Change management in hard times

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  • These are the main areas of my presentation. (Review each briefly)The first comment I have at this point is to say that the substance of this presentation appears in some articles on my web site and in this PowerPoint presentation. The contact information at the end of this presentation will provide you with the necessary links. They’re all free of charge.You will be provided access to all relevant materials, including this PowerPoint deck and an accompanying paper so don’t feel obligated to take copious notes. Second, in putting together a presentation like this, there is always a choice to be made between the breadth and depth of coverage – between a mile wide and an inch deep or a mile deep and an inch wide.I’ve opted for breadth – a mile wide and an inch deep. I think it’s more important to cover the waterfront regarding change management in hard times so I can point you to additional resources than it is to cover one or two points in depth. So that’s the approach I’ll take.
  • As far as the change management basics are concerned, these are the points I’ll cover.I’ll share with you my definition of change management.We’ll look at the change problem from an organizational and a psychological perspective.I’ll use the EL PASO model to illustrate the continuous, cyclical nature of change management.And, we’ll take a look at a couple of change management cycles.Then we’ll move on to the balance of the session which focuses on some tools and tips.
  • The Information Technology (IT) folks have replaced what used to be called “version control” with “change management.” However, there’s more to change management than an IT version release or system roll-out control mechanism.For one thing, there is a very large body of knowledge pertaining to change management. One of the pointers at the end of this presentation is to a change management bibliography.Change management is also an area of professional practice; mostly OD consultants and other so-called “change agents.” Many large consulting firms have a change management practice area and some smaller ones specialize in it.Most important, for today’s session, change management is a managerial task and that task has two aspects: managing organizational change and impact and managing personal change and impact – on others and on yourself. These are the focal points of this presentation and the supporting materials.Let’s look first at the change problem itself. Its basic nature is the same in good times and bad.
  • The change problem for organizations is simple enough at a conceptual level: How do you get from A to B – from the current state to some desired future state? Where it gets tricky is in determining the actual transition path. What has to be changed to enable that transition and how do you make those changes?How do we unfreeze the current situation (if it isn’t already unfrozen) and, once we get to the promised land – that brave new world – or the desired future state, how do we lock it in? How do we maintain it? How do we refreeze it. Or, for that matter, do we really want to lock in?Most of the concepts, tools, principles and techniques of change management – in hard times or in good times – are in one way or another related to this basic conceptual scheme.One such tool is force-field analysis.
  • Force field analysis is a very simple yet often very useful tool. Its main use is in identifying those driving and restraining forces that tend to offset each other and thus keep the current situation in some kind of dynamic stability.To change a situation, or so the theory goes, you have to upset that balance of driving and restraining forces. You want to skew it in favor of the driving forces.A common mistake is to push harder, to increase the driving forces. This often has exactly the opposite effect. What happens is that the restraining forces push back; resistance increases.A better strategy is to identify and then undercut the restraining forces. That let’s the driving forces carry the day without having to push harder.Example: Threatening versus simply putting support of organizational change efforts on performance appraisal forms.
  • The preceding slide might be thought of as the rational, organizational view of the change management problem. From a personal or psychological perspective, it’s a bit different.There is first of all the matter of letting go of the current state, of venturing out into the unknown toward some future state that is no more than a goal, a dream, a vision or, in some cases, also an unknown. (I don’t know where we’re going but I do know we can’t stay where we are so let’s step out.)The transition path is usefully viewed as a neutral zone: You don’t have the comfort of the past and you don’t have the benefits of the future. It’s not quite the same as limbo but it’s far from a settled state of affairs.The future state marks new beginnings, a new state of affairs, a new way of doing business, new ways of behaving, new relationships, and new problems.Getting through this transition is a challenging task for many people and helping other people get through it is an important change management task for managers and execs.See the work of William Bridges for more on this very large issue.
  • The point of the EL PASO Model is to emphasize that change management is not something you do and then say you’re done with it.It is an endless loop of people taking actions in and on situations so as to realize outcomes of value to the people taking the action.My main point here is for you to adopt this continuing, cyclical view of change management.Think of change management as something you do all the time, not something you start and finish. Change management or managing change is a basic and essential organizational and managerial capability.Change – planned or otherwise – is a recurring cycle, so let’s look at two of those cycles.
