| Organizations must re-invent themselves or they | | | | organization. He/she influences their workforce to |
| will be at risk of becoming stagnant, or irrelevant. | | | | change, to increase their awareness of the |
| History is full of examples where a failure to | | | | necessity to excel at what they do, to encourage |
| adapt to changing market conditions results in | | | | personal growth and accomplishment and to |
| complete disintegration and subsequently | | | | motivate them to work for the good of the |
| disappearance from the corporate arena | | | | organization as opposed to personal gain. |
| altogether. Successful organizations are therefore | | | | Transformational leadership is necessary for three |
| always on the look for transformational leaders | | | | stages of change management demand, including |
| who can champion the process of transition from | | | | (a) motivating changes in behavior and |
| stagnation to agility, growth and profitability. | | | | overcoming resistance; (b) managing the transition |
| One of the key ingredients for a successful | | | | to ensure control; and (c) shaping the political |
| transformation is a clear and compelling vision; a | | | | dynamics so that power centers can develop that |
| vision that defines the perfect world with clear | | | | support change. For a maximum participation in |
| principles and that guides the transformation | | | | the transformation process, the organization |
| effort to be developed. Such a vision should not | | | | structures and processes must be aligned with |
| only constitute a shared image for a desired | | | | the organization's vision. |
| future state, but also inspire and motivate | | | | For a large-scale alignment, five transformational |
| workforces to give everything in their power. | | | | activities are required: (a) finance reform; (b) |
| Thus ultimately leading to achieving grand strategic | | | | re-alignment of human capital; (c) development of |
| objectives for the organization. | | | | performance measures; (d) adoption of |
| A superior and well-defined vision encompasses a | | | | information technology; and (e) identification and |
| sense of urgency to overcome any complacency | | | | implementation of evidence-based practices. The |
| that might be exhibited by stakeholders. It clarifies | | | | administrative and accounting structures should be |
| the general direction for a change. It also inspires | | | | aligned with the central administrative units (so |
| and motivates people to act in the right direction | | | | they do not undermine the change strategy). |
| and helps align employees' actions with the | | | | In a globalized knowledge-based economy, Human |
| organization's strategic goals. For maximum | | | | Capital constitutes a certain critical asset. In many |
| effectiveness, the vision needs to be clear, | | | | cases, it can be viewed as a real differentiator |
| focused and easy to communicate. | | | | that must be nurtured and empowered in order |
| A successful transformational leader would have | | | | to enable the organization to compete. Increasing |
| certain qualities. A prominent quality is the ability | | | | numbers of companies have recognized this edge |
| that enables him/her to guide and influence others | | | | and are harnessing an enormous source of power |
| to bring about fundamental change, not only to | | | | to improve organizational performance. With the |
| the external world, but also to internal processes. | | | | right Human Resource structure and a |
| Another quality which a transformational leader | | | | well-communicated vision, organizations can |
| must possess is the capability to formulate and | | | | mobilize the majority, if not all, of the workforce |
| spearhead a compelling vision, as well as the skill | | | | to help provide leadership to accomplish much |
| to organize and manage the 'change' process. | | | | needed changes. |
| Such skills may not be acquired by a single | | | | Corporate culture has a significant influence on |
| person, but by a multi-disciplinary team. | | | | human behavior and can be very powerful |
| In addition to developing and communicating the | | | | especially if employees are well-selected and |
| vision to all stakeholders, the transformational | | | | coached. Such culture exhibits itself through the |
| leader is responsible for: articulating a consistent | | | | actions of all its employees. The effects happen |
| transformation plan, maintaining a clear focus on | | | | without conscious intent and thus are difficult to |
| transformation goals and managing external | | | | challenge or even discuss. |
| changes to complement internal ones. | | | | It is imperative to comprehend that |
| The transformational leader plays a pivotal role by | | | | transformation is an ongoing process and can be |
| articulating his/her vision of the organization's | | | | permanent in nature. The change process is |
| future as well as inspiring and motivating | | | | intended to create or anticipate the future. It |
| employees and management alike. The leader's | | | | simultaneously deals with the evolution of |
| ownership of the transformation process is | | | | interconnected concepts, processes, organizations |
| prerequisite, without which becomes a futile | | | | and technologies wherein a change in any one of |
| exercise. The leader should send out the right | | | | these necessitates a change in all. Despite the |
| signals and messages that the transformation is a | | | | challenges, visionary leaders do spearhead cultural |
| critical component of the entire organizational | | | | change within their organizations. Leaders of |
| strategy. He/she must establish a structure to | | | | transformation efforts should realize that success |
| encourage creativity and innovation, by 'thinking | | | | hinges on creating a culture of innovation that |
| outside the box'. | | | | encourages and rewards those who embrace |
| The transformational leader pays a careful | | | | innovative risks. |
| attention to the human capital aspect of the | | | | |