customers and colleagues also feel more appreciated and respected when you take the time to build these ties.

How to boost productivity through better office design

When measuring the benefits of energy efficient building upgrades, many companies only consider the savings. While a reduction in costs may be considerable, there are far more business advantages to better design.

Some of the biggest organisations in the world are beginning to concentrate more on the layout and sustainability of their offices, including technology giant Google.

Anne Less, e-team innovation program manager at the firm, said the importance of eco-friendly measures in the workplace can’t be overstated.

“Energy efficiency is a huge focus for Google – both in our productivity and our operations – and we’ve found that it aligns with our goals for healthy workplaces,” she said in an interview with the Rocky Mountain Institute (RMI).

“There is a strong correlation between workplace satisfaction and temperature, and similarly with Googlers’ self-reported productivity.”

According to the RMI, Google makes decisions on office design throughout the entire real estate lifecycle, right from concept to construction and beyond.

The business also often weighs factors such as user experience and worker health alongside traditional issues such as cost and energy usage. As such, Google aims to create innovative plans that make the best use of natural light, are more sustainable and ensure staff aren’t exposed to harmful materials.

These measures mean Google now only uses half the US average for energy in its test building, with the company stating its hopes that other enterprises will begin to understand how such investments can bear fruit.

Going green in Australia

A new report by the World Green Building Council (WGBC) stated that staff costs typically account for approximately 90 per cent of operating expenditure for organisations.

This means that even a moderate improvement in productivity at the workforce level can have significant financial implications for employers. In Australia, businesses waste $7 billion a year on absenteeism and poor health.

Romilly Madew, chief executive of Green Building Council Australia, said the report – which her organisation sponsored – will help companies in the country appreciate the value of environmentally-friendly designs.

“Operating from sustainable office space is increasingly recognised as a strategic business decision that is not only environmentally and economically-sound, but can also enhance a company’s biggest asset and expense – its people,” she added.

Peter Hilderson, head of energy and sustainability services for the Asia-Pacific region at Jones Lang LaSalle, said there is a “sweet spot” where financials, people and buildings overlap. In other words, enterprises can achieve mutual benefits by creating office spaces that not only help their bottom line, but boost productivity among employees.

“Organisations that invest the time and apply the necessary rigour to implementing this framework will unlock the benefits of these inter-relationships and reap the rewards,” he stated.

Taking the next steps

The WGBC report outlined a number of areas where businesses can examine their existing building design and make improvements.

If your organisation is looking to upgrade to a more sustainable future, these changes could be a good place to start.

Air quality: Enhancing indoor air quality has been shown to improve productivity anywhere between 8 and 11 per cent. High ventilation rates and low concentrations of CO2 are important factors in achieving better air quality.

Active design and exercise: The health benefits of exercise should be encouraged, including access to gyms, bike storage and green space. The WGBC said people who cycle to work are much less likely to take sick days.

Lighting and nature: A growing body of research shows that green space and nature both have a positive impact on health, particularly mental wellbeing. Office layouts that prioritise access to windows and natural light, therefore, are tied to a boost in productivity.

Temperature: The WGBC said it is difficult to separate the benefits of air quality and room temperature, as they are often closely linked. However, providing staff with control over their thermal comfort is thought to produce productivity gains somewhere in the single figures.

Amenities and location: This is becoming an increasingly important part of modern offices, particularly in relation to childcare. Businesses that have provided these services on-site experienced a significant financial gain through reduced absenteeism.

Noise: Employees typically highlight loud office environments as a severe impediment to productivity in knowledge-based jobs. In fact, there can be a 66 per cent drop in performance due to distracting sounds, according to one study cited by the WGBC.

Interior layout: Recent research has suggested that creating a number of different task-oriented workspaces is the key to making workers more productive. This means providing separate areas where staff can socialise, brainstorm or work on their own.

Different leadership styles from around the world

Businesses are operating in an increasingly global environment, which requires careful consideration of cultural differences when marketing goods and services worldwide.

This is particularly true for Australian organisations hoping to take advantage of growing opportunities in Asian markets, with the country ideally placed to strengthen trade relationships on the continent.

Whether you are dealing with international partners or setting up an office in an overseas location, understanding typical leadership styles in that country can be extremely beneficial to bolstering smooth-running relationships.

So what are the main leadership styles exhibited worldwide? British linguist Richard D Lewis explored the nuances between a number of countries in his 1996 book ‘When Cultures Collide‘, which is now in its third edition.

Here is a summary of some of the common characteristics outlined in the book.


Australian leaders are thought to be fairly democratic, with Mr Lewis pointing to Swedish egalitarianism models as a close comparison.