  • Many people take a dim view of change and change management. However, there is a positive cycle, as this slide illustrates.Not everyone is upset by change. Unfortunately, for some of these folks, their initial view of things is best described as uninformed optimism.Then reality sets in and they can be said to be in a state of informed pessimism, perhaps wondering when things are going to blow up in their faces.But they move on to a stage of informed optimism. They “get it” so to speak; the light bulb goes on and they see where they’re going and how to get there.From there they move on to completion of the task at hand (and then start looking around for the next change headed their way).The little fellow down on the right is a peculiar case of over-exuberance: He’s so caught up in the change at hand that he runs right off a cliff. Needless to say, the advice here is “Don’t do that and try not to let others do it.”
  • Organizations can be thought of as having a life cycle and that means they pass through a number of stages, all marked by changes and by changing.First, there is the start-up or founding stage.Then comes growth, marked by chaos and eventually a solid organization.That is followed by success which transitions into a form of hardening of the organizational arteries known as “institutionalization.” Things become fixed. Culture focuses on norms, on the way things are done around here.Eventually, the organization becomes like an ostrich; it buries its head in the sand and ignores what is going on around it. If this cycle is left untended, unmanaged as it were, the organization dies.The message should be clear enough: Stay in the success zone.Again, note that change is an ongoing, continuous process, not a one-time event.
  • What we’ve just covered are some pretty common and very basic concepts about change management. For the most part, they were developed for and applied in reasonably good times. But hard times present some challenges. Things are different.These listed items are covered in a paper you’ll be receiving so I’ll just review them briefly here.(Briefly review the listed items)
  • Watch out for unintended consequences. In good times, they can foul up many an otherwise successful effort. In hard times, they can be the kiss of death.One of the major sources of unintended consequences stems from a failure to adequately think things through. This is especially true of the goals we set and the actions we contemplate taking to achieve them. A tool that can help you do a better job of thinking things through is the Goals Grid.(Explain how the Goals Grid helps think through your goals.){Explain how the Goals Grid can help in thinking through contemplated or planned courses of action.)Point them to the Goals Grid papers.
  • Unintended consequences and other unfortunate outcomes can arise from carelessness and its counterpart, over-confidence.In good times, you can bury a lot of these mistakes; in hard times, you can’t cover them up.Use rigor and discipline, especially in hard times. Make haste but don’t make waste; use caution and care. The difficult task here is to find the right balance between getting it done and getting it right, between moving too fast and moving too slow.One piece of counsel is “Go slow to go fast.”I wish I had a magic potion or a silver bullet here but I don’t. All I can do is remind you that carelessness and its counter-part over-confidence can be especially deadly in hard times.
  • Another way of looking at what we’re covering right now is the notion of moving surely but not necessarily swiftly. This little grid should help you keep that notion in mind – as well as appreciate its importance.As the grid shows, you can have your strategy right or wrong and you can do a good job or a lousy job of implementing it. There are, then, four possible outcomes:Your strategy is wrong and you blow its execution: Doomed from the beginning.Your strategy is flawed but you execute it wonderfully. You’re flirting with disaster; you run the risk of shooting yourself in the foot.Your strategy is sound but you muff its execution. That’s a botched job.Finally, your strategy is sound and you execute it properly. You have a fighting chance.Two points here: First, as you can see from the grid, execution is every bit as important as strategy. Second, when you muff a good strategy, the tendency is to blame the strategy. This leads to a search for a new strategy when you had a perfectly good one all along. My message: Pay attention to execution.
  • In hard times, long-range planning, strategic planning, the long-view and all that are often tossed out the window, sacrificed on the altar of urgency.That’s a big mistake. Don’t sacrifice the long-term view.In hard times, there might be lots of pressing or urgent short-term issues. But as you wrestle with them, be sure to examine the long-term aspects of the efforts you’re taking; don’t focus on just the short-term impact.As you contemplate changes, tease out their long-term implications as well as their short-term effects.Form the habit of examining short-term and long-term at the same time.Sooner or later, the hardest of times will pass. Stability will return and you don’t want to find yourself in a completely knee-jerk, reactive posture and frame of mind.
  • Change, as this slide illustrates, is a multi-faceted thing.What are you changing? Strategy? Structure? Systems? Processes? Culture?Or, is your target the behavior of people?These all require different approaches.And different groupings of people can require different approaches as well.The point: You have to adapt your approach to the situation at hand.I’ve circled People because no matter what you’re changing, you will have to deal with people in the course of changing it. Change management is every bit as much a political undertaking as it is a rational, engineering, managerial task.
