Change Management

1
Change Management

• LEADING CHANGE FIELD GUIDE
• STEPS TO ACHIEVE LASTING CHANGE

2
Contents

• INTRODUCTION
• Leading Organizational Transformation
• A Leaders Guide
• A Systemic Approach to Leading Organizational
  Transformation Using This Guide
• Contents

3
Contents

• MODULE 1 INCREASE URGENCY
• MODULE 2 BUILD THE GUIDING TEAM
• MODULE 3 GET THE VISION RIGHT
• MODULE 4 COMMUNICATE FOR BUY-IN
• MODULE 5 EMPOWER ACTION
• MODULE 6 CREATE SHORT-TERM WINS
• MODULE 7 DONT LET UP
• MODULE 8 MAKE CHANGE STICK

4
LEADING CHANGE

• In keeping with the changes in the industry and
  the pressures of the marketplace, organizations
  are launching significant transformation
  initiatives
• For example
• Service Delivery, Supply Chain, Strategic
  Sourcing, Lean Manufacturing, etc.

5
LEADING CHANGE

• Major organizational transformations are highly
  complex, involve significant resources and risks
• and are driving change at a pace and scale still
  new to the leaders.
• Leading successful change is becoming a critical
  competency!

6
A LEADERS GUIDE

• This guide provides a framework for creating
  successful transformation
• and is intended to provide
• Leaders of organizational transformation with
  support and guidance in their efforts
• Teams working on change initiatives with a
  comprehensive guide that focuses on providing
  practical guidelines
• Organization with a consistent approach to
  leading change, in both language and method

7
A LEADERS GUIDE 3 characteristics

• It is not prescriptive
• rather focuses on asking questions, offering
  suggestions and alternatives and exploring
  potential challenges
• It helps visualize problems, solutions, or
  progress in the change effort
• -gt in order to hit peoples emotions and evoke
  action
• It acts as a framework to guide and support
  change leaders through important aspects of
  leading change.

8
A LEADERS GUIDE 3 characteristics

• It is scaleable.
• The approach can be used to lead
  organization-wide transformation as well as
  focused changes specific to a unit within the
  organization.
• It provides checkpoints that assist leaders in
  tailoring the process to suit their needs.

9
A LEADERS GUIDE 3 characteristics

• It is flexible.
• It can be tailored and adapted to reflect the
  unique aspects of each change initiative and each
  part of the organization.

10
SYSTEMATIC APPROACH TO LEADING ORGANIZATIONAL
TRANSFORMATION

• The model chosen as a framework was adapted from
  John Kotters (Leading Change, Harvard Business
  School Press,1996) process for creating major
  change
• It suggests that successful change is achieved by
  following an 8-step process defining three major
  stages in a transformation.

11
8-Step Process for Leading Successful Change
12
Creating a climate for change

• 1. Creating a sense of shared need and urgency
  
• Transforming complacency into a shared sense of
  urgency and need for change in order to get the
  cooperation needed to make the change
  happen.
• 2. Creating and being part of a guiding
  coalition
• Mobilizing a group of individuals that can lead
  the change and act effectively as a team.
• 3. Developing a vision and strategy
• Creating a compelling vision describing the
  future state of the organization to guide the
  change effort and a strategy to achieve that
  vision.

13
Engaging and enabling the whole organization

• 4. Communicating the change vision and
  mobilizing commitment
• Creating a common understanding of the changes
  required to mobilize the workforce behind the
  vision
• Involving people in the change to create the
  support and commitment to the change.

14
Engaging and enabling the whole organization

• 5. Enabling employees to make the change
• Getting people to act on the vision by removing
  obstacles to action
• Encouraging new ideas, activities and more
  risk-taking
• Educating and training Executives, Managers and
  Employees
• Aligning new systems and processes with the new
  vision.

15
Engaging and enabling the whole organization

• 6. Generating and celebrating short-term wins
• Planning and creating visible performance
  improvements to gain support for the change
• Visibly recognizing and rewarding those who made
  those wins possible.

16
Implementing and sustaining transformation

• 7. Consolidating gains and building on successes
  
• Using credibility and momentum gained by the
  short-term wins to produce more changes in the
  organization.

17
Implementing and sustaining transformation

• 8. Making it last
• Embedding new behaviors in the culture of the
  organization
• Creating mechanisms for developing and
  reinforcing the desired behaviors in the
  leadership and the workforce.
• Articulating the links between the change and
  organizational successes.

18
THE NATURE OF CHANGE

• There are a few principles governing the use of
  such a model.
• Every step is necessary.
• Each step in the change process establishes a
  solid foundation on which the next step will be
  built.
• Few changes will progress very far if any one of
  the steps is omitted and none will successfully
  sustain its benefits.

