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Leading change teigland

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My slides from a change leadership module given within an executive education program run by IFL.se.

My slides from a change leadership module given within an executive education program run by IFL.se.

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  • 9:30 to 10:15 Slides 1-12 +exercise + 10:25 to10:35 Break 10:35 to 11:20: Triggers for change 13-19 + CSFs slides 20-40 11:20 to 12:00 Tata case preparation 12:00 to 12:30 Presentation + projects info 9:50 to 10:50 Slides 1-12 +exercise + Triggers for change 13-19 10:50 to11:00 Break 11:00 to 11:20: CSFs slides 20-40 11:20 to 12:00 Tata case preparation 12:00 to 12:30 Presentation + projects info
  • Organizational change occurs when an organization restructures resources to increase the ability to create value and improve effectiveness. Change is prevalent. In the past 10 years, over 50 percent of all Fortune 500 companies have undergone significant restructuring.
  • Can cause dependence on staff groups and consultants Means are inconsistent with espoused ends - they are top down and do not encourage local leadership Do not encourage an organizational conversation and learning about real underlying problems - Business Organizational Unclear strategy, values and conflicting priorities Leadership style - tops down or laissez faire An Ineffective top team Poor coordination Closed vertical communication Inadequate leadership/management skills and development in organization
  • Human on left side (more participative) and technical on right side (less participative)
  • What triggered the change? What was the change? What worked and did not work? A change requires a combination of two things: start doing some new activities and stop doing some old activities
  • PESTEL stands for P olitical, E conomic, S ocial, T echnical, E nvironment and L egislative. It is a strategic planning technique that provides a useful framework for analysing the environmental pressures on a team or an organisation A PESTEL Analysis can be particularly useful for groups who have become too inward-looking. They may be in danger of forgetting the power and effect of external pressures for change because they are focused on internal pressures. Help people make their assumptions explicit Important to look forward and at future impact of envtal factors which may be different from past impact. Usually will be combined effect of some of these separate factors that will be important rather than any single factor Plays role in focusing organizations on choices open to them and the constraints and risks involved in these choices. Political – threat of terrorism, Economic – unemployment levels Social – demographic changes Tech – development of new/subst products Environmental – antipollution Legal – antitrust Where is the business going in the next 3 to 5 years? • What technologies are emerging and how will (could) they change the business model? • Where is your competition headed in the future? • Where do your employees wish or need to go in the future? Which of the below are of most importance now? Which are likely to be most important in a few years? What are the factors influencing any changes?
  • PESTEL-analysis is a tool – not a key.
  • The interesting thing is that this new generation of workers is huge and is even larger than the babyboomers and in fact in the US, 56 mln are old enough to be employees with 7 million already managers. Those that are 38 and younger are the gamers and those that are 28 years and younger are the net-generation and we now have a new generation that is entering the workforce that has grown up with mobile phones. These generations have a different outlook on work, learning, and play. On the right hand side, we have individuals with a high degree of company loyalty and in which there was a clear line between work and one’s personal or social life and play was something to be done only in one’s free time. However, in these new generations we have individuals who are more loyal to their peers and their professions – choosing to mix their working life with their personal life while also not seeing such a clear line between work and play. And anyway, who ever said that we cannot combine work and play? danah boyd: Unlike adults, who are relearning how to behave in public because of networked technologies, teens are simply learning how to behave in public with networked publics in mind. Other notes The new generation is huge - 90 million people in USA alone Larger than baby boomers 81% of US business population ≤ age 34 are gamers 56 million old enough to be employees 7 million already managers Points: we are looking at a wave of Digital Natives that are already in our workforce. That design of learning will in large part be for some portion of these 90 million americans, not to mention the internationals. 38 years old and younger – they are the gamers. 28 years old and younger – these are the net-generation, having grown up with the internet always being there. These are people for whom the technology has always been available to provide them with engaging experiences, connections beyond the realm of their home towns to people and information that otherwise would never have been available or accessible.
  • The amount of new technical information is doubling every 2 years. It’s predicted to double every 72 hours by 2010.
  • Constraint/Impact of organization’s history - path dependency Poor decision making!
