2-DeKockSlabbert.qxd


The emergence of a new global economy

Castells (1999:66), states that a new economy has emerged

during the past two decades. The distinctive characteristics of

this economy are as follows:

� it is global, because the activities of production, consumption

and circulation (as well as their component parts – labour and

capital) are organised on a global scale; and

� it is informational, because the productivit y and

competitiveness of the role players in this economy depend

on their capacity to access and supply knowledge rich

information.

These characteristics (global and informational) drive the need

for modern business organisations to become world-class. While

the link between globalisation and world-class is generally

acknowledged, business organisations are increasingly waking up

to the role of information technology in reinforcing globalisation

and its competitive nature. Castells (1999:67) argues as follows

“information itself becomes a product in the production process” –

thereby accelerating globalisation, competitiveness and the rate

of change in business organisations.

While the socio-economic merit of globalisation, with all its

ramifications is a ‘hotly’ debated subject for pressure groups,

academics and politicians, ascending to world-class status still

seems to be the most viable option to survive and thrive in the

new economy. This puts the issue of world-class, and attaining

world-class status on the research agenda for a variety of

disciplines, notably the management sciences.

South African competitiveness in the global economy

Against the background of the need to be a global player and being

globally competitive, Prinsloo, Moropodi, Slabbert & Parker

(2000), point out that the competitiveness of South African

companies is dismal. This is confirmed by Sowinski (2001), who

shows that (in terms of the World Economic Forum, Global

Competitiveness Report for 2000), South Africa is still ranked 33

out of a total of 50 countries in terms of competitiveness. Bendix

(2001: 675), points out that while South African businesses realise

that change is required, they often approach it in an ad hoc

fashion. The research of the World Economic Forum further

highlighted the following shortcomings.

� The South African workforce is consistently rated poorly on

aspects such as training and development.

� The capacity of management to identif y and implement

competitive labour practices is similarly unsatisfactory

(World Competitiveness Reports of 1994; 1995; 1996; 1997

and 2000).

The picture that emerges is one that challenges South African

business organisations to transform fundamentally, according to

a coherent framework, in order to be competitive and attain

world-class status.

Towards a perspective of a world-class organisation

An overview of relevant literature shows that the following

questions require clarification to derive a comprehensive view

of a world-class business organisation.

� What constitutes world-class?

� What are the characteristics of a world-class organisation?

� From a process perspective, how can business organisations

ascend to world-class?

In terms of the above, Grates (1998) advances the notion that

world-class refers to a specific status of the best organisations

in the world. While status is indeed an indicator, this view

seems to reduce world-class to a select few business

organisations that achieve only the highest levels of

performance worldwide, while it effectively excludes those who

successfully compete and make profit in the global market

place. The view of Owusu (1999) as well as Kasul & Motwani

(1995), that world-class refers to the ability of a business

organisation to compete effectively in global markets and make

profit, seem to be more realistic. Slabbert, Theron & Roodt

(2000) also support this view and argue that world-class

essentially refers to the ability of a business organisation to

compete effectively in the global economy. 

In terms of the characteristics of world-class business

organisations, Kasul & Motwani (1995) highlight the following

as factors that ensure ascendance to world-class:

� management commitment;

� quality;

� customer focus;

� advanced technology; and

� organisational flexibility.

P M DE KOCK

J A SLABBERT
Department of Human Resource Management

Randse Afrikaanse Universiteit

ABSTRACT
One of the most important prerequisites for economic competitiveness in the global economy, is the delivery of a

unique product or service. In order to achieve this level of competitiveness, transformational rather than

transactional leadership should be a core element in organisation’s ascent to ‘world-class’ status. Inline with other

researching results, the most important finding of this study which was conducted in a petrochemical industry, is

that transformational leadership is not up to standard. 

OPSOMMING
Een van die belangrikste voorvereistes vir ekonomiese kompetering in die globale ekonomie, is die lewering van ‘n

unieke produk of diens. ‘n Voorvereiste wat slegs kan realiseer indien transformasionele leierskap eerder as

transaksionele leierskap ‘n kernboublok in organisasies se strewe na ‘wêreldklas’ status vorm. Inlyn met die

bevindinge van verskeie ander studies, is die vernaamste bevinding van ook die studie wat in ‘n petrochemiese bedryf

gedoen is, dat transformasionele leierskap nog nie op standaard is nie.

