Phillip Van Hooser - Transformational Leadership

A few days ago, I was in Chicago preparing to address the Chairman’s Forum for the Independent Community Bankers of America. I had an opportunity to talk with Philip Smith and Jeff Gerrish. Philip is President of Gerrish McCreary Smith and Jeff serves as Chairman of the Board. Their firm serves as consultants and attorneys to community banks, thrifts, credit unions, and their respective holding companies.

We were discussing ways to manage change and provide strong leadership in an industry that has been turned upside down by the financial crisis of recent months.

Successful leadership in the midst of chaotic change requires a mind shift. Traditional leadership has the mindset that “if it ain’t broke, don’t fix it.” A transformational leadership approach says, “It’s already broken, or it’s going to break. How can we seize the opportunities we have now to make it better?”

Managing change with this transformational mind set requires that leaders know what they are up against. There are some critical truths about change that need to be recognized before getting a firm grasp on any changing situation.

Truth # 1: Change is inevitable – it’s going to happen.

The question for leaders is – will you see it coming? What steps are you implementing to survey the changes in your industry? Have you developed plans for innovation and contingencies? If not, why not? Transformational leaders are visionary.

Truth # 2: Change impacts everyone, at some point, at some time.

We don’t live and work in a vacuum. And unfortunately, we are sometimes innocent bystanders who get caught in the groundswell of change. Consider, for example, the honest owner of the auto dealership whose livelihood is cut off as a result of the disassembling of Chrysler and General Motors. Transformational leaders understand the ripple effect of change and realize their organization can be impacted by the decisions of others.

Truth # 3: Change is most challenging for those who are most comfortable.

Traditional leadership thinks: “I like the way it’s always been done.” “Why worry about what MIGHT happen?” “Business seems to be going nicely, why mess with a good thing?” Transformational leadership says: “We must innovate or fall behind.” “What can we change that will take our processes, products and people to the next level?”

Truth # 4: If leaders wait until everyone realizes change is necessary, it is often too late to manage the situation successfully.

Successful leaders must accept the responsibility for setting the vision and direction of their organization. That includes accepting the responsibility to make difficult decisions in a timely manner.

Truth # 5: Most often, change is a result of force, not choice.

Again, the U.S. auto industry is a classic example. Transformational leaders have the mind set to change voluntarily. They seek out the parts of their organization – and themselves — that need improvement and implement the change before that change is forced upon them.

Truth # 6: When change occurs, new problems and new opportunities are always created.

Yes, managing change is a huge headache. It is also a huge oyster filled with opportunities never before available. The need to reduce U.S. dependence on foreign oil coupled with the restructuring of the U.S. auto industry has spawned an explosion of new “green” technologies. Transformational leaders understand the value of seeking out and maximizing the opportunities that exist each time something changes.

Whether it’s the banking industry, manufacturing, energy, healthcare or some other industry, opportunities abound for those organizations whose leaders embrace these truths and transform the way they manage change.

Mr. Smith and Mr. Gerrish shared a few of their thoughts on leadership and change with me. I think you’ll find their comments valuable as well. Check them out here:

Philip Smith, President, Gerrish McCreary Smith

Jeff Gerrish, Chairman, Gerrish McCreary Smith

Phillip Van Hooser
Leadership Expert, Author & Keynote Speaker
phil@vanhooser.com

5 Truths Impacting Change

Truth # 1:  Too often, by the time the need for change is obvious to everyone—it’s too late.

Let’s face facts.  Most of us don’t really like change all that much.  We like status quo. We like predictability.  We like our comfort zones.  We like to know exactly what will happen next and exactly how we will be affected by it.  So when someone comes along preaching the gospel of change, we are tempted to add our voice to the “amen chorus”…as long as someone else is willing to go first.

Truth # 2:  Ultimately, most change occurs as a result of force, not choice.

The best leaders are not content to wait for a line of volunteer change agents to suddenly materialize.  Instead, the most effective change leaders are the ones who construct and communicate a compelling message that addresses specifically why change is already  necessary and that no other option to change exists.   Change must begin immediately, they proclaim, in order to assure economic growth, national security, financial prosperity…or on the local level more orders, enhanced quality, competitive relevance.

Truth # 3:  Change is most challenging for those who are most comfortable.

If things are going well, it is hard to convince ourselves, much less others, that now is the time to change and that there is an undeniable reason to do so.  We remember the words that have echoed down through the years: If it ain’t broke, don’t fix it.  We are just too comfortable to be motivated to act.  However, let our retirement portfolios fall by 25-30% in a matter of hours and people tend to become much less comfortable with how things are and much more motivated to make necessary changes.

Truth # 4:  The initial changes are always the most difficult.

Getting started with change can be tough.  Where do we start?  How do we start?  Will you go first?  Some of the best leaders I have known are not necessarily the smartest, the most experienced or the most visionary.  No, rather they possess the one attribute that many other aspiring leaders lack.  They are willing to simply stand up and step out, while the majority of others sit, wringing their hands and moaning “Oh, woe is me.”  Leaders that take action seem to intuitively know that the sooner we are able to get through the uncomfortable, often unpleasant first stages of change, the smoother the path ahead becomes.

Truth # 5:  When change does occur, there will always be new problems to be dealt with and new opportunities to be taken advantage of.

Contrary to the dismay of those who have wasted far too much time hoping that every change they encounter would result in a fairy tale world totally void of problems, I say simply remind you that it doesn’t work that way.  Every change will yield new problems.  Count on it.  Expect it.  But they are problems that can be managed and learned from.  But, get ready, the opportunities are lurking as well.  They are always there for those willing and prescient enough to look for and maximize them.

Let’s face it, change is as much a part of our life as death and taxes.  Those leaders who accept the inevitability of change and who learn to benefit from the opportunities change presents are the ones for whom opportunities will be never ending.  So, who’s willing to change?  Will you go first?

Phillip Van Hooser
Leadership Expert, Author & Keynote Speaker
phil@vanhooser.com