  • http://www.youtube.com/watch?v=w3IbKbDhfKw
  • http://www.youtube.com/watch?v=w3IbKbDhfKw 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 No change / transformation project in place ... Regarded Business As Usual Inadequate communication to people NOT impacted Unclear roles & responsibilities The cadence/ mode of operation / management system does not reflect the new set-up Not letting go of the old ... front line => unclear accountability
  • start doing some new activities and stop doing some old activities This requires everyone understand their new roles & responsibilities & new targets Else it only bring added workload => stress => no credit for work not needed Duck..they have been to a conference…here we go again!
  • http://faculty.washington.edu/chudler/words.html
  • Zoë van Zwanenberg Scottish Leadership Foundation The Management Tasks Exterior, empirical, objective systems Require good management skills focused on people, processes and resources. The WHAT of change The Leadership challenge Create the culture Model the behaviours Live the values Inspire, motivate stimulate and support the people The HOW of change
  • Three steps Prepare Implement Manage
  • Stability forces Institutionalism – way things are done around here, of current practices Transaction costs –employee stability Sustained advantage – organizational relationships Organizational social capital – trust among co-workers Predictability and uncertainty reduction – the need for these may inhibit change. A necessary prerequisite for a successful change However, organizations and people are complacent Better what you know then what you don’t know Change creates uncertainty Change is perceived as a “zero sum” Often reactive and not proactive “If it ain’t broken don’t fix it” Too much fat (resources, profits)
  • Overcoming Complacency A compelling need has to be developed and shared Visible Crises catch peoples’ attention and drive up the urgency levels e.g. GM Create a rivalry – What are your arch competitors doing? Slim down resources Create dissatisfaction with the status quo Benchmark operations Diagnose internal barriers to performance
  • Power & Credibility : to legitimize change (critical mass); Ability to reward/confront Pain &Sacrifice: : Personal Stake; Pursue change despite personal price Expertise: Informed & intelligent decision making Public / Private Role : Commitment and ability to support change publicly/ meet privately with agents Pitfalls: Avoid those who create mistrust or put their own immediate interests above the greater goal
  • Can use this to look at one organizational unit, this picture shows the programmers of the stockholm office of one IT multinational. See that well-connected. Good knowledge flows here as well. The Icon Stockholm programmer community was very well connected, indicating a high degree of knowledge flow. But I use this example, bc want to illustrate key players in this network. They are the central connectors. Central information source for everyone in network. In most cases, these individuals are not formally designated go-to people in unit. Provide help or pointers to others if can’t help. In many cases these individuals are high performers. Interestingly when we showed this picture to management, they knew of three of these but the fourth one was a total surprise. Interesting bc this person was different from mgt, woman programmer. Challenge with these individuals is that even though recognized by their colleagues, often their efforts go unrecognized and unrewarded, yet spend a good amount of time filling this task. Organizations use different kinds of rewards, nominated for best helper, one example is bank that changed its bonus scheme rewarded individuals for their ability to improve communication within unit, to be connectors based on evaluations by fellow employees. McK in semi-annual evaluation process. Mostly positive roles but these individuals can also play power games, using connecting role for private benefit, pitting networks against each other, hoarding information. Sometimes even people just overloaded . Found that this person was a bottleneck, while many people went to this person for help, could not help everyone, so people frustrated. Think about how design teams or redesign jobs, rotating people also. One organization conducted analysis and restaffed teams combining members of both networks. If overloaded, can implement mailing lists, discussion boards to try to reduce workload on central connector
  • Visions need to be top down since that is where the strategic direction come from Vision gives a sense of direction and motivation Acts as a coordination mechanism between different parts of the organization as well as outside of the organization However, the vision needs to be accepted Develop a vision in a participative nature Kotter (1996) suggest 6 characteristics of an effective vision: V ision : Develop, articulate and communicate a shared vision of the desired change that is: Imaginable – Creates a Picture Desirable – Appeals to the long-term interest Feasible – Realistic & Attainable Focused – Clearly guides decisions Flexible – Allows for changing conditions Communicable – Successfully explained in 5 min.
