One of the reasons we need leadership in business, and even in life, is the need for change.  In times of change, leadership is greatly needed.  As we have discussed in past classes, you can not expect a different outcome if you keep doing the same thing.  Said a little differently, you can not expect a different outcome if you don’t CHANGE what you are doing.

But I honestly think that the toughest change to lead through is changing when times are GOOD.  That is right, change when times are good.

You will quickly ask me, “Why would you change if times are good?”  Well, hopefully out of today, I can make you better understand the term called Leading Through the Change.

See a leader is not just looking at what is currently going on with the business, department, service, etc.  He is looking out in front of the business seeing what are the next challenges that business will face and preparing the organization for the future.  Most of the time, this future involves change.

A company, a business, a service or a product goes through what are call life cycles.  Most of the time the cycle starts with The Growth Curve.

The Growth Curve
The Growth Curve begins as the sales or business begins to grow and it quickly increases to Point A on the chart below.  Point A is what I like to call the “high times.” 

When everyone in the company is enjoying the success of sales or profits.  This is the stage of growth that companies are hiring, having massive tent parties, big corporate outings, and expensive launches of products services.  However, in every business cycle, the high times don’t last.  I will say it again, THE HIGH TIMES WILL NOT LAST.  As competition or substitutes enter the market, the growth curve begins to slow down, even to a point where there is a decline, like in Point B in the chart.

However, here is when the Leader must Lead.  At Point A in the growth curve a Leader must have visibility of the future for the business or department and make changes.  Yes, during the very best of business performance, changes need to be made to the business to prepare and to AVOID the downturn.  

Anticipating Change and the Period of Chaos
When Change is initiated at Point A, the followers will misunderstand what the leader is doing.  When the change is made they often feel upset, resentful and in a state of flux.  This is the “period of chaos”  (the Shaded Area).  Leadership during this period of chaos is critical to the survival of the long-term growth of the company.  As we have discussed many times, Leaders are Communicators.  Communication by the Leader during the period of Chaos is very important and critical to the success of the change.  

So instead of taking the growth curve originally seen in the first chart with Points A and B, now with the change, the Leader has plotted a new growth curve line.  Many times, during the period of chaos, this growth line is less productive than the original curve.  This short-term drop in productivity or profitability adds to the atmosphere of chaos.  But the leader must lead through this time.  However, if the course is continued, and the change is effectively managed, the downturn will be avoided and the company will continue to grow.

Thriving on Chaos
Because of the rapid change of pace in an organization, the leader must constantly be evaluating, planning and making healthy changes.  This means followers may feel unsettled like they’re in a constant state of chaos.  Great leaders and organizations must learn to thrive on this.

Application
Leaders must prepare their followers for the period of chaos early in the long-term planning process.  Followers must be continually informed of what is going on in advance of the implementation of any plans.  Gain the trust of followers by including them in the plans, giving them ownership of their part, and encouraging them through periods of chaos. 
So, let's be Leaders through the Change,

Lead On!
Sutton