Introduction : Leadership for Dealing with Complex Changes
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
In oduc ion: Leade ship o Dealing wi h Complex Changes
CHAPTER 1
In oduc ion: Leade ship o
Dealing wi h Complex Changes
ANNI KANGAS, JOHANNA KUJALA, ANTTI LÖNNQVIST,
ANNA HEIKKINEN & HARRI LAIHONEN
T
he wo ld is changing apidly. Many con empo a y change p ocesses
a e inc easingly complex. The e ec s o clima e change, u banisa ion,
ageing socie ies, he dynamics o global secu i y, o c ea ion o sus ainable
condi ions o business de elopmen a e all phenomena ha canno be
made o i any simple model. They ha e a numbe o bounda y-spanning
componen s and a e dynamic and open o hei en i onmen s. This means
ha leade s mus possess new kinds o knowledge and skills o unde s and
and deal wi h such complex phenomena.
To espond o he needs o a ious kinds o leade s ope a ing in hese
complex en i onmen s, his book de elops a amewo k o leading change.
This app oach is he e called he Leade ship o Change (LFC) amewo k
and i builds on he ollowing h ee ideas:
1. Many con empo a y change p ocesses a e complex and sys emic.
J This highligh s he capaci y o hink ac oss adi ional ins i u ional
bounda ies and he abili y o see pa e ns and s uc u es beyond speci ic
elemen s and e en s.
2.
Issues and p oblems c ossing adi ional ins i u ional bounda ies
canno be esol ed by a single ac o o sec o . Go e nmen s, businesses,
ci il socie y ac o s, ci izens and consume s mus wo k oge he , nego ia e,
and ag ee on no el ways o doing hings.
J This s esses he need o unde s and how di e en socie al sec o s and
ac o s unc ion and make sense o he wo ld, and how hey can wo k oge he .
3. Complex en i onmen s a e ma ked by ambigui y and unce ain y.
J This emphasises he capaci y o emb ace unce ain y and use a ious
sou ces o in o ma ion and knowledge o c ea e a sha ed unde s anding
o he si ua ion a hand.
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
In oduc ion: Leade ship o Dealing wi h Complex Changes
Wi h he g owing complexi y and ambigui y o leade ship con ex s,
leade ship unc ions ha e become dispe sed. Leading change in a complex
wo ld is o en a collec i e e o aking place bo h wi h and wi hou o mal
leade s. This book is aimed a leade s as well as analys s o leade ship
examining con empo a y change p ocesses om a ious posi ions. The book
is no con ined o wha is known as leade ship s udies. I ins ead examines
leade ship om a ansdisciplina y pe spec i e. T ansdisciplina i y means
aking a holis ic app oach o leade ship; i no only uses knowledge om
di e en disciplines bu displaces disciplina y hinking in i s examina ion
o leade ship and change (e.g., Aal o, 2012, 16–19). The ansdisciplina y
app oach is de eloped he e by examining and analysing a ious phenomena
c ossing he adi ional ields o business and managemen , public
adminis a ion, and poli ics. Ins ead o aking disciplina y discussions as he
poin o depa u e, he chap e s p esen ed in his book a e uni ed by a se o
concep s which p o ide a amewo k o enac ing and analysing leade ship:
complex wo ld, ela ional leade ship, and dynamic change (see Figu e 1).
Complex wo ld e e s o he idea ha he issues and sys ems
comp ising socie y can be placed along a con inuum om simple o
complex. Rela ional leade ship poin s o he idea ha leade ship canno
be con ined o simple leade - ollowe ela ionships. I is no es ic ed
o a single o mal leade o small g oup o leade s. Rela ionali y also
app ecia es he wide social and en i onmen al con ex in which
leade ship is enac ed. In con as o planned change, which is linea ,
o ganised, and e icien , dynamic change app ecia es he non-linea ,
ans-scala , and less p edic able ea u es o change.