  • Communicating the vision in order for people to understand the present situation and future state Communicate the means in which to obtain the vision Keep it Simple; Lose the Jargon Create Verbal Pictures Multiple Forums; Repetition Lead by Example; Your Behavior Speaks Explain the Appearance of Inconsistencies 2- Way: Listen as Well as Share Perception is that people know the vision, but don’t really, vision communication is only one small % of total communication
  • http://www.slideshare.net/Estragon/change-management Piers Schreiber [email_address] +44 7707 263 782
  • Is there organizational alignment? Are the structures congruent with the change? How is politics managed? How is non-compliance dealt with? Does the culture allow for changes? What about the HR systems and procedures? Do people have the necessary skills and training to carry out the change? How about resources? Sponsors : Senior management leaders - the driving force of change - must walk the walk. Advocates : Allies of leaders, deploy the vision - communicate - involve - sell – MOTIVATE the masses. Agents: Influence sponsors’ commitment, target resistance, measure readiness, assess existing people/structures Targets : Everyone in organization - develop, train, reinforce, support
  • Planning for visible improvements in performance, or “wins” to show that change is possible and positive Create those wins Visibly recognizing “winners” & overcome resistance Make obtainable, visible, unambiguous targets related to change Communicate the wins Show that sacrifices are worth it – “No pain, no gain” Work the network to build momentum and keep people on board Use dialogue to convince non-believers Visibly recognizing and rewarding those people who made the wins possible – create heroes Build a winning culture Plan for and create regular “wins” Recognizing and rewarding people who facilitate the “wins” Momentum is building, less resistance You get what you reward
  • http://www.traintogain.gov.uk/NR/rdonlyres/01EBAABA-DE38-44B6-B118-8007FA6F117F/0/fishing.jpg
  • Begin small and roll these in to something bigger Build momentum… Additional and larger change projects Increase scope of change - use increased credibility to change more systems, structures, and policies that don’t fit together and/or don’t fit the vision. Hire, promote and develop people who can implement the change vision Reinvigorating the process with new projects, themes and change agents But, know the network and the interconnections Increase resources Have senior management lead through clarifying the vision and keeping the sense of urgency Eliminate interdependencies Use increased credibility to change other systems that don’t fit the vision Hire, promote, and develop people who implement the change vision Reinvigorate the process with new projects, themes, and change agents Don’t let up
  • ANCHORING NEW APPROACHES IN THE CULTURE Culture is a double edged sword ie. The culture that promotes change can also hinder change Change often requires a new or change in organizational culture Culture is difficult to change Results need to come first and this has to be embedded into the organizations “way of doing things” Steering organizational culture is like running in front of a moving bus and yelling stop! What kind of culture is required to support the vision? Changing culture is much more than symbols. Culture permeates who is recruited, promoted, rewarded, organizational structures, as well as power structures. May involve turnover. Maintain clear focus. Cultural change comes last, not first. Embrace resistance. Respect those who resist. Shared throughout firm, Both product and process, Influences how business is conducted
  • The country's second-largest conglomerate--with 2005 revenue of $17.8 billion and core interests ranging from steel, cars and telecommunications to software consulting, hotels and consumer goods--has come a long way since he stepped up as chairman, in 1991.
  • http://www.youtube.com/watch?v=rOnQpP5haUQ
  • http://www.cisco.com/warp/public/126/chmgmt.shtml
  • Concepts - Presenting the best and the latest To develop an understanding of the complexity and dynamics of change in organizations To expose participants to concepts, theories, and models for leading change Competence - Translating knowledge into ” actionable knowledge ” To actively integrate leading change concepts with practice through developing and discussing a change project To develop participants ’ ability to analyze situations, generate options, make grounded decisions, and take action on the basis of knowledge To provide participants with an interactive and reflective team experience in which everyone (participants and faculty) learns together Capital - Leading change for business performance To strengthen your personal networks
  • The sponsor should be some one who is involved in and has experience of the issue or challenge you will focus on for the Live Project  The sponsor should be able to support you by helping you get access to the people and information you might need to help complete the project.  The sponsor should also act as a sounding board for your thoughts and ideas as well as some one who can give you feedback when you implement  your plans.    
  • Human on left side (more participative) and technical on right side (less participative)
  • Completing the project for the course means not only implementing the change but also developing a means with which to measure and evaluate the effects on the organization’s business performance.
  • Constraint/Impact of organization’s history - path dependency Poor decision making!
