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Delivering Transformational Change

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How to maximise chances of success and minimise risk. Slides extracted from a longer presentation.

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Delivering Transformational Change

  1. 1. Delivering Transformational Change How to maximise chances of success and minimise risk Phil Walker WTT Results Ltd www.wttresults.co.uk
  2. 2. Transformation & Change <ul><li>Transformation: “A complete change in the appearance or character of something or someone, especially so that they are improved” </li></ul><ul><li>Change: “To make or become different, or to exchange one thing for another thing, especially of a similar type” </li></ul>
  3. 3. Similarities and differences <ul><li>“ Complete change” = transformation </li></ul><ul><li>Change has a tendency to be gradual, incremental, linear, understood and resisted </li></ul><ul><li>Transformation is orders of magnitude bigger and more complex and takes significant time and resources </li></ul><ul><li>Transformation is often not understood, but is often also resisted </li></ul><ul><li>Both can be reversed </li></ul><ul><li>People are affected by both and have their own agendas </li></ul><ul><li>Most transformation programmes fail, as do change programmes </li></ul><ul><li>Successful programme management of both looks pretty similar – the same factors drive programme success or failure </li></ul>
  4. 4. Change is the new normal <ul><li>Over a two-year period, the percentage of CEOs expecting substantial change climbed from 65% in 2006 to 83% in 2008 </li></ul><ul><li>CEOs reporting they had successfully managed change in the past rose just 4%, up from 57% in 2006 to 61% in 2008 </li></ul><ul><li>Disparity between expecting change and feeling able to manage it – the “Change Gap” – nearly tripled between 2006 and 2008 (from 8 to 22) </li></ul>
  5. 5. How many programmes fail? <ul><li>IBM found only 41% of programmes were successful (to time, quality & budget). 44% missed at least 1 objective and 15% failed completely </li></ul><ul><li>The top 20% of organisations are successful 80% of the time. The bottom 20% only manage to achieve their change objectives 8% of the time </li></ul><ul><ul><li>The top 20% of companies are ten times more likely to lead a successful change initiative than the bottom 20%. </li></ul></ul><ul><li>A study commissioned by Logica found companies surveyed in the UK lose £1.7 billion a year from failed change initiatives </li></ul><ul><li>McKinsey & Co. found about 2/3 of programmes “grind to a halt because of their failure to produce the hoped-for results” </li></ul><ul><li>This is not just about I.T. although I.T. is often a part of it. One study found that 9 out of 10 organisations failed to correctly implement their strategic plans </li></ul>
  6. 6. The importance of communication <ul><li>Many leaders are good at building the rational case for change, but they are less comfortable in appealing to the emotional core of people. </li></ul><ul><ul><li>Yet the momentum for real transformation comes from the emotional connection of the people </li></ul></ul><ul><li>Programme communications need to be targeted to each and every group of employees </li></ul><ul><li>They must provide two-way capability in order to </li></ul><ul><ul><li>allow people to make sense of the change in their terms </li></ul></ul><ul><ul><li>enable those who want to contribute to feel that they are doing so </li></ul></ul><ul><ul><li>Keep the “coal face” and the “leadership” connected </li></ul></ul>
  7. 7. The importance of environment <ul><li>Transformation and change asks people to do things differently. </li></ul><ul><li>This can lead to anger, anxiety, alarm, confusion, resistance and the like. </li></ul><ul><li>These feelings exist and need to be eased by creating and nurturing an environment of trust, honesty, openness, empowerment and involvement </li></ul><ul><li>Most managers use a “right-brain” approach, using logic, analysis, figures and so on </li></ul><ul><li>In addition, it is necessary to use a “left-brain” approach to promote the emotional case for change </li></ul><ul><li>The rational and emotional elements of the appeal need to be aligned </li></ul>
  8. 8. The power of celebration <ul><li>Success breeds success </li></ul><ul><li>Small wins build confidence </li></ul><ul><li>Others notice and recognise success </li></ul><ul><ul><li>Establishes template for new action/behaviour </li></ul></ul><ul><li>Celebration:- </li></ul><ul><ul><li>boosts morale and confidence, </li></ul></ul><ul><ul><li>recognises people’s hard work, </li></ul></ul><ul><ul><li>keeps up the momentum, </li></ul></ul><ul><ul><li>combats cynicism/scepticism about the programme </li></ul></ul><ul><li>“ Feel good” does more than it says on the tin </li></ul>
  9. 9. Kotter’s 8 phases <ul><li>Establish a sense of urgency </li></ul><ul><li>Form a powerful guiding coalition </li></ul><ul><li>Create a vision </li></ul><ul><li>Communicate the vision </li></ul><ul><li>Empower others to act on the vision </li></ul><ul><li>Plan for and create short-term wins </li></ul><ul><li>Consolidate improvements, keep the momentum for change moving </li></ul><ul><li>Institutionalise the new approaches </li></ul>
  10. 10. A thought &quot;And it ought to be remembered that there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Because the innovator has for enemies all those who have done well under the old conditions, and lukewarm defenders in those who may do well under the new.&quot; Nicolo Machiavelli c.1505
  11. 11. Delivering Transformational Change Thank you Phil Walker WTT Results Ltd www.wttresults.co.uk

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