The LFC amewo k is i s and o emos an analy ical p ism. As
illus a ed by Figu e 1, opics and issues can be placed di e en ly along he
con inuum anging om simple o complica ed and u he o complex
socie al p oblems. Al hough he wo ld appea s inc easingly complex, some
o ganisa ional and leade ship issues emain ela i ely s aigh - o wa d and
ou ine. The same applies o leade ship and i s ela ionali ies. Despi e he
ob ious endency owa d plu al, lexible and e en leade less o ganising, many
leade ship se ings a e hie a chical and leade -cen ic. As A ja Ropo eminds
in he a e wo d chap e o his book (Ropo, Chap e 18), in imes o chao ic
change, he oic and cha isma ic leade ship is o en sough o . The chap e s o
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
In oduc ion: Leade ship o Dealing wi h Complex Changes
he book examine no only ela ional, bu also mo e leade -cen ic o en i y-
based, leade ship se ings. Fo example, leade ship exe cised by he heads o
s a es o companies’ boa ds o di ec o s is close o he leade -cen ic end
o he spec um while s akeholde coope a ion o cus ome alue c ea ion
display ela ional ea u es o leade ship. The con ibu ions o he book also
di e in hei unde s anding o change. The p ac ices o consume ci izens in
educing ood was e, socie al ansi ions owa ds he ci cula economy, and
he eme gence o new powe blocs in he in e na ional sys em a e all change
p ocesses. Howe e , hey a e unde pinned by a di e en concep ualisa ion
o change. Some change p ocesses can be planned, a leas o an ex en . In
FIGURE 1. The Leade ship o Change amewo k o analysing leade ship in a complex wo ld
ENTITY
LEADERSHIP
EMERGENT
CHANGE
COMPLEX
PROBLEMS
RELATIONAL
LEADERSHIP
PLANNED
CHANGE
SIMPLE
PROBLEMS
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
In oduc ion: Leade ship o Dealing wi h Complex Changes
o he cases, change is mo e eme gen . Read oge he , book conc e ises he
LFC amewo k o unde s anding he leading o change in a complex wo ld.
I hus in i es leade s and analys s o change and leade ship o conside
how he speci ic p ocess o change hey a e dealing wi h si ua es along he
h ee dimensions o simple s complex p oblems, en i y-based s ela ional
leade ship, and planned s eme gen change. The ollowing sec ions explica e
wha hese dimensions en ail.
Complex Wo ld
Complexi y e e s o sys emic, in e connec ed, and unp edic able asks
and ope a ing en i onmen s (Nason, 2017). “Complex” is di e en om
“complica ed”, as he la e in ol es many icky, echnical challenges.
Fo example, building a compu e o an ae oplane is a highly complica ed
ask equi ing much echnical skill, he igh componen s, machine y,
ins uc ions, e c. Howe e , despi e hese di icul ies, i is possible o epea
he p ocess exac ly he same way housands o imes in a ious loca ions.
As He be Simon no es, e en going o he moon was complex only in
he sense ha i challenged ou echnical capabili ies: “I was achie ed
in an exceedingly coope a i e en i onmen , employing a single new
o ganiza ion, NASA, ha was cha ged wi h a single, highly ope a ional goal.
Wi h eno mous esou ces” (Simon, 1996, p. 139).
In con as o “complica ed”, “complex” e e s o he in e connec edness
and in e dependence o a ious ac o s. When a ac o y p oducing clo hes
o global ma ke s collapses in Bangladesh killing hund eds o wo ke s, his
may seem like an acciden . Howe e , i we make sense o he e en h ough
he idea o complexi y, we a e p omp ed o see i in a mo e mul idimensional
way: we can see ha people wo k in hese condi ions because o a sho age
o o he jobs. This links he disas e o local employmen dynamics and
he egula o y amewo k ha enabled a ac o y o ope a e in an unsa e
building. We can u he connec he disas e o he dynamics o global ade
in which he Bangladeshi ga men indus y can only su i e by o e ing he
lowes o e heads. We can also see he link o consump ion p ac ices and
habi s o consume s in Wes e n ma ke s. Ne e heless, i is no possible o
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
In oduc ion: Leade ship o Dealing wi h Complex Changes
iden i y a linea pa h o cause and e ec om one e en o ano he . Ins ead,
he ela ionships a e complex, mul idimensional, and in e ela ed.
The e a e a ious ways o e e o complex and in e ac ing socie al
challenges. They may be called “messes” (Acko , 1999), “g and challenges”
(Fe a o, E zion & Gehman, 2017), o “commons p oblems” (Os om, 1990).