  • PESTEL stands for P olitical, E conomic, S ocial, T echnical, E nvironment and L egislative. It is a strategic planning technique that provides a useful framework for analysing the environmental pressures on a team or an organisation A PESTEL Analysis can be particularly useful for groups who have become too inward-looking. They may be in danger of forgetting the power and effect of external pressures for change because they are focused on internal pressures. Help people make their assumptions explicit Important to look forward and at future impact of envtal factors which may be different from past impact. Usually will be combined effect of some of these separate factors that will be important rather than any single factor Plays role in focusing organizations on choices open to them and the constraints and risks involved in these choices. Political – threat of terrorism, Economic – unemployment levels Social – demographic changes Tech – development of new/subst products Environmental – antipollution Legal - antitrust
  • Prioritize Your Stakeholders Where do stakeholders place the project? High Use to recruit appropriate team members Change management requires to manage impacted stakeholders with a vested interest in the change and ensuring non impacted vested stakeholders know they are not impacted High power, interested people: these are the people you must fully engage and make the greatest efforts to satisfy. High power, less interested people: put enough work in with these people to keep them satisfied, but not so much that they become bored with your message. Low power, interested people: keep these people adequately informed, and talk to them to ensure that no major issues are arising. These people can often be very helpful with the detail of your project. Low power, less interested people: again, monitor these people, but do not bore them with excessive communication. Can you add new stakeholders to change balance? Can you get oppositional stakeholders to leave? Can you increase influence pro-change stakeholders Can influence antagonists be decreased? If too strong, should revisit change proposal?
  • Phases?
  • Upwards – managing your sponsor to achieve organizational commitment Backwards – monitoring progress with appropriate control systems, to ensure that project meets its targets and that team learns from its mistakes Inwards – Managing yourself – by reviewing your performance to ensure that your team leadership is positive contribution to project Outwards – managing client, end user and external stakeholders (including suppliers and subcontractors) to ensure that project meets their expectations Forwards – planning in order to ensure that team sets realistic targets and obtains appropriate resources to achieve those targets Downwards – managing team to maximize their performance both as individuals and collectively. Managing visible and invisible, across disciplines, departments, countries, and cultures
  • Stakeholder mapping – Responsible, accountable, consulted, informed The new market plan Risk analysis and mitigation plan Communication plan for All => intranet, Frequent Asked Questions Change agents, workshops, focus groups, pre change involvement Each stakeholder; R esponsible, A ccountable, C onsulted, I nformed Road shows, town hall meetings, themes ... Roll out plan Training Short wins, secure current and new revenue streams Updated Role descriptions, scrap old ones! Cadence systems, scrap old ones! Target letters, scrap old ones! May need union involvement. Incentive plans, scrap old ones! May need union involvement. Early ER/IR, union involvement if major change
  • Adapted from why use diagnostic tools? (Burke 2002, Organizational Change) Content tools and process tools Who uses the tools? Management or people in organization or consultants or mix?
  • Prioritize Your Stakeholders Where do stakeholders place the project? High Use to recruit appropriate team members Change management requires to manage impacted stakeholders with a vested interest in the change and ensuring non impacted vested stakeholders know they are not impacted High power, interested people: these are the people you must fully engage and make the greatest efforts to satisfy. High power, less interested people: put enough work in with these people to keep them satisfied, but not so much that they become bored with your message. Low power, interested people: keep these people adequately informed, and talk to them to ensure that no major issues are arising. These people can often be very helpful with the detail of your project. Low power, less interested people: again, monitor these people, but do not bore them with excessive communication. Can you add new stakeholders to change balance? Can you get oppositional stakeholders to leave? Can you increase influence pro-change stakeholders Can influence antagonists be decreased? If too strong, should revisit change proposal?
  • start doing some new activities and stop doing some old activities This requires everyone understand their new roles & responsibilities & new targets Else it only bring added workload => stress => no credit for work not needed Duck..they have been to a conference…here we go again!
  • http://www.slideshare.net/Estragon/change-management Piers Schreiber [email_address] +44 7707 263 782
  • How are people to be substituted?
  • Interaction and engagement is necessary to get the message to stick!!
  • Who does PM represent: How to select a pm who satisfies all partners? Need PM who really communcates overall picture to all parties to ensure collective competence, can have mgr who just communicates pieces of picture and thus have good project mgt, but to gain collective competence mgt, then need communicator of overall picture Coordination – not just coordinating activities, but also relationships, connecting people, bringing people together, so can build shared understanding. Someone has to bring them together. Project manager – bringing people together. Uses his network, connecting people, building relationships, understanding where the power is in the network. Communication – talking with all people in project.
