Leading Change: Integrating Theory and Practice Robin Teigland Center for Strategy and Competitiveness Stockholm School of Economics [email_address] www.knowledgenetworking.org February 2009

Competitive advantage is increasingly based on an organization’s ability to change Of original Forbes 100 in 1917 61 companies ceased to exist by 1987 Of remaining 39, only 18 stayed in top 100 and their return was 20% less than overall market (1917 & 1987) Of companies in original S&P 500 in 1957 Only 74 remained in 1997 Of these only 12 outperformed S&P 500 in 1957-1998 period Beer 2002

Of original Forbes 100 in 1917

61 companies ceased to exist by 1987

Of remaining 39, only 18 stayed in top 100 and their return was 20% less than overall market (1917 & 1987)

Of companies in original S&P 500 in 1957

Only 74 remained in 1997

Of these only 12 outperformed S&P 500 in 1957-1998 period

Jack Welch… "...when the rate of change outside an organization is greater than the change inside, the end is near...."

Numerous tools for change Globalization . Information Technology. Total Quality. Benchmarking . Best Practices. Customer Focused. Micromarketing . Outsourcing. Flexible Manufacturing . Value Creation. Core Competence. Partnering . Competitive Advantage. Networks. Strategic Alliances . Delaying. Information. Revitalization. Computer-aided Design . Concurrent Engineering . Computer-aided Engineering Mission. Cross-functional Teams. The New Organization . Diversity. Empowerment . The Information Organization. The Hybrid Organization. Knowledge. The Shamrock Organization . Restructuring. Strategic Stretch and Leverage. The Post-Modern Organization . The Cyclical Organization. The Spider-Web Organization. The Post-Industrial Organization . The Turbulent Organization. The Chaotic Organization…….. Beer 2002

Average number of tools used by an organization during 2004 Bain 2007 Survey of 1221 international executives

Top 10 tools Bain 2007 * Added 1996, ** Added 1998, *** Added 2000

But do these initiatives work? 60% of companies implementing TQM dissatisfied Over 80% of anticipated value from M&A fails to materialize 75% of JVs fall apart after “honeymoon” A high number of change initiatives are unsuccessful! Beer 2002, Gratton 2007

60% of companies implementing TQM dissatisfied

Over 80% of anticipated value from M&A fails to materialize

75% of JVs fall apart after “honeymoon”

Average CEO tenure is falling Beer 2002 60% drop Number of years as CEO (In USA) Could this partly be due to the CEO’s inability to handle change in an increasingly turbulent environment??

Many change programs result from a tacit collusion among senior executives, staff, and external consultants who avoid undiscussible issues For Executives : Appearance of quick, painless, measurable results For Consultants : A steady income stream For Internal Staff : Increased responsibility & visibility Short-term benefits Lost time, energy, revenues, employees Increased cynicism Increased resistance to change Learning about wrong aspects Long-term costs Beer 2002

Lost time, energy, revenues, employees

Increased cynicism

Increased resistance to change

Learning about wrong aspects

If change is the only true constant in business, how do managers deal with an ever changing business landscape? - Adapted from The Hartford Without change, there is no leadership; but without leadership, there is no change. - Adapted from Prof. John Adair

If change is the only true constant in business, how do managers deal with an ever changing business landscape?

- Adapted from The Hartford

Without change, there is no leadership; but without leadership, there is no change.

- Adapted from Prof. John Adair

Leading Change objectives To expose participants to some Change concepts, frameworks, and tools To develop Change techniques and skills through developing and discussing a live change project To provide participants with an interactive and reflective team experience in which everyone (participants and faculty) learns together

To expose participants to some Change concepts, frameworks, and tools

To develop Change techniques and skills through developing and discussing a live change project

To provide participants with an interactive and reflective team experience in which everyone (participants and faculty) learns together

Agenda Afternoon Live Project Groupwork Some Change Tools Morning What is Change Kotter’s 8 Stages Groupwork Going Forward

Afternoon

Live Project Groupwork

Some Change Tools

Morning

What is Change

Kotter’s 8 Stages

Groupwork

What is change? In pairs, Think of a significant organizational change that has impacted you in the past. Discuss the following: What were the reasons behind the change? What was the purpose/goal of the change? What actually happened? And why? What was your role in the change? How did the change impact you and how did you feel? What would you have done differently?