TRANSFORMATIONAL LEADERSHIP IN BUSINESS

ORGANISATIONS ASCENDING TO WORLD-CLASS STATUS: A

CASE STUDY IN THE PETROCHEMICAL INDUSTRY

Requests for copies should be addressed to: PM De Kock, Department of Human

Resource Management, RAU University, PO Box 524, Auckland Park, 2006

1

SA Journal of Industrial Psychology, 2003, 29 (1), 1-7

SA Tydskrif vir Bedryfsielkunde, 2003, 29 (1), 1-7



DE KOCK, SLABBERT2

Thorne & Smith (2000), expand on this by indicating the

following characteristics:

� global presence, which also implies electronic presence in the

globally linked economy;

� integrated supply chain network;

� team based organisation structure;

� strong people focus;

� technological innovation; and

� clearly communicated vision and objectives.

Kasul & Motwani (1995), show how business organisations

should typically develop towards world-class. They propose the

following stages in this development process.

� Stage one typically focuses on upgrading aspects such as

qualit y, operational flexibilit y, improved customer

orientation as well as technological innovation.

� Stage two focuses on improving facilities control, vendor

management and achieving price-cost leadership.

� Stage three focuses on achieving global presence, growth and

competitiveness.

These authors further argue that management commitment 

is a key requirement for successful ascendance to world-

class status.

While the work of Kasul & Motwani (1995) and Thorne & Smith

(2000) provide insight into the characteristics of a world-class

business organisation and the development process in becoming

world-class, there is a need for a comprehensive and coherent

framework of these organisations. Such a framework should

ideally highlight the various components of a world-class

business organisation, emphasise special characteristics and

show interdependencies as well as how various elements of the

organisation interact to become world-class. Slabbert, et al.,

(2000), provide a model of world-class business organisations

that clarif y the core systems of these enterprises. In terms of this

model, the guidance system of such business organisations

resides with its leadership. It is the leadership system that crafts

the vision, mission and customer-centred strategies that inform

the business and organisation architecture. The following

aspects are regarded as key drivers in attaining world-class

performance and status:

� lean management;

� partnering; and

� world-class information architecture.

These aspects are guided and supported by a core value system

and joint governance system in the organisation, while it is

also underpinned by sound employment relations. Given the

guidance of the leadership and effective functioning of the

business and organisational system, world-class organisations

are then enabled, and aim to produce outputs (products and

services) to the satisfaction of customers, employees and

stakeholders in general. While the emphasis of Slabbert, et al.,

(2000) on aspects such as leadership, lean management, as well

as partnering and information architect ure (world-class

information systems) is meaningful, many business

organisations tend to prioritise the upgrading of

manufacturing processes in an attempt to become world-class

(Yamashina 2000:132; Voss & Blackmon in Harrison 1998: 397).

Owusu (1999), however shows that communication and

employee participation create organisational agilit y and

support the quest for becoming globally competitive. While

Wright, Szeto & Geory (2000), is of the opinion that

traditional, authoritarian, relationship based management

practices derogate efforts to becoming world-class. Prabhu &

Robson (2000), conclude by stating that not one or only a few

key factors drive ascendance to world-class. They show that

world-class business organisations consistently perform well

on all important factors (leadership, employment relations

management as well as operational performance) required to

become globally competitive.

The role of leadership in world-class organisations

Jesitus (2000), quotes John Husher, Vice President of Micrel-

Synergy Semiconductors in San Jose, who states that leadership

is one of the key drivers in the quest for achieving world-class

status. Although the importance of leadership is acknowledged,

it is necessary to clarif y the focus of the leadership task in world-

class business organisations. In this regard the research of

Prabhu & Robson (2000), points to the following key tasks of

leaders in world-class business organisations:

� Commitment to, and inculcating a customer orientation,

quality mindset as well as innovation.

� Creating a shared vision and goals as well as facilitating the

establishment of sound and flexible employment relations

practices.

� Ensuring optimal operational performance.

