EDC Article: Change Leadership vs. Change Management: A Blueprint for Transformation and Productivity

First published on January 20, 2025 (https://www.linkedin.com/pulse/change-leadership-vs-management-blueprint-iwxlc/)

By Robert David

At the World Economic Forum in Davos, Switzerland this year, one of the themes is today’s rapidly evolving business landscape: organizations must do more than just adapt to survive; they need to lead change to thrive.

The distinction between Change Leadership and Change Management is critical.

Change management focuses on process and control, ensuring that change is implemented systematically. Change leadership, on the other hand, is about vision, inspiration, and rallying people around transformative goals. It’s the difference between steering a ship and charting an entirely new course.

Through this lens, here are 3 Fortune 500 companies that have embraced change leadership to increase revenue, cut expenses, and enhance productivity.

Microsoft’s Cultural Transformation Under Satya Nadella

The Problem: By the early 2010s, Microsoft faced stagnation. Its products, while ubiquitous, were perceived as outdated, and the company culture was criticized for being siloed and overly competitive.

The Vision: When Satya Nadella became CEO in 2014, he introduced a transformative vision focused on collaboration, empathy, and innovation. Nadella redefined Microsoft’s mission: “To empower every person and every organization on the planet to achieve more.”

Change Leadership Actions:

  1. Cultural Shift: Nadella prioritized a growth mindset, encouraging employees to learn and adapt. This was a marked departure from the previously rigid, results-driven culture.
  2. Product Strategy: Microsoft embraced cloud computing and open-source technologies, pivoting to Azure and integrating AI capabilities into its offerings.
  3. Listening Tours: Nadella personally engaged with employees and customers to understand their needs and foster trust.

Change Leadership Results:

  • Increased Revenue: Microsoft’s market cap soared from $300 billion in 2014 to over $2.5 trillion by 2023.
  • Productivity Gains: The integration of tools like Microsoft Teams and AI-driven solutions enhanced collaboration and efficiency.
  • Cost Efficiency: The shift to cloud-based services reduced reliance on costly physical infrastructure.

Procter & Gamble’s Innovation Revolution

The Problem: By the early 2000s, P&G’s growth had plateaued, and the company struggled to deliver consistent innovation in a crowded consumer goods market.

The Vision: @A.G. Lafley, P&G’s CEO at the time, envisioned a company that would make innovation everyone’s job. He championed the idea of “Connect + Develop,” where P&G would source 50% of its innovations externally, leveraging partnerships and open innovation.

Change Leadership Actions:

  1. Open Innovation: P&G collaborated with startups, universities, and even competitors to co-develop new products.
  2. Customer-Centric Approach: The company redefined product development by focusing on deep consumer insights.
  3. Empowering Teams: Lafley emphasized “innovation leadership,” training employees to think creatively and take ownership of their projects.

Change Leadership Results:

  • Revenue Growth: P&G introduced successful products like Tide Pods and Swiffer, revitalizing its product lines and boosting sales.
  • Cost Savings: Open innovation reduced R&D costs by leveraging external expertise.
  • Productivity: Employees’ ability to innovate across departments led to faster product launches and improved market responsiveness.

Amazon’s Relentless Focus on Customer Obsession

The Problem: Amazon, while successful, constantly faced challenges to sustain growth and maintain its position as the leader in e-commerce.

The Vision: Jeff Bezos’ mantra of “customer obsession” became the cornerstone of Amazon’s culture. The company’s mission was clear: “To be Earth’s most customer-centric company.”

Change Leadership Actions:

  1. Two-Pizza Teams: Small, autonomous teams were empowered to innovate rapidly.
  2. AI and Automation: Amazon invested heavily in AI and robotics to streamline warehouse operations and personalize customer experiences.
  3. Day 1 Mentality: Bezos’ “Day 1” philosophy encouraged employees to act like a startup, staying agile and taking calculated risks.