In pairs,

Think of a significant organizational change that has impacted you in the past.

Discuss the following:

What were the reasons behind the change?

What was the purpose/goal of the change?

What actually happened? And why?

What was your role in the change?

How did the change impact you and how did you feel?

What would you have done differently?

What triggers change?

PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technological Legal Social Economic Organization

1. What factors are affecting the industry? 2. Which of these are the most important at the present time? 3. Which of these are the most important in the next few years? Political Global, regional, and national political development (administration, political parties) Taxation policy Foreign trade regulations Labour market politics Government stability Socio-cultural Population demographics Income distribution Social mobility Lifestyle changes Attitudes to work and leisure Attitudes to consumerism Levels of education Changes in values/attitudes Education conditions Work environment conditions Health conditions Environmental Ecology Pollution conditions ” Green” energy Energy conservation Waste handling Economic Business cycles GNP trends Interest rates & Exchange rates Money supply Inflation Unemployment Wage level Private consumption and disposable income Public finances Energy availability and cost Technological Government spending on research Government and industry focus of technological effort New discoveries/development Speed of technology transfer Rates of obsolescence New patents and products Legal Development in price and competitive legislation Labour market legislation Product safety and approvals

Political

Global, regional, and national political development (administration, political parties)

Taxation policy

Foreign trade regulations

Labour market politics

Government stability

Socio-cultural

Population demographics

Income distribution

Social mobility

Lifestyle changes

Attitudes to work and leisure

Attitudes to consumerism

Levels of education

Changes in values/attitudes

Education conditions

Work environment conditions

Health conditions

Environmental

Ecology

Pollution conditions

” Green” energy

Energy conservation

Waste handling

Economic

Business cycles

GNP trends

Interest rates & Exchange rates

Money supply

Inflation

Unemployment

Wage level

Private consumption and disposable income

Public finances

Energy availability and cost

Technological

Government spending on research

Government and industry focus of technological effort

New discoveries/development

Speed of technology transfer

Rates of obsolescence

New patents and products

Legal

Development in price and competitive legislation

Labour market legislation

Product safety and approvals

Source: Team aMBAssadors, SSE MBA Eurostat 2005, Global Insight 2007, McKinsey Population includes EU-27, excluding Slovenia, Slovakia, Czech Republic, and including Iceland Employers need to change tactics to win the talent war Data is based on birth rates and age profiles of the EU. Different regions have similar trends. EU Labor Pool Supply and Demand Millions of people “ Baby Boom” generation retires. Labor shortage Labor Supply : Worst case is if nothing changes Labor Demand : Assumes 0.5% annual growth Labor Supply : Best case is reaching 50/50 gender balance Labor shortage

Data is based on birth rates and age profiles of the EU.

Different regions have similar trends.

A new workforce is appearing… Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky “ Digital Immigrants” “ Digital Natives” Company loyalty Work ≠ Personal Professional loyalty Work = Personal

Technical knowledge becomes quickly outdated 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education

Organizational forces: Internal pressures Need for improved performance In current or new markets Need for integration and collaboration E.g., alliances, synergies, economies of scale Power and politics E.g., changes at top management and board level Changes in surrounding organizations E.g., key customers, suppliers, partners

Need for improved performance

In current or new markets

Need for integration and collaboration

E.g., alliances, synergies, economies of scale

Power and politics

E.g., changes at top management and board level

Changes in surrounding organizations

E.g., key customers, suppliers, partners

Pressures from one area can affect the entire organization Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People

But every challenge is….. A new opportunity???

What are the critical success factors for change?

