Managing Change

1. Managing Change

2. References • Presentation by Peter Levin, MBA, Ph.D. • Winning Through Innovation, Michael Tushman and Charles A O’Reilly III • Change Monster, Jeanie Daniel Duck, Crown Business Press

3. “It’s not so much that we’re afraid of change, or so in love with the old ways, but it’s the place in between that we fear…it’s like being between trapezes. It’s Linus when his blanket is in the dryer. There’s nothing to hold on to.” M. Ferguson

4. Organizational Issues • Characteristics of the Adaptive Organization • The Prerequisites for Change • What Effective Change Leaders Need to Do

5. Willingness to make change Identifies problems quickly Internal & External looking Implements solutions rapidly Focus on innovation Upward communication Trust Accept that change is non-linear Continuous vs. Discontinuous Risk taking is rewarded Candidness Open to feedback Enthusiasm Long-term focus Skill Development Learning Organization Allow Mistakes The Adaptive Organization

6. Prerequisites for Change - Groundwork • Vision: Develop, articulate and communicate a shared vision of the desired change • Need: A compelling need has been developed and is shared • Means: The practical means to achieve vision: planned, developed and implemented • Reward: Aligned to encourage appropriate behavior compatible with vision and change • Feedback: Given frequently

7. What Effective Change Leaders Do • Embrace: change when it’s needed • Develop a vision for change but not in isolation • Communicate effectively and tap positive emotions • Shake things up by challenging the status quo and encouraging others to do the same. Have the power to legitimize change • Stay Actively Involved by walking the walk and being visible about it, keep communicating • Manage/Pay attention to resisters • Direct, Review Implementation of change, continued participation, never done attitude, be in position to notice and coach.

8. The Nature of Change Change in business is not new – it’s just accelerating due to • New Technology • Global competition • Growth and increased complexity • The result: Change or die! “When the rate of change inside an institution becomes slower than the rate of change outside, the end is in sight.” - Jack Welch

9. Leading Others through Change • Stages of change in an organization • Stage of change the person/group is in • Determine obstacles/areas: • Head • Heart • Hands • Use tools to move through obstacles: • May need several simultaneously • Recognize and acknowledge steps forward

10. Stages of Corporate Change Fruition Determination Implementation Preparation Stagnation

11. Stage 1: Stagnation • Depressed or Hyperactive – either financial hurting, in denial, or trying everything to combat stagnation, which leads to a lack of credibility and resistance to change • External signs – outdated products, customer desertion, talent drain, falling sales • Internal signs – little change or initiative, deluded about the threats • Need to issue wake-up call

12. Stage 2: Preparation • Change monster awakens – causes emotional tremors • Need alignment of leaders – Most common cause of failure of change • Address at start – anxiety reduces productivity, motivation to change disappears • Assessment – is organization ready, willing and able to change, are you? (more on this later) • Build an appetite for change

13. Stage 3: Implementation • Start Change – test then deploy • Behavioral – build behaviors first • Which of my behaviors should I change? • What am I willing to do? • How will others see the change? • How might things go wrong? • What’s the payoff? • Star Power or public hanging • Operational – one success attracts others to change • Make them an offer they can’t refuse

14. What to Expect from Change • Sense of confusion. • Mistrust and a “me” focus. • Fear of letting go of that which led to success in the past • People hold onto and value the past. • High uncertainty, low stability, high emotional stress • Perceived high levels of inconsistency • High energy – often undirected • Control becomes a major issue. • Conflict increases - especially between groups.

15. Individual Change Management The effective management of change involves an integrated approach in each of these three arenas: Effective Change Shaping Behavior EQUALS Altering Mind-Set Harnessing Motivation Hands Heart Head

16. Individual Prerequisites for change What’s in it for me? Why should I change? What do I do differently?

17. Addressing Mind-set • Learn it thoroughly yourself • Build relationships • Explain the purpose of change. Help them understand and teach the concepts • Articulate the benefits • Link daily activities to their higher purpose and benefits. • Repetition: Provide frequent & consistent communication about change & what’s needed. • Paint a picture of the successful future using best practices.

18. Addressing Behaviors • Model desired behaviors & attitudes. • Clearly define desired behaviors & behaviors that need to change • Give feedback frequently to reinforce change behavior & correct wrong behavior. • Coach & teach desired behavior.

19. Addressing Behavior • Identify training needs & communicate upwards. • Create goals to work towards: A vision of success • Help people create specific, concrete behavior-change plans as needed. • Communicate in multiple forms.

20. Addressing Motivation • Tell employees what will improve • Better pay, better conditions, more efficient • Time off?

21. Time of conflict, crises, and some success – fate of change is determined Manage the constraints retroactive resistance, in processes and employees Work out new problems- people decide if they can live with the changes Change may fail….. Leader’s behavior Invest a lot of energy Keep communication going Stay involved Get commitments Stage 4: Determination Leads to fruition…. But don’t fall into new stagnation

22. A stepped approach to change Success Start X