Organizational transformation begins with the leader
While there are some excellent toolkits on how to transform organizations, some aspects of organizational transformation often begin with the transformation of leaders themselves.
I often ask executives to reflect and describe what aspects of themselves they have transformed in the past year, and what triggered or helped the transformation. I have collected hundreds of responses to these questions. The answers are often unique, and yet some familiar themes emerge.
Self -transformation seems to begin with awareness of one’s self, then leaning into some of the paradoxes that represent the hard truths of leadership. For example:
- I used to be confident publicly, but privately I felt I was a fraud or imposter, and there was always this fear that I would be found out. The fraud in me stopped me from speaking up, or having my voice heard.
- As I gained more experience, I found I was getting more and more self-righteous in my opinions, and my team was always looking to me for answers. Eventually I said, “Enough, figure it out for yourself.” I realized how seduced I was by the feeling they needed me. I realized I need to express more doubt if they were really going to take responsibility.
- I often found it difficult to influence my peers on any particular topic. I would take a consultative approach, and to my surprise, one person told me they found my consultations manipulative. They didn’t trust me. I realized that there was some truth to that. I just wanted their buy-in. Being called out on that was a defining moment for me.
The second theme that ran though the responses was diving into the complexity of specific leadership situations. Some leaders learnt how to transform themselves by exploring some of their most painful team and organizational experiences.
- I could feel that I was being judged negatively by so many people. They were putting the blame on me, and I knew it was a situation that I could not win. I was labelled a betrayer by some, and some board members stopped talking to me or avoided me. Yet if I had chosen a different path, other people would have felt betrayed. In the end I did not know what I thought, I just wanted to stop feeling so bad. Understanding that this is what organizations do, as well as the concepts of negative capability and containment, helped me let go of some of the pain. I am not the first to experience this, and I won’t be the last. While it still took time, I think I started to act differently as I let go of the pain, and understood that I was carrying the pain for others.
- I was always so surprised when people would not tell the truth. They would pretend they were not hurt when I knew they were, they would tell me that they didn’t mean X, when I knew they did mean X, and then they might accuse me of being too sensitive. I realized and came to accept that organizations are not set up for authenticity. No matter how much we all seek the truth and no matter how well intended people are, working with other ambitious and talented people will produce passive aggression, gaslighting, unfounded fears, and projections. Truth is hard work. Learning how to use those responses to turn around situations was my key transformational experience.
The third theme that emerged was how transformation was triggered by recognizing scripts, routines, and beliefs that have become institutionalized across life. The transformation was more about letting go of things – whether they are scripts or spreadsheets, processes or roles. We all get attached to things as we travel through life, and the second half of life is a time when we know which things to let go of.
- I thought I was a fairly resilient person, relentlessly pushing and challenging people around me to go harder. At some point, after a failed promotion attempt, I had to stop and ask why – why wasn’t I promoted, why could they not see how capable I was? In the end, my transformation was about letting go of some deeply held scripts about needing to win and achieve. Those scripts had served me well until mid career, but now a different side of me has emerged. It’s still very challenging. I’m realizing that resilience is not just about pushing things back onto others and being the tough guy – it’s about seeing the larger purpose, holding, containing, and letting go.
Many people use the metaphor of a caterpillar and the butterfly to represent personal transformation. But this metaphor defines a natural transformation that is programmed to occur at a particular life stage. A transformational leader is a person who dives in as a means to enact their own transformation. They make choices about what they want to explore, make sense of, and let go of.
Growth is inevitable. Transformation is a choice. It’s always harder to change other people than it is to change yourself.
Research Information & Knowledge Hub for additional information on IMD publications
Alex Reinhardt was brought in to turn around a renewable-energy company that had been on the verge of bankruptcy until the German government bailed it out. After he fainted from overwork and burnout and had to take a medical leave, the board appoi...
In the past, many business leaders could operate much like the generic merchants in Adam Smith’s Wealth of Nations. They could pursue their own personal and corporate ends, while resting assured that an “invisible hand” would promote the pub...
As any executive will tell you, moral suasion will not convince most companies to commit to sustainability. Even major long-term threats will not do it. Companies need positive reasons to undertake significant investments. Fortunately, sustainabil...
In late 2020, as the world began to emerge from the worst of the COVID-19 pandemic, Wärtsilä, a Finnish corporation specializing in power systems, made a bold decision. Despite being a well-established company with a strong track record in...
When I was eight years old, I watched the Mexico Olympics on television and thought ‘I want to do that.’ It took eight years and an incredible amount of work, including extraordinary highs and lows, to achieve that goal.
This note explores the critical skill of leading across cultures in global and diverse business environments. It addresses the challenges and opportunities presented by cross-cultural teams, providing leaders with strategies to navigate cultural d...
Early in his career, Dolf van den Brink, CEO of Heineken since 2020, did everything he could to project an image of authority – including wearing spectacles he didn't need. It wasn't until he learned to be comfortable in his skin that he began to ...
Not getting enough sleep affects not only your leadership performance but that of your team. Follow these eight tips to get a good night’s sleep and become a better leader.
How quick thinking, strategic choices, and trust in the team kept one of the world’s most iconic landmarks from destruction – lessons every leader can apply in times of crisis.
To stay ahead of competitors, DBS knew it needed to continue to innovate and improve customer centricity. To do so, it decided to move to a horizontal organizational structure, an approach it named Managing Through Journeys (MtJs). This involved b...
Research Information & Knowledge Hub for additional information on IMD publications
in Binder, Julia Katharina (Ed.); Haanaes, Knut Bjarne (Ed.) / Leading the sustainable business transformation: A playbook from IMD, pp. 19-32 / Hoboken: Wiley, 2025
Research Information & Knowledge Hub for additional information on IMD publications
in Binder, Julia Katharina (Ed.); Haanaes, Knut Bjarne (Ed.) / Leading the sustainable business transformation: A playbook from IMD, pp. 33-45 / Hoboken: Wiley, 2025
Research Information & Knowledge Hub for additional information on IMD publications
in Binder, Julia Katharina (Ed.); Haanaes, Knut Bjarne (Ed.) / Leading the sustainable business transformation: A playbook from IMD, pp. 1-7 / Hoboken: Wiley, 2025
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD Brain Circuits 6 December 2024
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2634 ©2024
Research Information & Knowledge Hub for additional information on IMD publications
Since becoming DBS Bank’s CEO in 2009, Piyush Gupta led its transformation to become a standard setter globally for digitalization and customer centricity in financial services. This transformation started with fixing the basics (2009-2014), in wh...