Main Menu
Common Paradigm of Change  Organization                   IndividualsMost books on STRATEGIC CHANGE: Outline all the ORGA...
New Paradigm of Change  Individuals                   Organization To strategically change your organization, you         ...
Unlock Individual Change    People carry their own mental maps    Successful strategic change requires a     focus on in...
The “Map Makers”   Over 80% companies listed leading    change as one of the top 5 core    leadership competencies       ...
Barriers of Change
SIMPLIFY and APPLY Why?
Fundamental Cycle of Change
Failure to See (Case: Motorola)   Late 1980s - early 1990s    Has the largest consumer market products     (analog mobil...
Failure to See (Case: Motorola)   Year 1993 – 1997     Nokia’s revenue increased from $2.1 billion to $8.7      billion ...
Blinded By the Light   If we fail to see the need for change, we    will not change   We often deny the visible need for...
Successful but Mistaken Maps
Distorted MapsTend to exaggerate some elements while diminishing                      others    “You believe what you know...
Distorted Maps (Case: Kellogg’s)   Kellogg’s cereal has dominated the breakfast    table of Americans (especially childre...
Distorted Maps (Case: Kellogg’s)   Kellogg’s solution:    Increased their trade promotions   Kellogg’s mistake:    Did...
Distorted Maps   Key points:    Just because a map works does not mean that it     accurately reflects all the terrain. ...
Central Position MapsTend to put yourself (and your country) in   the center and have everything else            revolve a...
Central Position Map (Case:IKEA)IKEA is one of the largest retail furniture  companies in the world.But IKEA failed in sel...
Central Position Map (Case:IKEA)   IKEA was trying to sell low-priced,    moderate-quality, metric-sized beds and    bedd...
Central Position Map (Case:IKEA)The strategic maps of using metric to  measure beds continued for 2 years.  Why did IKEA p...
Strip Maps  Has a restricted or narrow view of the  terrain and a fixed sequence for getting         from one place to ano...
Strip Maps (Case: Barnes &Noble)   Lennie Riggio opened SBX (Student Book    Exchange) in 1965.   By 1971, he owned 5 SB...
Strip Maps (Case: Barnes &Noble)   Barnes & Noble continued to establish    and reinforce the mental strip map:       to...
Strip Maps (Case: Barnes &Noble) In July 1995, Jeff Bezos started  Amazon.com By 1998, Amazon.com had 8.4 million  regis...
Upright MapsTend to think the only way to see a map is          the way it has been seen Given enough time and exposure to...
Contrast   Contrast is one of the key means by    which the human eye distinguishes    different objects.   In complex o...
Confrontation                 Fact:  people don’t easily see contrasts in  organizational and business settings. Leaders h...
Contrast-Confrontation Matrix          High   Contrast          Low                 Low               High                ...
Contrast-Confrontation Matrix   Parade                           Old Shoe     High contrast, low               Low con...
Mistake #1: TheComprehensiveness Mistake  Happens when leaders make complex and  comprehensive illustration of the contras...
Mistake #2: The “I Get It”Mistake    Presenting the contrasts once and only                      once As the leader, you ...
Creating High Contrast Focus on the core 20% of what is  different Enhance (even slightly exaggerate) the  simple descri...
Creating High ImpactConfrontation•   Repeat the messages of the old and new    maps over and over and over again•   Create...
Creating High ImpactConfrontation (Case: Samsung) Samsung Electronics is the leading  consumer electronics company in Kor...
Brain Barrier # 2 People who fail to move are not dumb,  they are actually smart. Failure to move, divided in 2 parts:  ...
Strategic Change Matrix                 Right Thing                 Wrong Thing                        Old right thing bec...
Many people preferred to be competent at   the wrong thing than incompetent at              the right thing      How to ta...
BelievingSteps to help other people believe:  Make sure others see the destination or   target clearly  Give them the sk...
Step 1: Destination Check how clearly others see where they        are going (the destination).How?   Ask people directly...
Step 2: ResourcesPeople must believe they have the necessary   skills and tools to reach the destinationHow?  Determining...
Step 3: Rewards             Reward ≠ moneyConsider this:  Money often represents a means to   something that people care ...
ARCTIC Approach The ARCTIC approach encompasses  major categories of values that people  exhibit from a motivational pers...
ARCTIC ApproachAchievement Accomplishment: The need to meet or  beat goals, to do better in the future than  one has done...
ARCTIC ApproachRelations  Approval: The need to be appreciated and   recognized by others  Belonging: The need to feel a...
