This research investigates Information Technology (IT) driven organizational changes in Sri Lankan organizations by focusing on the leadership aspects. The main objective of this research is to identify which leadership styles are most effective in ensuring the success of change management processes within IT project implementations. In order to achieve this, firstly the research conducts an in-depth investigation of the relationship between leadership and change management practices within organizations. Encapsulating the findings, a model is proposed to pinpoints the most effective leadership style that should be adopted in accordance with each stage within the change management process the organization is about to undergo.

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Leadership and Organizational Change in the Context of IT
*Eashani Rodrigo, Lakshitha Samarathunga, Sachith Wimalarathna,
Dinidu Jayasekara, Medavi Somarathne
Email: *eashanirodrigo@gmail.com
Sri Lanka Institute of Information Technology, New Kandy Road, Malabe, Sri Lanka.
ABASTRACT
This research investigates Information Technology (IT) driven organizational changes in Sri Lankan
organizations by focusing on the leadership aspects. The main objective of this research is to identify
which leadership styles are most effective in ensuring the success of change management processes
within IT project implementations. In order to achieve this, firstly the research conducts an in-depth
investigation of the relationship between leadership and change management practices within
organizations. Encapsulating the findings, a model is proposed to pinpoints the most effective
leadership style that should be adopted in accordance with each stage within the change
management process the organization is about to undergo.
The research involved qualitative methods. Models by Goalman (2000), Kotter (1996), and Cooper
and Zmud (1990) were consulted to build an initial framework surrounding leadership and change
management practices. Using the Case Study method, in-depth interviews and document reviews
were conducted for nine leading Sri Lankan organizations which had undergone IT change. Analysis
of results revealed that organizations are increasingly realizing the value of employing change
management practices when introducing IT change to their organizations. The attention of leaders
was found to be more focused on the culture, behaviours and attitudes of employees who are part of
the change process than on the steps within the change process itself which are prescribed by
change gurus. Eliminating people resistance has been treated with the highest priority based on the
argument that effectiveness of change management processes is directly linked to winning over the
people resource. Leadership styles were found to be practiced more from a public relations (PR)
perspective to win the people over in the short term and thereby ensuring long term success.
Key words: Leadership, Organizational Change, Information Technology, Change Management
Process, Leadership Styles, Sri Lankan Context, IT Driven Change
INTRODUCTION
John P. Kotter, one of the change management gurus has said that the change is an
unavoidable reality in the business world today. In such a turbulent environment if the change
is not handled properly it can drive them crazy, costs a great deal of money and will cause a
lot of pain [1]. Modern business organizations are turbulent and face dramatic changes such

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as strategic changes, technology changes, business process changes, mergers and
acquisitions. Taking these aspects in to consideration IT driven change plays a critical role in
organizations today. IT driven organizational change is considered to be the current focus in
many business organizations as they introduce or implement new IT systems nowadays to
gain the competitive advantage [2]. If the organization did not adapt to changes, the
organizations could not compete. Managing of change is important in order to embrace the
change and reap its benefits. Leadership plays a vital role in managing change by involving
and supporting throughout the process to make the change a success. Many studies have
highlighted the importance of leadership in change management. Leadership is very much
related to change and as the velocity of change increases, there is a greater need for effective
leadership [1].
There are a number of studies on importance of leadership and change management [1]-[5].
However leadership styles that should be adopted for managing an effective IT change
process has received lesser attention. Research focus draws the attention towards the
leadership styles to be adopted during change management process when organizations go
through IT driven organizational changes.
No past research has been reported on leadership and change management in Sri Lanka. It
has been identified that for most organizations in Sri Lanka change management is a new
practice. Therefore, this study makes a valuable contribution to the field of leadership and
change management as this research carries a comprehensive study to fill the knowledge gap
in that area.
This paper presents the findings of a comprehensive research. It comprises of five sections
followed by the introduction. In the next section literature review is presented and the results
are given in section four. Paper ends with the discussion of research study and suggestions for
further research.

