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Leading Change
 

Leading Change

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This ebook talks about how to make the organizations strong enough to absorb uncertainty and to welcome abundance.

This ebook talks about how to make the organizations strong enough to absorb uncertainty and to welcome abundance.

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    Leading Change Leading Change Presentation Transcript

    • Leading change CHRISTOPHER P. JOCK Make the organization strong enough to absorb uncertainty and to welcome abundance
    • /02 Leadership Change Management Governance Risk & Compliance Innovation
    • Comfort with change is essential to vibrancy /03
    • John Kotter, professor and authority on management and leadership, has influenced generations of global business leaders with his perspective on strategy and management. Centered in the philosophy of leading change, Kotter’s model is now deployed in virtually any organization that decides to put a measurable structure around a change in strategy and operations. Over time and something of a contradiction to Kotter’s teaching, these highly articulated programs have come to fall under the rubric “change management.” As a process, change management matured in the last two decades of the twentieth century. Almost as if to ensure that organizations would take them seriously, most change management initiatives emphasized consistent execution of carefully designed and orchestrated tactics. Management teams wanted to make sure that employees understood they were serious about making changes. Yet many change initiatives wound up disconnected from the strategic center of companies—often because those strategic centers themselves had been compromised by a demand for quarterly results and statistic-of-the-month spin. Navel-gazing also was a risk, often to the detriment of customer focus and a forward orientation. Comfort with change is essential to vibrancy /04
    • Still striving to find some equilibrium in this new century, workers are enduring the kind of shift to new processes that our forebears in the last century had to master. Now companies must grapple with the explosion of digital and personal technologies and their impact on every aspect of doing business: customer expectations for experience and relationship; emerging competitors’ product innovations; exponential masses of data; and a new definition of employee commitment. No industry is untouched by the digitization of production and communication. Besides the personal change required of every individual, organizations must pivot without compromising performance. On the other side of these pivots is the talent-wise organization. Access to a wide variety of talent is a significant byproduct of the networked globe. Online technology makes it possible to sell goods and services without boundaries of time and place. Just as a brick-and-mortar retailer adds temporary staff around year-end holidays, another company might retain outsourced workers for big production projects throughout the year. Depending upon the company and if the work can be performed remotely, however, the outsourced workers may be continents away from the employer. They also might work via project contracts and not ever attain full-time employment status. /05Comfort with change is essential to vibrancy
    • For mid-career managers who entered the workforce in the 1980s and 1990s, there was no preparation for managing employees who are not just steps away. That entire teams could be assembled project by project, on a freelance basis, with only a few, if any, actual employees is also a significant shift. Perhaps the strangest concept is becoming a contractor oneself and understanding the bright side of having more than one employer and multiple skillsets. The earth is shifting under everyone. For change management initiatives, classic means of inventing, planning and executing change—always a risk—now require much more than textbook implementation practices. In the short term, change management means introducing new values and practices to the cultures of most companies. Besides new modes of employment, companies and people most likely will have to move through constant change in performance methodologies and product features, due to the incessant development and addition of technology. They’ll have to discern between distraction and utility with each new platform or feature that appears in their information systems. /06Comfort with change is essential to vibrancy
    • Over the long term, the capacity to pivot quickly and effectively will become a basic element of organizational existence. Senior executives can expect strategy implementation timelines not just to shorten but to adjust to market developments in the moment. Real time now means immediately. As workers take on more personal visibility through social networks and maybe even self-publish content about their careers and work lives, they in effect become representatives of their companies’ brands. Company leaders will have to account for employee word-of-mouth in executing changes to products and services—and think about how to leverage it. Doing business is going to require unanticipated levels of human and organizational energy. The prospect of changing people and companies may be more complex than ever but it is also much more exciting. In the hands of leaders, change can rejuvenate more than organizations. Change can resuscitate languishing aspiration. Leading change could become the most important management skill. /07Comfort with change is essential to vibrancy
