Five Reasons Leaders Resists Change Even During A Crisisthe Thought ✓ Solved

Five Reasons Leaders Resists Change - Even During a Crisis The thought of change can be scary, even more so during the type of crisis we’re experiencing now with the COVID-19 pandemic. Although there are business leaders who are implementing change in response to the challenging economic and operational landscape, many others are not. “Sometimes the writing is on the wall and organizations are triggered to change,†says Edwin Bosso, Founder and CEO of Myrtle Consulting Group and the Forbes Books author of 6,000 Dreams: The Leader’s Guide To A Successful Business Transformation Journey. “In fact, members of the organization often are keenly aware that something needs to be done. However, despite that, management does not act, and the cost of inertia can be high.†According to Bosso, there are five reasons why leaders resist change and, as a consequence, struggle to move their company forward: They confuse important versus urgent.

Leaders sometimes confuse the terms important and urgent. “Important issues are those that do not necessarily have an explicit deadline, like urgent issues, but can effectively have some impact, large or small, on a business,†Bosso says. “The confusion sets in when owners and managers spend too much time putting out fires rather than planning. For example, the company may know that it is important to upgrade its operations. But it doesn’t become urgent until later on when the company looks at the output of its competitors that have completed transformation projects and have become a lot more cost-competitive.†They lack courage/leadership Five Reasons Leaders Resists Change - Even During a Crisis abilities.

Successfully initiating and executing a change process involves numerous leadership skills. “It can be intimidating taking on such a challenge that, to some leaders, may seem like moving a mountain,†Bosso says. “Others are better prepared to take risks, confront reality, envision a better way, make plans, and then act on those plans to lead a change.†They misalign the incentives. The incentive to change or transform organizations can be misaligned with the incentives of people who are in charge of leading those transformations. “Misalignment of personal make the case.†They lack a method.

It’s not uncommon for leaders to know the difference between where their company is and where it could be, but they don’t know how to proceed. “In such situations, leaders often freeze up and put off the impending need to change, or they approach it through trial and error,†Bosso says. “Having a methodology is beneficial when taking on such an effort. Some leaders take the time and effort to learn what needs to be done, while others bring in experienced people to provide a method for leading a smooth and successful transformation.†According to Bosso, leaders must understand that there will never be a perfect time for change, but also that often the right change only happens if they force the issue Five Reasons Leaders Resists Change - Even During a Crisis The thought of change can be scary, even more so during the type of crisis we’re experiencing now with the COVID - 19 pandemic.

Although there are business leaders who are implementing change in response to the challenging economic and operational landscape, many others are not. “Sometimes the writing is on the wall and organizations are triggered to change,†says Edwin Bosso, Founder and CEO of Myrtle Consulting Group and the Forbes Books author of 6,000 Dreams: The Leader’s Guide To A S uccessful Business Transformation Journey. “In fact, members of the organization often are keenly aware that something needs to be done. However, despite that, management does not act, and the cost of inertia can be high.†According to Bosso, there are fiv e reasons why leaders resist change and, as a consequence, struggle to move their company forward: They confuse important versus urgent.

Leaders sometimes confuse the terms important and urgent. “Important issues are those that do not necessarily have an e xplicit deadline, like urgent issues, but can effectively have some impact, large or small, on a business,†Bosso says. “The confusion sets in when owners and managers spend too much time putting out fires rather than planning. For example, the company may know that it is important to upgrade its operations. But it doesn’t become urgent until later on when the company looks at the output of its competitors that have completed transformation projects and have become a lot more cost - competitive.†They lack co urage/leadership Five Reasons Leaders Resists Change - Even During a Crisis abilities.

Successfully initiating and executing a change process involves numerous leadership skills. “It can be intimidating taking on such a challenge that, to some leaders, may seem like moving a mountain,†Bosso says. “Others are better prepared to take risks, confront reality, envision a better way, make plans, and then act on those plans to lead a change.†They misalign the incentives. Five Reasons Leaders Resists Change - Even During a Crisis The thought of change can be scary, even more so during the type of crisis we’re experiencing now with the COVID-19 pandemic. Although there are business leaders who are implementing change in response to the challenging economic and operational landscape, many others are not.

“Sometimes the writing is on the wall and organizations are triggered to change,†says Edwin Bosso, Founder and CEO of Myrtle Consulting Group and the Forbes Books author of 6,000 Dreams: The Leader’s Guide To A Successful Business Transformation Journey. “In fact, members of the organization often are keenly aware that something needs to be done. However, despite that, management does not act, and the cost of inertia can be high.†According to Bosso, there are five reasons why leaders resist change and, as a consequence, struggle to move their company forward: They confuse important versus urgent. Leaders sometimes confuse the terms important and urgent. “Important issues are those that do not necessarily have an explicit deadline, like urgent issues, but can effectively have some impact, large or small, on a business,†Bosso says.

“The confusion sets in when owners and managers spend too much time putting out fires rather than planning. For example, the company may know that it is important to upgrade its operations. But it doesn’t become urgent until later on when the company looks at the output of its competitors that have completed transformation projects and have become a lot more cost-competitive.†They lack courage/leadership Five Reasons Leaders Resists Change - Even During a Crisis abilities. Successfully initiating and executing a change process involves numerous leadership skills. “It can be intimidating taking on such a challenge that, to some leaders, may seem like moving a mountain,†Bosso says. “Others are better prepared to take risks, confront reality, envision a better way, make plans, and then act on those plans to lead a change.†They misalign the incentives.