Helping stakeholders go through a transformation Current situation Future situation Transformation Organization Historical heritage, tradition Culture Selective perception Follow old patterns Return to “the way it was” Individuals Resistance to change something that is familiar and feels safe Difficult to 'say goodbye’ to old patterns and habits Insecurity around what future will bring Resistance reactions Sven Hultín, IBM Shock Denial Realism Acceptance The Change Process Reaction

Historical heritage, tradition

Culture

Selective perception

Follow old patterns

Return to “the way it was”

Resistance to change something that is familiar and feels safe

Difficult to 'say goodbye’ to old patterns and habits

Insecurity around what future will bring

Getting through the valley of despair High Uninformed optimism (Security) Informed pessimism (Doubt) Hopeful realism (Hope) Productivity Time Low Optimism (Decision Power Commitment) Successful ending (Satisfaction) Hultín, IBM

Say the color, not the word YELLOW BLUE ORANGE BLACK GREEN PURPLE YELLOW RED ORANGE GREEN BLACK BLUE Stroop

YELLOW BLUE ORANGE BLACK

GREEN PURPLE YELLOW RED

ORANGE GREEN BLACK BLUE

The challenge of change Change Leadership Change Management The WHAT The ‘hard’ edge: Systems, processes, structures, and business strategy The HOW The ‘soft’ side: Culture, behaviors, values, and people Zwanenberg

The HOW

The ‘soft’ side:

Culture, behaviors, values, and people

Kotter’s eight-stage process for change Kotter 1996 2. Form a powerful guiding coalition 1. Establish a sense of urgency 3. Create a vision 8. Anchor new approaches 4. Communicate the vision 5. Empower others to act on the vision 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change

1. Establish a sense of urgency Forces for change Forces for stability The status quo Burnes 2004

But I’m so comfortable…

1. How to create a sense of urgency? Create a crisis/rivalry Benchmark within and outside industry Find/develop a “red hot” burning issue Align with a powerful sponsor Revise existing or develop new standards Income, profitability, effectiveness, efficiency, customer satisfaction Get an outside opinion Bring in consultants, customers, shareholders Adapted from Kotter 1996

Create a crisis/rivalry

Benchmark within and outside industry

Find/develop a “red hot” burning issue

Align with a powerful sponsor

Revise existing or develop new standards

Income, profitability, effectiveness, efficiency, customer satisfaction

Get an outside opinion

Bring in consultants, customers, shareholders

2. Form a powerful coalition Ensure shared understanding & right attitude Ability to share vision Trustworthy Commitment to means and end Has access to necessary resources Formal position power Expertise Reputation Leadership Informal network position But look out for people with big egos or “snakes” Beer 2002, Kotter 1996 The small team that will lead the change

Ensure shared understanding & right attitude

Ability to share vision

Trustworthy

Commitment to means and end

Has access to necessary resources

Formal position power

Expertise

Reputation

Leadership

Informal network position

Who has informal power in the organization? Teigland 2003

3. Create (and operationalize) a vision Create the vision To direct the change effort To coordinate across and outside the organization Develop a strategy to achieve the vision (operationalize) To engage people through participation To find their “passion” To overcome forces for stability Adapted from Kotter 1996

Create the vision

To direct the change effort

To coordinate across and outside the organization

Develop a strategy to achieve the vision (operationalize)

To engage people through participation

To find their “passion”

To overcome forces for stability

4. Communicate the vision How? Use multiple channels Regularly to reconfirm What? Keep it simple Use metaphors and success stories Who? Walk the talk Identify key opinion leaders But listen as well!! Adapted from Kotter 1996

How?

Use multiple channels

Regularly to reconfirm

What?

Keep it simple

Use metaphors and success stories

Who?

Walk the talk

Identify key opinion leaders

When do people support the vision? Relate to the vision Expect personal gain (make their world a better place) Can give input Respect the leader Believe the time is right “ Coming together is a beginning, staying together is progress, and working together is success.” -Henry Ford

Relate to the vision

Expect personal gain (make their world a better place)

Can give input

Respect the leader

Believe the time is right

5. Empower others to act on the vision 1. Does the organizational culture encourage individuals to act? 2.Do people have the necessary resources to act? 3.Do people have the appropriate skills and training to act? 4.Do people have the authority to act? 5.Are the organizational structure & systems aligned with the vision? Adapted from Kotter 1996

6. Plan for and create short-term wins 1. Create obtainable targets 2. Encourage & convince people that targets can be reached 3. Recognize and reward “winners” Communicate the wins Adapted from Kotter 1996

Broadcast heroes and their success stories!