    • /08 Leading change is different from managing change
    • Ron Ashkenas, author and management consultant, writes that companies invest greatly in change management tools yet demonstrate a 60 to 70 percent failure rate in the resulting projects. While this comes from a circa 2010 report, he says this statistic has remained relatively the same since the 1970s. Ashkenas goes on to declare, “the content of change management is reasonably correct, but the managerial capacity to implement it has been woefully underdeveloped.” The executives in the 30 percent of companies that succeed would agree. They have the scars to prove it. Many of them prefer the “smaller” problems of penetrating new markets and rolling out new products. Getting people to endorse new practices and steer into change is that difficult a task. Yet they did it, and do it every day. These executives typically use John Kotter’s model—The 8-Step Process for Leading Change—listed in his words below, as their template. Leading change is different from managing change /09
    • Kotter named his model carefully and says this about the difference between change management and change leadership: “These terms are not interchangeable. The distinction between the two is actually quite significant. Change management, which is the term most everyone uses, refers to a set of basic tools or structures intended to keep any change effort under control. The goal is often to minimize the distractions and impacts of the change. Change leadership, on the other hand, concerns the driving forces, visions and processes that fuel large-scale transformation.” Step 1: Establish a sense of urgency. Help others see the need for change and they will be convinced of the importance of acting immediately. Step 2: Create the guiding coalition. Assemble a group with enough power to lead the change effort, and encourage the group to work as a team. Step 3: Develop a change vision. Create a vision to help direct the change effort, and develop strategies for achieving that vision. Step 4: Communicate the vision for buy-in. Make sure as many staff as possible understand and accept the vision and the strategy. Leading change is different from managing change /10
    • Step 5: Empower broad-based action. Remove obstacles to change, change systems or structures that seriously undermine the vision; and encourage risk-taking and nontraditional ideas, activities, and actions. Step 6: Generate short-term wins. Plan for achievements that can easily be made visible, follow through with those and achievements, and recognize and reward the employees who were involved. Step 7: Never let up. Use increased credibility to change systems, structures and policies that don’t fit the vision. Also hire, promote and develop employees who can implement the vision. Finally, reinvigorate the process with new projects, themes and change agents. Step 8: Incorporate changes into the culture. Articulate the connections between the new behaviors and organizational success, and develop the means to ensure leadership development and succession. Leading change is different from managing change /11
    • Management Leadership Planning and budgeting Creating and strategizing Organizing and staffing Communicating and clarifying Controlling and solving problems Motivating and aligning Reducing complexity and increasing efficiency Imbedding and sustaining agile technologies The executives who succeed in leading change give company initiatives their personal attention and the highest level of priority. Essentially, these executives own the change themselves. They are coaches, evangelists, champions—but they are also the first to make changes in their own processes and the last to ignore any challenge to their thinking. They inspire people to adapt by evolving themselves. They make change a part of their organizations’ genetic code in three ways. 1 Change leaders put skin in the game. They bet their careers on the ability to inspire career and organizational pivots. Leading change is different from managing change /12
    • 2 Change leaders are personally close to employees. They do more then step out of the executive suite; they work side-by-side with the people implementing change. Change leaders recognize that not all change is led from the executive suite. 3 Change leaders like change and are good at it. They come to depend upon change as an aspect of professional vitality and management effectiveness. This is a different kind of executive profile than what we have come to expect in business. The personalization of technology is making it less acceptable for executives to perform as remote figureheads. Yet beyond the expectation for intimacy that social technology is fostering, there is liberation from tasks and processes that took far longer to complete twenty years ago than they do today. Executives now have the ability to witness the impact of strategic plans more quickly and identify what is working. This frees them to try new things more frequently and scale as appropriate across the organization. Leading change is different from managing change /13
    • /14 The four vital components of making change less mysterious
