Leading & Managing Change

1. Leading & Managing Change February 7, 2012 MGMT-4000 Linda Miklas Harvard University

2. Key Question • How do we do change effectively? • Organizational level? • Team/interpersonal level? • Individual level?

3. What is Change Management? Change management is the continuous process of aligning an organization with its marketplace-and doing so more responsively and effectively than competitors. ~Lisa M. Kudray & Brian H. Kleiner, “Global Trends in Managing Change,” Industrial Management Change management is the formal process for organizational change, including a systematic approach and application of knowledge. Change management means defining and adopting corporate strategies, structures, procedures, and technologies to deal with change stemming from internal and external conditions. ~Society for Human Resource Management, Change Management Survey Report 2007 Change management is a critical part of any project that leads, manages, and enables people to accept new processes, technologies, systems structures, and values. It is the set of activities that helps people transition from their present way of working to the [new] desired way of working. ~Lambeth Change Management Team, Change Management Toolkit Source: 2008 Corporate Executive Board, Corporate Leadership Council’s “Change Management Fundamentals”

4. Galbraith’s Star Model Strategy Structure People Rewards Processes Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”

5. Dynamics of Change Individual • No Matter How Exciting the Change….Expect a Sense of Loss • No Matter How Competent People Are….Expect a Sense of Confusion and Ambiguity • To varying degrees….Expect Resistance • Expect the Loss and Ambiguity to Lead to a Deterioration of Trust and a Sense of Self-Preservation Organization • Communication Deteriorates • Productivity Suffers • Loss of Team Play – See Each Other as “The Competition” • Power/Turf Struggles • Morale Goes Down – Lose Commitment • Bail-Outs Occur – Lose Good People

6. Change at the organizational level

7. Leading Change • Foster adaptation • Embrace disequilibrium • Generate leadership • Take care of yourself Source: Leadership in a (Permanent) Crisis, Heifetz, Ronald, Grashow, Alexander & Linsky,Marty , Harvard Business Review, 2009

8. 10 Commandments for Implementing Change • Analyze the organization and its need for change • Create a shared vision and common direction • Separate from the past • Create a sense of urgency • Support a strong leaders role • Line up political sponsorship • Craft an implementation plan • Develop enabling structures • Communicate, involve people and be honest • Reinforce and institutionalize the change Source: Implementing Change, Jick, Todd, Harvard Business Review 1991

9. When Transformation Efforts Fail We have not: • Established a sense of urgency • Created a powerful enough guiding coalition • Developed a compelling vision • Communicated the vision repeatedly • Removed obstacles to the new vision • Systematically planned for and created short-term wins • Paced the declaration of victory (too soon) • Anchored changes in the corporation’s culture Source: Why Transformation Efforts Fail, Kotter,John P.Harvard Business Review 1995

10. Change at the Team/Interpersonal level

11. Creating a Change-friendly Environment

12. Change and Transition Change is: An event • It is situational and is external to us • Something old stops • Something new begins Transition is: A process • It is psychological • It occurs in phases • It requires understanding and managing the phases

13. Phases of Transition Source: Managing Transitions: Making the Most of Change, Bridges, William, Da Capo Lifelong Books; third edition, 2009

14. Managing the Phases of Transition Source: Managing Transitions: Making the Most of Change, Bridges, William, Da Capo Lifelong Books; third edition, 2009

15. Change at the individual level

16. Circle of Influence Concern Influence • What Is in my control? • What can I influence? From Stephen Covey’s, The Seven Habits of Highly Effective People

17. Skills for Managing Change • Political Skills • Diplomacy, ability to engage alarge group • Personal Skills • Communicating, listening, understanding different viewpoints • Analytical Skills • Workflow operations, systems analysis, financial analysis • Systems Skills • Technological and how people, industries and economies interact • Business Skills • Understanding how the business works so you can understand how it will change Source: 2008 Corporate Executive Board, Corporate Leadership Council’s “Change Management Fundamentals”

18. References • 2008 Corporate Executive Board, Corporate Leadership Council’s “Change Management Fundamentals.” • Why Transformation Efforts Fail, John P. Kotter, Harvard Business Review, 1995 • Managing Change: The Art of Balancing, Jeanie Daniel Duck, Harvard Business Review 1993 • Leadership in a (Permanent) Crisis, Heifetz, Ronald, Grashow, Alexander, Linsky, Marty, Harvard Business Review 2009 • Implementing Change, Jick, Todd, Harvard Business Review 1991 • The Seven Habits of Highly Effective People. Covey, Stephen R., 2004, Free Press. • Managing Transitions: Making the Most of Change. Bridges, William, 2009, Da Capo Lifelong Books; third edition. • The Change Monster: The Human Forces that Fuel or Foil Corporate Transformation & Change. Duck, Jeanie Daniel, 2001, Three Rivers Press. • Reframing Organizations: Artistry, Choice, and Leadership. Bolman, Lee G. and Deal, Terrence E., 2008, Jossey-Bass.