Michael Watkins, a leadership expert and professor at IMD Business School, delves into the intricacies of leadership transitions. He introduces the STARS framework to help leaders match their strategies to various business scenarios. Watkins emphasizes the importance of assessing the unique context of a new role, rather than relying on past experiences. He also discusses the necessity of clear leadership mandates, showcasing how adaptability in management style can significantly impact organizational change.
Leadership transitions offer unique opportunities if leaders assess their context rather than rely solely on past strategies.
The STARS framework highlights that different business situations require tailored approaches to leadership, emphasizing adaptability and situational assessment.
Deep dives
Understanding Leadership Transitions
Leadership transitions present both significant opportunities and vulnerabilities for new leaders. It is crucial to recognize that strategies that have been effective in previous roles may not yield the same results in a new context. A reliance on past methods without proper situational assessment can lead to missteps that impact the organization negatively. During the early days of a transition, leadership actions significantly influence how others perceive the leader's capability and effectiveness.
The STARS Framework for Transition
The STARS framework categorizes business situations into five distinct types: startup, turnaround, accelerated growth, realignment, and sustaining success. Each category requires a tailored approach to navigating challenges, reflecting the need for leaders to assess their specific situations effectively. For example, a turnaround situation demands urgent action, while a proactive change challenge may require a more diplomatic and gradual approach. Understanding these nuances helps leaders adopt strategies that align with their current context, maximizing their potential for success.
Adapting Leadership Styles
Adjusting one's leadership style is essential for meeting the demands of different transition scenarios. Leaders risk exacerbating issues when they apply their default style without considering the specific needs of the organization. In crisis situations, a direct and action-oriented approach may work well, but in realignment scenarios, a more educational and less aggressive style is often required. Acknowledging personal preferences and adapting to the situation fosters healthier organizational dynamics and facilitates successful transitions.
Leadership transitions are challenging for both organizations and the leaders who must directly navigate them. But Michael Watkins says they’re also a time of incredible opportunity — especially for those leaders who understand how to handle this crucial period.
Watkins is a professor of leadership and organizational change at IMD Business School. He shares a framework for selecting a transition strategy that best matches the situation you’re facing — whether you’re building a new operation from scratch or trying to turnaround a business in crisis. Watkins also explains why it’s so important to effectively assess your new leadership context and not to rely only on transition strategies that have worked for you in the past.
HBR On Strategy curates the best case studies and conversations with the world’s top business and management experts, to help you unlock new ways of doing business. New episodes every week.