Change Management A Never-Ending Journey Presented by Bruce Baker – Inspired by John P. Kotter "Company cultures are like country cultures. Never try to change one. Try, instead, to work with what you've got." -- Peter F. Drucker
Session Objectives Understand the fundamentals of Change: Fundamental Skills for Change Organizational Change Forces for Change The Nature of Change Assessing your Environment Identify with the Journey of Change. The Six Levels of “Change” Understanding each Level of Change through Classic Examples
Fundamental skills for Change The fundamentals are critical for forming a foundation or basis for Change. Refer to those essential and basic skills that form the foundation for effective change. Making changes in life requires skill. The better we get at mastering and using these fundamental skills the easier it is for us to make changes in our lives.
Organizational Change Change in your personal life is not very different to change in your professional life. Living in a world with constant change requiring continued diligence and attention. To continue surviving both within and out of organizations change is essential. Most large scale organizationalchange fails…why? Forget about the hardware…think about the software…
Our objective: Understand the nature and mechanics of change to support organizations.
Nature of Change Before looking at the change initiative ask yourself… What is the nature of the change? What are the strategies that need to be employed? How does the “change initiative” affect the organization internally/externally… Remember: internal and external forces required the change in the first place. Considering the above will provide you with: Ideas on what resources you will need. The impact you will make. What obstacles you may anticipate through the journey.
Short or long…either may have significant effects…
Assessing Your Environment DEPTH OF CHANGE
Consider how deep the effect change will have on the organization:
Will it be in a linear fashion e.g. changing an inventory system.
Very deep and multi-dimensional e.g. changing an organization from being technically focused to customer focused.
Further examples of Linear and multi-dimensional changes?
Assessing Your Environment DIRECTION OF CHANGE
Change will be determined and shaped by those who lead and drive the initiative.
Assessing the Environment DIRECTION OF CHANGE
Depending how much more or less pressure is decided on, depends on a few critical factors:
Do middle managers have the power/influence to initiate change? What is the risk of non-compliance/failure? What is the overall support for the initiative? At what level does the organization value autonomy? How urgent is change required? Are volunteers anticipated?
Level 1 – Create Urgency “You’ve got to talk about change every second of the day” – Jack Welch
Creating a sense of urgency is the first make or break level of the change process.
A behaviour that energizes people and makes them excited to get onboard.
Requires great cooperation, initiative and the willingness to create sacrifice when needed.
A sense of urgency is not to do more but to reprioritize.
Provide a compelling reason to leave their comfort zone and be uncomfortable over the short-term.
WAYS TO CREATE LEVELS OF URGENCY Allowing a financial loss…allow errors to build up. Eliminate obvious examples of excess (e.g. Executive dining rooms, significantly catered events etc.) Stop with narrow goals…insist that more people are held accountable for boarder measures. Share more company performance data with employees. Insist that people talk more regularly to unsatisfied customers, suppliers etc. Stop senior managements' unrealistic “happy talk”... Flood people with the future opportunities that will result in engaging in change initiative.
Level 1 – Create Urgency THE DANGER OF COMPLACENCY!
Increasing Urgency - Summary What works well! Showing people what needs to change with something they can feel, touch and see. Showing people valid and dramatic evidence outside the organization that shows why change is required. Finding easy/cheep ways to reduce complacency. Never underestimating the levels of complacency…keep focussed!
Increasing Urgency - Summary What doesn’t work! Exclusively focussing on building the political, rationale argument and rushing ahead without considering the software! Ignoring the need to create urgency and rushing ahead to create vision and strategy (like building a house with no foundation). Believing that with no major crisis you can’t move ahead with your change initiative. Think you can’t do much without being the person in charge.
We can See it, Taste it and Smell it… Let’s Get it On! Our Foundation is Built!