However, Australian organisations are also guided by the more aggressive American way of doing business, which favours quick thinking and fast decision-making.

According to Mr Lewis, Australian executives must be considered ‘one of the mates’, but once they have achieved this status they often exert important influence.

Research by the Australian Institute of Management has previously found that the country’s leaders are supportive, preferring coaching and mentoring rather than focusing on individual mistakes.


Diplomatic, tactful and casual, British managers are often fair and willing to compromise.

Under the surface though, UK leaders have a pragmatic streak that ensures they can be resilient and ruthless, but in a subtler manner than is stereotypically seen in US counterparts.

Where British employees can falter is in international communications, with an adherence to tradition and inward-looking perspective that can prevent cross-cultural learning.


Japanese businesses are more likely to have a bottom-up approach to innovation and change, Mr Lewis claims.

Top executives may harness substantial power, but new ideas typically come from workers on the ground. These are then filtered up through middle management to senior executives and are put in place when they gain enough support.

This process involves the circulation of a document called a ringi-sho, which is annotated and amended by various departments as it makes its way up the leadership chain.


Like in Japan, Chinese leadership is often geared towards consensus decision-making, which Mr Lewis describes as the Confucian model. This means a leadership group is usually in charge of policy implementation.

However, unlike in truly democratic leadership styles, there is a respect for unequal relationships. Organisational structures are similar to families, with age and seniority being greatly revered.

A benevolent autocrat is considered the ideal boss, and subordinates expect to be given instructions.

The US

US leaders are often assertive, aggressive and goal orientated, which Mr Lewis says is a result of the country’s frontier beginnings shown since the 18th century.

“They are capable of teamwork and corporate spirit, but they value individual freedom above the welfare of the company, and their first interest is furthering their own career,” he stated.

Leadership positions are usually allocated based on merit and Americans are not shy about pursuing wealth as their main motivation.


Nepotism is a key feature of Indian leadership structures. Decision-making is often made between family members holding senior positions within the organisation.

Trade groups exert a significant influence in the country and strong inter-personal relationships can develop between these organisations.


German efficiency is commonly referred to when discussing businesses in the country – and while it may be a stereotype, there is truth to the notion.

Clear chains of command exist in each department, with information passing through the hierarchy in a top-down fashion. However, despite this autocratic approach, there is room for consensus in German leadership models.

Germans often gain the respect of subordinates by showing a willingness to work hard, obey the rules and play fair. Horizontal communication between department leaders is less common than in US and British firms.


France’s leadership models are among the most autocratic, although Mr Lewis says this may not be particularly evident at first glance.

CEOs often have skills across a wide range of areas, including marketing, production, accounting and personnel – shifting gears as and when required.

Due to this comprehensive coverage, management blunders are more accepted in French businesses, as leaders are responsible for a large number of decisions across many departments.


The Netherlands values merit-based appointments, so Dutch leaders can often point to many achievements and competencies.

While managers in the country are decisive, consensus is important and there are commonly a number of key individuals involved during new policy implementations.

Mr Lewis adds that ideas have free flow throughout Dutch organisations, suggesting bottom-up creativity is encouraged.

4 traits of transformational leaders

Transformational leadership is a style of management that many people wish to achieve and businesses often seek out candidates displaying this talent.

People exhibiting transformational leadership typically focus on revolutionary change within organisations based on a commitment to the company’s vision and strategy.

The late Bernard Bass, a professor emeritus in the School of Management at Binghamton University, highlighted four characteristics of transformational leaders.

This list of commonly cited abilities can help enterprises to identify individuals suitable for transformational leadership development opportunities.

1. Idealised influence

One of the key ways transformational leaders inspire change is to engender trust and loyalty among followers through charisma and positive behaviour.

Creating this sense of idealised influence in the workforce can be achieved in a number of ways, including leading by example, articulating a vision and explaining how to reach goals.

Having high ethical and moral values – and displaying them in dealings with staff – is also a characteristic of transformational leaders. Seen as role models, these individuals have the confidence of staff, who will typically respect their decisions and strategies.

2. Intellectual stimulation

Spurring innovation and effecting change requires staff to re-examine entrenched beliefs, notions and processes. Only then can radical new initiatives be introduced.

Transformational leaders create an environment of intellectual stimulation, where employees’ awareness of business issues is developed and encouraged.

Creativity is the key to success and staff are given guidance on how to optimise their problem-solving capabilities, including lateral-thinking exercises.

Managers tend to foster a climate where new ideas can be explored in a supportive, collaborative atmosphere, without fear of punishment or ridicule.

3. Individualised consideration

Transformational leaders have a tendency to prioritise an individualised view of the workforce. In other words, they treat each staff member as a separate person with their own skills, talents and motivations.