Change Leadership Results:

  • Revenue Growth: Amazon’s revenue grew from $107 billion in 2015 to $469 billion in 2021.
  • Operational Efficiency: Robotics in fulfillment centers and AWS optimizations significantly reduced operational costs.
  • Customer Satisfaction: Innovations like one-day shipping and Alexa-powered devices reinforced customer loyalty and brand dominance.

Key Insights for Future Change Leaders

  1. Lead with Vision: A compelling vision inspires employees and customers alike. Whether it’s Tesla’s sustainable future or Microsoft’s empowerment mission, the “why” behind the change matters.
  2. Empower Teams: Change leadership thrives on trust and autonomy. From Amazon’s two-pizza teams to P&G’s innovation champions, empowering employees drives creativity and accountability.
  3. Focus on Culture: Cultural transformation is foundational. Nadella’s growth mindset and Tesla’s first principles approach underscore the importance of aligning culture with strategy.
  4. Leverage Technology: AI, automation, and cloud computing are not just tools but enablers of transformative change.

As leaders, we must recognize that the future of business is not about managing change but leading it. Organizations that embrace this mindset will not only adapt to the shifting tides but will create them, driving unprecedented success.

EDC Event – LinkedIn

EDC Meeting – SFSU

EDC Meeting – Palo Alto Networks

5 Reasons Why Persistent Leaders Lead Best

Our most recent article has been published on the SHRM Executive Network website this week. Which reason resonates most to you?

https://lnkd.in/gbGhVduj

“Persistent leadership starts at the top. Here are insights on how leaders can guide their teams toward extraordinary macro goals by staying present and purposeful at the micro level.”

hashtag#persistentleadership SHRM Executive Network hashtag#shrm hashtag#leadershipinsights

Leadership Agility

GOLD (“Gratitude Organizational Leadership Development”) is a program designed for improving Leadership Agility by combining the power of group peer work with individualized coaching. The program was crafted by experienced thought-leaders, from working with over 150 companies globally, conducted by The Gratitude Network in collaboration with Silicon Valley Executive Education.

Growing companies face many organizational and leadership challenges – just by the nature of growth. This program addresses these issues, drastically transforming leaders into ‘GOLD teams’, all while solidifying social responsibility and engaging employees in giving back.

Leadership Development

While many companies know that they need to find a way to continually develop their most significant leaders, they really have few options for doing this. Investing in leaders is one of the best investments a company can come given the positive ripple effects:

-Personal growth as a manager and leader
-Improved communications skills
-Increased sensitivity to diversity & inclusion
-Setting clear goals and expectations for employees
-Improved strategic planning

The GOLD Program is available to make this investment in the context of actual/current projects & challenges.

Top Leadership Retention

Retaining top leadership can be challenging for a variety of reasons:

-Competition
-Burnout / personal reasons
-Lack of growth opportunities / recognition
-Organizational culture
-Limited autonomy

The GOLD Program helps organizations retain their most valued leaders because it is viewed as a reward and privilege by the leaders who are chosen to participate in the program.

Increase Team Productivity
As a company grows, it can become more challenging to maintain the same level of productivity among teams.
-Complexity to navigate new resources
-Communication breakdowns
-Lack of clear goals and expectations
-Decrease in employee engagement
-Bureaucracy and red tape

The GOLD Program helps develop and maintain the high performance teams leading a company to success.

Organizational Silos
Siloed departments can happen for a number of reasons.
-Lack of communication and coordination
-Limited cross-functional collaboration
-Competition for resources
-Different cultures or incentives & rewards
-Limited leadership visibility & accountability

The GOLD Program will help with cross-functional leadership and lowering silos across departments

Lack of Inclusive Leadership

A lack of inclusive leadership can have a number of negative consequences for an organization.
-Lack of workforce diversity, which can negatively impact: Creativity & Innovation.
-Lack of engagement & retention of diverse employees.
-Culture of marginalization which will result in low morale & productivity

The GOLD Program will help with implementing DEI Initiatives

GOLD combines customized 1:1 leadership coaching AND monthly* group sessions for often siloed department leaders.

