Navigating Change: Leadership, Change Management, and the IBM Case Study
November 11th, 2023, Dinesh V
Growth and Comfort cannot co-exist – Ginny Rommetty 2012., (Author Talks: IBM&Rsquo;S Ginni Rometty on Leading With &Lsquo;Good Power&Rsquo;, 2023). Change is true, change is nature, change is the only constant in the world we live in – It is inevitable. Whether it may have been spurred by advancement from a technological perspective, market dynamics or macro and microenvironments, it is inevitable. The crux of the matter is on how we adapt and embrace change as part of our lives. In this, leadership plays a pivotal role in directing and leading organizations through transitions and transformations. Ultimately, per Mullins (2010:753), it is all down to the personality of the individual and there is little management can do about resistance to change. We will delve further to understand what that means really and review IBM as a case study on Change Management.
What is Leadership’s Role in Managing Change & What type of Leader does it take!
Leaders play the most crucial and pivotal role in guiding an organization through changes. Naturally, visionary leaders who embrace the need for resilience and adaptability have been at the forefront in driving these changes. They get it, they understand that if the organization does not change then it is heading to a downward spiral which it may never recover from. They have learned and consumed change as part of their DNA setting visions and examples for others to follow. Per Maxwell (2013), leaders who have achieved the Pinnacle leadership are natural ambassadors of change as they have, throughout their life, worked hard to satisfy the other levels.
However, are leaders the only catalyst in bringing about change? What about the individual personality of others which may influence and resist change. No one person is the same, their perspectives and objectives differ from the other which means their motivation may be influenced by other factors. As Leaders, how do we manage that, while change is inevitable, change is also hard! (Sirkin, 2023). In reference to Anderson’s Change Arc, (Anderson, 2023), when a change is proposed, people immediately would want to know what does this mean to me, why is it happening and what will it look like.
In large organizations, managers in fact, play the most important role in influencing subordinates. They create the little sparks that could either ignite a chain reaction of positivity or negativity during a change. Enabling them through transparent and open communications, especially with the 3 questions referenced above, will help them embrace and understand that change is a constant force. Naturally, this is where the magic happens, we marry the vision and mission of the organization to the personality of the individual, this becomes the pivotal moment that leads to a change in mindset that embraces change rather than resist it, setting an example for others to follow, igniting that chain reaction!
IBM as a Case Study
In the last ten decades, IBM had gone through a series of remarkable transformation, from selling the Electric Tabulating Machine to Mainframe systems and Watson (AI Machine Learning) and then completely moving from a hardware predominantly company to a market leader in cloud computing, and artificial intelligence. This transition and transformation was not smooth sailing, it was the Level 5 leaders (Jim Collins – Concepts – Level 5 Leadership, n.d.) who lead the company through these changes. For the purpose of reference, we will take Ginny Rometty (author of Good Power) as the leader in context. She took on the job as CEO in 2012 to lead and move a gigantic workforce of 300,000 strong employees through a series of transitions which will set IBM’s trajectory in the years to come. Her ability to adapt and evolve stemmed from strategic decision-making, bold leadership, and a focus on innovation. She was taking the company through an evolution which was not solely about products but redefining the company’s 100 years of culture to align with the ever-changing dynamics of the technology industry.
Examining Ginni’s journey had revealed the crucial role of leadership and change management in navigating transformation. Ginny was extremely effective at breaking down changes into smaller components which made it easy to understand and embrace. She started off with People then followed by Thought, Action and finally building something that lasts. In comparison of Jim Collin’s Good to Great, we see an approach of a Level 5 leader, as illustrated below, (Jim Collins – Concepts – Level 5 Leadership, n.d.), the output results from IBM under the leadership of Ginny validated that the principles she applied brought about the outcomes the company needed to set the trajectory for years to come.
Recommendations for Effective Change Management
Change is inevitable and change is hard. Over the years of working for large corporations including IBM, large changes take its toll on those who are at the direct path of change. However, change can be managed, change can be embraced, and change can become part of our DNA. It is in my opinion that managers and leaders could leverage on Kotter’s 8 step Model of Change and apply them dynamically with agility. Not one size fits all, but having a guideline to work with, will help managers break their approach down to smaller manageable and effective components.
Illustration 1: John Kotter’s Model of Change. Taken from visual paradigm. https://online.visual-paradigm.com/
IBM, during its transformation, recognized the urgency of change, without which, the leaders understood that the evolving tech landscape and market dynamics will turn the company into an age-old dinosaur doomed for extinction. In the case of Ginny, her clear and transparent communication on this need for change, also created a new sense of purpose, to survive.
Crafting a clear vision and strategy for change may reinforce the sense of purpose. We do not need to introduce new practices or change the mission of an organization, the idea is to enable others to contribute to greater things than themselves to derive meaning based upon the work they do.
Clear, consistent communication and feedback loops will help ensure employees understand the reasons behind the change and how they will fit into the bigger picture. Naturally, it is important for employees to know if their contributions are effective and whether they bring value to the organization. This in turn builds confidence on being competent, that they are doing the right things to help the organization achieve its transformational goals. As an outcome, we are empowering employees by encouraging them to take ownership of the change process it self. Providing resources and support will transcend their purpose which in turn fosters creativity and innovation.
We should celebrate smaller victories, whether it was a closure of a successful project or simply achieving a milestone in the journey of adopting changes it provides validation to the work they are doing, in turn boosting their morale and reinforcing the effectiveness of the change.
We all have learned the story of the eagle’s change in order to continue with its survival and existence for the next 30 years. The above are a few examples on how we could also change and adopt a methodical approach towards fostering and embracing change. Good luck on your own personal journey on adopting change! Be an Eagle!
References:
Meghani, K. (2020, August 12). How to make crisis-led change stick – CMI. CMI. https://www.managers.org.uk/knowledge-and-insights/blog/make-crisis-led-change-stick/
Andersen, E. (2023, April 3). Change Is Hard. Here’s How to Make It Less Painful. Harvard Business Review. https://hbr.org/2022/04/change-is-hard-heres-how-to-make-it-less-painful
Jim Collins – Concepts – Level 5 Leadership. (n.d.). https://www.jimcollins.com/concepts/level-five-leadership.html
Author Talks: IBM’s Ginni Rometty on leading with ‘good power’ (2023, March 10). McKinsey & Company. https://www.mckinsey.com/featured-insights/mckinsey-on-books/author-talks-how-ibms-ginni-rometty-leads-with-good-power
Kavanaugh, J. (2021, May 5). Break Down Change Management into Small Steps. Harvard Business Review. https://hbr.org/2021/05/break-down-change-management-into-small-steps
Sirkin, H. L. (2023, June 14). The Hard Side of Change Management. Harvard Business Review. https://hbr.org/2005/10/the-hard-side-of-change-management