Roodt (2001), furthermore refers to research that confirms the

importance of leadership in the process of ascending to world-

class status, and emphasises the need for leadership to establish

a high performance culture, high performance delivery

processes and service in support of this, thereby creating and

exceeding customer satisfaction requirements. Against the

background of the above, the question that remains to be

clarified is what the core tasks of the leader should be in

transforming the organisation to become world-class. Graetz

(2000) argues that these tasks entail the following:

� creating readiness for change;

� inspiring shared vision and communicating the future

direction of the business organisation;

� empowering and energising individuals and groups by

providing resources and developing capabilities to support

the transition;

� utilising stakeholders in communicating and embedding the

vision and change message on an ongoing basis; and

� utilising reward and recognition to reinforce the new

direction of the business organisation.

Morden (1997), supports the view that one of the central tasks

of the business leader is the crafting of vision, and argues that

leadership is in essence a visionary concept. Nicholls (1994)

delineates between inspirational, strategic and supervisory

leadership, and argues that the creation of vision and

facilitating support and buy in for the vision, relates to

inspirational leadership. In a more classical sense Grobler

(1996), distinguishes bet ween transactional and

transformational leadership and supports the notion that, to

become world-class, leaders should focus on transformational

leadership. Wright & Thompsen (1997), Drew & Smith (1995) as

well as McLachlin (1999), acknowledge the need for leadership

to ensure readiness of the business organisation for change, but

frame it as a capacity issue (the capacity for change). In this

respect, capacity refers to:

� personal psychological and emotional readiness (specifically

a commitment to change and willingness to experiment); and

� capability (competence to function optimally within a

changing environment).

Dufficy (1998) also acknowledges the issue of change readiness

and the role of leadership in this process, but relates it to

empowerment (the freedom to participate in, and influence the

transformation and change effort).

Considering the above and the work of Morakul & Wu (2001:149),

Johnson (1995), Jansen (2000) and Lim (1997), it is possible to

identify the following transformational tasks of the leader.

� Development of a shared vision and clarif ying strategic

direction (Lim 1997).

� Development of capacity for change (Jansen 2000; Drew &

Smith 1995; Wright & Thompsen 1997).

� Empowerment (Morakul & Wu 2001:149; Johnson 1995;

Dufficy 1998:145).

� Creating a world-class quality and service delivery mindset

(Prabhu & Robson 2000).



TRANSFORMATIONAL LEADERSHIP 3

From the above it is clear that the task focus of leadership in the

process of moving to world-class stat us is essentially

transformational in nature. Figure 1, provides an overview of the

main tasks of the leader in the process of ascending to world-

class status.

Figure 1: The tasks of leadership in the 

transition to world-class

Clarification of the need for business organisations to become

world-class, the nature of world-class organisations and the role

of leadership in ascending to world-class, provided the context

of the research study. The problem, objectives and research

design are outlined in more detail in the paragraphs that follow.

EXPOSITION OF THE PROBLEM

Wray (2001) quotes a leading economist, criticising South African

leaders for not attaining the economic growth levels that will

prevent the country from becoming marginalised in the global

economy. Grobler (1996) argues that, for South African business

organisations to become globally competitive, leadership should

not only play a transactional but also a transformational role.

Grobler is also of the opinion that leadership practices in South

Africa are far from satisfactory. April and Hill (2000:49), observe a

tremendous divergence of views under South African business

leaders of what the role of leaders should be, while Visagie (1997),

argues that, given the dramatic change in South African society,

strong transformational leadership in specifically small and

medium enterprises (SMEs) is a requirement. The picture that

emerges is one that confirms the need for South African business

leaders to be competent in playing their transformational role,

specifically in the process of moving their organisations to global

competitiveness. It also confirms that the performance of South

African business leaders in respect of their transformational role is

less than satisfactory. 

The business organisation selected for the study is in the midst

of such a transformation to become globally competitive. As a

key role player in the South African economy and leader in the

local petrochemical industry, the business organisation has

successfully positioned itself to be a leader in the local economy,

capable to operate profitably in a non-regulated environment (in

respect of fuel pricing).

The business organisation is currently in the process of

positioning itself to become a world-class producer of

petrochemical products and aims to achieve this status by

deploying the following broad strategies:

� implementation of world-class business and production

information systems;

� winning through people; and

� ensuring operational excellence.