ARCTIC ApproachImprovement   Growth: The need to feel continued improvement    and growth as a person, not just improved ...
Motivating People             Key to motivating people:Listen and identify the most powerful motivating factors for       ...
Failure to FinishRemember:  People do not change easily or quickly  Impossible to implement change overnight   (will tak...
Getting TiredIf you are trying to get employees to think        and behave differently, their    willingness relies on how...
Getting Tired Change requires energy and effort The more substantial the change, the  more energy and effort must be  ex...
Getting LostReasons why people are getting lost:  Unsure of their position in the change   process  Unsure of the progre...
Providing ChampionsSteps of providing champions:  Identify and designate some early launch   sites  Launch sites must be...
Providing Champions  The natural consequences of change:  will likely to meet negative behaviorHow to counteract the negat...
Charting ProgressTypes of progress charting    Overall organization’s performance  organization     level    Employees’...
The CBA of Strategic ChangeFailure to See              ConceiveFailure to Move             BelieveFailure to Finish       ...
The CBA of Strategic Change                    Right Thing             Wrong Thing                  Achieve              C...
Leading strategic change completed1
Leading strategic change completed1
Leading strategic change completed1
Leading strategic change completed1
Leading strategic change completed1
Leading strategic change completed1
Leading strategic change completed1
Leading strategic change completed1
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  • Belum ada Strategic Change Matrix
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  • Leading strategic change completed1

    1. 1. Main Menu
    2. 2. Common Paradigm of Change Organization IndividualsMost books on STRATEGIC CHANGE: Outline all the ORGANIZATIONAL levers you should pull to change the company so that INDIVIDUAL change will follow
    3. 3. New Paradigm of Change Individuals Organization To strategically change your organization, you must first change individuals
    4. 4. Unlock Individual Change People carry their own mental maps Successful strategic change requires a focus on individuals and redraw their mental maps If not remapped  “Brain Barrier” To lead strategic change  “Map Maker”
    5. 5. The “Map Makers” Over 80% companies listed leading change as one of the top 5 core leadership competencies Driving change is not easy People are resistant to change
    6. 6. Barriers of Change
    7. 7. SIMPLIFY and APPLY Why?
    8. 8. Fundamental Cycle of Change
    9. 9. Failure to See (Case: Motorola) Late 1980s - early 1990s Has the largest consumer market products (analog mobile phone) in U.S. New technology (digital mobile phone) The new technology would require new and expensive infrastructure Biggest competitor  Nokia in Europe Motorola’s reaction  denied that this new technology and competitor was anything to worry about
    10. 10. Failure to See (Case: Motorola) Year 1993 – 1997  Nokia’s revenue increased from $2.1 billion to $8.7 billion  All of Europe adopted a common digital standard that allowed people to use mobile phones anywhere in the region Motorola’s reaction  put more investment and effort into its analog phones Result (end of 2000)  Motorola’s market share dropped from 35% to under 15%  Nokia’s market share increased to 35% with profit share nearly 70% of all mobile phone handsets
    11. 11. Blinded By the Light If we fail to see the need for change, we will not change We often deny the visible need for change because we are blinded by the existing mental maps Why? Because the existing mental maps have worked well and successful
    12. 12. Successful but Mistaken Maps
    13. 13. Distorted MapsTend to exaggerate some elements while diminishing others “You believe what you know is everything and what you don’t know is nothing” Implications:  It works as long as we don’t venture outside the known area  The distorted map leads us to stay within the exaggerated area
    14. 14. Distorted Maps (Case: Kellogg’s) Kellogg’s cereal has dominated the breakfast table of Americans (especially children) Problem: Kellogg’s view of its new products & markets  very small compared to existing products & markets. U.S sales started to drop  competitors increased their quality but offer lower price
    15. 15. Distorted Maps (Case: Kellogg’s) Kellogg’s solution: Increased their trade promotions Kellogg’s mistake: Did not explore new products  no new brand between 1983 – 1991 Did not explore new markets  even though they operated in roughly 30 countries, they still focus the majority of efforts and returns to U.S. markets.
    16. 16. Distorted Maps Key points: Just because a map works does not mean that it accurately reflects all the terrain. As long as the terrain in focus doesn’t change and you don’t venture outside the area of focus, the map continues to work fairly well. Even when signs start to emerge that the map is not working well, its distorted nature creates a logical incentive to stay at home. Even as evidence starts to show that the terrain has shifted, there are great pressures to respond by doing what you know how to do.