A well-known concep used o desc ibe pa icula ly complex and icky
leade ship and managemen con ex s is he concep o he “wicked p oblem”
(Ri el & Webbe , 1973; Webe & Khademian, 2008). Wicked p oblems a e
simul aneously uns uc u ed, c oss-cu ing, and elen less. Fo example,
he ageing wo k o ce, which Hanna Salminen analyses in he chap e in
his book can be conside ed a wicked p oblem (Salminen, Chap e 5). I is
elen less because i is unlikely o e e be sol ed pe manen ly. The p oblem
is uns uc u ed in he sense ha he ageing wo k o ce is connec ed o many
o he ac o s, such as he business en i onmen , egula ion, he skill le el
o he wo k o ce, global economic cycles, e c. These all ha e an impac
on employmen policies and human esou ce managemen p ac ices. The
ageing o wo k o ce is also c oss-cu ing, as i ela es o many s akeholde s
wi h di e ing pe spec i es and po en ially con lic ing iews.
Ano he good example o ambiguous and unp edic able social
de elopmen s a e changes caused by digi alisa ion, which se e al chap e s
in his book discuss. Digi alisa ion is a “mega end” which cu en ly a ec s
– and will con inue o a ec – many sec o s o
socie y. No pa o socie y is le una ec ed
by digi alisa ion, as Ma i Nieminen a gues
in his book. Nieminen analyses he ways
in which digi alisa ion and he associa ed
ans o ma ions o he global economy ha e
ende ed he exis ing p inciples o in e na ional
ax sys em ou da ed (Nieminen, Chap e 6). This
olume also shows ha some business sec o s
and indus ies, such as banking and insu ance
sc u inised by Raimo Vou ilainen and Lasse Koskinen (Chap e 17), a e
acing majo changes due o digi alisa ion. The in e ace be ween company
and cus ome is mo ing o he In e ne , and he de elopmen o digi al
echnologies enables many key asks o be ca ied ou au oma ically. This
The e a e a ious ways
o e e o complex
and in e ac ing
socie al challenges.
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
In oduc ion: Leade ship o Dealing wi h Complex Changes
is likely o make many cu en employees edundan – while new jobs
also eme ge. Vou ilainen and Koskinen sugges ha one o he conc e e
implica ions o his o leade ship and managemen is ha businesses
should in es in de eloping hei employe s’ abili ies o deal wi h change.
In complex en i onmen s, each ac o is linked o many o he ac o s,
which c ea es su p ising ou comes. Many con ex ual and ex a-con ex ual
ac o s play a ole in change p ocesses, and unp edic able e en s may occu .
Ambigui y and unce ain y a e hus an inhe en pa o he leade ship
dynamics in complex se ings. Mo eo e , e en hough we can imagine
he di ec ions in which socie ies, echnologies and ela ed oppo uni ies
a e e ol ing, he u u e is unce ain and ull o su p ises: i is no clea
wha will happen and when. The e o e, i is no easy o a gi en ac o
o o esee he op imal cou se o ac ion. Changes need o be made, bu
he e is unce ain y ega ding he ype, di ec ion, and iming o he ac ions
o be unde aken. Tapio Jun unen and Si pa Vi a (Chap e 4) discuss
his unce ain y in he con ex o secu i y go e nance. They show ha
esilience poli ics has eme ged as a esponse o he pe cei ed inabili y
o socie ies and go e nmen s o gua an ee secu i y h ough adi ional
p e en i e and p oac i e secu i y policies in condi ions o complexi y.
Mo eo e , Jun unen and Vi a a gue he ise o esilience hinking indica es
a c isis o ans o ma ion o leade ship.
One way o manage unce ain y is o build isions and s a egies on
he bes a ailable in o ma ion, whe he ha comes om in e nal o
ex e nal sou ces. Leade s also need o p o ide assu ances ha he equi ed
knowledge, asse s, and capabili ies a e a ailable o enac he change. The
chap e by Pasi-Heikki Rannis o and Anna Salo an a expands on his poin .
Rannis o and Salo an a a gue ha while leading change e ec i ely equi es
e alua ion, ew o ganisa ions ac ually e alua e hei change p ojec s. The
au ho s also poin ou some ways in which e alua ion can be embedded
in o ganisa ional change p ocesses (Rannis o & Salo an a, Chap e 10).