    • Executives often send a mixed message to organizations. They set an expectation for efficiency and establish markers for measuring it, encouraging workers to operate within those bounds—then they ask people to think outside the box and incorporate new ideas, with little direction for how to apply them efficiently or productively. An appropriate change leadership initiative equips workers to fill the gap between the routine and the possible. It positions change in a positive light, describing the impetus behind the initiative, the desired benefits, and the pain points. Essentially, the logic should be clear enough that even if people do not agree with the need for change, the stage is set for them to come around. Plus, a strong initiative provides something of a roadmap that articulates the logic stream and offers flexibility around its implementation. The overall spirit of a change leadership initiative should focus on making the organization resilient and ready to build a comfort level with fairly regular change. Leading change does require a methodology. There are four things it should include: strategy, governance, execution and dialog. Of equal importance, these components equip change leaders to enable good judgment and balance discipline with flexibility. The four vital components of making change less mysterious /15 “Our organizations were never built to be adaptable. Those early management pioneers, a hundred years ago, set out to build companies that were disciplined, not resilient. They understood that efficiency comes from routinizing the nonroutine. Adaptability, on the other hand, requires a willingness to occasionally abandon those routines— and in most organizations there are precious few incentives to do that.” Gary Hamel
    • With strategy, think of the company as an ecosystem with interdependent areas that feed upon shared goals and benefits. The change strategy should make the case for itself based on opportunities as well as problems. To help everyone climb on board, paint a picture—in Kotter’s model, the vision—of your current state and the future state. Make the strategy interesting by using vivid terms that explain data points and the new behaviors that will be required. Be transparent about the schedule, the impact on current responsibilities, and how people can influence the initiative’s success. Invite everyone to engage and make it easy for them to do so. Regarding governance, establish personal accountability as a key success factor. In determining roles and who fills them, identify high performers who can act as everything from sponsors, to champions, to evangelists. They must be strong managers but they must be able to think on their feet, stay focused and continually re-establish context. These are the people who keep the change system moving. They provide resources and information, so they are agile communicators who value interaction—they listen and they share. The most effective change initiatives establish several teams: programming, planning, implementation and training. They’ll use business process maps and manuals to document and communicate progress. Meaningful execution also requires an IT platform and tools that support real-time content sharing and content management. This is essential to optimizing the time spent on approvals /16The four vital components of making change less mysterious
    • and decision-making, keeping it as short and non-bureaucratic as possible. In that regard, communication and problem escalation protocols are best established up front and reflected in the content management plan. Assure seamless execution by positioning the outcome as desirable and the benefits as shared. Most companies have some sort of history with change. The chances of success with the new initiative increase when change leaders review that history to use what works and avoid what does not. Apart from the idiosyncrasies unique to each organization, sharing ownership of the initiative, in terms of both responsibility and reward, boosts execution quality. Training is essential to execution and should extend beyond the introduction of new technologies to include immersion in the business model, customer relations, best practices and staying attuned to industry and competitor developments. These elements help to expose the context for the proposed changes and reinforce the rationale for the initiative. Emphasize dialog as a core value. Like the proposed changes themselves, the process for achieving it must be relevant across the organization. Workers should see the methodology and the proposed end state as doable and appropriate to their roles. People are more likely to remain open when they see that their experience and opinions matter. And it’s always a good idea to ask people if the process is giving them what they need to make the changes. Changed processes that are inaccessible to the organization /17The four vital components of making change less mysterious
    • usually get lip service. The desired change rarely happens on the scale it should—no matter how pressing the need or sensible the initiative. The effectiveness of these four components also can be told in the story of what the company gains from disorder during a transition. Nassim Nicholas Taleb, who has made both controversial and insightful observations in books such as The Black Swan and the recent Antifragile: Things That Gain from Disorder, makes the case for risking collateral damage—i.e., loss of employment, loss of business, loss of market position—during periods that threaten the status quo or even present danger. Taleb attributes risk aversion to the top-down planning motifs of conventional strategy models; he created the word “antifragile” to describe true strength, in a company’s case, as prospering from volatility and emerging stronger from the experience. Taking the body blows inherent in the antifragility concept may be beyond the reach of executives answerable to shareholders and responsible for employees. Yet accepting pain and resistance to strengthen an organization is also a chapter in the story of leading change. /18The four vital components of making change less mysterious