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LITERATURE REVIEW
As a background to the study this section briefs on the leadership and leadership styles, IT
implementation process and change management processes and IT driven change
management. The relevance of leadership and management of IT driven organizational
change is examined here.
Information Technology plays a significant role in organizations‟ business processes today.
IT has triggered many changes forcing organizations to embrace changes which happen due
to IT implementations. Many researchers have introduced different IT implementation
process models such Rogers, Kwon and Zmud, and Gerwin [6], [7]. Basically all models are
based on three main processes namely: initiation, implementation and naturalization [6].
These researchers have identified that implementation of IT changes should be well planed
and should be carry out systematically in order to gain the real benefits of change. Failing to
manage the change effectively will end up in poor implementations [4].
Researchers argue that proper framework should be adopted to carry out the IT
implementation as well as to manage the IT driven change simultaneously. Past researchers
have developed a number of models to explore as change management processes. Three step
Lewin‟s (1951) change model , Kotter‟s (1995) eight steps model and Prosci‟s (1996)
ADKAR model can be cited as examples [8]. All these models address the change
management in general, and still no comprehensive model has been developed to depict IT
driven change management process. Kotter‟s (1996) eight steps model targets large scale
organizational change and gives a comprehensive elaboration about the change management
process and as it directly establishes a relationship with the leadership and organizational

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change process, which is the underlying concept of this study [1][3]. Hence, Kotter‟s change
model is used as the base of study in the research.
Number of researchers have highlighted that leaders should manage the change in order to
achieve effective organizational change [1],[9],[2]. In the context of change management
Kotter [1] defines leadership as:
What the future should look like, aligns people with that vision, and inspires
them to make it happen despite the obstacles (Kotter) [1].
This research focuses on leadership styles. Studies have highlighted that leadership styles
play a vital role in organizational change. Goleman [9] have mentioned that organizational
climate is influenced by leadership style. Number of leadership styles are experimented,
researched and have found by the contributors such as Lewin [8], Likert [8] and Goleman [9].
These contributors argue that leaders do not rely on just one leadership but it can change
according to the scenario [9].
Conceptualization
A high level conceptual view of relationship between leadership and IT driven change is
shown in Fig.1.

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As shown in Fig.1 the change management process need to be practised inside the IT
implementation process. The effectiveness of this practice is directly affected by leadership
styles. To examine this framework, models as shown in Table 1 are used.
In summary, the following inferences have been made from the literature review:
 Leadership is critical for an effective change management.
 From leadership aspect, leadership styles will have a higher influence on the
effectiveness of the change management.
 Steps follows in change management process will become critical success factors for the
IT change process.
 Organizations must give all the three aspects (IT implementation, Change management
and leadership styles) their focus when IT driven change is taking place.
 The final framework for the research can be built as in Fig.1.
 Organizations should follow change management process within their IT change process.
(As shown in Fig1 )

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 Further it has found Steps follows in change management process will become critical
success factors for the IT change process.
 For the real world case scenario analysis purpose three models namely, Kotter (1996)
eight step model [1][3], Cooper and Zmud (1900) IT Diffusion model [10] and Goleman
(2000) Six leadership Styles model [9] can be adopted to the research framework.
Summary of the models which has used to develop the research framework is shown
below.
METHODOLOGY
This study focuses on real-life scenarios and explores “How” and “Why” questions. Hence,
we adopted the case study approach. Case study approach is a method used to narrow down a
very broad field of research into one easily researchable topic. According to
Shuttleworth[11], case study method attempts to test a theory with a typical case or a specific
topic. Thereby using the case studies we will be able to develop and practically test the
research findings from literature as well as see the practical aspects of the scenario.

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In this study, the framework which was synthesised from the literature survey is used to
develop interview protocols and for the case analysis. Semi-structured and unstructured
interviews in nine organizations were conducted which has undergone IT changes. Case
study data was collected by our research authors using interviews of approximately one hour
duration and based on the same interview protocol. Top IT executives in leading Sri Lankan
organizations were interviewed including who have contributed in large IT implementations.
Table 2 presents profiles of the cases which have been studied in this research.
Table 2
Case Profiles
Case Background of Respondent Major IT Time Success/Failu
company implementat re of
-ions implementati-
on*
Case A One of the top Head of IT ERP system 5 years Successful
diversified department ago
conglomerates in Sri
Lanka
Case B Multinational Project Inquiry Few Successful
financial institute manager system years ago
which has been HR system
operating for over 100
years in Sri Lanka.
Case C Leading financial System Internet Few Successful
institute in Sri Lanka Development banking years ago
Manager system
E-link system
Case D Financial institute IT manager Intranet Few Partially
years ago successful
Case E Leading financial Head of Core banking Few Successful
institute in Sri Lanka Network system years ago
Relations
Case F Multinational apparel Head of SAP SAP ERP 10 years Successful
manufacturing system ago
company and the
largest in Sri Lanka.
Case G Leading financial Acting CIO Core banking Few In general it is
institute in Sri Lanka system years ago a success. But
there are small
failures.