This book also d aws inspi a ion om he wo k o schola s who ha e
in oduced amewo ks ha enable us o make sense o e en s and
changes aking place in complex en i onmen s. One such example is he
VUCA amewo k, which is used o desc ibe complex and challenging
leade ship con ex s (Benne & Lemoine, 2014; Elking on, an de S eege,
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
In oduc ion: Leade ship o Dealing wi h Complex Changes
Glick-Smi h & Moss B een, 2017; Mack, Kha e, K äme & Bu ga z, 2016).
VUCA s ands o ola ili y, unce ain y, complexi y and ambigui y:
Vola ili y – The e is a likelihood o sudden and unexpec ed changes� Fo example,
he e may be apid changes in he cos o esou ces due o unp edic able e en s�
Unce ain y – Some hing impo an may (o may no ) happen – o example,
due o some key s akeholde s’ decisions – bu hese e en s a e ha d o p edic �
Complexi y – The p ocess includes many in e connec ed ac o s and a iables,
so i is di icul o o esee he ou come o e en s�
Ambigui y – When dealing wi h new si ua ions – o example, when en e ing an
en i ely new ma ke – i may be di icul o unde s and he logic o how hings wo k�
The ou VUCA cha ac e is ics a e nowadays qui e commonly u ilised
in he wo k o leade s and manage s, as he e a e many unce ain ies and
he wo ld seems o change quickly. A VUCA ype o en i onmen can
be conside ed an ex eme con ex o leade ship and managemen . I is
complex, as changing, and unp edic able. In such an en i onmen , i is
e y di icul o know wha is likely o happen and wha would be he igh
s ep o ake. The chap e by Mika Y jölä, Hannu Kuusela, Elina Nä änen,
Timo Rin amäki and Hannu Saa ijä i (Chap e 8) expounds on his poin .
The au ho s sugges ha in he VUCA en i onmen , leade s and manage s
need simpli ying heu is ics o e e o in complex decision-making
si ua ions. This a gumen is conc e ised wi h he help o he cus ome alue
amewo k. This can be used o ensu e ha in he mids o changes, he
o ganisa ion emains ele an o cus ome s – one o i s main s akeholde s.
Rela ional Leade ship
One o he key a gumen s o his book is ha in a complex wo ld,
educ ionis app oaches o leade ship a e no su icien . In con ex s whe e
mul iple ac o s a e in ol ed, no single ac o holds all he powe , capabili y,
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
In oduc ion: Leade ship o Dealing wi h Complex Changes
o compe ence o make decisions on behal o o he s. Ins ead o op-down,
hie a chical managemen p ocesses, he LFC amewo k highligh s he
leade ship oles o a a ie y o ac o s. Many chap e s in his book examine
how ac o s such as on line employees, cus ome s, o o he s akeholde s
enac leade ship. I u he examines how c oss-sec o collabo a ion
can c ea e a g ea e collec i e capaci y o add ess wicked p oblems and
complex issues such as global sus ainabili y challenges. In hei chap e ,
Anna Heikkinen, Je e Nieminen, Johanna Kujala, Hannele Mäkelä, A i
Jokinen and Ou i Leh onen (Chap e 2) de elop his poin in he con ex
o s akeholde engagemen . Examining u ban ecosys em se ices – pa ks,
ec ea ional o es s, u ban ga dens – he au ho s cha ac e ise s akeholde
engagemen as an open and pa icipa o y dialogue be ween a ious
human – and also non-human –s akeholde s. Complex se ings can be
cha ac e ised by di e se and po en ially con lic ing in e es s, objec i es,
and pe spec i es. This has implica ions o leade ship. When mul iple
s akeholde s a e in ol ed, i is likely ha con lic s o in e es a ise. As a
consequence, nego ia ions, co-ope a ion, and collabo a ion a e needed.
The chap e by Paula Rossi de elops his poin u he . Rossi sugges s
iewing leading change as a e lexi e p ac ice whe e con lic s and clashing
pe spec i es a e explo ed and app ecia ed (Rossi, Chap e 9).
