Transformational Leadership in Family Business: The Value of Marginal Change

When you think of transformational change, it’s easy to imagine broad, sweeping modifications that are dramatic in nature and led by a charismatic leader.

And while that may sometimes be accurate, more often than not, real and sustainable change is driven more through the aggregation of small, marginal changes that accrue over time.

In fact, sometimes it’s imperative to instill incremental leadership habits to help seed a vision for the future and to also give people permission to let go of the past.

As a leader of a family business, you play a pivotal role not only in steering the ship, but also in propelling transformative change. And one powerful way to do that is by instilling new habits within yourself and your team.

By embracing change on a personal level, leaders become catalysts for organizational transformation.

Why Small Changes Matter

Let’s talk about the aggregation of marginal changes as a key driver for sustained progress.

When starting a new habit, you will see basically no difference between making a choice that is 1 percent better or 1 percent worse. In other words, a new habit won’t immediately impact current results very much.

But as time goes on, small improvements or declines compound – and suddenly a large gap is present between people who make slightly better decisions on a daily basis and those who don’t.

Keeping this in mind, leaders should encourage their teams not to look for the one magical thing that will improve results by 1000 percent – instead, they should be looking for 1000 small things that improve results 1 percent every day.

Answering the phone by the second ring. Providing the small touches that guarantee the highest level of customer service. Ensuring perfect quality for your end product – every single time. These habits may not sound exciting or revolutionary, but they matter, and making improvements over time can add up to exciting results.

Five Ways to Drive Transformational Change in Your Family Business

If you’d like to harness the power of the aggregation of marginal changes, here are some simple steps you can take as the leader of your organization.

1. Lead by Example

Leadership is all about influence and connecting future vision to present practice.

There’s no better way to influence change than by modeling it.

When leaders adopt new habits that align with desired outcomes, they set a powerful example for their teams.

This perfectly illustrates the idea of the aggregation of marginal change – where small, consistent efforts lead to significant impact over time.

Remember that your team is much more likely to mimic what you do than to act on what you simply say.

2. Communicate and Reinforce

Clear communication is the cornerstone of successful change management.

Leaders should articulate reasons behind recommended new habits, the benefits they bring, and the positive impact on both individuals and the organization.

Regular and transparent communication, when combined with modeling changes yourself, will help create a shared understanding and generate commitment among team members.

3. Make it Easy to Learn New Habits

Leaders can shape the organizational environment to make it conducive to forming good habits.

This includes providing the necessary resources, support systems and recognition for team members to embrace new habits.

By fostering an environment that encourages the aggregation of marginal change, leaders accelerate the speed at which new, desirable habits permeate the organization.

4. Set Realistic Goals and Celebrate Progress

Change is a journey, and setting realistic goals helps break down large objectives into smaller, more manageable steps.

Leaders should define milestones and celebrate incremental achievements.

This approach supports the aggregation of marginal changes concept, with its emphasis on small, consistent improvements that lead to substantial progress over time.

5. Encourage Feedback and Adaptation

Leaders who embrace the aggregation of marginal change understand that feedback is a critical element.

Actively seeking feedback from their teams, these leaders gain insight into how effective new habits are and make necessary adjustments.

Encouraging a culture of continuous feedback and adaptation ensures that the aggregation of marginal change remains a dynamic force, shaping organizational transformation and continuously improving business results.

Transformation within a business environment isn’t easy, but it also isn’t impossible.

Don’t let intimidation over making radical, revolutionary changes keep you from making small, manageable ones.

Leaders who understand the power of creating good daily habits, plus the aggregation of marginal change, recognize that this is often how the most sustainable changes come to life.

By consciously creating new habits and leveraging the cumulative impact of small, consistent improvements, leaders become architects of organizational transformation.

They inspire a culture that embraces innovation, collaboration, and continuous improvement – essential elements for thriving in today’s dynamic business environment.

If you’d like a partner in creating a culture focused on the aggregation of marginal change, we’d love to help. Reach out today to set up a call with one of our trusted family business advisors: book a call

Ready to explore how the Alliance
can help you prosper?


Download an Information Kit

Speak to one of our advisors

Click the link below to book a complimentary 30-minute call with one of our advisors. We look forward to connecting with you!