GOLD encourages immediate integration of skills with existing projects, programs & challenges.

GOLD allows you to cost-effectively retain & develop your most valuable leaders AND improve team-work & productivity throughout the organization.

The GOLD Program is different by combining 5 elements into leader & team growth:
-Customized 1:1 coaching to address individuals’ leadership needs
-Group process allows for Peer to Peer learning
-Group process tears down silos and create improved communication across organizations / departments
-Immediate integration with existing projects / programs and challenges
-Employee Engagement by applying leadership skills in your community

1:1 Social Impact is one of the best benefits of GOLD

For every employee enrolled in this program, The Gratitude Network offers a year of leadership training and one-on-one coaching to a deserving social impact entrepreneur.

In addition, choose the organization to direct the gift to within three categories (Education, Health and Well-being, and Human Rights) and in a variety of countries/regions.

EASY SET UP

C-suite sponsors (CEO / CHRO) choose 12 to 15 critical leaders from a company to participate in GOLD + Program length (6, 9 or 12 months)

Customize a program relevant to a company’s challenges thanks to GOLD’s carefully curated leadership modules. All participants learn together as peers in monthly facilitated group sessions.

We match one of our highly experienced executive Coaches to each of your chosen participants. Each participant receives monthly 1:1 coaching, which reinforces the group work and integrates with real time corporate projects and challenges.

PROGRAM COMPONENTS

-Pre-Assessment (360 assessment)
-Facilitated team learning modules (peer cohort)
-1:1 Coaching – once per month with highly qualified coach
-Quarterly check-ins with C-Suite sponsors
-Post-Assessment (to measure progress)

GOLD Customizable Modules

1. Building Trust & Emotional Intelligence
2. Highly Effective Leadership Coaching
3. Executive Presence
4. Building the High-Performance Team
5. Communication & Influence
6. Inclusive Leadership (DEI)
7. Developing a Culture of Accountability & Results
8. Creative Problem Solving and Innovation Management
9. Managing & Leading in a Changing Workplace

For more information, please contact [email protected].

Making VR a Reality in Business Classrooms

https://hbsp.harvard.edu/inspiring-minds/making-vr-a-reality-in-business-classrooms

Lessons from INSEAD’s Executive Education Team

Put on a virtual reality (VR) headset, and you are immediately immersed in the sights and sounds of a retail showroom, a hotel front desk, or a tense boardroom negotiation—or, perhaps, transported to a state-of-the-art assembly line or a bustling city market miles away. For years, corporations such as Walmart and Hilton have explored the uses of VR technology in employee training, and we are now beginning to understand its potential for business classrooms and executive education. Questions remain: How does VR technology work in the business classroom and where does it fit into the future of online and in-person executive education?

New Full Day SVEE Program – ‘Climate Change and Business Strategy’​

Climate Change and Business Strategy (CCABS)

Who should take this 1-day program?

CCABS is intended for organizations and teams with an interest in how climate change is impacting business, and how business sustainability depends both on mitigating climate impacts and on adaptation to ongoing climate change. While the program does not shy away from using scientific terms, the material is easily accessible, and no prior familiarity with climate science is assumed. The program examines a range of approaches to business sustainability in the context of a changing climate, the actions that business can take to improve the climate outlook, and the emergence of a climate-aware economy.

What is the focus of this course?

CCABS is an optimistic take on the daunting issue of climate change, and maps how business can play a definitive role in addressing the problem of climate change. In terms of balance, the program addresses the business implications of climate change (80% of the day) integrated with a bit of Climate Science for grounding (20% of the day). 

What are the skills that this program is intended to develop?