The design, development and implementation of the business

and production information systems are expected to be the first

major change affecting the organisation. Although the aim of

the project and its relationship to becoming world-class, has

been communicated to staff, there is a need to ensure that

leaders at all levels play their transformational role effectively. It

is argued that creating shared vision and clarif ying strategic

direction, developing capacity for change and empowerment are

the core drivers that will ensure successful transformation to

world-class. The study therefore, aims to determine the

perceptions and opinions of the target population by answering

the following questions.

� Whether there is a shared vision, and sufficient clarity about

the strategic direction (the ‘dream’ and ‘roadmap’ to become

a world-class business)?

� Whether there is clarity about the capacity required to

transform the business organisation, and interventions to

enable employees to deal effectively with the changes that lie

ahead?

� Whether the empowerment climate supports the ongoing

transformation of the business organisation in its quest to

become world-class?

� Whether a quality and service delivery mindset exists in the

business organisation, which supports the drive towards

world-class status?

RESEARCH METHODOLOGY

Qualitative research

Swanson & Holton (1997) argues that qualitative research is

appropriate when the researcher needs to study a phenomenon

in its natural setting and interpret it in terms of the meanings

people attach to such a situation. This argument supports the

design of the study for the following reasons:

� the research is aimed at studying an unfolding reality;

� it is related to a specific organisational issue; and

� it is necessary to obtain detailed information about the

meanings people attach to the issues under consideration,

given the emotive nature of change.

Target population

The business organisation, from which the sample was drawn, is

part of a group of companies employing approximately 30,000

people. The permanent staff complement of the business

organisation in question is 6,500 employees. The study was

directed at senior, middle and junior level leadership as well as

specialists and operational level staff who have been exposed to

one or more of the transformation initiatives aimed at moving

the business to world-class status. The composition of the

sample was as follows:

� executive level management (two individuals);

� business unit level leadership, including senior support staff,

for example human resource practitioners (four individuals);

� specialists involved in transformation projects (t wo

individuals); and

� operational level staff members, including support staff, for

example administrative, at the relevant levels (11 individuals).

The underlying consideration with the composition of the

sample was to identif y respondents who had exposure to

relevant communication about world-class as well as one or

more of the transformation interventions aimed at attaining

world-class. In this regard only business units were targeted

where it could reasonably be verified that the following

communication was received.

� Monthly newsletter about progress with the implementation

of the new information technology systems that support the

drive to become world-class.

Developing shared

vision and

understanding for

the strategic

direction

Developing

capacity for

change

Creating a world-

class quality and

customer service

indset

Empowerment



DE KOCK, SLABBERT4

� A change readiness survey was conducted.

� Other organisation development interventions aimed at

moving towards world-class were implemented (for example

role mapping and value clarification).

A total of three business units were consequently identified,

from which the sample was drawn. Although respondents from

management, leadership and specialist levels were targeted, a

significant number of individuals at the operational levels were

included as they are essentially the population affected by the

behaviour of leaders in the business organisation.

Measurement

To determine the perceptions of the target population, and

obtain their opinions of the extent to which leaders in the

business organisation play their transformational role, semi

structured interviews were conducted. 

The interview schedule covered the following topics.

� Shared vision and strategic direction (Lim 1997)

�� content and meaning of the strategic vision; 

�� inspirational value of the vision; and

�� clarity of strategic direction.

� Empowerment climate (Morakul & Wu 2001:149; Johnson

1995; Dufficy 1998:145)

�� authority to take decisions;

�� ability to influence decision making;

�� reward for innovation and risk taking;

�� reward for supporting positive changes;

�� involvement in important change initiatives; and

�� access to and relevance of information pertaining to the 

transformation of the organisation.

� Capacity for change (Jansen 2000; Drew & Smith 1995;

Wright & Thompsen 1997)

�� readiness assessment and relevant interventions to 

address issues;

�� clarity and planning regarding core competencies to 

function in world-class organisations; and

�� interventions to assist employees to deal effectively with

the emotional effects of change.

� World-class quality and service delivery mindset (Prabhu &

Robson 2000)

�� quality product, environmental orientation, cost price 

leadership; and

�� exceeding customer expectations and building value 

adding partnerships.