Level 2 – Harness Support From a Guiding Team Initiating and seeing change through is huge…doing it alone will most likely result in failure. A strong guiding team is required…one with the right : Composition Level of trust and Shared objective/s The good news…when there is urgency more people are willing to: Provide leadership Pull together
Not the correct team? A tale from Gary Lockhart
Remedying the Blues versus the greens Seeing? – Credible sources visibly confront the issue guiding the integration of 2 teams. Admitting to the issues and not shooting down people who speak. Feeling? – People are shocked. Some for the first time, begin to feel optimistic that they can deal with the problem. Frustration/ager reduces. Changing & seeing it? – The guiding group will now start to have honest conversations about the problem. Feeling? – Distrust between members of the two groups start to decrease. Optimism creeps up; anger continues down. Changing? – The group that must guide change begins, for the first time, to act less as two team and more as one.
An Effective guiding team A tale from Tom Spector
Putting together the winning team It is critical finding the correct mix that will bring about the expected change: Position Power – Are enough key players on board, so that those left out cannot easily block progress? Expertise –Do we have the correct ingredients relative to the task at hand e.g. skills, work experience etc. Credibility – Does the team have enough people with good reputations in the firm so employees will take it seriously? Leadership – Does the group include enough proven leaders to be able to drive the change process?
Balancing Leadership and management You need both a Leadership and a Management mix. Both must be able to work in tandem using the strengths and realizing weakness. The manager will keep things under control; the leader will drive change. An extreme on either side (manager/leader) will not bring about desired change.
The first will fill up the team room and make everyone know who he/she is…Mr. /Mrs. Ego!
The second are those who go out to create mistrust and kill teamwork.
Natural ego develops at the higher echelons but a realistic thought of weakness and opportunity must prevail.
Damaging trust is equally devastating to the sense of team being built.
Team built on trust Silos in organizations naturally create in-group bias. People being imported from outside. People being promoted within from other teams. Million dollar question: Are we ensuring that trust is an existing ingredient within the team? Ensure that trust is developed/developing within the team to ensure effective synergies.
Level 3 – ARTICULATE VISION AND GOALS Articulating a vision and simple strategy cannot be created through authoritarianism and micromanagement. The vision provides the picture of the future through implicit/explicit commentary on why. A good vision consists of: Clarifying/simplify the general direction. Motivates people to take the right direction. Coordinates the actions of people quickly & accurately.
A clear sense of direction Answers to the following ensure a successful outcome: What change is needed? What is our vision of the new organization? What should not be altered? What is the best way to make the vision a reality? What change strategies are unacceptably dangerous? Severe consequences for those guiding teams not focussed on clear direction or sensible visions…
an effective Change vision Imaginable: Conveys a picture of what the future will look like. Desirable: Appeals to those that have a long-term stake in the organization. Feasible: S.M.A.R.T goals. Flexible: Allows enough flexibility to change with various demands. Communicable: Is easy to communicate…the elevator speech. Let’s Vote
Setting Goals The only way to operationalize the vision is to establish goals/objectives. Example – “achieve 60% of market share within 2 years…” Determine your strategy i.e. what you have to do to achieve your goals/objectives. An effective vision inspires stakeholders to want to achieve the goals/objectives set. How do stakeholders know that they have achieved? Example S.M.A.R.T. Goals
Level 4 – Nominating Roles and communicating vision Pulling it all together: Pull the team together sharing and identifying with a common vision and goal. Specify goals of various participants and be able to communicate the desired action for change. Depending on the size of change, the following roles are evident: Change driver – the principle cause and motivator of change. Change implementer – manages and performs tasks to bring about change. Change enabler –sets up environment so change can happen. Change recipient – expected to behave differently in a changed environment.
Key DRIVER ROLES FOR CHANGE Change Leader Also referred to the Change champion/Change agent. Should be a person in the organization being able to rally resources when needed. Has strong commitment to see the initiative to the end. Program sponsor The executive team’s representative ensuring that resources are allocated. Steering committee Share overall responsibility in partnership with the sponsor. Regularly review progress.
Communicate for buy-in Creating “project central headquarters” may be dangerous… Don’t get stuck behind closed doors! Making change happen is derived by walking the talk/leading by example. Communicating a compelling message will only happen through face to face interaction which means leaving the room!
Preparing for the big message A tale from Mike Davies and Kevin Bygate
Encouraged to ask questions…but to debate as well.
