From the outset, leaders like Karl need to focus on answering two fundamental questions. The first question is, What kind of change am I being called upon to lead? Only by answering this question will you know how to match your strategy to the situation. The second question is, What kind of change leader am I? Here the answer has implications for how you should adjust your leadership style. Careful diagnosis of the business situation will clarify the challenges, opportunities, and resources available to you.