    17. 17. Central Position MapsTend to put yourself (and your country) in the center and have everything else revolve around you.
    18. 18. Central Position Map (Case:IKEA)IKEA is one of the largest retail furniture companies in the world.But IKEA failed in selling some items, specifically beds and sheets, when it expanded into U.S.
    19. 19. Central Position Map (Case:IKEA) IKEA was trying to sell low-priced, moderate-quality, metric-sized beds and bedding in U.S But U.S has different ways to measure beds and bedding  king-size, queen-size, twin-size CEO of IKEA (Anders Dahlvig) said “We don’t adapt to local markets”
    20. 20. Central Position Map (Case:IKEA)The strategic maps of using metric to measure beds continued for 2 years. Why did IKEA persist in following its strategic map of metric sizing in U.S? Because it had worked well in the past, and IKEA was very good at it.
    21. 21. Strip Maps Has a restricted or narrow view of the terrain and a fixed sequence for getting from one place to anotherHow come we fall into strip-mapping?The path has proven to be successful, then we’d never think about other alternatives.
    22. 22. Strip Maps (Case: Barnes &Noble) Lennie Riggio opened SBX (Student Book Exchange) in 1965. By 1971, he owned 5 SBX college bookstores and bought Barnes & Noble. In 1979, he bought Marboro books which had 6 stores. Mental strip map: To sell more books, own more book shops
    23. 23. Strip Maps (Case: Barnes &Noble) Barnes & Noble continued to establish and reinforce the mental strip map:  to increase sales, buy or build more stores and make them bigger The mental strip map was successful: By 1995, Barnes & Noble’s market share increased from 7% to over 15%. By July 1998, Barnes & Noble’s stock price reached $48 (220% increase over two years)
    24. 24. Strip Maps (Case: Barnes &Noble) In July 1995, Jeff Bezos started Amazon.com By 1998, Amazon.com had 8.4 million registered customer and Barnes & Noble had just 1.7 million Barnesandnoble.com was created in 1998 but Amazon.com already had 75% market share of all online book purchases.
    25. 25. Upright MapsTend to think the only way to see a map is the way it has been seen Given enough time and exposure to any map, it becomes the “right” map and diminish our capacity to see it any other way
    26. 26. Contrast Contrast is one of the key means by which the human eye distinguishes different objects. In complex organizational settings So many things to look at  people tend to selectively focus on elements that are similar (rather than different). People tend to ignore key contrasts because of its complexity
    27. 27. Confrontation Fact: people don’t easily see contrasts in organizational and business settings. Leaders have to confront their people with the key contrasts between the past, present and future
    28. 28. Contrast-Confrontation Matrix High Contrast Low Low High Confrontation
    29. 29. Contrast-Confrontation Matrix Parade  Old Shoe  High contrast, low  Low contrast, high confrontation confrontation  People will be impressed  It’s there confronting by the difference, but people, but remains the easily forget the need to same each day change  Breakthrough Garbage Can  High contrast, high  Low contrast, low confrontation confrontation  Commonly, leaders make  Wasting time, money, 2 common mistakes energy
    30. 30. Mistake #1: TheComprehensiveness Mistake Happens when leaders make complex and comprehensive illustration of the contrasts between past and present (or future) Why? The reality is complex and leaders don’t want to appear simple-mindedBeware!  Complexity allows employees to focus on what they want.  Increase the chances that employees will select the wrong targets
    31. 31. Mistake #2: The “I Get It”Mistake Presenting the contrasts once and only once As the leader, you present it to the others one time and expect them to understand it instantly We tend to forget the process of understanding and end up thinking that saying it once to others is more than enough.
    32. 32. Creating High Contrast Focus on the core 20% of what is different Enhance (even slightly exaggerate) the simple description between the old and new Create visual images, or pictures, of the old and new so that the contrast is understood as more than just words
    33. 33. Creating High ImpactConfrontation• Repeat the messages of the old and new maps over and over and over again• Create high impact, inescapable confrontation – Focus the experience on what you think are the core contrasts. Do not dilute it with too much complexity – Make sure that the experience involves as many of the senses as possible. – Physically ensure that people cannot easily avoid the experience but must take the brunt of it right between the eyes
    34. 34. Creating High ImpactConfrontation (Case: Samsung) Samsung Electronics is the leading consumer electronics company in Korea In U.S. markets, Samsung products were treated differently Samsung products were behind the market leader (Sony) Samsung products were sold in bargain bins of large stores in U.S. The experience created contrasts and confrontation to Samsung executives.