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Five Reasons Leaders Resist Change Even During a Crisis
The modern business landscape is fraught with challenges, especially during disruptive events such as the COVID-19 pandemic. Many organizations are pressed to adapt their operational strategies and rethink their business models. Yet, despite the clear need for change, many leaders resist taking action. In his insightful analysis, Edwin Bosso, Founder and CEO of Myrtle Consulting Group, identifies five key reasons why leaders falter in the face of necessary transformation: the confusion of “important” versus “urgent” issues, a lack of courage or leadership capabilities, misaligned incentives, the absence of a clear method for change, and the daunting nature of organizational inertia. Understanding these barriers is critical for leaders who wish to navigate their organizations through crisis successfully.

1. Confusion of Important vs. Urgent

One of the primary reasons leaders resist change is the confusion surrounding the concepts of "important" and "urgent." While urgent issues require immediate attention and often stem from crises, important issues tend to lack explicit deadlines and can be neglected in favor of fire-fighting activities. Bosso points out, “The confusion sets in when owners and managers spend too much time putting out fires rather than planning” (Bosso, 2020). In many cases, organizations recognize the imperative to innovate but fail to prioritize these initiatives due to the pressing demands of everyday operations. Unfortunately, this disconnect can lead to missed opportunities and, eventually, a competitive disadvantage.
An example of this phenomenon can be observed in industries like retail during the pandemic. Many companies were initially focused on immediate operational challenges, such as supply chain disruptions, rather than on upgrading technology or consumer engagement strategies. Leaders who prioritize urgent reactions over important strategic planning risk stalling their organizations' growth and evolution (Kotter, 1996).

2. Lack of Courage or Leadership Abilities

Initiating and executing change requires a specific skill set that not all leaders possess. Bosso notes that some leaders may view the challenge of transformation as overwhelming, akin to “moving a mountain” (Bosso, 2020). The fear of failure, coupled with the pressures of existing responsibilities, can paralyze leaders into inaction. Leadership during times of change demands risk-taking, confrontation with difficult realities, and a vision for improvement, all of which can be especially intimidating during a crisis.
Research conducted by the Harvard Business Review indicates that effective change requires leaders to model desired behaviors and foster a culture of innovation (Kotter & Cohen, 2002). Leaders who lack the confidence to foster such an environment may struggle to inspire their teams to pursue necessary changes.

3. Misaligned Incentives

Another critical barrier to change is the misalignment of incentives among organizational stakeholders. Bosso suggests that the motivations driving those responsible for leading transformations may not align with the broader goals of the organization (Bosso, 2020). For instance, if a leader’s personal incentives—for instance, job security or tenure—conflict with the need for organizational transformation, they may be hesitant to push for changes that could jeopardize their status.
A study by the McKinsey Global Institute illustrates the importance of aligning incentives with organizational goals—companies that manage to harmonize their internal incentives see higher rates of successful innovation and adaptation (McKinsey, 2021). Misalignment not only engenders resistance among leaders but may also create confusion and frustration among teams, as conflicting messages about priorities surface (Binns, 2016).

4. Lack of a Clear Method

Leaders often recognize the difference between their organization's current state and its potential but may lack a structured approach or methodology for facilitating change. Bosso emphasizes that leaders frequently encounter a freeze response, leading to indecision when they do not have a clear roadmap or proven process for transformation (Bosso, 2020). The trial-and-error approach is common, but it can be inefficient and yield suboptimal results.
Implementing change without a defined methodology can contribute to chaos and uncertainty, further amplifying resistance among stakeholders. In contrast, organizations that embrace structured change methodologies—such as Kotter's 8-Step Process for Leading Change—experience more successful transformations (Kotter, 1996). This framework empowers leaders to navigate complex processes systematically, mitigating fears and increasing buy-in from team members.

5. The Daunting Nature of Organizational Inertia

Finally, organizational inertia poses a significant challenge to change, especially during crises. Bosso warns that the cost of inertia can be high, as leaders and teams become comfortable with the status quo and resist necessary adaptations (Bosso, 2020). Change is inherently disruptive, and employees may fear job losses, shifting responsibilities, or changes to their work environment. This fear often leads to pushback against initiatives that are deemed essential for survival.
A study conducted by the American Psychological Association highlighted that organizations often face resistance to change due to the emotional and psychological consequences of uncertainty (American Psychological Association, 2020). Leaders must take proactive steps to address these concerns and create a sense of assurance among employees about the direction of change.

Conclusion

Leaders play a critical role in navigating their organizations through change during crises. However, misconceptions about urgency, lack of courage, misaligned incentives, absence of methodology, and organizational inertia can hinder meaningful progress. Addressing these barriers is essential for fostering an adaptive organizational culture that is prepared to evolve in response to challenges. Only by understanding these obstacles can leaders position themselves to effectively lead their teams through transformation and capitalize on emerging opportunities.

References

1. American Psychological Association. (2020). The impact of organizational change on employee wellbeing. Retrieved from https://www.apa.org
2. Binns, A. (2016). The crisis of business leadership. Harvard Business Review. Retrieved from https://hbr.org
3. Bosso, E. (2020). 6,000 Dreams: The Leader’s Guide To A Successful Business Transformation Journey. Forbes Books.
4. Kotter, J.P. (1996). Leading Change. Harvard Business Review Press.
5. Kotter, J.P., & Cohen, S. (2002). The Heart of Change: Realizing the Power of Change. Harvard Business Review Press.
6. McKinsey Global Institute. (2021). The state of organizations: Why companies are getting change wrong. Retrieved from https://www.mckinsey.com
7. Prosci. (2021). Best practices in change management. Retrieved from https://www.prosci.com
8. Hiatt, J. M. (2006). ADKAR: A model for change in business, government, and our community. Prosci Research.
9. Schein, E.H. (2010). Organizational Culture and Leadership. Jossey-Bass.
10. Lewin, K. (1951). Field Theory in Social Science. Harper & Row.