PROCEDURE

Formal approval was sought at executive management level,

before proceeding with the study. Prior to the interviews, a

limited document study was conducted to confirm aspects that

needed to be evaluated during the interviews, notably:

� the content of the vision, and overall strategy of the business

organisation;

� the content of the balanced scorecard, outlining the strategic

thrusts and priorities in acceding to world-class;

� the competencies outlined for the group of companies, that

are regarded essential for attaining world-class status (with

specific reference to leadership competencies); and

� a scan of relevant interventions, for example the change

readiness survey conducted in the business organisation,

subsequent interventions, etc.

Respondents were subsequently selected according to the

parameters outlined for the target population, and invited

telephonically to attend the interviews (attendance was

voluntary). During the interview, the aims of the study were

outlined and an overview of the conceptual model provided. The

use of a semi structured interview made it possible to solicit

categorical answers. Provision was however made for

respondents to qualif y answers and provide additional

information. Responses were captured on audiocassette and

coded during the interviews, using an analysis matrix.

Subsequent to the completion of the interviews, the audio

records were analysed a second time and coded with the aid of

the analysis matrix. The audio records were further validated by

an independent practitioner who utilised the audio records, and

coded responses according to the analysis matrix. The second

analysis and the cross-validation ensured an acceptable level of

consistency in terms of the interpretation of the responses. 

The role of the researcher in the study can consequently be

described as interviewer, observer, analyst and interpreter. In this

role, the researcher identified himself as such and interacted

with the respondents according to the procedure outlined above.

ANALYSIS AND DISCUSSION

Analysis

The results of the interviews were analysed in terms of the

interview questions, as in the interview schedule. The paragraphs

that follow provide an overview of the analysis, and are

supported by specific motivations and quotable phrases, where

appropriate.

Question 1: The vision of the organisation

Exact knowledge of the content of the vision of the business

organisation is relatively high (79 percent of the respondents

were able to cite the vision). 

Question 2: The inspirational value of the vision

As in the case of the vision, a significant number of respondents

(74 percent) indicated that the vision has inspirational value.

Most respondents cited the winning motive, as well as the

competitive nature of the vision, as their inspiration in their

quest to become world-class.

Question 3, 4, and 5: Clarity regarding strategic direction

In terms of strategic direction, awareness and understanding of

the following aspects were tested:

� basic understanding of what constitutes world-class;

� perceptions about the clarity of key milestones and priorities

(the ‘roadmap’) in attaining world-class status; and

� the contribution of large scale interventions (notably the

implementation of the integrated business and production

information system) in ascending to world-class.

In terms of what constitutes world-class (question 3), a

significant number of respondents (79 percent), were unable to

articulate that world-class in essence refers to the business

organisation’s ability to operate successfully, and make profit

in a global market. Responses further seemed to indicate that

respondents emphasise an internal organisational focus

(world-class systems, procedures and processes) rather than a

focus of successful performance and profitability in the global

market place.

While 26 percent of the respondents indicated that the ‘roadmap’

to achieve world-class status (question 4), is not clear, a further

53 percent qualified their response by indicating that the

strategic priorities and milestones are too general and not

understandable at the lower levels of the organisation. Those

who responded positively in terms of the question have referred

consistently to the content of the balanced scorecard as their

guide to the strategic direction of the business organisation.

A relatively high number of respondents (79 percent) showed an

acceptable level of awareness and understanding for the

potential benefits of implementing an integrated business and

production information system (question 5). In this regard,

aspects such as efficiencies due to standardisation, cross-

functional cooperation, real time information and the

utilisation of shared databases were cited as enablers in the move

to world-class performance and status.



TRANSFORMATIONAL LEADERSHIP 5

Questions 6 to 9: Creating capacity for change

In terms of capacity for change, responses pertaining to the

following aspects were solicited:

� awareness of surveys to test the change readiness of the

business organisation;

� awareness of initiatives aimed at improving the readiness of

the business organisation for change (interventions

emanating from the change readiness survey);

� interventions aimed at dealing with the emotional effects of

change; and

� the development of future competencies, required to

function in a world-class organisation.

