According to Pye (2005) it’s paramount to have an all-encompassing view of the organisation. In essence knowing stakeholders’ actions on a day to day basis and the impact any decision making process would have on them, as opposed to just focusing on the leadership itself. Leadership is challenging in this ever moving world and this reinforces the importance for Leaders to have proper handle on all activities regards the organisation and ensure there is clarity. This is essentially what is meant by sense – making.
In the case illustrated by Pye (2005) of global retail manufacturer and distributor declining revenue, the CE was under no illusion that a significant change was needed to address the declining business and improve efficiencies. CE had a vision but unfortunately he lacked empathy and didn’t take the time to get the buy-in of the key players, therefore lacked the support and commitment from his followers resulting in a dysfunctional team and disgruntled stakeholders. The CE had the courage to change his style; he became more conciliatory. He worked collaboratively with the key informal leaders. This participative style of leadership paved the way for him to implement the desired change, because he allowed the team to see him in action as he communicated his vision, promoted discussion; together they made sense regards the need for change. The informal leaders assisted in influencing and promoting the change. Change can only happen if there is a clear understanding for why it has to take place (Kotter, 1996 citied in (Appelbaum et al, 2012, page 765). This produced unity and providing the opportunity for the CE to build a brand. Having a brand gives you identity and can be marketed as discussed in video on Establishing Your Personal Brand. He demonstrated flexibility in his approach and gained trust of the key players. This was evident because it was the team who suggested and agreed to restructuring.