19
THE NATURE OF CHANGE

• Process is not linear
• Although the above may suggest that creating
  change is a linear process, large transformation
  is never that simple

20
THE NATURE OF CHANGE

• Change is an iterative process.
• Change is an iterative process that frequently
  requires retracing steps in order to successfully
  move forward
• Some steps, such as the creation of a sense of
  urgency or a guiding coalition, will need to be
  revisited several times in the course of a
  transformation.

21
SEE-FEEL-CHANGE APPROACH

• There are generally two approaches that can be
  used in change efforts
• Analysis-Think-Change and See-Feel-Change
• Changing behavior is less a matter of giving
  people analysis to influence their thoughts than
  helping them to see a truth to influence their
  feelings.
• Both thinking and feeling are essential, both are
  found in successful organizations, but the heart
  of change is in our emotions.

22
SEE-FEEL-CHANGE APPROACH

• The flow of see-feel-change is more powerful than
  of analysis-think-change
• These distinctions between seeing and analysis,
  between feeling and thinking, are critical
  because, for the most part we use the latter much
  more frequently, competently, and comfortably
  than the former.

23
Analysis-ThinkChange gtlt See-FeelChange

• 1. Give People Analysis Information is gathered
  and analyzed, reports are written, and
  presentations are made about problems, solutions,
  or progress in solving urgency, teamwork,
  communication, momentum slipping or other key
  problems within the 8 steps

• 1. Help People See Compelling, eye-catching,
  dramatic situations are created to help others
  visualize problems, solutions, or progress in
  solving complacency, strategy, empowerment or
  other key problems within the 8 steps

24
Analysis-ThinkChange gtlt See-FeelChange

• 2. Data and Analysis Influence How We Think
• The information and analysis change peoples
  thinking.
• Ideas inconsistent with the needed change are
  dropped or modified.

• 2. Seeing Something New Hits The Emotions
• The visualizations provide useful ideas that hit
  people at a deeper level than surface thinking
• They evoke a visceral response which reduces
  emotions that block change and enhances those
  that support it.

25
Analysis-ThinkChange gtlt See-FeelChange

• 3. New Thoughts Change Behavior or Reinforce
  Change Behavior

• 3. Emotionally Charged Ideas Change Behavior or
  Reinforce Changed Behavior

26
EIGHT-STEP PROCESS SEE-FEEL-CHANGE APPROACH

• Each of the eight steps in this systematic
  approach depicted in both the Heart of Change
  book and in this companion guide concentrates on
  change by speaking to peoples emotions
• You will see that the companion guide offers
  guidance and approaches to leading change by
  focusing on gauging what the organization sees
  and feels
• You will not see many methods that involve
  analyzing large amounts of numbers and statistics

27
EIGHT-STEP PROCESS SEE-FEEL-CHANGE APPROACH

• By providing systematic approaches to addressing
  peoples fears, concerns, anger, complacency,
  excitement or motivation, people are more likely
  to accept and embrace change.

28
USING THIS GUIDE

• intended only as a guide for thinking about
  achieving organizational transformation
• It does not substitute for the complexity and
  richness of experience or expert advice
• Use the guide to plan the approach for achieving
  each step in the change process.

29
most effectively used in integration with the
following

• Focus on communication throughout the entire
  change process.
• Use the communication module as a starting point
  for your understanding of the communication
  process.
• Capture the learnings from both successes and
  failures to leverage your experience.
• Measure progress of the change against the
  indicators of success and warning signs provided.

30
most effectively used in integration with the
following

• Get feedback on your approach.
• Use a coach or colleague as a sounding board for
  new ideas and approaches. Get feedback regularly
  from various parts of the organization on the
  effectiveness of your approach

31
Modules section

• Each module describes a step in the change
  process. A module contains the following
  information
• Purpose
• Defines what the step is trying to achieve in the
  change process.
• Outcomes
• Identifies the results of the step
• Measuring Effectiveness
• Provides means to assess the degree to which the
  step has effectively been completed

32
Modules section

• Approach
• Describes the key activities involved in the step
• Key Challenges
• Explores some of the challenges to consider
• Communication and Feedback
• Defines the focus and challenges for
  communicating and getting feedback at each step

33
1. INCREASE URGENCY
34
INCREASE URGENCY
35
PURPOSE

• To create a significant change, an organization
  needs more than the usual effort and commitment
  from its people
• Creating a sense of shared need and urgency is
  crucial to gaining needed cooperation and
  sustaining the momentum of change
• People have to believe that change is necessary
  and understand the reasons for making the change
  before they can feel motivated to contribute to
  the effort for any length of time.

