In the Last edition of People First magazine, we pondered about ‘Transformational Leadership’. Now here we explore the concept of ‘Leadership Transition’. These words Transformation, Transition, Change may sound similar in its meaning and may be interchangeably used. However, here let us try to get into crux of the subject to understand Leadership Transition in its true essence and in totality.

Literature on leadership transition offers several definitions, which may appear to be inconsistent or confusing at times. I aim to share a crisp yet holistic understanding on the subject.

The Oxford dictionary meanings of the words Transformation, Transition, Change are the following respectively:

Transformation: A marked change in form, nature, or appearance.

Transition: The process or a period of changing from one state or condition to another.

Change: An act or process through which something becomes different.

Important point is that, in the context of Leadership Transition, both micro (individual) and macro (eco system) aspects need to be considered, and with a ‘sense of movement of shift’ as the word transition suggests. 

The micro aspect of Leadership Transition denotes the ability and preparedness of a leader to effectively move on and adapt to a new role and be productive. At the same time, developing the next level competent leader to pass on the baton smoothly and effectively to him/her. 

The macro aspect symbolises any significant change in a visionary leader’s role caused by his or her prudency in line with the current or futuristic change in the ecosystem and environment. 

INSEAD depicts Leadership Transition as the capacity and preparedness of oneself for the executive transition from a managerial role to a strategic leadership role.

Dr. Ty Wiggins, Author of ‘The New CEO’, defines Leadership Transition as any significant change in a leader’s role caused by promotion, secondment, changing organisations, merger, acquisition, restructure or returning from maternity/paternity/career leave.

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To sum up, Leadership Transition is the visionary shift in one’s mind to effectively lead and inspire team to adapt to relevant environmental changes in the business ecosystem and thereby preparing self for the futuristic changes and at the same time the process of passing on the baton by developing a competent successor. 

Leadership transition is not just about succession; it signifies the transfer of vision, values, and strategies to ensure continuity while embracing innovation, agility, disruption and uncertainty pivotal for organisational growth and resilience. The vision must include the purpose of long-term existence in the context of environmental, social, physical, emotional wellbeing and humanity at large. 

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MICRO ASPECTS:

Let us elaborate the Micro aspects of Leadership Transition and try to understand its implications on both organisation and on individual.

When we consider leadership transition at a micro level, it can be proactive, or it can be reactive too. 

What are the reactive causes of leadership transitions?

Some of the most common reasons for reactive leadership transitions are:

• Retirement: Leaders reaching the twilight of their careers
• Promotion: Current leaders ascending the organizational hierarchy
• Resignation: Leaders voluntarily step down from their positions
• Termination: Leaders being relieved of their duties due to performance issues
• Expansion: Organizational growth necessitates new leadership roles
• Mergers and Acquisitions: Structural changes within organizations leading to leadership shifts

If organisations do not plan proactively for such causes, the negative impact on the organisation can be quite significant, leading to organisation’s business continuity issues. 

One of the time-tested solutions to avoid such situations is of having a proactive well-planned, robust Succession Planning exercise - deliberate and methodical leadership handovers to cultivate future leaders and ensure business continuity.

As pointed out by Dr. Wiggins, at induvial level, a leader may face following challenges during the leadership transition:

• Cognitive
• Psychological
• Interpersonal
• Behavioural
• Relational
• Role Specific

A leader must be ready for self-introspection and prepare to change himself or herself in overcoming these challenges. The success of a leader’s transition depends on his ability to be prudent and proactive in developing himself or herself to adapt to the new role and situations. 

In the first study of its kind in Australia during the period between 2016 and 2018, the research qualitatively explored leadership transitions in the Australian business community, specifically the aspects that promote or inhibit success during the leader’s transition.  It also examined how the leaders and the organisations measure success during and post the transition period.

MACRO ASPECTS:

“Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others." - Jack Welch. 

In the context of our discussion, the definition of “others” is much broader than the myopic view of looking within the organisation and only in business environment. 

As we focus on the macro aspect of Leadership Transition, the shift in mindset is significant from ‘looking inward’ to ‘looking outwards’. As we look at the world for tomorrow, the window of Leadership Transition opens to a much larger canvas. Leadership transition signifies an inclusive and holistic outlook encompassing all aspects of the universe, both physical and non-physical. 

The leadership transition would allude to transfer of vision, values, and strategies to ensure sustainability while embracing innovation, agility, disruption and uncertainty. The successful leader would visualise his or her contribution in not just future proofing the business but would contribute to in shaping the world.

While anticipating the future, the broadmindedness and long sightedness of a leader in visualising ‘oneness of the world’ across imaginary borders, for the larger good of humanity becomes extremely crucial. 

Certain key attributes and competencies envisaged for a leader in the macro context of Leadership Transition are:

• Generosity 
• Humanity
• Emotional Intelligence
• Compassion, Care and Respect
• Vulnerability
• Resilience

The visionary leader would seek larger purpose for the world. The leader would inspire and lead individuals to create meaningful linkages with that purpose. In the process, heightened environmental, social, physical, emotional wellbeing would be achieved while creating a symbiotic ecosystem involving individual, society, community, biodiversity, environment and plant.