  • There are no canned or cook-book approaches to change management. Every issue, every change, every response is a one-off. This is true enough in good times but it is especially true in the turbulence and uncertainty that accompanies hard times.This is not to say that there won’t be some familiar, recurring kinds of situations but, more often than not, they will be sufficiently different so that you will have to tailor or custom-fit your response.When it comes to adapting your approach, the second most important piece of advice I can offer is to form the habit of using models to examine the various aspects of the changes confronting you.The most important piece of advice I can offer is to acquire or build a good suite of models. I say “suite” because a broad array of models is required.We’ll be touching on some of my favorites along the way.
  • Here’s a model that reminds us of some of the basic elements involved in change efforts.This one implies and reminds us of the connectedness of these elements and it clearly places people at the center of things.Whether you use this model or one already in use or of your own making, get in the habit of using models that lead you to examine different kinds of changes and the various dimensions of these changes.Remember: You have to fit your approach to the change instead of forcing the change to fit your approach.Said a little differently, change can be mandated but change management has to be tailored to fit that change.
  • What I’m talking about when I talk about using models is the importance of visualizing change and changes. For this you need several models, not just one.This diagram is a 100,000 foot or generic view of an organization. Its utility lies in helping figure out what part of this recurring cycle of events is affected by a given change and, similarly, how a change to or in one aspect of it might affect things upstream or downstream. (Review the working of the model)Consider changing a key supplier. How might that affect your own company’s ability to meet your customer needs and requirements? If you grant generous terms to your customers, what does that do to your cash flow and your ability to pay your suppliers?The point is simply to have some models that help you envision the changes facing you, where they fit into the larger scheme of things, and guide your thinking along productive lines.
  • Here’s another model – another view of an organization. This one is down at the 50,000 foot level. We can still see customers and suppliers but now we start noticing processes, internal structure, and the organization’s larger environment, including competitors.Again, the uses are similar: figuring out where the change lies, how best to respond to it, and the implications and effects of a particular response.Feel free to use this one or something like it or create your own but be sure to make use of some kind of model.
  • My reason for emphasizing models is illustrated by yet another model.This one shows the big picture regarding making changes in and to organizations so as to realize certain specified results.Explain the model (walk around the loop; point out the two phases)Key Points: Change is indirect Changes made at one point ripple through the organization You need a roadmap of some kind or all you’re doing is tinkering/tampering There are two parts to intervention: Figuring out what to do and doing itBuild ‘em or buy ‘em but get some roadmaps of your organization’s performance architecture.
  • All organizations have three basic domains of performance.Each domain has a different kind of structure.You need to understand all three – and how they’re connected
  • This is a different look at those three domains.What is suggested here is that the operational domain, that is, the organization’s processes, rests on a behavioral foundation. It is people who carry out processes.Also suggested here is that the financial domain ties to the operational domain. The most direct connections are usually revealed in the company’s chart of accounts. (We could spend all day exploring how to make those connections.)If you had a complete map of all three domains showing how they’re interconnected and the nature of those connections, you would have a map of the company’s performance architecture, that is, the structure through which it realizes the results it does or doesn’t obtain. You would have what I was talking about earlier – a roadmap to results.The next few slides are intended to give you a feel for how such a roadmap can be constructed.
  • Here’s an example of a “map” of one common measure of business performance: Return on Equity (ROE).The financial domain has an arithmetic structure, often reflected in calculations such as ROE.As you move from right to left, decomposing the top level measure, you begin to move toward the operational domain, toward things that are counted instead of calculated.You don’t have to build maps of every financial measure in use but you are well served by building such maps of those measures affected by the things you’re changing.(Comment about the two-way nature of such maps: (1) to determine the impact and (2) to find a fix.)Point out that this is a generic view of ROE; most organizations make use of a calculation suited to their purposes
  • Here’s a map of a key measure in an operating division I once headed up. It shows how the load rate variable was calculated.Load rate was a key factor in program manager decisions to award or not award work to my division and I had to manage that load rate figure very closely. This map helped me greatly in that regard because it focused me squarely on those variables that affected load rate.(Briefly review the load rate case related to space)
  • Here’s our old friend force field analysis in a somewhat different context. Here, the aim is one of changing someone else’s behavior.From a behaviorists’ perspective, that is accomplished as the diagram suggests.What you do is add positive consequences for the new, desired behavior and remove any negative consequences that might attach to the new behavior. Similarly, for the current behavior, you add negative consequences to it and remove any existing positive consequences that attach to it.This particular approach assumes some things that might not hold true. It assumes the desired behavior can be specified in advance. It assumes that what you want from the person is compliance (i.e., simply doing what has been specified).In many cases, neither assumption will hold up.The nature of a great deal of the work performed by people in today’s workplaces calls for a different view of people and this different view is all the more important in hard times when the best is called for from everyone.So, let’s take a quick look at work itself.