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Case H Leading financial CIO Core banking Few Successful
institute in Sri Lanka system years ago
Case I Financial institute IT manager System Few Successful
upgrades- years ago
core banking
system.
*This is based on individual perception of the interviewee
RESULTS
Table 3 presents the summery of the findings.
Table 3
Summary of findings (Focused steps of Kotter’s model and the leadership Styles)
Case Use of Most focused steps Leadership Styles used Existence of
formal (focusing on Kotter‟s during the change people
change (1996) model) resistance
managemen during change
t approach
Case A No Steps 4, 5, 7 and 8 Authoritative, Yes
Affiliative, Democratic
Case B Yes Steps 1, 2, 3, 4, 7, and 8 Authoritative, No
Affiliative, Democratic,
Coercive
Case C No Steps 2, 4, 7and 8 Affiliative, Democratic Yes
Case D No Steps 4, 6 and 8 Authoritative, Yes
Affiliative, Coercive.
Case E No Steps 1, 2, 4, 6 and 7 Affiliative, Democratic Yes
Case F No Steps 1, 4, 7 and 8 Authoritative, Yes
Affiliative, Democratic,
Coercive
Case G No Step 1, 4, 7 and 8 Authoritative, Yes
Affiliative, Democratic,
Coercive
Case H No Steps 4, 7 and 8 Affiliative, Democratic Yes
Case I No Steps 1, 4, 6, 7 and 8 Authoritative, No
Affiliative, Democratic

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From the case study investigation it is evident that most organizations do not use a formal
approach towards change management. However they have adopted certain processes
associated with change management, without a conscious application of them.
The complex IT changes in most organizations were associated with implementing Enterprise
Resource Planning (ERP) systems. When the IT change had been triggered by ERP system it
has lead them to realise the importance of managing the change. According to a top IT
executive many organizations in Sri Lanka are not aware of change management.
Unfortunately I doubt that they know not John P. Kotter but the area he
contributed (Case C).
Most IT changes the case study organizations went through were successful according to
their own judgement. However it was evident from the investigation that most of the projects
have taken longer time than they planned for. Certain organizations suffer from the problem
of not utilizing their system fully. However without practicing a formal change management
approach, these organizations managed to be successful in there change may be merely due to
a proper leadership. Generally these organizations highly focussed on Step 1,4,6,7 and 8.
These steps require complete support from the leader. Therefore leadership involvement and
the support to the change can be considered as high.
According to nine cases generally they followed Affiliative style, Authoritative style and
Democratic style out of all six leadership styles during the change. These leadership styles
were identified from the characteristics Goleman‟s Six Leadership style model [9] they
possessed. Choosing the leadership style was situation oriented. In general during the
initiation of change they practised Authoritative then Democratic and in the latter part of
change the focus was towards Affiliative style.

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In exceptional cases organizations had used Coercive Style apart from those styles.
According to an IT executive during the ERP implementation their motto was:
SAP able or Sack able (Case B).
Facing an ERP implementation was the common situation to those organizations which used
Coercive. This situation caused them go through dramatic changes for the first time and face
higher people resistance. According to the IT executives‟ perceptions, lack of a proper
organizational culture was the cause for people resistance. Therefore the situation have forced
these organizations adopt Coercive style but they shifted to Affiliative style ones people got
adapted to the change. According to the Case F and Case E they follow people oriented
leadership style:
We do not insist people to do it instead we ask shall we do it (Case F).
I think people are more part of the organization than earlier (Case E.)
Therefore from the case study analysis it is evident that leadership style strongly effected on
orgnization to be successful in change. Without any formal approch to change managemnet
case organizations leadership was the force to drive the change. Therefore during the change
process they followed people oriented leadership styles such as Authoritaive, Democratic
,Affiliative styles. Use of this people oriented leadership approach made them successful in
thier change.
DISCUSSION
This research revealed another dimention of change mangement other than change
managemnet process and leadership. Cases revealed „people resistance‟ is another dimention
that should be foucsed during change management.