    35. 35. Brain Barrier # 2 People who fail to move are not dumb, they are actually smart. Failure to move, divided in 2 parts: Just because someone admits the old thing is wrong, does not mean that they directly see the new right thing  the new right thing is not clear Even if the new thing is clear, they will focus on the fact that they will go from doing the wrong thing well to doing the right thing poorly
    36. 36. Strategic Change Matrix Right Thing Wrong Thing Old right thing becomes wrong Done Well X Can’t instantly be good at the new right thing Done Poorly
    37. 37. Many people preferred to be competent at the wrong thing than incompetent at the right thing How to tackle this problem? People must see and believe in a path that will take them from doing the right thing poorly to doing it well
    38. 38. BelievingSteps to help other people believe: Make sure others see the destination or target clearly Give them the skills, resources, and tools to reach the destination Deliver valuable rewards along the journey
    39. 39. Step 1: Destination Check how clearly others see where they are going (the destination).How?  Ask people directly or indirectly to describe each element of the new map Ask them what the new destination will require from them in terms of personal capabilities Ask them to speculate about its possible implications
    40. 40. Step 2: ResourcesPeople must believe they have the necessary skills and tools to reach the destinationHow? Determining what you believe are the resources required to arrive at the new destination Assessing whether the employees believe they have the required resources (skills, knowledge, tools, manpower, etc) Providing any missing required resources (training, education, mentoring, coaching, etc)
    41. 41. Step 3: Rewards Reward ≠ moneyConsider this: Money often represents a means to something that people care about (security, status, health, fun, etc) Its effects are often much less powerful than we believe  in most cases, the immediate and repeated reinforcements people receive are much more powerful than once-yearly bonuses.
    42. 42. ARCTIC Approach The ARCTIC approach encompasses major categories of values that people exhibit from a motivational perspective ARCTIC approach: Achievement Relations Conceptual/Thinking Improvement Control
    43. 43. ARCTIC ApproachAchievement Accomplishment: The need to meet or beat goals, to do better in the future than one has done in the past Competition: The need to compare one’s performance with that of others and do better than others do
    44. 44. ARCTIC ApproachRelations Approval: The need to be appreciated and recognized by others Belonging: The need to feel a part of and accepted by the groupConceptual/Thinking Problem Solving: The need to confront problems and create answers Coordination: The need to relate pieces and integrate them into a whole
    45. 45. ARCTIC ApproachImprovement  Growth: The need to feel continued improvement and growth as a person, not just improved results  Exploration: The need to move into unknown territory for discoveryControl  Competence: The need to feel personally capable and competent  Influence: The need to influence others’ opinions and actions
    46. 46. Motivating People Key to motivating people:Listen and identify the most powerful motivating factors for a given individual Fulfilling the motivating factors is a reward for the individualsWhat if I don’t have time to know people and provide customized rewards? Try this:Cascade this individualization of understanding and reward customization down the organization
    47. 47. Failure to FinishRemember: People do not change easily or quickly Impossible to implement change overnight (will take months or years)Consequence of the time lag: People will get lost People will get tired
    48. 48. Getting TiredIf you are trying to get employees to think and behave differently, their willingness relies on how much they trust you.
    49. 49. Getting Tired Change requires energy and effort The more substantial the change, the more energy and effort must be expended. People will get tired of attempting to change when the past has worked fine (from their perspectives)
    50. 50. Getting LostReasons why people are getting lost: Unsure of their position in the change process Unsure of the progress Unsure of how much farther it was to the destination
    51. 51. Providing ChampionsSteps of providing champions: Identify and designate some early launch sites Launch sites must be staffed with trained and motivated employees (champions) Stay close to the action to find the first successful result
    52. 52. Providing Champions The natural consequences of change: will likely to meet negative behaviorHow to counteract the negative behavior?  Be close to the action  Look for desired efforts – not results  Counteract the natural negative consequences with positive ones
    53. 53. Charting ProgressTypes of progress charting Overall organization’s performance  organization level Employees’ personal progress and achievement  individual level Inform the employees about their individual progress and relates it with the overall organization’s performance
    54. 54. The CBA of Strategic ChangeFailure to See ConceiveFailure to Move BelieveFailure to Finish AchieveThree Gravitational Force Three Stages ofof Change Implementing Change Successfully
    55. 55. The CBA of Strategic Change Right Thing Wrong Thing Achieve Conceive Done Well Done Poorly Believe
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