Transformational leaders frequently make the promise of “empowerment” to their followers, particularly in bureaucratically dense companies. By igniting their entrepreneurial spirit, they want to inspire individuals to think, learn, and behave differently and come up with fresh ideas for adding value for clients. However, many find it difficult to give up control. Employees are compelled to do repetitive tasks in defined positions rather than creating their own jobs, despite the fact that forward-thinking companies like Alibaba have shown that many of these more repetitive tasks can be automated. This control lessens workers’ capacity to solve complicated issues and restricts the organization’s ability to implement meaningful operational and strategic performance changes.
Certain companies, such as the Chinese appliance manufacturer Haier, have succeeded in implementing empowerment with a strong emphasis on responsibility, clarity, and openness.
What has Changed
Successful corporate transitions are not common, but they are even more important and challenging due to the epidemic. It is hardly unexpected that this is challenging, particularly for “traditional” businesses. Three challenging actions are necessary for a significant and permanent change in an organization’s identity, values, and capabilities: Repositioning the core business, generating new growth opportunities, and fostering a deeper sense of purpose that drives strategic choices and molds the culture of the workplace.
Upgrades to processes, tools, and infrastructure are necessary due to the rise in remote work and online shopping. Furthermore, the expansion and diversity of online retailers like as Amazon, Alibaba, and Stripe provide critical strategic issues on where and how to fight. Certain company concepts are not as viable in difficult economic times, especially when it comes to low customer demand.
Along with producing a profit, stakeholders like as consumers, investors, and employees want businesses to take a more active role in addressing other systemic challenges including social injustice and climate change. Workers demand smarter, more flexible working methods and to work under leaders who are genuine, successful, and compassionate—many of whom will have suffered trauma, loneliness, and burnout.
A common transformation is led by an executive director leader. Major structural changes (acquisitions, divestitures, collaborations, and organizational reform), extensive new technology deployment, significant work, and cultural shifts are frequently involved. These factors are still important, but in a setting that is more complicated and sensitive, leaders must use greater discretion in their words and deeds; continuing in the same manner won’t cut it.
