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Leadership transitions are difficult for both organizations and the leaders in transition. But Michael Watkins says it’s also a time of incredible opportunity, especially for new leaders who understand how to navigate this critical period.
Watkins is a professor of leadership and organizational change at IMD Business School. In this episode, we’ll share a framework for choosing the most appropriate migration strategy for the situation you’re facing, whether you’re turning around a business in crisis or building a new one from scratch. Masu. Watkins also explains why it is so important to effectively assess the new leadership situation and not just rely on transition strategies that have worked in the past.
If you’re looking to take on a new leadership role, this episode is for you. It was originally broadcast on HBR Idea Cast This is an article from December 2008.
Roberta Fusaro: Hello, I’m Roberta Fusaro, associate editor at Harvard Business Review. Today I’m joined by Michael Watkins from Genesis Advisors, a leadership development consulting firm. Michael, The Harvard Business Review article “Choosing the Right Migration Strategy” starts with a simple premise. Transition leaders using strategies that have worked in the past may actually be making big mistakes. First, could you explain to our listeners why it’s dangerous to reflexively rely on proven truths? What do you think is a better approach?
Michael Watkins: Okay, Roberta. But first, I think we need to take a step back a little bit and realize that the transition period is a really important time. This is a time of great opportunity for new leaders, but also a time of certain vulnerability. It’s like going to high school. What you do in those first critical days, weeks, and months can have a huge impact on everyone’s perception of who you are. So when I started this book, the first 90 days that I wrote, a lot of my attention was focused on how to help people get through that critical early period and get up to speed more effectively. I was trying to concentrate.
However, recently it has become increasingly clear that the method of migration is highly dependent on the actual circumstances of the migration. And my concern, and indeed my observation, is that people develop a particular approach to transitioning early in their careers that may work well up to a certain point, but then they may end up transitioning. That’s what it means. It can be taken to a new level. It may be a new company, it may be international, and the exact same strategy may turn out to be not so productive. A lot of the work I’ve been doing lately, as reflected in this article, is how to effectively adapt migration strategies to the specific types of situations you’re facing.
Roberta Fusaro: You’ve developed a useful framework to help leaders make this transition effectively. Could you give us an overview?
Michael Watkins: Of course. So one of the observations that I made very early on is that the business situation that leaders face is very important. As a simple example, between being in a crisis situation and being in a turnaround situation where everything is going on and disaster strikes and money is lost and sirens are blaring, and being in a situation where problems are starting to occur. As you can imagine, there is a big difference. Development is progressing, but it may not be completely clear to everyone yet. The critical mass of support to do something isn’t necessarily there yet.
So I built a broader framework for thinking about how leaders move into business situations, based on the observation that these two situations are very different, for example. This led to the Startup, Turnaround, Accelerate Growth, Realignment, and Sustaining Success known as the STARS framework. Startups obviously build something from scratch and get it off the ground. As we have said, the crisis is ongoing. Accelerated growth is a situation where your business has reached a critical stage where it’s really starting to take off and you suddenly need to put more structure and systems in place to grow your business.
I think of recalibration as a challenge of active change where new problems arise and you actually have to deal with them. And sustaining success is that rare situation where a business is so successful that they really need to do something to keep it that way, but it’s still not easy and it’s not just about being great. It’s not just about taking defensive measures. It’s about how to achieve growth in more mature markets. How do we actually preserve our long history and associated heritage?
Roberta Fusaro: Now, why is it so important for leaders to know which of these five business situations they’re facing?
Michael Watkins: Well, because if you misassess the situation you’re about to face, the actions you take early on can have very negative consequences. Let me give you an example. Let’s say you’re someone who loves shooting guns and creating dramatic action, thrives on crisis, and thrives on that type of action orientation. This may work well in turnaround situations where people are aware of the existence of a crisis. There’s a sense of urgency built into it. People want solutions and answers. You may fit the situation very well.
On the other hand, when faced with this type of more aggressive challenge to change, there are those who seriously deny the need for change or who do not recognize at a fundamental level the magnitude of change that is required. could easily exist. They come in guns blazing and it’s obvious there’s a problem and they start doing something. What will happen? Well, you end up triggering what I think of as a systemic immune system response. That means people will be mobilized and killer T cells will swarm around you. You will either be digested by the organization or exiled.
Therefore, you need to adjust to the type of situation you find yourself in. Because it really impacts how you do a lot of important things. How do you learn about a new role or a new organization? What is your focus? What kind of team should you build? And how many changes are you going to make to your team? What are you going to do to win early?
Therefore, the basic principles of migration apply very well. However, how you actually operate them varies greatly depending on your business situation.
ROBERTA FUSARO: Once you understand the business landscape, what can you do to successfully transition the organization you’re starting to lead?
Michael Watkins: Well, this is a really important point. And I think one of the very simple things you can do is make sure that people actually see the situation the same way you do. And that the entire organization is grounded in reality about what the real challenges are. This is another reason why I recommend using this particular framework. Because this can be a very productive way to have a conversation with your boss. Is this a change of direction, a reorganization, a startup or accelerated growth? What am I here for? what is my mission?
You might run a version of this kind of framework in a group strategy exercise with a new team. So let’s say you’re my team and you and I have to do something in this business. We want to be on the same page about what we’re actually working on here. So we can use this framework as a basis for having those kind of agreed-upon conversations about where we are and what’s key. What are the priorities here?
Roberta Fusaro: It’s obviously a tough job. So what changes must leaders make in managing themselves to ensure these organizational changes are achieved?
Michael Watkins: Well, this goes back to what your leadership reflexes are and what you tend to gravitate toward over time. I believe that every serious general manager must be able to handle all STARS situations. That’s because virtually every business you take over will have different parts from state to state. Some will be ramping up, some will be recalibrating, and some will need to remain successful. Therefore, I don’t think companies can afford to train specialists such as turnaround specialists and restructuring specialists. I think it is really necessary to develop human resources with a wide range of abilities.
That being said, you will have specific preferences and specific reflexes. You may be the type of person who has a reflexive reaction. As a result, they tend to gravitate towards positive trends. You tend to gravitate toward parts of responsibility that look like a turnaround, at the risk of neglecting some of your responsibilities. You probably have what I consider a heroic leadership style. You’ll love charging into the cracks in the walls with your sword in hand and screaming at the top of your lungs. If you find yourself in a reversal situation, that’s great.
If you’re in a recalibration situation, that’s not really what you need. What is usually needed is quieter, more diplomatic leadership, an almost educational approach. Because the first job in a restructuring scenario is to start raising everyone’s awareness of what’s needed and what’s at stake. And heroic impulses are not always productive.
By the way, just kidding about this, I know people who can turn anything around. And if that’s not the case when you start, it certainly is by the time you finish.
Roberta Fusaro: That seems like a very integrated approach. Not only do we shape the organization, we also shape ourselves, so to speak, in order to find the right partner. Michael, thank you for joining us today.
Michael Watkins: Thanks so much, Roberta.
Hannah Bates: That was a conversation between Michael Watkins and Roberta Fusaro. HBR Idea Cast. Watkins is a professor of leadership and organizational change at IMD Business School. He is also the co-founder of Genesis Advisors, an executive coaching and leadership team development firm.
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