A significant number of respondents (89 percent) were aware of

a change readiness survey that was conducted recently (question

6). While only 37 percent of the respondents indicated that they

were not aware of any interventions emanating from the change

readiness survey (question 7), a further 37 percent qualified

their response by stating that interventions, aimed at addressing

issues from the survey, are ad hoc and not integrated as part of a

general strategy to develop the readiness of the business

organisation. Although 47 percent of respondents indicated that

they were not aware of any initiatives aimed at supporting staff

to deal with the emotional aspects of change (question 8), a

further 37 percent qualified their answer by indicating that such

support could be available but they could not confirm this as a

fact (they are unsure about the existence and nature of support

available). Although a significant number of respondents (84

percent) were unsure about what the business organisation

regards as the core capabilities of a world-class organisation

(question 9), there is a significant level of awareness (84

percent), for the planning and actions taken to ensure that they

will have the necessary skills and knowledge to operate in the

changing work environment, brought about by the

implementation of the integrated business and production

information systems.

Questions 10 to 15: Empowerment climate

Considering the empowerment climate of the business

organisation the respondents reported as follows.

Authority to perform in their current job (question 10): A high

number of respondents (79 percent) indicated that they believe

they have the required authority to perform in their current

jobs.

Access to and content of information regarding the change process

(question 11): While 74 percent of respondents indicated that

they received information about the change process (rationale,

progress etc), 63 percent of the respondents indicated that the

information was too general, and did not differentiate according

to the relevant target population. In this regard, there was a

general perception that the lower levels of the business

organisation were mostly disadvantaged because of this

situation.

Opportunity to influence decision making pertaining to change

(question 12): While 68 percent of respondents stated

categorically that they did not have the opportunity to influence

decision making pertaining to change, a further 11 percent

qualified their answer by stating that, although consultation

takes place, they have reservations about the extent to which

their inputs are taken into account in decision making.

Risk taking and innovation (question 13): In terms of risk taking

and innovation 53 percent of respondents indicated that in their

opinion the business organisation does not reward and reinforce

innovation and risk taking. A further 26 percent of the

respondents qualified their response by indicating that there are

business units where risk taking and innovation are reinforced

and rewarded, but that this is not the norm.

Question 14 and 15: World-class quality and ser vice mindset

In terms of a world-class qualit y and service mindset,

respondents were asked whether the organisation delivers a

world-class quality product and has a world-class service

delivery mindset. A high number of respondents indicated that

the business organisation currently delivers a world-class quality

product, due to the institutionalisation of research and internal

quality standards. Contrary to this, 42 percent of respondents

stated categorically that the business organisation does not have

a world-class service orientation. A further 47 percent qualified

their negative perception of the service orientation of the

company by stating that it is due to the fact that the business

organisation, (as part of a group of companies), does not have

direct contact with the customer. A small number of respondents

acknowledged that a world-class service mindset has an internal

(cross-functional), as well as external focus.

Discussion of results

From the responses a picture emerges of a leadership cadre that

needs to improve significantly on their role as transformational

leaders, to enable the business organisation to attain world-class

status. In terms of creating shared vision, the responses show

that there is a high level of clarity and emotional support for the

vision. The framework for making this practical however, seem

to be unclear. As such, there is not a clear context for

implementation. It is believed that business unit leaders as well

as group leaders play a crucial role in creating and

communicating such a framework. 

In terms of creating capacity for change, it is apparent that

capacity development efforts focus mainly on the task related

aspects of interventions (for example, developing the required

skills and knowledge to perform according to the new

requirements of the production information system). There is

however, also a need to attend to the people issues pertaining to

these interventions. An overemphasis on the task aspects of

interventions creates risk due to a lack of commitment and

ownership of employees in the business organisation. There is

also a tendency by leaders to abdicate their responsibilities for

people issues, related to such interventions, transferring it to the

so-called human resource specialists. Related to this, is the

perceived lack of a coordinated response to issues raised in the

change readiness survey, which reinforces a climate of focusing

on the task aspects of the transformation to world-class. 

Considering the empowerment climate of the business

organisation it becomes clear that, although the current task

environment allows for independent decision making (most

respondents indicate they have the authority to perform their

tasks), the climate does not support innovation and risk taking,

essential for breakthrough transformation.

