2002 News Release
Survey By Center For Creative Leadership Shows "Soft Skills" Make A Difference In Tough Times

Greensboro, N.C. - January 2002 ... Today the Center for Creative Leadership (CCL^®), an international institute devoted to leadership research and training, announced the results of a survey exploring the effectiveness of various management styles during tough times. The survey showed that the greater the stress an organization is facing, the more important the "soft" side of leadership becomes.

Conducted by Dr. Carl Bryant and Dr. John Fleenor, vice president and director, respectively, of CCL's Knowledge Management and Applied Technology Division, the survey asked practicing leaders to evaluate what worked best when leading organizations through downsizings and other periods of transition. Responses from 77 managers who attended CCL's Leadership Development Program were compared to those of 77 leaders asked the same questions in a 1996 survey. Current respondents were also asked to respond to a series of open-ended questions about leading people through change.

The results indicated that there were two distinguishing characteristics associated with those leaders who were best at helping their organizations manage change:

• They were skilled in honest, proactive communication.
• When they did communicate, they listened well, demonstrated sensitivity and were willing to articulate clearly the rationale and necessity for change despite the pain those changes might inflict.

"Effective leaders seem better at blending the softer leadership skills-trust, empathy and genuine communication-with the tough skills needed to keep an organization afloat during difficult times," said Kerry Bunker, a senior program associate for Leadership Development at the Center and author of several articles on stress, coping, downsizing and leading during transitions. "They were able to strike a balance between the bottom-line goals of the business and providing the support and direction that employees needed during periods of uncertainty.

"In contrast, our survey showed that ineffective leaders were poor communicators who were insensitive to employee needs and who were generally inaccessible."

Perhaps reflecting tough economic times for businesses, the 2001 respondents identified the greatest challenges for leaders as:

• Motivating staff members as they face an uncertain future.
• Attempting to communicate clearly and to provide a rationale for organizational changes.
• Working in a cross-functional leadership role while still meeting customer commitments.
• Developing and retaining staff in appropriate numbers to accomplish more with less.

Significant changes since 1996

Overall, businesses seem to be doing a better job at establishing fair and equitable Human Resources processes. In 1996, for example, more than half the respondents thought their organization's processes for downsizing, redeployment or reorganization were unfair. The 2001 survey showed that number had dropped by a statistically significant 26%.

In the current survey more managers reported that employees feel safe expressing how they feel, and that those who remain with their organization after a downsizing are treated with respect and dignity.

Reflecting the changing dynamics in the workplace, there was a 70% shift in the number of respondents who believe employees are responsible for their own career planning and development. Nine out of 10 respondents in the 2001 survey believed so, compared to three out of 10 in the 1996 survey.

Despite an improvement of more than 15 percentage points over the 1996 study, more than half the 2001 respondents reported that today's organizations are still failing to communicate clearly their rationale for downsizing and other organizational changes.

"While organizations are clearly making forward progress, we still have work to do in training leaders to manage the 'soft side' of their job," Bunker said. "There is a growing recognition that without these skills, a leader will be ineffective at managing the waves of change that are part of today's business reality."

About the Center for Creative Leadership
The Center for Creative Leadership (CCL^®) is a top-ranked, global provider of executive education that unlocks individual and organizational potential through its exclusive focus on leadership development and research. Founded in 1970 as a nonprofit, educational institution, CCL helps clients worldwide cultivate creative leadership - the capacity to achieve more than imagined by thinking and acting beyond boundaries - through an array of programs, products and other services. Ranked among the world's top providers of executive education by BusinessWeek and Financial Times, CCL is headquartered in Greensboro, NC, with offices in Colorado Springs, Colo.; San Diego, Calif.; Brussels; Moscow; Singapore; and India. Its work is supported by more than 450 faculty members and staff.

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