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People resist. It is not a very simple thing. The change is very tuff for people
(Case A).
Dramtetic change lead them to face remarkable situations of people resistance. In some cases
problem of people resistance lead them to adopt rigid methods to avoid it which lead to
unsatisfaction of emplyees. However in these situations change have been accepeted by
emplyees for the fear of losing thier jobs.
Not having a proper people focussed change management approach and lack of a change
supprotive culture must have lead to people resistance. However these organizations have
used several methods to deal with people resistance. Proper communication of change ,
higher support and invlovement from leadership, adopting people oriented leadership styles,
use of feedback mechanism and proper trainning are some of methods used.
In the effort of eliminating people resistance case organizations have focused on recreating
their culture. Having a change suppritive culture is considered to be the key element for
avoiding people resistance.
Finally going through the literature survey as well as the case study we were able to develop
a model related to the most appropriate leadership and managing the IT change process. It is
evident that as from the success cases scenarios as well as from the interviewees‟
recommendations people oriented leadership style(s) is the most appropriate leadership style
to be adopted.
Analysing all nine cases it was revealed that in general they followed mainly three leadership
styles out of all six leadership styles during the change in order to make the change a success.
Namely they are: Affiliative style, Authoritative style and Democratic style.

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All these three stages were used all together within all stages. Therefore according to the
situation they focussed more on one of these leadership styles. But from the analysis it
showed that in early steps of the model they focussed more on Authoritative style and in the
middle steps their attention was drawn to Democratic style and the in final stages their focus
was more towards the Affiliative style.
Therefore by analysing these case studies, generalizing the findings the final model can be
presented as in Fig. 2.
Fig. 2: Proposed Model: Most appropriate leadership styles and IT change managing process
This proposed model suggests that:

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 During an large IT driven change along with IT change process organizations should
follow a formal change managemnet process.
 Organizations should follow change managemnet process steps within the IT change
process‟ three stages as proposed by the model.
 Each step in change managemnet process become the critical factors which affctes IT
change implemenation.
 The highlighted steps are the most critical steps in change managemnet process which
should be given a high priority.
 Above mentioned three leadership styles are the most effective leadership styles to be
followed in order to do an effective change mangement.
 During this process they should follow the relevant leadership styles giving more
focus on highlighted leadership style in particular stage. (Authoritaive in first stages,
Democratic in middle stages and Affiliative in last stages).
As limitations of the model it can be argued that as this is a generalized model there is a
possibility to change when consider different countires, organzatioanl type (eg: mulitnational
comapnies) and the type of the IT change.
In summary, this research has focussed on leadership and change management aspect in an IT
driven organizational change in the context of Sri Lanka. This research confirms that
leadership plays a critical role in change management. It is evident that a proper leadership
can lead the change to a success and use of people oriented leadership styles can avoid people
resistance. Finally this research have identified Authoritative, Democratic and Affiliative
leadership styles are the considered to be best leadership style to be adopted during the
change management process to making a change a success. However this study suggests that
the organizations should follow a formal change management process when dealing with IT –

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driven change and they should use people oriented leadership styles to make the change a
success. Therefore this study proposes a model to be used during IT-driven changes to
effectively manage change.
The knowledge gap in the area of change management in the Sri Lankan context should be
filled as the proper awareness and knowledge on this area carries a higher value for the
business organizations. This research focussed on identifying the appropriate leadership
styles and the process to be used in managing the change. Still there is a knowledge gap in
the cultural aspect of change management area. Therefore investigating on the proper culture
which is supportive to change could be another area for future research.
ACKNOWLEDGEMENT
The authors wish to thank Dr. Theekshana Suraweera who has been the supervisor of this
research. Also authors wish to thank case study organizations and the IT executives who
kindly provided information to carry out this research. Due to the confidential nature these
details are not disclosed. The support of Sri Lanka Institute of Information Technology,
Malabe is sincerely acknowledged.
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[5]Annabel Beerel. (2009). Leadership and Change Managemnet. [on-line]
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[6] M.A. Quaddus. Diffusion of information technology: an exploration of the stage models
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