38 Journal of Leadership & Organizational Studies Volume 16 Number 1 August 2009 38-47 © 2009 Baker College 10.1177/1548051809334191 http://jlos.sagepub.com hosted at http://online.sagepub.com C ompetent management is one source of sustain- able competitive advantage in contemporary, rapidly changing organizations (Nohria, Joyce, & Roberson, 2003; Waldman, Ramirez, House, & Puranam, 2001). The behaviors of organizational leaders directly influence actions in the work environ- ment that enable change (Drucker, 1999; Gilley, 2005; Howkins, 2001). Leaders and managers are responsible for change strategy, implementation, and monitoring, thus they function as change agents (Kanter, Stein, & Jick, 1992). As a result, the chal- lenge of managing change is one of the most funda- mental and enduring roles of leaders (Ahn, Adamson, & Dornbusch, 2004), whereas the rapidly accelerating pace of organizational change has made effective leadership imperative. Organizations that support and implement continu- ous and transformational change remain competitive (Cohen, 1999). Research has attempted to explain the fundamentals of change, explain why change is so dif- ficult to achieve, and develop models to manage the change process. Despite the proliferation of numerous theories, models, and multistep approaches, leaders continue to lack a clear understanding of change, its antecedents, effective processes, or the ability to suc- cessfully engage organizational members in change initiatives (Armenakis & Harris, 2002). Recent research indicates that change programs rarely achieve desired results. A growing body of evidence reveals that change programs often fail or make the situation worse (Beer, Eisenstat, & Spector, 1990). In a recent study of 40 major change initia- tives, 58% failed and 20% realized a third or less of the value expected (LaClair & Rao, 2002). Other studies of change efforts have reported failure rates of one third to two thirds (Beer & Nohria, 2000; Bibler, 1989) and as high as 80% to 90% ( Cope, 2003). Gill (2003) suggests that these results are due to a lack of effective leadership. We extend previous research on organizational change by investigating the interrelationship of leader behaviors and change. The purpose of this study was to explore leaders’ effectiveness in implementing change and the variables (skills/abilities) that influ- ence that effectiveness. Our reference to leaders implies all leaders and managers within an organiza- tion. The literature review that follows explores change and the leadership behaviors positively asso- ciated with successful change. Change A large and cumulative literature explores the roles, responsibilities, and attributes of leaders with respect to change. An increasing emphasis on change as a critical driver of organizational success has fueled organizational and academic investigation of Organizational Change and Characteristics of Leadership Effectiveness Ann Gilley Ferris State University Heather S. McMillan Southeastern Missouri State Jerry W. Gilley Colorado State University The existing literature suggests that numerous variables affect a leader’s effectiveness. In this study, the authors examine behaviors associated with leadership effectiveness in driving change. Results indicate that specific leader behaviors—the ability to motivate, communicate, and build teams—are predictors of successful implementation of organizational change. Keywords: leadership; change; leadership skills