Leadership Article Review By: Peiti Su, 1182001, BUS 262

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Leadership Article ReviewBy Peiti Su,
1/18/2001, BUS 262
THE CHANGE MAKERS Management Review, May 1999
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Introduction

• Companies that manage change well will survive
  and thrive
• For every change, a company needs a change-maker
  -- someone who can remove the obstacles and make
  things happen
• For every change-maker who turns companies
  around, theres a mid-level executive whos so
  afraid of failure -- hed rather fight change
  than switch

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Factors Intensifying Change Process

• Products, companies industries with shorter
  life cycles
• Global span of todays companies multiplies the
  complexities of change
• Technology company must constantly upgrade
  systems and ways of doing business

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Up The Mountain

• Most employees resist change because its unknown
  and unfamiliar
• Statistical proof of resistors
• Quitters wont embrace change (10)
• Campers sit things out (70-90)
• Climbers actively seek change (10)
• Difficulties evident in
• re-engineering 1/3 success
• Mergers/Acquisitions 29 success

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The Culture of Change

• Traditional pyramid-style company -- change come
  from the top and flow down
• Solution engage many leaders in the business to
  follow their self-owned plans
• Set broad outlines, let departments fill in the
  blanks
• May require structural changes (hiring, firing,
  training managers?)

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More Than Fairy Dust

• Employees are very important to change -- people
  dont like change that is imposed on them
• Employees will be more involved if they feel
  were all in this together
• Change is about the future and making the world a
  better place for customers, staff and community
• Communication is crucial -- people need to
  understand whats going on
• Admit you are fallible

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Spreading the Word

• Ability to involve people throughout a
  multinational company important
• Cultural differences also need to be considered
  in a change message. Examples
• Anglo-Saxon change -- centers on
  dream/ambitions, opportunities
• French change -- driven by hardship/failure
• Meeting with managers from different countries to
  convey message and importance of change

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All Together Now

• Altering human behavior is critical to process
• Effective communication is essential leaders
  must explain desired behavior
• Company must motivate employees to change
• Objective measures drive behavior -- post
  results!
• Company must provide training crucial to change

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A Regular Diet

• Change needs to be continuous to be successful
• Much easier to make change in positive manners
  today than it was 10 years ago
• There have been enormous changes over the last 15
  years changes are easier now

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Featured Change Maker

• Name Pat F. Russo
• Title Executive VP of Strategy, business
  development and corporate operations
• Company Lucent Technologies
• Change Challenge As a new company, Lucent had to
  explain its aspirations to employees
• Her Role helping Lucent develop its own
  competitive culture
• Follow-up surveyed the workforce on
  implementation
• Critical Compensation stock options