Those that answer show that they believe in the vision and the actions to make the vision come to life.
Fear, anger, distrust and pessimism shrink.
A feeling of relief grows. Optimism that the changes are good, and faith in the future, grow.
Employees start to buy in to the change initiative.
When asked, they start to take steps to help make the changes happen.
Summary – what works…what doesn’t What works – Communicating what needs to be done simply and heartfelt. Understand what your audience is feeling. Do your homework well in advance to ensure that your message is received. Be open to hard discussion around adversity and try not to answer if you don’t know. Open up communication channels and rid them of information-junc. Be open to using new technologies e.g. social networks, intranet portals, Twitter etc.
Summary: what works…what doesn’t What does not work – Under-communicating due to fears that you will panic or overload your employee population. Speaking as though you are only transferring communication. Accidentally fostering cynicism by not walking the talk.
Ensuring support for company hardware and software The People – i.e. Company software The Processes and systems – i.e. Company hardware
People and systems capability People capability – Software Are the skills and knowledge existent (in many cases new competencies) in order for people to operate in the new world? Systems capability – Hardware Includes the functionality, capacity, capability and reliability of organizational systems to support the delivery of required outputs throughout the change initiative e.g. IT and performance management procedures and systems, organizational structures etc.
People capability Delivering training is not just knowledge transfer…it wanting behaviour to change… Just as you would draw up a detailed plan to communicate…draw up a detailed plan to train. In order to ensure the plan works well, have the right: Learners – employees, customers, vendors? Learning – does the change content match the change objective? Time – too late…employees are demoralized…too early…employees forget. Method – ensuring the correct method of delivery for actionable outcome. Environment – knowledge transfer is one thing…knowledge application in the correct environment is another…
Systems capability A key change-killer…systems that do not support a change imitative destroys enthusiasm and momentum for change. Just as you would draw up a detailed plan to communicate…draw up a detailed plan to train…ensure you have a detailed plan to support systems.
Why have short-term wins? They provide evidence that sacrifice is worth it e.g. spending on short-term initiatives is justified. Reward and recognition for those that are agents of change…positive feedback in small increments is powerful. Helps fine tune the vision and strategies in place...keeps integrity in place. Helps those that block change an opportunity to lessen resistance.
The nature and timing of short-term wins Going over a quick summary of possible anecdotal wins is not the answer… Four characteristics of short-term wins: It’s visible, large numbers of people can see for themselves, results that are real. It’s unambiguous: there can be little argument over the call. It’s clearly related to the initial change vision and objectives established. Results from strong links that ultimately lead to the final prize…long lasting change!
Level 6 – Entrench change and make it stick Change is not only changing infrastructure…it includes changing behaviour/culture – i.e. the way we do things around here. The “construction crew” can only be around while the house is being built. An entrenched well nurtured culture will hold things together. Ensuring your leadership/managerial succession shares and understands the vision
The boss went to Switzerland A tale from John Harris
Why the need to stick around… Ensure that change is entrenched to deal with what may come back and re-surface… Resistance: Always waiting to reassert itself. No matter how successful your change effort/initiate maybe, there will always be the “resistance coalition”. The key is to create a new equilibrium that is entrenched into organizational culture. A change initiative that becomes the culture and not a series of sub-cultures trying to make a stand…
Why the need to stick around… B A F The spider web principle: The problem of interdependence. Organizations are made up of several interdependent parts e.g. making one change to Production may have a profound impact on the Sales Department’s functions etc. The days of independent stable parts of an organization are quickly disappearing e.g. acquisitions of varied business lines. Eliminate unnecessary interdependencies…create a structure conducive to change C D E
Summary – Making it stick Success looks like… More change, not less – The guiding team will gain credibility by short-term wins until a point of equilibrium. More help – Additional people are brought in, promoted and developed to help with all the changes. Leadership from senior management – Senior people focus on maintaining clarity of shared purpose…and keeping urgency levels up. Empowerment below – Lower ranks in the hierarchy are empowered to provide leadership and management. Reduction of unnecessary interdependencies – making change easier in both short-term and long term initiatives.