    • /19 KellyOCG’s change leadership touchstones Urgency Engagement Clearance Culture Influence Vision Tangibility Constancy
    • /20 KellyOCG’s change leadership touchstones Urgency Dynamic Imaginative Aspirational Determined Fact-based Compelling Alert Cooperative Influence Collaborative Productive Trustworthy Relevant Credible Driven Warm Understanding Vision Personal Imaginable Desirable Feasible Focused Flexible Relatable Accessible Achievable Engagement Scalable Personally and professionally transformative Imbedded Vivid Democratic Consistent Agile Enthusiastic Clearance Open Obstacles and barriers removed Responsive Current Relevant Respectful Competent Tangibility Real, palpable results Immediate Unambiguous Motivational Optimistic Strategic Proven Constancy Compelling Aligned Demonstrable Grounded Measurable Committed Culture Rooted Shared Understood Reinforced Endorsed Supported Networked
    • /21 The qualities of healthy change
    • Change is often counterintuitive. It is usually contrarian. It is often controversial. Leading change is risky. On a personal level, it often makes a career. It also has been known to break a few. For an organization, change requires context, process and dedication—like any initiative or project, but often with more vigilance to the impact on workers and customers. The qualities of healthy change /22 “The universe is change; our life is what our thoughts make it.” “Observe always that everything is the result of change, and get used to thinking that there is nothing Nature loves so well as to change existing forms and make new ones like them.”  Marcus Aurelius, Roman, on change.
    • /23The qualities of healthy change You have You have not Executed a change leadership model Underestimated the significance of the proposed changes Spent time evaluating the organization’s climate Developed the goals in the executive suite and pushed them top-down Incorporated the change initiative into your project list Delegated leadership of the project Identified and engaged stakeholders from all areas of the organization Invited a select few executives to participate Orchestrated workshops and milestone meetings with representative participation and specific outcomes and measures Assumed people are communicating results and problems Included specific steps for achieving business continuity Left it to business units and departments to roll the initiative into their schedules Gained authentic commitment from all constituents and a plan for winning over the holdouts
    • Kotter International process for leading change “Change Management Needs to Change,” Ron Ashkenas, Harvard Business Review Blog Network, April 16 2013 “Change Management vs. Change Leadership—What’s the Difference,” FORBES, July 12 2011 “Why Companies Need to Change the Way They Change,” Gary Hamel, CNNMoney, April 22 2013 Antifragile: Things That Gain from Disorder, Nassim Nicholas Taleb “Nassim Taleb’s Cure for Fragility,” Larry Prusak, Harvard Business Review Blog Network, November 29 2012 “Marcus Aurelius’ Six Timeless Observations of Life,” Michael Miles, Pick the Brain blog, August 8 2008 /24 Resources
    • EXIT About the Author CHRISTOPHER P. JOCK is vice president and practice leader of Kelly Outsourcing and Consulting Group. Appointed to his current post in 2009, as global leader for KellyOCG’s Center of Excellence (CoE) for Global Managed Solutions, Jock works with his team to assist companies with the operational management of their core and non-core functions, ensuring and increasing efficiency, productivity and quality. No stranger to effecting and leading organizational change and transformation of varying size and complexity, he has been involved in well over thirty such projects while engaged in various roles over his career. He is well-suited and suitably experienced to be a trusted advisor to organizations that might find themselves in similar situations. He is responsible for strategy, brand relationship management and business development and support for Managed Solutions worldwide. About KellyOCG KellyOCG® is the Outsourcing and Consulting Group of workforce solutions provider Kelly Services, Inc. KellyOCG is a global leader in innovative talent management solutions in the areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Contingent Workforce Outsourcing (CWO), including Independent Contractor Solutions, Human Resources Consulting, Career Transition and Executive Coaching, and Executive Search. KellyOCG was named in the International Association of Outsourcing Professionals® 2013 Global Outsourcing 100® list, an annual ranking of the world’s best outsourcing service providers and advisors. KellyConnect is a pioneer in the set-up and maintenance of virtual workplaces. We have access to local talent via 440 Kelly-owned branches across the US. We combine this with the intellectual property of understanding how to deliver plug-and-play technology solutions (if you don’t have your own). Further information about KellyOCG may be found at kellyocg.com. For more thought leadership go to talentproject.com