  • Understanding and communicating the business implications of a changing climate.
  • Developing strategies for business sustainability in the context of a changing climate.
  • Defining and carrying out the actions businesses can take to improve the climate outlook.
  • Helping businesses prepare for the emergence of a climate-aware economy.
  • Engaging with changing consumer expectations in the context of Climate Change.
  • Responding to the demands that Climate Change place on corporate strategy.

Program summary

CCABS addresses a range of topics that cover the principal elements of how business is affected by climate change, and how changing business practices can improve (or worsen) the climate outlook. 

For more details, email [email protected].

Northwest Insights: As a Leader, Why You Should Let Others Lead

Source: https://www.linkedin.com/pulse/leader-why-you-should-let-others-lead-northwest-executive-education

Originally published on May 5, 2022

One of the most difficult tasks that leaders face is the ability to follow others. In the presence of a leader, businesses run smoothly. However, even if the leader is not present, the businesses should still be capable of performing well. To fully instill such effective leadership skills in peers, it is critical for leaders to delegate authority to others and let others lead, take charge, and decide what is and is not good for the organization. A capable leader will aid others in honing their professional skills. It also boosts the company’s productivity and, as a result, profitability. The role of a leader is to serve as a role model for employees, providing guidance, and encouraging employees to further their education and professional development. As a result, it is critical for leaders to comprehend why it is critical for them to let others lead. 

Here are some compelling reasons why effective leadership necessitates delegation of authority: 

It instills leadership qualities in peers

Your coworkers look up to you not only as a leader but also as a role model. One of the most important responsibilities of leaders is to teach their peers about the importance of leadership and to instill leadership skills in them so that they are able to take responsibility. Allowing your team members to take the lead gives them firsthand experience with what the responsibility entails and what is expected of the holder. This assists your peers in growing and improving their performance by providing them with a practical approach to workplace challenges.

It enables them to make future plans

Aspiring for a higher position is common among employees. What is frequently overlooked, however, is that a higher authority brings along increased responsibilities. To let others lead means giving them firsthand experience of the responsibilities that come with a higher position. This allows employees to rethink their capabilities and identify areas where they need to improve in order to be effective in the role they aspire to fill and work on themselves accordingly.  

It teaches them the value of delegation

Delegation is important not only because it is a part of effective leadership, but it is also important for increasing employee contributions and increasing team productivity. Delegation promotes time management and ensures that tasks are completed on time. Everyone has their own area of expertise, and it is true that putting one person in charge of a job that requires a specific skill makes the task easier; therefore, delegation is critical. Individuals are empowered by delegation because it allows them to demonstrate their ability to take on new responsibilities. It encourages people to feel more committed and involved by allowing them to see what contributions they have made to the team. As a result, leaders must delegate authority to peers and let others lead. 

It encourages a positive work environment

Aside from getting all of the work done, one of the most important responsibilities of leaders is to create a positive working environment for their employees that allows them to easily achieve their professional and personal goals. Instead of relying on their leaders and managers for help, it is critical that team members feel empowered to solve the day-to-day problems that arise in their current positions. This increases their self-assurance, knowledge, and problem-solving skills, all of which will be important when they take on a leadership role. You can successfully support your team members’ personal growth by providing lessons and space for them to develop personally, developing a culture of working together and cooperating.  

It aids you in recognizing your peers’ unique strengths

Giving your coworkers responsibility is the most effective way to recognize their unique strengths and abilities to solve problems. Everyone approaches challenges differently, which is how leaders learn which domains an individual excels in and which domains they struggle with. It is critical to get to know your team in order to effectively lead them; thus, if you let others lead and delegate authority to deal with situations, you will improve their efficiency. 

It can be difficult to relinquish a leadership position and move on, but it is necessary for the team or individuals you are mentoring to progress. The aforementioned reasons demonstrate why it is critical for leaders to relinquish control of their authority from time to time and let others lead, allowing peers to learn and grow.

About Northwest 

Northwest Executive Education delivers comprehensive global executive education programs offered by the world’s best universities.

Learning Agility

Learning Agility is knowing what to do when you don’t know what to do.