In Managing Change

Managing Change By Anthony Coppel

What will be covered?

Definition of Change Management : What it is and what it is not (slides 3-5)

Thinking Exercise (slide 6)

The Basic Elements of Change Management (slides 7-11)

The Phases in Change Management (slides 12-19)

A real-world Example (slides 20-26)

Practice (slide 27)

Summary (slide 28)

Readings (slide 29)

Look at the whole puzzle: What is Change Management?

Process, tools and techniques to

manage people-side of change processes

achieve the required outcomes

realize the change effectively within

the individual change agent

the inner team

the wider system

Major Barriers to Effective Organizational Change

7 Myths that Undermine Effective Change

Myth 1: It’s really not that big of a change.

Myth 2: This isn’t personal.

Myth 3: We don’t have to involve them.

Myth 4: We have smart people, they can figure that out.

Myth 5: We will figure it out as we go.

Myth 6: They are employees, they should just get on board.

Myth 7: My boss understands why I am doing this.

Thinking Exercise

Think of the most difficult change you’ve recently gone through in your work life.

Briefly describe your first reaction and subsequent reactions (evolution) to this change. Was it positive? If not, why?

Identify at least one thing that you wish you’d done differently while going through this change.

3 Fundamental Pieces of the Puzzle

The environment scanning

Five basic elements

Three roles of the leader

Piece n°1: the environment

Piece n°2: 5 basic elements

Strategy

Culture

Structure

Technology

Employees

Piece n°3: Role of the leader Instrumental Missionary Charismatic

3 pieces or one piece? The environment 5 basic elements leader

Getting the puzzle together

Phase n°1: Map the Influence Landscape

Phase n°2: Identify the Type of Resistance

Phase n°3: Leverage Negotiation

Phase n°4: Overcome Resistance

Phase n°5: Assemble the Puzzle

Getting the puzzle together (cont.)

Identify the key players

Draw an influence map

Identify supporters, opponents, and convincibles

Phase n°1 Map the Influence Landscape

Phase n°2 Identify Type of Resistance

Open both eyes

Open your mind

Put yourself in your opponent’s shoes

Think outside the box

Be creative

Phase n°3 Leverage Negotiation

Phase n°4 Overcome Resistance: 1 method & 5 tools Education Facilitation Cooptation Participation Coercion Negotiation

Phase n°5 Assemble the Puzzle: Actions 1. Establish a sense of urgency 2. Create a guiding coalition 3. Develop a vision and strategy 4. Communicate the change vision 5. Empower broad-based action 6. Generate short-term wins 7. Consolidate gains and produce more change 8. Anchor new approaches in the culture

Each of those steps will help create a new behavior toward change .

Step 1: People start telling each other, “let’s go, we need to change things!”.

Step 2: A group powerful enough to guide a big change is formed and they start to work together well.

Step 3: The guiding team develops the right vision and strategy for the change effort.

Step 4: People begin to buy into the change and this shows in their behavior.

Step 5: More people feel able to act, and do act, on the vision.

Step 6: Momentum builds, as more and more people try to fulfill the vision, while fewer and fewer resist change.

Step 7: People make wave after wave of changes until the vision is fulfilled.

Step 8: People keep behaving in new ways despite the pull of tradition, turnover of change leaders, etc.

Phase n°5 (cont.) Assemble the Puzzle: Behaviors

A real-world example: ROLEX

A real-world example: ROLEX (cont.)

Six major trends

1) context of mergers and acquisition

2) emergence of new markets and new competitors;

3) growing importance of product innovation and development

4) disproportion of competitors’ size & structure

5) vertical integration

6) culture of secrecy

Most pressing challenge for ROLEX: internal.

Externally: no leverage on economic conditions and raw material’s price

Internally: need to create a culture

more customer-

more innovation-

more-delivery oriented .

The lack of financial pressure (private company) causes that particular culture. Managers’ role to create the impulse for change in order to be able to overcome the weaknesses (major Supply Chain initiative on the way).

Result: Supply Chain ROLEX Project

Ambitious goals of reduction of inventory, of costs, of time between order and delivery, etc.

Implication of all departments of the firm

Sense of Urgency: established by the CEO with a strict deadline.

Guiding Coalition: newly hired employee

with extensive background in building world-class supply chains

did homework by identifying key players and influence maps;

sustained by a Supervisory Committee.

New vision and strategy: developed internally with consultants’ help.

Communication: top-down approach with incremental steps.

Broader action: identification of priorities and definition of an extensive test on a limited area of the production; to be extended to all areas.

Short-term wins: concentration on MRP updates and adjustments

Consolidation: through implication of more departments, better communication; through going deeper into the organization.

Anchoring: new metrics defined for the compensation system.

RESULT: ROLEX enters the industrial era, with a thorough knowledge of its costs, its production processes and reliable metrics.

Practice

Refer back to our initial exercise…( link )

Revisit the most difficult change scenarios you identified earlier

Identify one key thing you’ve learned today which would have helped you handle the change better

What will you start doing differently—as early as today —the next time you are confronted with significant change?

Summary

Change Management is a difficult science (because not exact) that succeeds best when ingrained in the culture.

The role of the change agent (leader) is crucial.

He/she should master the tools that will help plan the change. It is about observing and analyzing.

Then comes the implementation of the 8-step method where the negotiation skills are critical.

Readings

Leading Change : Overcoming the Ideology of Comfort and the Tyranny of Custom , by James O'Toole, 302pp., Jossey-Bass, April 1995

Leading Change: Why Transformation Efforts Fail , by John P. Kotter, 187pp., Harvard Business School Press, September 1996

The Heart of Change: Real-Life Stories of How People Change Their Organizations , by John P. Kotter and Dan S. Cohen, 208pp., Harvard Business School Press, August 2002