  • http://www.slideshare.net/hnauheimer/change-management-presentation-helsinki-presentation
  • From Star and Griesemer (1989), boundary objects have several important properties: Boundary Objects Brian Marick [email_address] www.testing.com, www.visibleworkings.com If x is a boundary object, people from different communities of practice can use it as what Chrisman (XXX) calls a COMMON POINT OF REFERENCE for conversations. They can all agree they're talking about x . But the different people are not actually talking about the same thing. They attach DIFFERENT MEANINGS to x . For example, a story card that says "allow alpha chars in customer ID field" might be, to a programmer, a reminder to change class definitions and update a database schema. To the business expert, it might represent an enabling step in merging the operations of two companies. People use boundary objects as a MEANS OF COORDINATION AND ALIGNMENT (Fischer and Reaves 1995). Story cards are a tool XP projects use to align what the programmers build with what the business expert wants. Despite different interpretations, boundary objects serve as a MEANS OF TRANSLATION. If it becomes important that the programmer understand more about business operations being merged, the story card can be used to smooth the process of explanation (for example, by delving more deeply into the meaning of the words on the card). Boundary objects are PLASTIC enough to adapt to changing needs. And change they do, as communities of practice cooperate. Boundary objects are WORKING ARRANGEMENTS, adjusted as needed. They are not imposed by one community, nor by appeal to outside standards (Bowker and Star 1999). The boundary object must satisfy DIFFERENT CONCERNS SIMULTANEOUSLY. In agile projects, the brief task descriptions and the conversation around them satisfies the business expert that something of actual business value will soon be produced while also satisfying the programmers that they are not committing to do more than they can.
  • Brainstorm Action
  • Phases?
  • http://www.youtube.com/watch?v=INo69f7f8bo&feature=related http://www.youtube.com/watch?v=Jll5baCAaQU&feature=channel “ cause to go with one,especially by guiding or showing the way or by going in front and taking a person’s hand or an animal’s halter ”, The Concise Oxford Dictionary Challenges about learning Learning about self Learning about others Learning about the ‘business’ Learning about the world Learning about connections and interdependence The timetable of learning Continuous and continual Learn, practice, perform, teach and review FORMAL LEARNING Self - assessment, feedback, performance review Others – team dynamics, motivation, personality profiles etc. ‘ Business’ – strategy, finance, performance, markets etc World – context, policy and politics. Connections – patterns, macro economics etc. Qualification based programmes. Distance learning and e-learning Case studies ‘ Best practice’ reviews Audits and reports Seminars, conferences, workshops and short course programmes INFORMAL LEARNING Self – reflection, feedback. Others – observation, reflection, feedback. ‘ Business’ – enquiry, feedback, observation and review World – reading, observation and review Connections – patterns, coincidences, consequences. Coaching and mentoring Teaching Reflective practice Action learning Discussion,conversation and review Appreciative enquiry, visits and peer review Reading, seeing and hearing – newspapers, books (fiction and fact) art and art forms
  • Transcript

    • 1. Leading Change: Integrating Theory and Practice Robin Teigland Center for Strategy and Competitiveness Stockholm School of Economics [email_address] Twitter: RobinTeigland www.knowledgenetworking.org Jan – May 2011
    • 2. 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 deliver real business benefits for your organization
      • To provide participants with an interactive and reflective team experience in which everyone (participants and faculty) learns together
    • 3. Agenda
      • Afternoon
        • Live Project Groupwork
        • Some Change Tools
      • Morning
      • What is Change
      • Kotter’s 8 Stages
      • Groupwork
      Going Forward
    • 4. Jack Welch… "...when the rate of change outside an organization is greater than the change inside, the end is near...."
    • 5. 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
    • 6.
      • Only 20-30% of all change projects achieve full value
      • Over 80% of anticipated value from M&A fails to materialize
      • 75% of JVs fall apart after “honeymoon”
      • Less than 50% of quality-improvement efforts make satisfactory progress
      • Only 9% of all major software development applications in large organizations worth cost
      • 31% of software implementation projects cancelled before completion
      • Irrespective success or failure, 53% software implementations result in cost overruns by up to 189%
      • High number of change initiatives unsuccessful!