7. Consolidate improvements and produce more change Change Project 1 Change Project 2 Change Project 3 Time Scope of change Adapted from Kotter 1996

8. Anchor new approaches Company culture Physical artifacts activities and routines Underlying values, assumptions, beliefs, and expectations Intangible Adapted from Kotter 1996

Kotter’s eight-stage process for change Kotter 1996 2. Form a powerful guiding coalition 1. Establish a sense of urgency 3. Create a vision 8. Anchor new approaches 4. Communicate the vision 5. Empower others to act on the vision 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change

Tata Motors

Tata Motors India’s largest commercial vehicle maker for decades World’s fifth largest manufacturer of medium and heavy trucks India’s largest automobile company (#1 in commercial and #2 in passenger) Building global presence (e.g., partnership/acquisition with Fiat, acquisition of Jaguar/Land Rover) Major turnaround 2001 to 2007 March 2001 - $110 mln loss for fiscal year, corporate India’s biggest loss 3Q 2007 - $132 mln profit http://www.youtube.com/watch?v=rOnQpP5haUQ

India’s largest commercial vehicle maker for decades

World’s fifth largest manufacturer of medium and heavy trucks

India’s largest automobile company (#1 in commercial and #2 in passenger)

Building global presence (e.g., partnership/acquisition with Fiat, acquisition of Jaguar/Land Rover)

Major turnaround 2001 to 2007

March 2001 - $110 mln loss for fiscal year, corporate India’s biggest loss

3Q 2007 - $132 mln profit

Groupwork - In your groups Discuss how change was implemented at Tata Motors What triggered the change? What is the real change? How does the change process map onto Kotter’s eight stages? What are the lessons learned from the case? Prepare a maximum 10 minute presentation Present groupwork One group will be chosen to present its work and another group will comment Discussion http://www.mckinseyquarterly.com/Leading_change_An_interview_with_the_managing_director_of_Tata_Motors_1908

Discuss how change was implemented at Tata Motors

What triggered the change?

What is the real change?

How does the change process map onto Kotter’s eight stages?

What are the lessons learned from the case?

Prepare a maximum 10 minute presentation

Present groupwork

One group will be chosen to present its work and another group will comment

Discussion

Adapting Kotter to your organization Change at IBM A vision with clear objectives Compelling reason to act – burning platform Holistic approach Broad participation M easurable targets Effective project management Consistent executive ownership and participation Hultín, IBM

Change at IBM

A vision with clear objectives

Compelling reason to act – burning platform

Holistic approach

Broad participation

M easurable targets

Effective project management

Consistent executive ownership and participation

Kotter’s eight-stage process for change Kotter 1996 2. Form a powerful guiding coalition 1. Establish a sense of urgency 3. Create a vision 8. Anchor new approaches 4. Communicate the vision 5. Empower others to act on the vision 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change 1. Prepare 2. Implement 3. Manage

Agenda Morning What is Change? Kotter’s 8 Stages Groupwork Going Forward Afternoon Live Project Groupwork Some Change Tools

Morning

What is Change?

Kotter’s 8 Stages

Groupwork

Afternoon

Live Project Groupwork

Some Change Tools

Overview Purpose Concepts: To develop change management techniques and skills through developing and discussing a real change project Competence: To apply change management frameworks and tools Capital: To strengthen your personal networks Groups You will work in your groups Topic Your group will decide together on one topic for the change project

Purpose

Concepts: To develop change management techniques and skills through developing and discussing a real change project

Competence: To apply change management frameworks and tools

Capital: To strengthen your personal networks

Groups

You will work in your groups

Topic

Your group will decide together on one topic for the change project

Kotter’s eight-stage process for change Kotter 1996 2. Form a powerful guiding coalition 1. Establish a sense of urgency 3. Create a vision 8. Anchor new approaches 4. Communicate the vision 5. Empower others to act on the vision 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change