For employees and stakeholders in general, to position

themselves effectively in the transformation of the business

organisation to world-class, information about the change

process, its rationale, progress and implications is critical. In this

regard, the responses show that leadership should consider

revising their communication strategy to differentiate according

to the target population receiving the message. A revision of

modus operandi for incorporating inputs of employees into

decision making, as well as communicating the rationale for

decisions more clearly, needs to be considered. The perception

that employees and stakeholders cannot influence decision

making regarding changes, could lead to a feeling of being

disempowered and marginalised and puts the whole drive to

ascend to world-class at risk, due to a lack of commitment and

ownership of the envisaged changes. It is further contrary to one

of the key characteristics of world-class organisations, namely

that of joint governance. 

In terms of quality and service, there is a need to inculcate a

world-class service delivery mindset. In this regard, service

internal (cross-functional) and external to the business

organisation, needs to be emphasised. A service delivery mindset

across the total stakeholder spectrum needs to be developed.

The responses show that the transformational role of the

leadership cadre could be developed and entrenched to the



DE KOCK, SLABBERT6

benefit of the business organisation, in the quest to attain world-

class status. A pertinent question in this regard is how the

leaders could be developed and their roles be entrenched for

optimal results. It is proposed that leadership development in

business organisations, striving to become world-class, should

focus less on the development of classical transactional

leadership skills. Transactional leadership focuses inward,

towards optimising processes, procedures, team leadership as

well as compliance in terms of these aspects. It is doubtful

whether breakthrough transformation is possible through this

kind of leadership, specifically for organisations that aspire to

become world-class. Transformational leadership is visionary,

strategic and inspirational in nature and aims to enable, rather

than coerce people to perform. The specific tasks of the leader in

the transformation of business organisations to become world-

class have been motivated in this article. It is however also

necessary to reflect on the way in which such a leadership

culture can be entrenched in the business organisation. In this

regard, the performance management and reward system should

be explicit in recognising and reinforcing the correct leadership

behaviour. When leaders realise that the performance culture

support transformational leadership, a momentum is created

that will ensure that the leadership plays their rightful role in the

quest to become world-class. 

An important aspect emanating from the study is the evidence

that building the capacity of leaders to lead the transition to

world-class is indeed one of the key focal points of building

capacity for change. In this regard it will be necessary to address

implement a systematic process of developing strategy, build

leader understanding and commitment for change and then to

enable leadership to take the lead with change management. The

emphasis would therefore be on transformational rather than

transactional leadership. The following framework is proposed

for achieving this.

� The development of a strategy for addressing leadership style,

mindset and behaviour.

� The building of leader commitment for and alignment to

change.

� The education of leaders in respect of change as a

phenomenon.

� The development of leadership teams in taking responsibility

for leading change.

� The embeddedness of required leadership behaviour through

performance management and individual development

planning.

In summary, the positive aspects related to shared vision and

emotional support for the vision, seem to be derogated by a lack

of a framework for implementation, a need to build capacity for

change and the fostering of a climate that will support

breakthrough thinking, action and results.

Conclusion 

Although the limitations, specifically in terms of generalisation,

of this study are acknowledged, it should also be noted that the

relevant organisation is still in the initial phases of the

transformation process (the broader intervention to attain

world-class status, is currently entering the end of its first year

of implementation). It could therefore be expected that the

business organisation is still in an exploratory phase, specifically

in respect of change management and the entrenchment of the

new roles of their leadership cadre. This study however, provides

a useful diagnostic departure point, and highlights areas that

could be researched further by embarking on a more

comprehensive study. Specific areas that could be researched

include the following.

� Testing models of the transformational role of leaders in

different stages of large scale transformation projects aimed at

attaining world-class status.

� Testing the relationship between the empowerment climate

and levels of commitment and ownership for large scale

change projects.

� Testing the effectiveness of differentiating key messages

about change, according to the target population it is

addressed to.

� Testing the influence of interventions aimed at assisting

employees to deal with the emotional impact of change in

relation to motivation, organisational climate, commitment

to and ownership for change.

While becoming world-class is the only choice for business

organisations wanting to survive and thrive in the global

economy, the issue of transformational leadership is similarly

not an option for these business organisations – it is a strategic

imperative. Leadership is the system that determines direction

and steers the business. Without transformational leadership

business organisations aspiring to attain world-class are (in a

proverbial sense) trying to ‘fire a canon from a canoe’.

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