  • Review the diagram.Emphasize there is a mix.Emphasize that the mix results in view of the employee that ranges from a compliant actor following the script to a committed agent acting on behalf of the employer.In short, many workers require and exercise a high degree of autonomy in the course of doing their work.This requires a model of people as adaptive, goal-seeking entities, capable of a wide range of behaviors in a diverse array of circumstances.In short, we want constancy in results and flexibility in behavior.
  • This is not a sales pitch but you are well served by getting good counsel from a capable, competent change management professional. Whether you get it internally from someone on staff, an associate at work, or externally from a colleague at another company or from a consultant doesn’t matter – just be sure to get it. These other people can be good sources of ideas, useful as sounding boards or troubleshooters, and as reality checks for your own ideas and intentions.They can be especially helpful when it comes to thinking through any courses of action you are contemplating. Here, two heads are definitely better than one.
  • Earlier, I mentioned adapting your approach to the situation at hand. This is particularly true of your overall change management strategy.Review the four strategies. (Tell the Rupert Murdoch story)Emphasize the custom-fit nature and the importance of using a mix of strategies tailored to the situation at hand.Next we’ll look at some of the factors affecting the selection/formulation of a change strategy.
  • 1. Scope and Scale. Radical change or transformation argues for an environmental-adaptive strategy (i.e., “wall off” the existing organization and build a new one instead of trying to transform the old one). Less radical changes argue against this strategy. 2. Degree of Resistance. Strong resistance argues for a coupling of power-coercive and en-vironmental-adaptive strategies. Weak resistance or concurrence argues for a combination of rational-empirical and normative-reeducative strategies. 3. Population. Large populations argue for a mix of all four strategies, something for eve-ryone so to speak. Diverse populations also call for a mix of strategies. This implies careful segmentation. 4. Stakes. High stakes argue for a mix of all four strategies. When the stakes are high, noth-ing can be left to chance. Moderate stakes argue against a power-coercive strategy be-cause there is no grand payoff that will offset the high costs of using the power-coercive strategy. There are no low-stakes change problems. If the stakes are low, no one cares, and resistance levels will be low. Avoid Power-Coercive strategies in low stakes situations. 5. Time Frame. Short time frames argue for a power-coercive strategy. Longer time frames argue for a mix of rational-empirical, normative-reeducative, and environmental-adaptive strategies. 6. Expertise. Having available adequate expertise at making change argues for some mix of the strategies outlined above. Not having it available argues for reliance on the power-coercive strategy. 7. Dependency. This is a classic double-edged sword. If the organization is dependent on its people, its ability to command and demand is limited. On the other hand, if the people are dependent on the organization, their ability to oppose is limited. (Mutual dependency almost always signals a requirement to negotiate.) 8. Urgency. Urgent situations would seem to call for a power-coercive or directive strategy. However, that must be tempered with considerations of the factors above.The long and the short of it is that you almost always require a mix of change management strategies and that mix varies from initiative to initiative.
  • Emphasize that this is not communicate, communicate, communicate. All too often that results in one-way broadcasts.Use the people and the stock market analogy. Good news, bad news, no news.
  • I’m not going to suggest that you should stick your nose in that change management bibliography I mentioned a while ago but I am suggesting that you might want to do a little homework in relation to the kinds of changes confronting you.I’m also suggesting, as the slide illustrates, that you are well served by connecting with other folks who are wrestling with similar situations.
  • You all know this is going to happen. The questions are (1) how and (2) on what basis?The classic back-room approach or a more open, transparent process?Politics or core processes?I can’t tell you how to do this because that will vary with your circumstances but I can tell you this: It begins with a resetting of priorities and that will involve some spirited discussion and debate.