      But do change initiatives work? Beer 2002, Gratton 2007, Maurer and Co
    • 7. Many change programs result from 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
    • 8.
      • 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
    • 9. 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 were the factors for success/failure?
        • How did the change impact you and how did you feel?
        • What would you have done differently?
    • 10. 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
    • 11. What triggers change?
    • 12. PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technological Legal Social Economic Organization
    • 13. 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
    • 14. A new workforce is appearing… Prensky 2001, Beck and Wade 2004, Mahaley 2008 “ Digital Immigrants” “ Digital Natives” Company loyalty Work ≠ Personal Learning=Behind the desk Professional loyalty Work = Personal Learning=Fun and games
    • 15. Technical knowledge quickly outdated 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education
    • 16. 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
    • 17. Pressures from one area can affect entire organization Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
    • 18. But every challenge is….. A new opportunity???
    • 19. What are the critical success factors for change?
    • 20.
      • Only 20-30% of all change projects achieve full value
      • Over 80% of anticipated value from M&A fails to materialize
      • 75% of JVs fall apart after “honeymoon”
      • Less than 50% of quality-improvement efforts make satisfactory progress
      • Only 9% of all major software development applications in large organizations worth cost
      • 31% of software implementation projects cancelled before completion
      • Irrespective of success or failure, 53% software implementations result in cost overruns by up to 189%
      Remember…. do change initiatives work? Beer 2002, Gratton 2007, Maurer and Co Why? According to Fortune 500 executives, resistance/people not accepting changes
    • 21.
      • Extent people more or less resistant, indifferent, or likely to lend support to change affected by how change perceived to affect them
      • Reasons for resisting change:
        • loss of control
        • too much uncertainty
        • surprise
        • confusion
        • loss of face
        • concerns about competence in new context
        • increased workload
        • change fatigue
        • view that costs outweigh benefits
        • past resentments
        • real threats
      Why do people resist change? Managers need to take affirmative action to minimize these effects! Iles & Southerland, 2001, p.56-57
    • 22. People react differently... Rogers, 1983, 1995 Innovators Leap with enthusiasm at change proposal and strongly support. Expect others to be active in pursuing change. Early Adopters Rapidly persuaded, especially by early success. Likely to want to adapt change proposals to own circumstances. Early Majority Want to see tangible outcomes to change proposals. Not convinced merely by idea or principle. Late Majority Follow powerful person when agree and support change ideas. Commitment centered on political calculation. Resistors (Laggards) Predictable, Need considerable evidence – more vivid and directly observable, the better – before they can be mobilized. Relatively risk adverse.
    • 23. Reactions to change distribution Rogers, 1983, 1995
    • 24. Helping stakeholders go through 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
    • 25. Getting through 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
    • 26. Say the color, not the word
      • YELLOW BLUE ORANGE BLACK
      • GREEN PURPLE YELLOW RED
      • ORANGE GREEN BLACK BLUE
      Stroop
    • 27. 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
    • 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 sense of urgency Forces for change Forces for stability The status quo Burnes 2004 http://www.youtube.com/watch?v=U5802FBaMSI
    • 30. Force field model Who and What Can Change Lewin 1947, 1951; Iles & Southerland, 2001
    • 31. 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
    • 32. 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
    • 33. Who has informal power in the organization? Teigland 2003
    • 34. 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
    • 35. 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
    • 36. 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
    • 37. Information + Involvement to build commitment & change Increasing Commitment Awareness of desired change Understanding of change direction Translation to the work setting Commitment to personal change Internalization of new behavior “ Yeah, I saw the memo.” “ I understand where we need to go.” “ I know how we need to do our jobs differently.” “ OK, I’m ready to do it the new way.” “ This is the way we do things here.” Stages of Individual Behavior Change Information with some involvement sufficient here Significant involvement needed Schreiber
    • 38. 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
    • 39. 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
    • 40. Broadcast heroes and their success stories!
    • 41. 7. Consolidate improvements and produce more change Change Project 1 Change Project 2 Change Project 3 Time Scope of change Adapted from Kotter 1996
    • 42. 8. Anchor new approaches Company culture Physical artifacts activities and routines Underlying values, assumptions, beliefs, and expectations Intangible Adapted from Kotter 1996
    • 43. 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
    • 44. Tata Motors
    • 45. 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
    • 46. Groupwork - In your groups
      • Discuss how change was implemented at Tata Motors
        • What triggered the change?
