The Key Qualities That Set Great Change Leaders Apart

Whether working on a self-contained change project or a broader program delivering a series of changes, the overarching reaction to change is constant. Organisations must adapt quickly. Change brought about by technological advancements, new processes, shifts in consumer preferences, or other reasons requires effective change leadership. But what distinguishes exceptional change leaders from those who falter? This article highlights key qualities that set great change leaders apart, demonstrating what excellence looks like compared to mediocrity.

Vision and Clarity

Great change leaders possess a well-defined vision. For instance, Satya Nadella, CEO of Microsoft, transformed the company by clearly articulating a vision focused on cloud computing and artificial intelligence. This clarity guided teams and drove a remarkable 77% increase in Microsoft’s stock price from 2015 to 2025.

In contrast, ineffective change leaders often lack a solid vision. They may react to changes rather than anticipate them, creating confusion. A lack of guidance can lead to a significant drop in employee engagement, hindering teams' understanding of their roles and objectives.

Poor change leaders can also be reluctant to take a visible role. This reluctance manifests in many change management assignments. Whether due to a lack of faith in the proposed solution, feelings of being forced into leading, or hesitance at the first signs of resistance, change leaders who stay their course are rarer than needed.

Empathy and Emotional Intelligence

Empathy is crucial for great change leaders. They understand that transitions can be challenging for team members. For example, when an Australian FMCG company launched a significant restructuring in 2023, their CEO communicated likely job impacts. This approach reduced resistance and fostered a supportive environment where impacted employees successfully transitioned to oversee automation.

Conversely, poor change leaders may overlook emotional impacts. A lack of empathy can increase turnover rates by as much as 25%, as employees feel undervalued and disengaged during the change process. It’s crucial to remember that businesses require people to thrive. Taking a human approach to change only makes sense.

Strong Communication Skills

Effective communication is vital during periods of change. Great leaders consistently share updates, expectations, and feedback. For instance, during Colonial Mutual's demutualisation in the late 1990s, CEO Peter Smedley implemented straightforward communications. This clarity kept the workforce informed and engaged throughout the transition.

In contrast, poor change leaders struggle with communication. Inconsistent or vague messages can lead to confusion, creating a toxic environment filled with concerns and speculation. Change communications differ from traditional messaging due to resistance and impacts. Over-communicating before there is substantial information available can create confusion and empower resistors.

Adaptability and Flexibility

Adaptability is a key trait of great change leaders. They welcome feedback and adjust strategies as necessary. For instance, Netflix’s shift from DVD rentals to streaming resulted from leaders responding to consumer preferences, leading to a 45% subscription increase in just one year.

On the other hand, poor change leaders cling to outdated plans. This rigidity hinders growth and stifles innovation, contributing to the well-known 70% failure rate for organisational change initiatives.

The fallacy of sunk costs can also play a role for change leaders. This cognitive bias occurs when leaders continue to invest based on prior investments rather than future benefits. It often leads to poor decision-making, making change efforts difficult.

Decision-Making Capability

Decisiveness is a hallmark of great change leaders. They gather data, evaluate options, and make informed choices. During the pandemic, many leaders rapidly adopted remote work policies, increasing productivity by 13% for some companies.

In contrast, ineffective leaders hesitate. They may rely too much on their teams for decisions, leading to insecurity. Indecision can diminish confidence among team members and cause productivity to drop.

Great leaders know they are not perfect. They need to rely on their teams to fill gaps. To do this, they must:

• Strategically delegate important tasks to those with the necessary skills.

• Trust their teams to exercise their expertise.

• Understand personal limitations, realising that no one person can possess all the skills needed.

  
  

Inspiring Leadership Style

Inspiring leadership is a hallmark of great change leaders. They motivate teams through recognition and enthusiasm. For example, Howard Schultz, former CEO of Starbucks, openly celebrated employee achievements, significantly increasing satisfaction scores and corresponding revenue growth.

In contrast, poor change leaders adopt a disengaged leadership style. Their lack of enthusiasm can cause employees to feel obligated rather than genuinely motivated, hurting performance.

Organisations need leaders who exemplify the positive change behaviours they wish to see. This includes:

• Openness to change

• Listening to alternative views

• A positive attitude

• Problem-solving capabilities

• Accountability

• Collaboration

• Emotional intelligence

• Transparency

  
  

Strategic Thinking

Great change leaders consider long-term implications. They analyse the broader impact of their decisions. For instance, Apple’s sustainability efforts have strengthened its brand, demonstrating a commitment to environmental responsibility and driving innovation. Apple aims to achieve carbon neutrality across its entire value chain by 2030.

In contrast, poor leaders often focus solely on immediate concerns, overlooking long-term risks that threaten success, leading to unexpected financial losses.

Strategic thinking sets great change leaders apart. A short-sighted approach is not indicative of forward-thinking. Strong change leaders imagine, visualise, and bring to life the future state of their organisations.

Collaboration and Teamwork

Great change leaders prioritise collaboration. They know that diverse input fuels successful change. When Google implemented widespread remote work initiatives in 2020, they invested in collaboration tools, resulting in a 20% productivity improvement.

Poor change leaders, however, create silos that inhibit problem-solving and innovation. This can lead to missed opportunities and lost revenue.

For instance, in a former role with an Australian state government agency, homogeneity in the team led to poor public service experiences. A lack of diversity meant that decision-makers had limited perspectives, negatively impacting traffic management and community experiences.

Resilience and Persistence

Change can be challenging, but resilient change leaders remain committed to their vision. For example, during the 2008 financial crisis, leaders with perseverance helped their companies recover faster. Many reached pre-crisis revenue levels within three years.

In contrast, poor change leaders become easily discouraged. This lack of persistence can lead to lost faith in initiatives, decreasing morale and results.

Maintaining strong team engagement means providing a compelling reason to stay committed to the change process. Leaders should anchor change in the organisational culture to ensure its sustainability.

Final Thoughts on Qualities that Set Great Change Leaders Apart from the Rest

Leading through change is challenging, yet the qualities that distinguish great leaders are clear. Vision, empathy, communication, adaptability, decisiveness, inspiration, strategic thinking, collaboration, and resilience form the foundation of effective change leadership.

By recognising and rewarding these traits, organisations can cultivate leaders who successfully navigate transformation complexities. The demand for skilled leaders will only increase, so investing in these qualities now positions companies for future success.

For a confidential discussion on setting up your leaders, projects, or organisation for change success — or to improve your ability to coach change leaders — book a call with Agencia Change.

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