  • What the heck?Oh my gosh!Damn, damn, damn!I can’t take any more.I think I’ll just hide out.I can’t believe this.Hurrah!Let me outta here!
  • Review the cycle and refer to Kubler-Ross.The managerial objectives are to:Help people work through this cycle.Shorten the cycle (i.e., get through it more quickly)Reduce the size of the swings (peaks and valleys)Point to Bridge’s work again.
  • Review the process.
  • Review briefly and touch on the two underlined points.
  • Review briefly and touch on the two underlined points.
  • Emphasize that is not just participation for participation’s sake.There are numerous roles to be filled during a change effort and you need people to fill those roles.Review the roles briefly.
  • Review the diagram to explain why engagement is so important.
  • Review the equations with an emphasis on accompanying strategies:Increasing productive energy / reducing wasted energy.Increasing expended energy / reducing unexpended.Increasing available / reducing reserves.Increasing total energy.
  • In case you’re wondering, that is not a sword in the picture; it is literally a “long knife” and that choice is not accidental.Change is a hotly political undertaking. It can involve alliances, deal-making, grass roots support campaigns, and no small amount of word-smithing. And the long knives come out of their sheaths.And, of course, the political game varies from organization to organization and from situation to situation.About the only advice I can give you here is make sure your radar is on and it is finely tuned.
  • There is a tendency in hard times to focus on internal matters (staff and budget cuts, resource allocations, reorganization, etc).It is always important but even more so in hard times to pay attention to ALL your stakeholders. Explain “stakeholder” and the contributions-inducements relationship. Review briefly the four stakeholder groups in the diagram.Don’t lose sight of them and their issues, concerns and requirements or when you raise your head and look about, they might have left the scene.
  • Lastly, because there is so much turmoil and uncertainty in hard times, it is more important than in ordinary times to encourage divergent views.In hard times, there is a great tendency on the part of all concerned to look around for firm leadership – and they usually look upward.There is also an accompanying tendency for people to step into that role. All I can say on this score is give some thought to your decisions about whom to follow.Yet, because there is so much uncertainty, because the stakes are so high, and because the challenges are extremely complex, it is more important than ever to get the benefit of the best thinking of people of different viewpoints before committing to an irreversible course of action.As we used to say in the Navy, “Spirited discussion before the decision but close ranks afterward.”Welcome those divergent views and make sure people aren’t punished for expressing them.
  • The preceding portions of this presentation bring us to its bottom line – this question. “How do you manage change?”And, if you’re honest, you’ll add “And don’t bother me with differences about good times and bad.”
  • You don’t really “manage” it; it is way too slippery for that – even in good times.Contrast these two images: First: You’re driving down the highway in your car, hands on the wheel and foot on the accelerator. Barring any kind of unforeseen and surprising accident, you’re firmly in control.Managing change can be like that some times but more often than not it isn’t.Second: Think of the old time pictures of a boy with a stick and a hoop, rolling it down the street and keeping it on course. A little bump, a moment’s distraction or a gust of wind and the hoop goes somewhere other than intended.Managing change is more like the case of the boy with the hoop and stick than it is one of driving your car: you don’t control or drive change, you simply do your best to keep it moving in the right direction and not let it get out of hand.However, there are lots of folks out there who will happily sell you on the notion that you can manage change – precisely and predictably – and they will equally happily charge you an arm and a leg for helping you do so.
  • Here are some things you CAN do. Review the items.
  • This is simply a summary of the tips covered earlier. I won’t elaborate on them any further but I will happily answer questions about them.
  • Some parting thoughts… Review the items, elaborating briefly on each..Emphasize this point: Don’t chalk up resistance to the change to some generalized phenomenon called “resistance to change.”


