This document discusses leading organizational change and integrating change theory with practice. It provides an overview of several change management frameworks and tools that can be used to implement successful change initiatives, including Kotter's 8-stage process for change and stakeholder analysis. The document also highlights common challenges with change efforts and emphasizes the importance of measuring impact, communication, and addressing resistance to ensure changes are effectively anchored in the organization.

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

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

4. 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

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

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

8. 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??

14. What triggers change?

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

18. 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

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 Technical knowledge becomes quickly outdated 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education

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

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

23. What are the critical success factors for change?

25. 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

28. 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

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

30. But I’m so comfortable…

33. Who has informal power in the organization? Teigland 2003

37. 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

38. 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

39. Broadcast heroes and their success stories!

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

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

42. 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

43. Tata Motors

47. 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

50. 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

51. 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

52. 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

53. In your groups ….. Choosing the Change Project

55. 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

56. Better to choose a more narrow, specific focus!

57. You will present your projects in Module 3

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

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

62. 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?

65. 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

67. 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

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

70. 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

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

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

81. 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

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

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

86. 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

87. 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?

89. 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

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

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