Ledelse og forandring Managing Culture Change

1. Paul EVANS The Shell Chaired Professor of Human Resources & Organisational Development, Emeritus INSEAD Fontainebleau, Singapore & Abu Dhabi KL’s Ledertraef, Kolding, 10 September 2014 Ledelse og forandringManaging Culture Change

2. Overview • Two introductory remarks … • 7 lessons for leaders about managing culture change

3. How do countries score on Talent Competitiveness* ? Denmark is #3 in the world (out of 104 countries) * See http://global-indices.insead.edu/

4. Verden har forandret sig Welcome to the 21C world … … where competing, winning and even keeping your nose above the water means BOTH-AND rather than EITHER-OR Welcome to the world of Dualities

5. Michael Porter gotitwrong • Strategy = a choice on how you are going to compete • Either MARKET DIFFERENTIATION orLOW COST • But firms were finding ways of doing things BETTER & CHEAPER & FASTER

6. Faa mere ud af det du har

7. 7 LESSONS

8. How about CAP? Change Acceleration Process

9. The Quality of the analysis Effectiveness Q x A = E Acceptance of the decisions

10. GE’s Change Acceleration Framework Proprietary to GE; used with permission Leading Change Creating A Shared Need Shaping A Vision Mobilizing Commitment Current State Transition State Improved State Making Change Last Monitoring Progress Changing Systems & Structures

11. Change LESSON # 1: Spend almost as much time managing the PROCESS of change as you do in managing the CONTENT of change NB: You can delegate some of the Content challenges, but you cannot delegate the Process challenges

12. Change LESSON # 2: There is too much change … … and not enough CONTINUITY in change

13. McKinsey study on why change programs don't produce change • Unclear or wrong goals or vision 25% • Insufficient communication and motivation 35% • Inability to sustain change • and implementation 40%

14. How do you provide continuity in change? Provided by ambitious, clear, understood strategic aspirations !

15. HEAD People must be able to understand the vision. • Clear • Concrete HEART People must be inspired by the the vision. • Compelling • Challenging HANDS People must do something because of the vision. • Capabilities • Course of action Shared Strategic Aspiration or Vision:What Makes a Good One?

16. Change LESSON # 3: Make sure that you agree on an ambitious strategic aspiration … … and that this appeals to the Head, the Heart, and the Hands

17. Change LESSON # 4: “People don’t resist change. They resist being changed.”

18. What happens if we DO change?!! What happens if we DON’T change??? Threat Opportunity Short Term Long Term 1 3 2 4

19. Keep the “tipping point” in mind Innovators Early Adopters Early Majority Late Majority Resisters

20. A Strategy for Change Resistance Low High The Silent Majority Bandwagon Effect Critical Mass Search for Champions High Low Influence Innovators Quick Wins Holdouts Push to sidelines If the necessary initial support is not present, then you may need to rethink the change and its strategic aspirations

21. Change LESSON # 5: Focus early on visible quick wins through the innovators & champions. Remember that the “silent majority” will be more influenced by what their friends are saying than by what you are saying.

22. The S-curve dynamics of transformational change Desired Behavior Change “Words” Behaviors Time

23. ??? Empowering the champions Yes CAPABLE? Outplace Sideline Create new organizations Train, coach No Low High WILLING?

24. King Louis Louis V. Gerstner Jr.

25. Change LESSON # 6: Develop a pipeline of leaders with the competences that match your strategic aspirations

26. Back to the basics … How do you develop people? How do you develop leaders?

27. Relationship with a mentor Learning from mistakes Experience Responsibility CHALLENGE! Education Coaching Providing feedback Training Support

28. MANAGING THE RISKS PROVIDING CHALLENGE

29. Change LESSON # 7: Build teamwork throughout the organization. Redefine jobs to reflect teamwork oriented to borgerne.

30. What gets you fired … and what gets you promoted Strategy, satisfaction of the needs of citizens, development projects (EXTERNAL) INTERNAL development (e.g. cost reduction; digitalization) Leverage and linkage across the organization (HORIZONTAL) 30% The Development/ Project Role • Uncompromising attention to • getting the right people in the right • places at the right times Clarity of objectives and areas of accountability Coaching and developing people The Operational Role 70%

31. A Summary • Spend time as a management team managing the PROCESS 2&3. Continuity in change in provided by an ambitious, clear, communicated STRATEGIC ASPIRATION • People don’t resist change; they resist being changed • Focus on visible quick wins through innovators and champions. The “silent majority” will be convinced by their friends • Develop a pipeline of leaders with competences that match your strategic aspirations. Use Challenge + Coaching. • Build teamwork throughout the organization – Build the necessary “split egg” mentality.