        • How does the change process map onto Kotter’s eight stages?
        • What is the real change?
        • What are the lessons learned from the case?
      • Prepare a maximum 10 minute presentation
      • Present groupwork
      • Discussion
      http://www.mckinseyquarterly.com/Leading_change_An_interview_with_the_managing_director_of_Tata_Motors_1908
    • 47. 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
    • 48. 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
    • 49. Agenda
      • Morning
      • What is Change?
      • Kotter’s 8 Stages
      • Groupwork
      Going Forward
      • Afternoon
        • Live Project Groupwork
        • Some Change Tools
    • 50. 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
        • Change : To create real business benefits at your organization
      • Groups
        • You will work in your groups
      • Topic
        • Your group will decide together on one topic for the change project
    • 51. 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
    • 52. In your groups ….. Choosing the Change Project
    • 53. Criteria for the Change Project
      • It should involve a real organizational issue or challenge that at least one group member is currently facing in his/her part of 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.
      • The project should have a sponsor .
      ” This is something we would like to do!!”
    • 54. 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
    • 55. Better to choose a more narrow, specific focus!
    • 56. You will present your projects at end of program
    • 57. Discuss in your groups today
      • What are the current & 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?
      • How will you organize your work during the program?
      • How will your coordinate with your Sponsor?
    • 58. 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
    • 59. PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technical Legal Social Economic Organization
    • 60. Pressures from one area can affect the entire organization Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
    • 61. Identify internal and external stakeholders Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
    • 62. 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
    • 63. Stakeholder analysis Adapted from Nader, NTL Current (C) & Desired (D) position regarding the Change Stakeholder Block Let Help Make Diagnosis of stakeholder position Recommended action to move to desired position
    • 64. The Change Project Statement … if you can ´t say it in a few words, then keep discussing! Name of Change Project and Business Names of Change Project team members Name of Sponsor 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. 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” !
    • 66. Agenda
      • Morning
      • What is Change?
      • Kotter’s 8 Stages
      • Groupwork
      Going Forward
      • Afternoon
        • Live Project Groupwork
        • Some Change Tools
    • 67. 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
    • 68. 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
    • 69. 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
    • 70. 1. Identify internal and external stakeholders Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
    • 71. 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
    • 72. 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. 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
    • 74. Information + Involvement to build commitment & change Increasing Commitment Awareness of desired change Understanding of change direction Translation to the work setting Commitment to personal change Internalization of new behavior “ Yeah, I saw the memo.” “ I understand where we need to go.” “ I know how we need to do our jobs differently.” “ OK, I’m ready to do it the new way.” “ This is the way we do things here.” Stages of Individual Behavior Change Information with some involvement sufficient here Significant involvement needed Schreiber
    • 75. 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?
    • 76. Successful change requires attention to all relationships Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
    • 77. 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!
    • 78. 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
    • 79. Create trust through open communication
        • Provide open forum for discussion between stakeholders, e.g., virtual project space
    • 80. Ralph Stacey’s Decision matrix
    • 81. 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
    • 82. 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
    • 83. 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
    • 84. 4. Continuously manage risk Low High Low High Probability of occurring Impact of change Monitor Work on reducing Minimal effort Manage
    • 85. Risk analysis Risk No. Description Proba-bility Project impact Priority Potential consequences Proposed/ implemented actions Status Respon-sible 1 2 3 4
    • 86. 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 ?
    • 87. Match the measures to the impact of the change Culture Systems Vision Strategy Structure People
    • 88. 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!
    • 89. Measurement plan Measure no. Measure Description How directly impacted by change project Baseline measure Measuring frequency 1. 2. 3.
    • 90. 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
    • 91. The Change Project Statement … if you can ´t say it in a few words, then keep discussing! Name of Change Project and Business Names of Change Project team members Name of Sponsor 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?
    • 92. Agenda
      • Morning
      • What is Change?
      • Kotter’s 8 Stages
      • Groupwork
      • Afternoon
        • Live Project Groupwork
        • Some Change Tools
      Going Forward
    • 93. 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
    • 94. Leading and learning Leadership and learning are indispensable to each other.” - John F. Kennedy Leadership, teaching, and learning are inextricably interlinked. - Jack Welch
    • 95. Good luck with your projects!!

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