Transformational Leadership

Frances Hesselbein

In a world where the rules are constantly changing, millions of people in every sector of the economy are wrestling with the new demands of leadership. I hear leaders and managers everywhere discussing the same fundamental challenge: the journey to transformation, moving from where we are to where we want to be in the tenuous future that lies before us. Around the world—in universities, the community of faith, corporations, government, and the burgeoning social sector—leaders are working to shape the transformation of their institutions.

A few years ago, I ventured to China with a team of four thought leaders to deliver a series of seminars at the invitation of the Bright China Management Institute. As we talked with our Chinese colleagues, we used the same language to describe the power of mission that we use when we work with the Salvation Army, the U.S. Army, Chevron, or the American Institute of Architects: vision, mission, goals. The actual words are different in every language, but the power of those words is universal. And with a common language, people in every sector, in every culture, can have dialogues of great meaning that help transform organizations.

In sharing experiences across the public, private, and social sectors, I have found that organizations usually pass eight milestones to reach their destination: an inspired, relevant, viable, effective organization. These milestones are as relevant to a small community group or the Girl Scouts as they are to a large business or government agency.

  1. Scan the environment. Through reading, surveys, interviews, and so on, we identify the major trends likely to affect the organization. The essence of strategy is to define the implications of those trends. Sometimes we can catch a straw in the wind and have a responsive program or project ready as the trend emerges—not after. This assessment of emerging trends and implications, supplemented by internal data, provides essential background for planning change—and offers a better basis for action than our own preconceptions. Flying on assumptions can be fatal. Enstitute, a nonprofit founded by Kane Sarhan and Shaila Ittycheria, works to address both the growing cost of higher education as well as the current youth unemployment crisis by providing young adults with one-year, full-time, apprenticeships at high-growth startups, small businesses, and corporations around the country to prepare them for the workforce and accelerate their career trajectory. Enstitute makes the connection between fellows in need and entrepreneurs and executives willing to mentor those fellows while working together toward a shared goal. After recently launching a second program in Washington, DC (Enstitute began in New York City) Kane and Shaila announced that their program will expand to St. Louis, which came to mind after a recent Forbes article cited St. Louis as having some of the highest startup growth in America. This unique possibility held the opportunity to work in a city on the rise. Kane and Shaila are always looking to the future: they plan to have 500 fellows by next year.
  2. Revisit the mission. At the Frances Hesselbein Leadership Institute, we review our mission every three years and refine it if necessary. The foundation is now 25 years old, and we've revisited and refined our mission a number of times—honing our focus, practicing planned abandonment, and even renaming our foundation—not because we couldn't get it right the first time, with Peter F. Drucker in the room, but when Peter passed, his name belonged to his family.

    The mission statement simply describes why we do what we do, our reason for being—our purpose. Knowing that management is a tool, not an end, we manage not for the sake of managing in its own right, but for the mission. And one's mission does not define how one operates, but simply why. It must be clear, powerful, compelling, and to the point. When we revisit the mission, we ask ourselves the first three of the five most important questions that Drucker helped organizations answer:

    • What is our mission?
    • Who is our customer?
    • What does the customer value?

    When we answer these, we are well on our way to managing for the mission.

  3. Ban the hierarchy. Transformation requires moving people out of their old organizational boxes into flexible, fluid management systems. We cannot continue to put people into little squares on a structure chart. Psychologically it boxes them in. We prefer circles—concentric circles of functions and positions in a staffing design that looks almost organic. Job rotation becomes an enriching reality. People move in circular ways—learning new skills, expanding positions—circular management. We need to ban a hierarchy not suited to today's knowledge workers, who carry their toolkits in their heads.
  4. Challenge the gospel. There should be no sacred cows as we challenge every policy, practice, procedure, and assumption. In transforming themselves, organizations must practice planned abandonment—discarding programs, policies, and practices that work today but will have little relevance to the future and to the organization we are building to meet that future.
  5. Employ the power of language. Leaders must beam a few clear, consistent messages over and over. They must lead by voice, communicating with all their customers, and all their constituents, a few powerful messages that connect and illuminate. Airbnb is a global community marketplace that connects travelers seeking authentic, high-quality accommodations with hosts who offer unique places to stay. When founders Nathan Blecharczyk, Brian Chesky, and Joe Gebbia asked themselves “What is our mission?” all signs pointed to a sense of “belonging.” What makes our global community relevant for Airbnb customers is that for the very first time, anyone can belong anywhere. That is the idea at the core of their company: belonging. Such powerful aspirations—and the language to go with them—are essential to guide an organization into transformation.
  6. Disperse leadership across the organization. Every organization must have not one but many leaders. Some speak of empowerment, others of sharing the tasks of leadership. I think of it as dispersing leadership—with leaders developing and performing across every level of the organization. Leadership is a responsibility all members of the organization share, and it is circular.
  7. Lead from the front; don't push from the rear. The leader of the future does not sit on the fence, waiting to see which way the wind is blowing. The leader articulates clear positions on issues affecting the organization and is the embodiment of the enterprise, its mission, its values, and its principles. Leaders model desired behaviors, they never break a promise, and they know that leadership is a matter of how to be, not how to do.
  8. Assess performance. Self-assessment is essential to progress. From the beginning of the change process, we are clear about mission, goals, and objectives. Well-defined action steps and a plan for measuring results are essential to planning any organizational change. We then can embark upon the journey with goals and measures in place. At the end of the process, the most exuberant phase of the journey, we evaluate our performance and celebrate the transformation. We do this by asking the next two of Drucker's five critical questions discussed earlier:
    • What are our results?
    • What is our plan?

Across the globe, for leaders aware of the tenuous times ahead, the journey to transformation is a journey into the future. These leaders are taking today's organization and transforming it into tomorrow's productive, high-performance enterprise. Although the milestones on the journey are known, the destinations are uncharted, and for each organization the destination will be determined not only by the curve of the road ahead but also by the quality of the mission and the leadership it inspires.

Millennial Takeaway

Lauren Maillian Bias

Becoming a single parent before the age of 30 made me refine and hone what I look for in a life partner. The same characteristics that are most important to me today in a personal relationship are the same characteristics that are most important to me in business relationships. Considering the quality of a leader has helped me become a better businessperson at the same time.

For Millennials, more than any previous generation, our professional success and our personal success are interdependent. That's why so many of the qualities and characteristics that we look for in others in our personal life can be applied to our professional life.

Organizations aren't hiring candidates only for the skills listed on their resume. Someone might be highly skilled but also unfocused, unsure of a solid moral compass, untrustworthy, and unreliable.

Every day of the week, employers will choose to hire, collaborate, or partner with someone they can trust, someone reliable, someone who is intelligent and adaptive, who can roll with the punches, and who is willing and able to learn whatever it is he or she needs to know to effectively do the job.

This was my own story for transforming my life and my career. I was tapped to help start up Gen Y Capital Partners in the early stage venture world—not because I was an amazing investor, but because I was a very good judge of character, because I had a very analytical mind regarding investment opportunities, and because people knew that I was fully committed to doing whatever I said I was going to do and to learning whatever I needed to know to succeed as an early stage investor.

By carefully considering the characteristics and qualities that are most important to you in your personal life, you can undergo a transformation in your business life. As Frances Hesselbein notes, “in the end it is the quality and character of the leader that determines results.”

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