36
PURPOSE

• Risks of skipping this step in the change process
  
• Because creating a sense of urgency is risky and
  creates anxiety, it is tempting to skip this
  phase
• Based on a sound business case, it may be
  possible to move through the first steps of the
  change process
• In most cases, however, the resistance (passive
  or direct) encountered at later stages will
  impact significantly on successful implementation
  and sustainability of the change.

37
OUTCOMES

• A rationale for change based on data about the
  firm and its market trends in the industry that
  provide a sound basis for confronting problems
  and measuring successes. (Rational buy-in)
• A compelling story or picture that catches
  peoples attention and generates a high level of
  energy. (Emotional buy-in)

38
MEASURING EFFECTIVENESS

• Measuring the sense of urgency in the
  organization. If you are being effective at
  creating a shared sense of urgency you will see
  some of these signs

39
Signs of a shared sense of urgency

• Individuals challenging, questioning and
  validating for themselves the need to change
• More discussions and reiteration of the risks of
  status quo.
• More talk about whats coming in the future, more
  long-term perspective
• Greater awareness of the competition, the
  industry and the external environment.

40
Signs of a shared sense of urgency

• More discussions about problems that dont go
  away
• Groups starting to investigate where the problems
  are, or seeking opportunities.
• More energy and effort directed to satisfying
  customer needs.

41
Measuring levels of urgency

• Research suggests two guidelines for measuring
  the level of urgency needed to support a major
  change effort
• Most firms can mobilize a change team and create
  a vision but find it difficult to make much
  progress in engaging the larger organization into
  action unless most managers honestly believe that
  the status quo is unacceptable.

42
Measuring levels of urgency

• To sustain change efforts through to
  implementation and to make it last, a greater
  commitment is needed
• a majority of employees
• perhaps 75 of management overall
• and virtually all of the top executives
• need to believe that considerable change is
  absolutely essential
• The ultimate evidence of this belief is action,
  i.e. what they do vs. what they say they will do

43
Measuring levels of urgency

• If not enough of these signs appear
• -gt the sense of urgency is not present in the
  organization sufficiently to motivate people to
  change.

44
APPROACH

• Being a large and successful organization may
  lead individuals to being complacent about the
  need to change and to continuously adapt to
  changing external conditions
• Individuals often believe that current
  preeminence in the market will ensure future
  success
• Ford, Xerox and IBM were successful leaders in
  their market for several years. It took a
  Toyota, Canon and Microsoft to steer them toward
  major organizational transformation
• most if not all organizations need to instill and
  maintain a sense of urgency about the difficulty
  of maintaining a leadership position in a market
  to motivate people to change.

45
Successfully generating a shared sense of need
and urgency requires

• 1. Building a case for change that clearly
  identifies the gap between current organization
  performance and where it should be in order to be
  more successful or even to survive
• and 2. Raising the level of urgency in the
  organization by relentlessly communicating the
  risks inherent in the status quo.

46
BUILDING A CASE FOR CHANGE

• To gain initial support, a change needs a sound
  business rationale based on facts.
• It can be created in a number of ways
• Highlight an uncomfortable performance gap by
• Gathering information about the firms revenues,
  income, stock price, customer complaints,
  competitive situation and employee morale
• Developing clear indicators or measurements and
• Benchmarking performance measures against the
  competition.

47
BUILDING A CASE FOR CHANGE

• Obtain powerful testimonies from important
  customers and shareholders that have left or are
  dissatisfied.
• Collect data about the organization?s errors,
  failures and missed opportunities.
• Gather information about trends developing in the
  market, the industry or economy that contribute
  to changing the landscape for the organization.

48
To be compelling, the case for change must define

• The Situation facts and data about the group
  performance, the market situation and the
  competitive position. The goal is to make people
  see the problem, solution or progress in a
  compelling, dramatic way.

49
To be compelling, the case for change must define

• The Problem the probable outcome if nothing
  changes. The methods used must speak to people?s
  emotions. The visualization provides useful
  ideas that make people feel. It hits people at a
  deeper level than surface thinking.

50
To be compelling, the case for change must define

• The Benefits of change the rewards and
  opportunities for change. People act on their
  emotions. Emotionally charged ideas change
  behavior or reinforce changed behavior.

51
Note

• Any new change initiatives will quickly lose
  momentum in the face of competing priorities
  unless the level of urgency around the change is
  clear, understood, and continuously reinforced.

52
RAISING THE LEVEL OF URGENCY

• Increasing urgency demands that you remove
  sources of complacency or minimize their impact

53
1. Absence of a compelling rationale, shared by
the organization.

