Here's Why Overly Optimistic Leadership During Times Of Change Can Backfire
Being an optimistic leader is usually an asset.
Those individuals tend to see the good in situations, reframe challenges as opportunities, remain calm in high-pressure situations and aren’t easily derailed by setbacks. And on the heels of a years-long pandemic and growing economic uncertainty, one would think a positive outlook would be welcomed.
But a new study from Notion Consulting, a leadership and transformation consultancy, found overly optimistic leadership during times of change unintentionally drives an organizational divide between staff.
In August and September 2022, the company surveyed 325 U.S. professionals, ranging from C-suite executives to junior-level employees, about their experience with change in the workplace in 2022, which it compiled in The Change Report 2022: A Study of Attitudes, Perceptions, and Impact of Workplace Change.
One of the biggest post-pandemic learnings from the report? The C-suite is out of sync with the rest of their organization, tending to view change through rose-colored glasses. Meanwhile, employees and people managers are desperately struggling for transparency, respect, and recognition.
Unfortunately, the study found that this desensitized and disconnected leadership is driving organizational dissonance between staff, perpetuating “The Great Divide,” which hinders transformation, leads to employee disengagement, and causes turnover.
“Our latest study reinforces what we tell all our clients,” said Christine Andrukonis, founder and senior partner at Notion Consulting. “In order to drive successful transformation, leadership must understand that change is about people – their experiences, their behaviors, and their mindsets.”
The study cites five other key findings change management leaders should take to heart:
1. Attitudes about change vary dramatically based on where people sit.
Just because the executive team is stoked about change doesn’t mean the rest of the organization feels the same way.
Not surprisingly, the study found that most leadership (56%) is overwhelmingly optimistic about change, proclaiming themselves as “Enthusiasts” and “Champions” of their emotional commitment to it. In contrast, individual employees are more hesitant and skeptical, considering themselves only “Bystanders” (4%) and “Skeptics” (37%). Also of note, 3% of participants expressed a desire to leave their organization when hearing change is coming.
While a steady state of change can be exhilarating for leaders, employees can find it exhausting and overwhelming—leading them to be less engaged in the change.
2. It’s tough leading people when change is constant.
The report cites that a whopping 75% of the workforce experienced three or more major changes in the past 12 months.
All types of changes take effort and time, and employees have been served a variety of them, from getting to know a new leader (65%) to changing processes or procedures (65%) to getting up to speed on new tech (50%). Coupling these shifts with an ever-changing external world means that people are always in a state of adjustment—and prolonged stress, impacting their experience.
3. Successful change needs more human connection and empathy.
The study found that when employees don’t feel heard, valued, or appreciated for their role in bringing the change to life, there are serious consequences.
When asked how well the organization retains key talent and engages employees during a change, 60% of organizations reported being “mediocre or worse” at retaining and engaging employees, and 11% said their company’s talent retention is “terrible.”
As a result, top talent is leaving during times of change, causing other employees to disengage (aka “Quiet Quitting”) because they feel unseen, under-valued, and unappreciated, which puts the business at risk.
4. Managing change matters—and how it’s done can impact results.
The survey found a direct correlation between using these best practices to manage change and hitting performance metrics successfully:
- Provide clear leadership
- Keep employees informed
- Address questions
- Ask for feedback
- Help people understand the impacts
- Provide training/resources
- Share clear job expectations
Yet the study found that the inverse was also true: 50% of organizations are “mediocre or worse” at delivering best practices, and 40% fail to meet business objectives during times of change. Paying attention to these activities can boost success and improve the employee experience.
5. Leadership can make or break you in times of change.
Interestingly, the study found that when asked what their organizations do best and do worst in times of change, one theme rose to the top of both lists: Leadership.
Andrukonis advises that leaders who want to manage change successfully must maintain “a delicate but meaningful balance” in three key areas:
- Transparency - Letting employees know what’s going on and why – honestly, clearly, and frequently
- Respect - Demonstrating concern for employee wellbeing and expressing gratitude for their flexibility around change.
- Listening - Inviting ideas and opinions – and remaining open to different viewpoints.
She also warns that leaders who ignore these findings do so at their own peril.
“Those who stay curious, open-minded, and empathetic will reap the benefits — or otherwise risk disengaging and even losing key talent and customers, and ultimately damage their bottom line.”