The Change Project Timeline Module 1 Choosing the Change Project Structuring future work Working in virtual groups Identifying stakeholders & powerful coalition Creating a vision Module 2 Developing an implementation plan Defining impact measurement Working in virtual groups Developing a communication plan Performing a risk analysis Module 3 Final Presentation

The Change Project Timeline Module 1 Choosing the Change Project Structuring future work Working in virtual teams Identifying stakeholders & powerful coalition Creating a vision Module 2 Developing an implementation plan Defining impact measurement Working in virtual teams Developing a communication plan Performing a risk analysis Module 3 Final Presentation

In your groups ….. Choosing the Change Project

Develop a Change Project Criteria It should involve a real organizational issue or challenge that at least one group member is currently experiencing at your organization. It should lead to a real change in your organization. The change should lead to improved business performance that is both identifiable and measurable. ” This is something we would like to do!!”

Criteria

It should involve a real organizational issue or challenge that at least one group member is currently experiencing at your organization.

It should lead to a real change in your organization.

The change should lead to improved business performance that is both identifiable and measurable.

Change focus Burnes 2004 Small-scale change Large-scale change Rapid change Slow change Level: The organization Focus: Structures & processes Level: The organization Focus: Culture Level: Individual/group Focus: Tasks & procedures Level: Individual/group Focus: Attitudes/behavior

Better to choose a more narrow, specific focus!

You will present your projects in Module 3

Discuss in your groups today What are the current and future pressures for the change? Internal External (PESTEL) What is the sense of urgency for the change? For whom? How urgent? What can be done to strengthen the sense of urgency? What is the vision or real change that your project will lead to? How will the change improve business performance? Identifiable? Measurable?

What are the current and future pressures for the change?

Internal

External (PESTEL)

What is the sense of urgency for the change?

For whom? How urgent?

What can be done to strengthen the sense of urgency?

What is the vision or real change that your project will lead to?

How will the change improve business performance?

Identifiable?

Measurable?

Organizational forces: Internal pressures Need for improved performance In current or new markets Need for integration and collaboration E.g., alliances, synergies, economies of scale Power and politics E.g., changes at top management and board level Changes in surrounding organizations E.g., key customers, suppliers, partners

Need for improved performance

In current or new markets

Need for integration and collaboration

E.g., alliances, synergies, economies of scale

Power and politics

E.g., changes at top management and board level

Changes in surrounding organizations

E.g., key customers, suppliers, partners

PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technical Legal Social Economic Organization

Pressures from one area can affect the entire organization Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People

The Change Project Statement … if you can ´t say it in a few words, then keep discussing! Name of Change Project Names of Change Project team members What are the drivers for your Change Project? What will be the change resulting from your Change Project? How will you measure the impact of your Change Project? When do you expect to see results from your Change Project?

Today’s Coaching Session Each Group will present its Change Project to the others, max 10 minute presentation One Review Group will be appointed to lead the following discussion, max 5 minutes : How well does the Project fulfill the Change Project criteria? What challenges are foreseen for the Project? How could these challenges be overcome? Promote learning through “Assess, Challenge, Support” !

Each Group will present its Change Project to the others, max 10 minute presentation

One Review Group will be appointed to lead the following discussion, max 5 minutes :

How well does the Project fulfill the Change Project criteria?

What challenges are foreseen for the Project?

How could these challenges be overcome?

Promote learning through “Assess, Challenge, Support” !

Agenda Morning What is Change? Kotter’s 8 Stages Groupwork Going Forward Afternoon Live Project Groupwork Some Change Tools

Morning

What is Change?

Kotter’s 8 Stages

Groupwork

Afternoon

Live Project Groupwork

Some Change Tools

Leading is looking in all directions Sponsor or Steering Group Project Team Project Leader Stakeholders Downwards Outwards Forwards Inwards Upwards Backwards Briner et al 2004

Tools to achieve the “transformation” Conduct stakeholder analysis Develop clear project charter and roll out plan Develop communication plan Conduct risk analysis Develop measurement plan

Conduct stakeholder analysis

Develop clear project charter and roll out plan

Develop communication plan

Conduct risk analysis

Develop measurement plan

Why use tools? Reducing complexity to something manageable Identifying priorities and importance, sequence of activities Highlighting interdependence between actors and tasks Creating a common language My view…. Making views explicit