• Create a sense of shared urgency by
• Making apparent the challenges of being number 1
• Exposing managers to major weaknesses vis-à-vis
  competitors
• Communicating about errors instead of correcting
  them at the last minute and hiding them
• Reinforcing the risks of status quo vis-à-vis
  the changing business environment.
• Highlighting the precariousness of the current
  situation by drawing on examples of successful
  giants that lost positions overnight.

54
2. Too many visible resources.

• Create a sense of shared urgency by
• Eliminate obvious examples of excess
• e.g.
• office location, personal and social benefits,
  traveling advantages.( Once asking for Company
  car.. Now glad to have some work)

55
3. Low overall performance standards.

• Create a sense of shared urgency by Set
  stretched targets that cannot be reached with
  business-as- usual
• Benchmark the targets against the competition.

Belgische post moet veranderen anders heel
overgenomen door denen en dan komen pas
veranderingen
56
4. Organizational structures that focus peoples
attention on narrow functional goals.

• Create a sense of shared urgency by Nobody is
  accountable for broad business performance.
• Stop measuring performance only on functional
  goals. (vb helpdesk avg22sec)
• Help direct reports to understand how they
  contribute to the overall business performance
  indices. (indexes)

57
5. Internal measurement systems that focus on the
wrong performance indices.

• Create a sense of shared urgency by
• Control and planning systems established to make
  goals easy to achieve (when introducing change)
• performance to more employees to demonstrate
  weaknesses vis-à-vis the competition and
  disturbing trends.

58
6. Performance feedback comes almost entirely
from internal systems

• Create a sense of shared urgency by
• Insist that people regularly seek out and get
  feedback from external sources, including
• Unsatisfied customers.
• Unhappy suppliers.
• Disgruntled shareholders.
• Any dissatisfied stakeholders.

59
7. A culture that avoids confrontation and kills
the messenger.

• Create a sense of shared urgency by
• Force honest discussions in management meetings
• by using external sources
• or people
• to describe the problems.

60
8. Human natures capacity for denial.

• When busy or stressed, managers ignore what they
  dont what to hear.
• Create a sense of shared urgency by
• Bombard people with information (bombarderen)
• about future opportunities
• about rewards for pursuing those opportunities
• and the current inability to act on those.

61
9. Too much happy talk from senior

• management describing achievements often based on
  past successes. challenges and changes ahead.
• Create a sense of shared urgency by
• Celebrate successes but as a way to bring focus
  to the challenges and changes ahead.
• Encourage discussions of firms challenges in
  newsletters and speeches.

62
THE ROLE OF LEADERS

• make the need for change apparent to the entire
  organization and tie it to what is being changed.
  
• Paying homage to the past,
• while recognizing the weaknesses of what is
• and acknowledging the challenges of the future.
• Recognizing that the world does not remain still
  by highlighting changes in the business
  environment.

63
THE ROLE OF LEADERS

• Emphasizing the need for constant vigilance,
• i.e. success yesterday does not predict success
  for tomorrow.
• Communicating a compelling story and engaging
  others in a dialogue about the need for change.

64
THE ROLE OF MANAGERS

• If managers have sufficient autonomy, they may
  achieve change in their own department or unit
• But more often than not, change will cross
  functional boundaries
• -gt any such initiative is doomed without strong
  leadership support from higher levels.
• Collect information about the real performance of
  their group or unit.
• Involve the senior management in a serious
  examination of this information to gain support
  and commitment at higher levels for broader
  change.

65
KEY CHALLENGES

• How do you know you are battling complacency?
  (betekent gevoel van tevredenheid,contentheid)

66
KEY CHALLENGES

• indicators of complacency
• At meetings, problems are discussed, yet no
  decisions of importance are being made
• Suggestions are made but not acted upon
• Decisions are made but there is no execution or
  follow-up
• Significant issues are rarely discussed and never
  acknowledged
• There are abstract discussions of strategy to
  avoid confronting problems and
• The department is mediocre, yet it is being
  praised by senior management.

67
COMMUNICATING AND GETTING FEEDBACK IN THIS STEP

• The greatest challenges in the communication
  related to this stage of the change are
• Cascading the information to the people that are
  to be involved in the process to raise awareness
  and gain their cooperation. As the change effort
  progresses, the communication effort needs to
  reach broader audiences. (zorgen da info
  hetzelfde blijft)
• Raising awareness about issues and problems on a
  regular basis to constantly demonstrate the need
  for change necessary to sustain commitment.

68
COMMUNICATING AND GETTING FEEDBACK IN THIS STEP

• Continuously communicating the need to change by
  relating it to external market conditions and
  performance indicators, not just internal
  reasons. Often, when lower level managers need to
  communicate about changes to their group, the
  original messages are lost or disconnected from
  the market reality. They too need to create a
  strong imperative to change. The external reality
  is often the most powerful lever.

69
(No Transcript)