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Leading Effective Change in the Willamette Valley: National Association of Purchasing Managers (May 10, 2011)

This article explores the experiences, factors driving change, guarantees of change, stages of change, and effective change leadership in organizations. It also discusses how people react to change and provides guidelines for leading change effectively.

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Leading Effective Change in the Willamette Valley: National Association of Purchasing Managers (May 10, 2011)

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  1. Leading Effective Change Willamette Valley National Association of Purchasing Managers May 10, 2011 5/10/11

  2. What’s Your Experience with Change ? • What is the most successful organization change you have experienced? What made it good? • Least successful? Why? 5/10/11

  3. Factors Driving Change in Your Business • Public Policy Changes Affecting Industry • Globalization • Advancements in Technology • Information access • Competition • Customer demand • Natural disasters • Desire for internal cultural shift 5/10/11

  4. 3 Guarantees of Change • Change won’t go away, it will only go faster. • No matter how well planned, Change won’t be trouble-free. • Each of us is accountablefor making change successful. 5/10/11

  5. Consider the impact on… Individual Team Leader Business 5/10/11

  6. Stages of Change

  7. “People hate change. People love progress.” David Pottruck, Former CEO, Charles Schwab 5/10/11

  8. Why “Leading Effective Change”? • 70% of change efforts fail to meet objectives • Immediately following an organizational change, productivity drops as much as 3.6 hours a day Amazingly… From Who Killed Change? By Ken Blanchard, et al & The US Department of Labor 5/10/11

  9. What is Effective Change? Change is inevitable, but you can influence the effectiveness of the change! Effective change: • Meets the objectives of the initiative • Minimizes business disruption and productivity issues • Keeps trust relationships in tact • Ensures the change actually happens and is sustained 5/10/11

  10. LeadingChange is about…… 5/10/11

  11. How Do People React To Change? Emotional & Rational Views of The Change Willingness to Embrace Change Level of dissatisfaction with the status quo Desirability of the proposed end state Understanding the practicality of the change Openness To Change FromChange the Essence by Richard Beckhard and Wendy Pritchard 5/10/11

  12. How Do People React To Change? Emotional & Rational Views of The Change Willingness to Embrace Change Level of dissatisfaction with the status quo Desirability of the proposed end state Openness To Change Understanding the practicality of the change FromChange the Essence by Richard Beckhard and Wendy Pritchard 5/10/11

  13. The Ownership Curve ownership Gain > engagement Current Day Norm • acceptance < Loss • shock • fear • denial • anger • confusion Letting go Testing new concepts/reality Seizing the opportunities 5/10/11

  14. Positively Perceived Change Positive Uninformed Optimism(the ‘honeymoon period’) InformedOptimism REACTION InformedPessimism Negative 5/10/11

  15. People React to Change Based On: • What triggered the change • Their sense of control over the change • How the change will affect their identity • How long they think they will be undergoing the change • The ripple effect of other changes that start happening • Their past experience with change initiatives Effective Change Leadership From: Journal of Managerial Psychology 5/10/11 | Life Technologies Proprietary & Confidential | 5/11/2011

  16. Understanding How to Influence Reactions 5/10/11

  17. The Four Elements of Effective Change Connecting Rationally FindingCommon Ground ConnectingEmotionally Influence Fundamentals ProvidingCompelling Positions & Evidence 5/10/11

  18. Re-focus for Growth and Progress Change: Cultural – Ownership & Accountability MANAGED CHANGE Morale Productivity Commitment Minimum acceptable UNMANAGED CHANGE 5/10/11

  19. Guidelines for Effectively Leading Change • Prepare for the change before it occurs • Provide a rationale for the change • Provide a clear description of the change and a picture of success • Find and remove obstacles before the change occurs • Allow time for people to accept the change • Involve affected people in planning the change • Provide motivation of people to embrace the change • Find and utilize resources and people that support the change • Allow the change to be shaped by on-going feedback • Provide clear implementation objectives for all people involved in the change • Continually monitor the change and adjust plan/resource levels as needed • Reinforce the new behaviors/processes/etc. through formal and informal methods • View leading others through change as an on-going process 5/10/11

  20. QUESTIONS? 5/10/11

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