  • 1. Change Management in Hard Times Some Basics, Some Differences, Some Tools, Some Tips Photo Courtesy of the FDR Library © Fred Nickols 2013 1
  • 2. The Agenda  Some Change Management Basics  Some Differences (The Impact of Hard Times)  Some Tips (and Some Tools Along the Way)  Q&A © Fred Nickols 2013 2
  • 3. Some CM Basics Change Management Defined The Change Problem A Psychological View The EL PASO Model A Couple of Cycles © Fred Nickols 2013 3
  • 4. What isChange Management? A control mechanism A body of knowledge An area of professional practice A managerial task (reactive & proactive)  Managing organizational impact  Managing personal impact  Others  Self © Fred Nickols 2013 4
  • 5. The Change Problem (Change) Current Future State State (Unfreeze) (Refreeze) Transition Path © Fred Nickols 2013 5
  • 6. Force Field Analysis © Fred Nickols 2013 6
  • 7. A Psychological View (Neutral Zone) Current Future State State (Letting Go) (New Beginnings) Transition Path © Fred Nickols 2013 7
  • 8. CM: An Endless Loop © Fred Nickols 2013 8
  • 9. A Positive Cycle © Fred Nickols 2013 9
  • 10. Life Cycle Growth, Startup Chaos & Success Institution Ostrich Demise Organization © Fred Nickols 2013 10
  • 11. Some Differences Harsh and unforgiving  Downward spiral in economic environment performance Number of externally-  Intense focus on financials imposed changes goes up  Operational & behavioral Rate of externally-imposed domains neglected changes goes up  Quantitative displaces Urgency becomes crisis qualitative Emphasis on “Just do it”  Authority and decision- Long-term sacrificed to making centralizes short-term  Politics become fierce Unintended consequences  Stakeholders neglected multiply © Fred Nickols 2013 11
  • 12. Some Skill Sets & Tools Skill Sets Tools  Political  The Unfreeze-Change- Refreeze Model  Analytical  Force-Field Analysis  Four Change  People Management Strategies  The Acceptance Process  System  The Goals Grid  Process  The GAP-ACT Model  Business  Models, Models, Models © Fred Nickols 2013 12
  • 13. Tip #1 Beware those Unintended Consequences I II Yes Achieve Preserve Do We Want It? III IV No Avoid Eliminate The Goals Grid No Yes Do We Have It? © Fred Nickols 2013 13
  • 14. Tip #2 Avoid Carelessness & Over-Confidence © Fred Nickols 2013 14
  • 15. Tip #3 Move Surely But not Necessarily Swiftly Strategy Flawed Sound Doomed A Flawed from the Botched Beginning Job Execution Flirting A Sound with Fighting Disaster Chance © Fred Nickols 2013 15
  • 16. Tip #4 Don’t Sacrifice the Long-Term View © Fred Nickols 2013 16
  • 17. Facets of Change  Structure  Strategy  Systems  Processes  Culture  People © Fred Nickols 2013 17
  • 18. Tip #5 Adapt Your Approach to Fit the Change at Hand © Fred Nickols 2013 18
  • 19. Elements © Fred Nickols 2013 19
  • 20. Tip #6 Visualize Your Organization and the Changes in and to It © Fred Nickols 2013 20
  • 21. An Enterprise View © Fred Nickols 2013 21
  • 22. The Big Picture © Fred Nickols 2013 22
  • 23. Tip #7 Understand All Three Domains of Performance © Fred Nickols 2013 23
  • 24. Performance Pyramid © Fred Nickols 2013 24
  • 25. Return on Equity © Fred Nickols 2013 25
  • 26. Load Rate © Fred Nickols 2013 26
  • 27. Changing Behavior © Fred Nickols 2013 27
  • 28. The Mix of Work © Fred Nickols 2013 28
  • 29. GAP-ACT (Target) Model © Fred Nickols 2013 29
  • 30. Tip #8 Get Good Counsel © Fred Nickols 2013 30
  • 31. Tip #9 Use a Mix of CM Strategies  Rational-Empirical  Persuasion based on communication and incentives  Normative-Reeducative  Redefining norms and values, and developing commitments to new ones  Power-Coercive (Directive)  Exercising authority and imposing sanctions  Environmental-Adaptive  Shifting the burden © Fred Nickols 2013 31
  • 32. Strategy Mix Factors  Scope & Scale of the Change  Degree & Intensity of Resistance  Size of the Target Population  Size of the Stakes  The Time Frame  Available Expertise  Direction of Dependency  Degree of Urgency © Fred Nickols 2013 32
  • 33. Tip #10 Share, Share, Share; Listen, Listen, Listen © Fred Nickols 2013 33
  • 34. Tip #11 Do Some Homework and Get Connected © Fred Nickols 2013 34
  • 35. Tip #12 Break Down Boundaries and Don’t Stand on Formalities © Fred Nickols 2013 35