1. Identify internal and external stakeholders Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People

Prioritize stakeholders Low High Low High Level of interest Visibility Importance Priority Scholes 1998 Power Formal Informal Keep informed Key players Minimal effort Keep satisfied

Level of interest

Visibility

Importance

Priority

Power

Formal

Informal

Stakeholder analysis Adapted from Nader, NTL Current (C) & Desired (D) position regarding the Change Stakeholder Block Help Let Make Diagnosis of stakeholder position Recommended action to move to desired position

Helping stakeholders go through a transformation Current situation Future situation Transformation Organization Historical heritage, tradition Culture Selective perception Follow old patterns Return to “the way it was” Individuals Resistance to change something that is familiar and feels safe Difficult to 'say goodbye’ to old patterns and habits Insecurity around what future will bring Resistance reactions Hultín, IBM Shock Denial Realism Acceptance The Change Process Reaction

Historical heritage, tradition

Culture

Selective perception

Follow old patterns

Return to “the way it was”

Resistance to change something that is familiar and feels safe

Difficult to 'say goodbye’ to old patterns and habits

Insecurity around what future will bring

2. Develop clear project charter and roll out plan Spend sufficient time specifying What are the vision and goals/objectives ? How are resources to be supplied? What are the importance and priorities of tasks ? What training is necessary? What roles need to be updated? What union contacts, if any, need to be developed before? What and when are the short term wins?

Spend sufficient time specifying

What are the vision and goals/objectives ?

How are resources to be supplied?

What are the importance and priorities of tasks ?

What training is necessary?

What roles need to be updated?

What union contacts, if any, need to be developed before?

What and when are the short term wins?

Successful change requires attention to all relationships Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People

3. Develop communication plan Who? What? Why? How? When? Remember to communicate even to those who are not impacted Do for each group of stakeholders Around 20% of your project activity!

Who?

What?

Why?

How?

When?

Remember to communicate even to those who are not impacted

Ensure continuous communication of big picture Balance and respect all stakeholder interests All interests important Link “big picture” with “little picture” Balance long-term vision with everyday operations Avoid parochialism resulting from stakeholders receiving different information due to division of labor Communicate timely and continuously Sponsor or Steering Group Project Team Project Leader Stakeholders

Balance and respect all stakeholder interests

All interests important

Link “big picture” with “little picture”

Balance long-term vision with everyday operations

Avoid parochialism resulting from stakeholders receiving different information due to division of labor

Communicate timely and continuously

Create trust through open communication Provide open forum for discussion between stakeholders, e.g., virtual project space

Provide open forum for discussion between stakeholders, e.g., virtual project space

Engage and ensure interaction ! Involve stakeholders in joint tasks from very beginning of project Example: Development of project objectives Use boundary objects to facilitate understanding

Involve stakeholders in joint tasks from very beginning of project

Example: Development of project objectives

Use boundary objects to facilitate understanding

Communication Plan, phase 1: Before the start of a project (Decision making) Change must be done Lose customer No new business What can be done ? Competitors Customer demands Walk to talk What do others think? Trends Customer Business owner Understanding need of change But what does this mean? Star model Project def Project plan Clear picture Who What Why How When Pilot Meetings Webcast Mail Project idea No change without pain Testing idea Finding proof Commitment Decision Communication Formal Document From BETE 16

Change must be done

Lose customer

No new business

What can be done ?

Competitors

Customer demands

Walk to talk

What do others think?

Trends

Customer

Business owner

Understanding need of change

But what does this mean?

