Cuts, Pain and Change – how urgent are you?

1. Cuts, Pain and Change – how urgent are you?

2. Your Presenter Today • Craig Smith – Owner, Flint Consulting • Flint Consulting • Set up in 2007 with national associate base • Global client list • Facilitation, Consulting and Training services • UK sole-distributors of Leading Bold ChangeTM • Leading Bold ChangeTM • Based on the work of leading change expert John Kotter • Award winning intervention that helps organisations to implement change through effective leadership

3. Some of our clients

4. Objectives • Look at the the way change is affecting us all at the moment • Review Leadership and Management implications when it comes to successfully running a business and navigating change • Take a look at a few often overlooked tactics for increasing success with change • Give you a few insights into an approach that can help • Leading Bold Change TM • Have a look at a short case study

5. John Kotter • Emeritus professor at Harvard Business School • Award winning business and management thought leader • Has helped mobilise people around the world to better lead organisations facing rapid change. • New York Times best-selling author of: • Leading Change • Heart of Change • A Sense of Urgency • Our Iceberg Is Melting

6. What issues are you facing? • New regulations? • Budget cuts? • New IT systems? • Relocation? • Deregulation? • Efficiency gains? • Outdated terms and conditions? • Obsolete policies / procedures? • Merger / Acquisition? • These are the types of things we need to address… and they are big issues. Our response requires change. What urgency exists in your organisation?

7. Change Cycle: Historical Perspective • In the PAST • How did we deal with change? • Nomadic Society Agrarian Society Feudal Society 1869 AD Industrial Society It was so slow, we didn’t have to manage it!

8. Change Cycle: Present Perspective • Present & Future • How do we deal with change now? • 1890’s 1980’s 2000 2008 2020? It is so fast, we can’t manage it!

9. Focus on the short term, hope the future will sort itself out Implement a “band-aid” solution to get us through the current crisis “Slash and burn” and spend the next five years fixing the mess What is our typical reaction to this? But what do we do when we are under pressure to deliver short-term improvements … … and get them right first time?

10. Statistically Speaking… Dr. Kotter’s research suggests … that in both Corporations and the Public Sector … of all the change initiatives undertaken … 60% – 70% of all of them … FAIL

11. Allowing too much complacency Not having the right team leading it Underestimating the power of “Vision” Under-communicating the vision by a factor of 10 (0r 100 or even 1,000) Allowing obstacles to block the new vision/progress Reaching for only the big goal without creating increments Becoming complacent after finding initial gains Failing to protect the change from forces of tradition. Causes of Change Failure Source: John Kotter

12. Change creates emotion “The hard stuff’s the easy stuff. The soft stuff’s the hard stuff. Organisational change is 90% a people deal” Tom Malone, Malcolm Baldridge Award Winner

13. Complacency - Recognise this? • The status quo feels comfortable and steady because much of the choice has been squeezed out. • Most of the day we are on autopilot. However: • In times of change autopilot does not work anymore. • Inertia, complacency and decision paralysis will conspire to keep people doing things the old way.

14. Sustaining Motivation for Change • 90% of all heart by-pass patients fall back to their old habits after two years … • WHY ??? • For anything to change, someone has to start acting differently • All change efforts boil down to the same challenge … • CAN WE GET PEOPLE TO START BEHAVING IN A NEW WAY?

15. Managing vs. Leading Change Where are we naturally inclined to put our energy … Management OR Leadership Planning & budgeting Organising & staffing Controlling & problem solving Establishing direction Aligning people Motivating & inspiring

16. The Big Shift Stability Change Management OR Leadership Now Then TO Stability Change

17. Managing vs. Leading Change Successful change … Management OR Leadership AND PLUS 10%-30% 70% - 90% … is a combination of management AND leadership

18. So … • Leadership doesn't replace the need for management.  • You need an approach that supports change management and makes it easier for the management aspects to succeed • You still need a project management methodology (Prince 2 or whatever) • You need to create the environment in which the methodology is being used by making it more "change friendly”

19. An agenda for Leading Change Hold on to new ways of behaving, and make sure they succeed until they become strong enough to replace old traditions Help others see the need for change and the importance of acting immediately. Step 8 Anchor in culture Step 1 Create a sense of urgency Make sure there is a powerful group guiding the change – one with leadership skills, credibility, communications ability, authority, analytical skills and urgency. Step 2 Create the guiding team Step 7 Don’t let up Press harder and faster after the first success. Be relentless with initiating change after change until the vision is a reality Step 6 Produce short-term wins Step 3 Create the vision and strategy Clarify how the future will be different from the past, and how you can make that future a reality Create some visible, unambiguous successes as soon as possible Step 5 Empower others to act Step 4 Communicate for buy-in Remove as many barriers as possible so that those who want to make the vision a reality can do so Make sure as many others as possible understand the accept the vision and the strategy

20. Leading Bold Change TM • 1½ - 2 day workshop • Based on over 25 years of Harvard Business School research by John Kotter • Uses Kotter’s “Our Iceberg is Melting” to illustrate to illustrate workshop principles • Makes the complex accessible • Provides a vocabulary for change • Provides a metaphor for your own organisation • Allows you to see how change can be “done” well

21. Leading Bold Change TM case study • Aerospace Manufacturer • Six Sigma programme • Had achieved a modest level of compliance but limited conviction (“Box ticking”) • High “churn” at senior management level • Low trust • Major quality challenges and poor customer service ratings • Significant dedicated resources required to “prop up” programme

22. Case study…solution • “Leading Bold ChangeTM” workshops with senior managers then rest of management teams and unions • Developed a “Sense of Urgency” • Linked to external drivers, understand the consequences of status quo • Guiding team • (including unions, key opinion formers) • Vision developed and communicated • (using input from customers) • Major overhaul of equipment and processes based around employee involvement • Celebration of immediate successes

23. Leading Bold Change!™ Based On the Business Bestseller by John Kotter and Holger Rathgeber Our Iceberg Is Melting Craig Smith Thank you and successful change to you all. Come and see us at stand 75 craig@leadingboldchange.co.uk 0191 240 4050