  • 36. Tip #13 Don’t Make Slashing Staff Your First Move © Fred Nickols 2013 36
  • 37. The Math Do the Math  Do it again  2000 employees  Total payroll =  Average salary = $150M $75K  Across the board pay  Total payroll = cut of 10% $150M  Average salary =  Reduce staff by 10% $67.5K  1800 employees  2000 employees  Savings = $15M  Savings = $15M © Fred Nickols 2013 37
  • 38. Tip #14 Refocus and Reallocate Resources © Fred Nickols 2013 38
  • 39. Tip #15 Manage the Emotional Reactions © Fred Nickols 2013 39
  • 40. The “Natural” Process © Fred Nickols 2013 40
  • 41. A Managed Process © Fred Nickols 2013 41
  • 42. Obstacles to Buy-In Don’t like change  Unclear expectations Uncomfortable with  Too much change uncertainty  Too fast Negatively affected  Ethical clash Like things the way they are  Been burned before Perceived breach of  Don’t like the way it’s being contract managed Aren’t persuaded as to the  Cumulative impact need for the change  Unfavorable balance of Low tolerance for ambiguity consequences © Fred Nickols 2013 42
  • 43. Indicators ofLack of Buy-In Criticizing & ridiculing  Failing to follow-through Distorting and manipulating  “Malicious compliance” information  Foot dragging Blaming or accusing  Playing dumb Raising barriers  Hoarding information Undermining others  Not supporting others Dealing in rumors  Taking a hands-off or stand Arguing vs reasoning clear posture (letting it fail) Outright sabotage © Fred Nickols 2013 43
  • 44. Tip #16 Engage and Involve Your People  Sponsors  Architects  Champions  Straw Bosses  Envoys  Brokers  Mechanics  Pawns © Fred Nickols 2013 44
  • 45. Employee Engagement © Fred Nickols 2013 45
  • 46. Energy Equations © Fred Nickols 2013 46
  • 47. Tip #17 Hone Your Political Skills © Fred Nickols 2013 47
  • 48. Tip #18 Pay Attention to ALL Your Stakeholders © Fred Nickols 2013 48
  • 49. Tip #19 Encourage Divergent Views © Fred Nickols 2013 49
  • 50. The Question How do you manage change? (In Hard Times or in Good) © Fred Nickols 2013 50
  • 51. My Answer You don’t. Not in good times or bad. © Fred Nickols 2013 51
  • 52. What You Can Do… Jump in  Set flexible priorities Stay focused on mission  Treat everything as and purpose temporary Build a team  Ask for volunteers Maintain a flat structure  Get a good “straw boss” Pick high energy people  Give the teams what they Toss out the rulebook ask for – except authority Shift to short-interval  Concentrate dispersed scheduling and informal knowledge reporting © Fred Nickols 2013 52
  • 53. More You Can Do…  Be the change…  Take everything at face value (don’t second guess)  Give everyone the benefit of the doubt  Whenever possible, collaborate, don’t dictate  Be open to influence  Get good help © Fred Nickols 2013 53
  • 54. The Tips: A Recap Avoid unintended  Attend to all stakeholders consequences  Use a mix of strategies Avoid carelessness & over-  Share, share, share; confidence listen, listen, listen Move surely, not necessarily  Do your homework swiftly  Break down boundaries Avoid sacrificing the long-  Don’t cut staff first term to the short-term  Do the math Adapt your approach  Refocus & reallocate Visualize your organization resources and changes to and in it  Engage and involve your Map and understand all people three domains  Manage the emotions Hone your political skills © Fred Nickols 2013 54
  • 55. Remember…  Change = Opportunity  Change is low risk for many people  You can’t go wrong trying to help  Change is high payoff – if you pull it off  A skeptic brought around is invaluable  People don’t resist change per se  Change management is very situational  There are no OTC or “vanilla” approaches  The task is to bring order to a messy situation, not pretend that it’s already well organized  The task is as much a matter of leading people as it is one of managing change © Fred Nickols 2013 55
  • 56. Further Reading  Managing Transitions by William Bridges   Change Management 101: A Primer  Change Management in Hard Times  A Change Management Bibliography © Fred Nickols 2013 56
  • 57. Q&A © Fred Nickols 2013 57
  • 58. Contact Information Fred Nickols Managing Partner Distance Consulting, LLC (740) 504-0000 “Assistance at a Distance”SM © Fred Nickols 2013 58