Taking this into account helps leaders to select roles for employees that are best suited to their capabilities, which enables staff to reach personal goals more easily.

Leaders can achieve this in a number of ways, including listening to personnel closely, praising positive performances, publicly recognising achievements and privately thanking staff for outstanding contributions. Some managers may also take on a coaching or mentoring role to help colleagues develop further.

4. Inspirational motivation

Keeping people inspired is often what gets the creative juices flowing, which is vital for transformational leaders looking to make large-scale changes to business operations.

Common motivational tactics include encouraging teamwork, articulating the company vision in a way that appeals to an employee’s own objectives and developing a shared goal that provides meaning to daily tasks.

Transformational leaders typically create an atmosphere where followers are inspired to become an intrinsic part of the brand’s culture and vision. They set high standards, which gives people tough – yet achievable – targets that boost productivity, while providing a sense of fulfilment.

Breaking bad: Are you approaching change management the right way?

Maintaining business success is impossible without change.

Whether it’s advancing technologies, shifting market conditions or a stuttering economy, there are many factors that can make or break an organisation in today’s rapidly evolving commercial landscape.

However, many leaders are guilty of a common misstep when approaching a change management project. They fail to identify and eliminate negative behaviours in the workplace.

While senior executives are keen to spread best practices and streamline existing processes, these efforts are often undermined by destructive influences.

An expanding body of research is showing that the first step in any change management project should be to curtail these damaging factors before embarking on organisational improvements.

The good, the bad and the ugly

Effective change management can achieve excellent results, but CEOs may need to dig deep and uproot legacy issues that are contributing to disharmony.

This can be an ugly process, and can even highlight failings at the upper echelons of management. Behaviours such as jealousy, laziness, dishonesty and fear are not only destructive at an individual level, they can spread like wildfire through an organisation.

A recent American Management Association study showed colleagues heavily resent employees who dodge their duties. Furthermore, nearly 70 per cent of respondents claimed this laziness damaged overall performance.

What is more worrying for senior executives is that 44 per cent of respondents said it diminishes engagement in the workplace. Half said it reflected a lack of shared responsibility.

Sandi Edwards, senior vice-president for AMA Enterprise, said: “Employees understandably become resentful when they see co-workers shirking responsibility without accountability – in such a situation, organisational morale and, ultimately, performance cannot help suffering.

“A culture that tolerates ‘passing the buck’ alienates those employees who give everything to their job on a daily basis. A few shirkers can snowball until the dominant culture becomes one of risk and responsibility aversion.”

These types of working environment spell bad news for any business implementing a change management project.

Ways to stop the rot

Once you have decided to target negative influences, there are several ways of breaking bad habits and promoting a positive atmosphere in the workplace.

This may involve dealing with problem employees, revitalising out-dated processes or re-adjusting unrealistic expectations. Here are three tips for approaching change management the right way.

1. DO sweat the small stuff

Even relatively minor problems can become major headaches if left to fester, as the “broken windows” theory suggests.

This popular proposition put forward by criminologist George Kelling and political scientist James Wilson in 1982 suggested that in neighbourhoods where a single window on a building is left unrepaired, other broken windows and structural damage soon follow.

The idea is that even a small unresolved issue indicates a lack of care and attention, eventually leading to widespread apathy and escalating destructive behaviour. The premise has been supported by several studies.

Business leaders should take note. Identifying small, yet persistent problems within your organisation can drastically improve productivity, boost morale and keep workers engaged and motivated for change.

2. Separate bad apples

Every company has bad apples and if your business is big enough there could be several. As a CEO or director, the temptation may be to leave the task of dealing with disruptive employees to line managers or department heads.

However, what if the problem is company-wide or involves the line managers themselves? Coming up with a solution may require a cross-departmental strategy that is outside the scope and responsibility of individual managers.

One approach is to collect all of your bad apples into one or multiple teams and assign them new leaders. There is likely to be a few big personalities involved, so they will need to be headed by strong managers who are up to the challenge.

Channelling their negative energy towards a common goal could have surprisingly beneficial outcomes. Even if a team continues to underperform, the damage will be limited to one area and other employees won’t be affected.

3. Build an effective change management team

Who you assign to a change management team is vital. The leader of this team needs to be high in the organisation to indicate the importance associated with the task.

However, seniority is not the only factor. They must also be well respected and have a good relationship with employees who, ultimately, are the driving force behind effective change management.

Getting popular staff members on side with a change initiative can drastically improve its chance of success. But recognising these employees can be difficult for directors who have little contact with personnel outside of senior management.

CEOs and directors should take the time to do research, improve communication and be objective when building the best change management team.