Change dynamics and related leadership competencies: leading people through change and uncertainty

Change is a topic of crucial concern to all organisations in the present turbulent business environment. Leaders are constantly faced with the challenge of determining whether environmental factors will exert pressure which may cause harm or change to the organisation. Some of the major challenges that accompany change include a) the constantly changing environment has created an unpredictable future as the marketplace has lost its predictability b) leaders that are not able to predict what type of change the organisation is going to be faced with c) the uncertainty around the outcome of change d) no clear relationship exists between the scale of the change and the scale of its impact within an organisation and e) the risk of failure. Therefore, in dealing with change the mindsets of the organisation’s leaders, regarding the complexity of change, are the most critical factor. In this context, the main topic expanded on in this study is that change in organisations requires leadership and leadership in turn requires certain competencies. Central to the concept of leadership and change is the leadership-followership relationship as leaders have to lead people through the change and the ensuing uncertainty. In order to do so successfully leaders need to have a set of competencies that enable them to lead people through change and uncertainty. The purpose of this study was to develop a framework containing a set of competencies required for the major change types. It compared the views of managers and employees, in the financial services sector, on the importance of those competencies as well as the degree to which managers display the competencies. Ten leaders participated in the qualitative phase of the study and 60 managers and 74 employees responded to the survey. The major outcomes of the study included the competency framework as well as the competencies where statistically significant differences between the managers’ and employees’ views on, a) the degree to which the managers display the competencies as well as b) the importance assigned to the competencies, were found.Dr. Anton Verwe