Star model

Project def

Project plan

Clear picture

Who

What

Why

How

When

Pilot

Meetings

Webcast

Mail

Communication Plan, phase 2: Project implementation Target setting for project, individuals and teams Virtual (video) Meeting Virtual Project space Stakeholders Public forum Project members Scorecard Common language Common terminology Risk analysis Business owner Customer Plans are sent for internal audit Status, Result achieved Follow up reaching of targets Report Sharing of Best practice Project start Tools Quality Stakeholder statement Status Project FINISHED Information to Stakeholders & Public information From BETE 16

Target setting for project, individuals and teams

Virtual (video)

Meeting

Virtual Project space

Stakeholders

Public forum

Project members

Scorecard

Common language

Common terminology

Risk analysis

Business owner

Customer

4. Continuously manage risk Low High Low High Probability of occurring Impact of change Monitor Work on reducing Minimal effort Manage

Risk analysis From BETE 16 Risk No. Description Proba-bility Project impact Priority Potential consequences Proposed/ implemented actions Status Respon-sible 1 2 3 4

5. Measuring impact What are the key milestones of the operational part of the change? How will the overarching effects of the Change Project on the organization’s performance be measured ? When do you expect to see an impact on the organization’s performance ?

What are the key milestones of the operational part of the change?

How will the overarching effects of the Change Project on the organization’s performance be measured ?

When do you expect to see an impact on the organization’s performance ?

Match the measures to the impact of the change Culture Systems Vision Strategy Structure People

Developing appropriate measures and timing Measures Are there any existing measures that can be used? Balanced scorecard? What new ones, if any, should be developed? Internal vs external? Maximum of three measures Timing When should the baseline measure be done? How often should measures be taken? When do existing measures occur in relation to these? What gets measured, gets done!

Measures

Are there any existing measures that can be used?

Balanced scorecard?

What new ones, if any, should be developed?

Internal vs external?

Maximum of three measures

Timing

When should the baseline measure be done?

How often should measures be taken?

When do existing measures occur in relation to these?

Measurement plan Measure no. Measure Description How directly impacted by change project Baseline measure Measuring frequency 1. 2. 3.

The Change Project Timeline Module 1 Choosing the Change Project Structuring future work Working in virtual groups Identifying stakeholders & powerful coalition Creating a vision Module 2 Developing an implementation plan Defining impact measurement Working in virtual groups Developing a communication plan Performing a risk analysis Module 3 Final Presentation

The Change Project Statement … if you can ´t say it in a few words, then keep discussing! Name of Change Project Names of Change Project team members What are the drivers for your Change Project? What will be the change resulting from your Change Project? How will you measure the impact of your Change Project? When do you expect to see results from your Change Project?

Agenda Morning What is Change? Kotter’s 8 Stages Groupwork Afternoon Live Project Groupwork Some Change Tools Going Forward

Morning

What is Change?

Kotter’s 8 Stages

Groupwork

Afternoon

Live Project Groupwork

Some Change Tools

The Change Project Timeline Module 1 Choosing the Change Project Structuring future work Working in virtual groups Identifying stakeholders & powerful coalition Creating a vision Module 2 Developing an implementation plan Defining impact measurement Working in virtual groups Developing a communication plan Performing a risk analysis Module 3 Final Presentation

Module 2 Scheduled working time during Module 2 Each team submits its presentation By email to Robin

Scheduled working time during Module 2

Each team submits its presentation

By email to Robin

Module 3 - Final Presentation Each team has 20 minutes maximum to present its Change Project, including the following (in ppt): Purpose and rationale for change Use of tools, eg stakeholder analysis, risk analysis, etc. Measuring impact and preliminary results Plan for moving forward Lessons learned One team will then lead feedback to the Presenting Team for 10 minutes maximum The purpose of this feedback is to spur lively debate and help advance each Change Project as much as possible Faculty will provide further comments Each team submits its presentation By email to Robin

Each team has 20 minutes maximum to present its Change Project, including the following (in ppt):

Purpose and rationale for change

Use of tools, eg stakeholder analysis, risk analysis, etc.

Measuring impact and preliminary results

Plan for moving forward

Lessons learned

One team will then lead feedback to the Presenting Team for 10 minutes maximum

The purpose of this feedback is to spur lively debate and help advance each Change Project as much as possible

Faculty will provide further comments

Each team submits its presentation

By email to Robin

Leading and learning Leadership and learning are indispensable to each other.” - John F. Kennedy Leadership, teaching, and learning are inextricably interlinked. - Jack Welch

See you in Module 3!! Good luck with your projects!!