The LFC amewo k highligh s he need o conside leade ship in a
ela ional way. This enables co-ope a ion ac oss sec o s and he pooling
o he s eng hs o di e en ly posi ioned indi iduals and o ganisa ions in
sol ing global challenges. I also challenges he s a us o human beings
as cen al playe s in change p ocesses, as he chap e by Heikkinen e al.
(Chap e 2) shows. Howe e , leade ship is usually de ined as he human
capaci y o in luence o he s, o as he abili y o guide o di ec o he s. O en,
leade ship is seen as a pe sonal skill o ai possessed by an indi idual, o
as he capabili y o compe ence o a eam o o ganisa ion.
Resea ch o en dis inguishes be ween leade ship s udies a he indi idual
(mic o), o ganisa ional (meso), and socie al (me a) le els. A he indi idual
le el, leade ship li e a u e examines leade ship om a ious iewpoin s,
such as leade ship oles (e.g., isiona y, con ibu o , ac ician, acili a o )
o ac o s (e.g., s a egic, communica i e, pe sonal, mo i a ional). A he
meso le el, esea ch o en ocuses on o ganisa ional pe o mance and
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
In oduc ion: Leade ship o Dealing wi h Complex Changes
seeks o de e mine how indi idual a ibu es, such as communica ion
skills, a e u ned in o o ganisa ional compe ences and ou comes. In
addi ion o o ganisa ional esul s, i is also impo an o unde s and
he p ocesses leading o hem. I is possible in many o ganisa ions o
dis inguish bo h op-down and bo om-up leade ship p ocesses. In he
o me , op managemen – such as a company’s boa d o di ec o s (see
Ruohonen, Chap e 13) – ou lines he ision and de ines he s a egies
o he o ganisa ion o ollow. In he la e , s a egies a e mo e eme gen
and allow membe s o he o ganisa ion and socie al s akeholde s o
pa icipa e in de ining wha is seen as impo an and aluable (see Kujala,
Leh imäki & F eeman, Chap e 7; Y jölä e al., Chap e 8).
A he socie al o me a le el, he mos c i ical leade ship challenge
ela es o global sus ainabili y. The Uni ed Na ions ha e se 17 sus ainable
de elopmen goals (SDGs) ha all socie ies and o ganisa ions ac oss he
plane should ake se iously o ensu e he p esen gene a ion lea es he Ea h
in a li eable s a e o u u e gene a ions: (1) no po e y, (2) ze o hunge ,
(3) good heal h and well-being, (4) quali y educa ion, (5) gende equali y,
(6) clean wa e and sani a ion, (7) a o dable and clean ene gy, (8) decen
wo k and economic g ow h, (9) indus y, inno a ion and in as uc u e, (10)
educed inequali y, (11) sus ainable ci ies and communi ies, (12) esponsible
consump ion and p oduc ion, (13) clima e ac ion, (14) li e below wa e , (15)
li e on land, (16) peace, jus ice and s ong ins i u ions, and (17) pa ne ships
o he goals (Uni ed Na ions, 2015). Mee ing he global challenges posed
by he SDGs means ha leade s o a ious o ganisa ions mus hink beyond
he simplis ic economic alue so en enched in ou cu en hinking.
Ins ead, hey need o unde s and he impo ance o mul iple socie al and
en i onmen al alues and seek guidance and ep esen a ion om a di e se
se o o ganisa ional and socie al s akeholde s in hei decision-making.
Such a collec i e e o also means mo ing owa ds a mo e sha ed and
ela ional unde s anding o leade ship in o ganisa ions (Ropo, Salo aa a,
Saue & De Paoli, 2015). When unde s ood ela ionally, leade ship is a
p ocess o in luence h ough which social o de (coo dina ion) and change
(new alues, app oaches, a i udes, beha iou s) eme ge (Uhl-Bien, 2006).
While his book ocuses on o mal leade ship, i also a gues ha in many
cases leade ship is no limi ed o a small se o o mal leade s. I can ake
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
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Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
In oduc ion: Leade ship o Dealing wi h Complex Changes
Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es
Copy igh © 2019 Tampe e Uni e si y P ess and he au ho s
Edi ed by Anni Kangas, Johanna Kujala, Anna Heikkinen,
An i Lönnq is , Ha i Laihonen and Julia Be hwai e
Tampe e: Tampe e Uni e si y P ess