Leading Change_Teigland

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My presentation and exercises on Leading Change for an Executive Education program. The presentation includes an exercise in which the participants work in groups on a live change project within their organization during a period of three months. Please let me know if you have any questions.

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  • 10:30-11:20 Slides 11:20 to 12:00 Tata case 12:00-12:30 Presentation 13:30 to 14:00 Project intro 14:00 to 15:35 Project work plus break 15:45 to 17:00 Presentations and wrap-up 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.
  • Beer 2002, Ridderstråle & Wilcox 2008 Of companies in original S&P 500 in 1957 426 companies ceased to exist by 1997 Only 12 (2.4%) outperformed S&P 500 index in 1997 Of top 100 companies in Korea in 1955 Only 7 still on list in 2004 1997 crisis destroyed half of 30 largest conglomerates
  • The participants were to read in advance Our Iceberg is Melting . Below are instructions for this. Preparation for the Leading Change Module   Read the book, Our Iceberg is Melting , by Professor John Kotter along with his article in Harvard Business Review , Leading Change: Why Change Transformation Efforts Fail.   Prepare answers to the following questions. We will discuss your answers in our Leading Change session during the first week of the Tieto Accelerator Program.   Questions   The Story What are the key events and phases of change in this story? Who are the key characters in the story? What are their roles throughout the phases of change in the story?   Your Experience with Change Reflect on a couple of your more significant experiences with change (both successful and unsuccessful). Which events/phases of change from the Iceberg story do you recognize in your experience? Did you experience all the phases or only some of them? Why or why not? Do you recognize any of the key characters in these change experiences? Freds, Alices, Nonos? Other? Reflect on your own role in these change experiences. Which characters did you play in these? Were these change experiences successful? Why or why not? How do the outcomes differ from that of the Iceberg story?   Your Organization Reflect on your organization at Tieto. What is your iceberg and what does it look like? Is it melting? Does it have fissures? Is there a clear and simple message about the future and what it may look like that is understood by all? Are you and your team most concerned with success in catching fish today or planning for what may come tomorrow? What does your team look like? Reflect on who the Nonos, Freds, Alices, Buddies, etc. are. How well balanced is it in terms of having the “right” characters? Do you have enough/too many/too few? Who will adopt the necessary roles if no one else is doing it? What do you have to do to lead/encourage/support the people 'stepping up'? What can you do about the Nonos?    
  • 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.
  • Robotics – wipe out china production in 10 years says singularity university Native american values Asian values Great disruption – fossil fuel Peak technologies – car peaks – australia – young generation not driving cars …
  • Constraint/Impact of organization ’s history - path dependency Poor decision making!
  • http://www.youtube.com/watch?v=w3IbKbDhfKw
  • 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
  • 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
  • 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
  • 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
  • This may seem like “consulting jargon” – but a sense of control is essential for peoples experience of stressful events. Research on stress shows that the percieved control is a central mediator for stress. How can this sense of control be created in a change proces involving many people? I would like to hear from you: How many of you have been part of what you would consider a participative change process?
  • http://www.cisco.com/warp/public/126/chmgmt.shtml
  • 1:30 – 3:30 intro and groupwork 3:30 – 5:00 presentations and discussion
  • This may seem like “consulting jargon” – but a sense of control is essential for peoples experience of stressful events. Research on stress shows that the percieved control is a central mediator for stress. How can this sense of control be created in a change proces involving many people? I would like to hear from you: How many of you have been part of what you would consider a participative change process?
  • 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 stakeholder 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 stakeholder 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 stakeholder 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.
  • 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?
  • This may seem like “consulting jargon” – but a sense of control is essential for peoples experience of stressful events. Research on stress shows that the percieved control is a central mediator for stress. How can this sense of control be created in a change proces involving many people? I would like to hear from you: How many of you have been part of what you would consider a participative change process?
  • Phases?
  • 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
  • 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?
  • 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?
  • Phases?
  • Leading Change_Teigland

    1. 1. Leading Change: Integrating Theory and Practice Robin Teigland Center for Strategy and Competitiveness Stockholm School of Economics robin.teigland@hhs.se Twitter: RobinTeigland www.knowledgenetworking.org August 2013
    2. 2. Who am I? (LinkedIn Inmaps) SS E IFL Swedish Industry ResearchWharton Stanford McKinsey SSE MBA
    3. 3. 3 Agenda Afternoon 1. Live Project Groupwork 2. Some Change Tools Morning 1. What is Change 2. Kotter’s 8 Stages 3. Groupwork Going Forward
    4. 4. 4 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 company  To provide participants with an interactive and reflective team experience in which everyone (participants and faculty) learns together
    5. 5. Jack Welch… 5 "...when the rate of change outside an organization is greater than the change inside, the end is near...."
    6. 6. Competitive advantage increasingly based on organization’s ability to change  Of original Forbes 100 in 1917 - 61 companies ceased to exist by 1987 - 18 of remaining 39 underperformed market by 20% - Only 2 beat market index (GE & Eastman Kodak) - Only 1 (1%) today!  Average S&P 500 company lifespan  1920s – 67 years  2010s – 15 years  Dr. Richard Foster, Yale, Sept 2012  Today's rate of change is at faster pace than ever  By 2020 prediction is >75% of S&P 500 will be companies we do not know about today http://www.fastcompany.com/3001444/what-zara-pg-and-berlitz-know-about-agility
    7. 7.  Only 20-30% of all change projects achieve full value  Less than 20% of anticipated value from M&A materialized  Only 25% of JVs stay together 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! So, are change initiatives successful? Beer 2002, Gratton 2007, Maurer and Co
    8. 8. 9 Your experience with change Discuss in pairs Choose one of your more significant experiences with change (either successful or unsuccessful). Which events/phases of change from the Iceberg story do you recognize in your experience? Did you experience all the phases or only some of them? Why or why not? Do you recognize any of the key characters in this change experience? Freds, Alices, NoNos? Other? Reflect on your own role in this change experience. Which character(s) did you play in these? Was this change experience successful? Why or why not? How does the outcome differ from that of the Iceberg story? www.ouricebergismelting.com
    9. 9. Organizational Change  An alteration of an organization’s environment, structure, culture, technology, or people  A constant force  An organizational reality  An opportunity or a threat  Change agent  A person who initiates and assumes the responsibility for leading a change in an organization 10
    10. 10. 12 Change focus Burnes 2004 Small-scale change Large-scale change Rapid changeSlow 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. 11. 13 What triggers change?
    12. 12. 14 PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technological Legal Social Economic Organization
    13. 13. PeoplePeople • ““Net generation”Net generation” • 24x7 “mobile” workforce24x7 “mobile” workforce • Social entrepreneurshipSocial entrepreneurship TechnologyTechnology • Broadband accessBroadband access • Mobile hardwareMobile hardware • ICTsICTs • 3D printing3D printing Open SourceOpen Source • SoftwareSoftware • HardwareHardware • PhysiblesPhysibles Convergence of….. FinanceFinance • Microlending/microfinanceMicrolending/microfinance • Crowdfunding/equityCrowdfunding/equity • Digital, non-fiat currenciesDigital, non-fiat currencies
    14. 14. 17 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
    15. 15. 18 Pressures from one area can affect the entire organization Political Environmental TechnicalLegal Social Economic Culture Systems Vision Strategy Structure People
    16. 16. 19 A new opportunity??? But every challenge is…..
    17. 17.  Only 20-30% of all change projects achieve full value  Less than 20% of anticipated value from M&A materialized  Only 25% of JVs stay together 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% Remember…. Are initiatives successful? Beer 2002, Gratton 2007, Maurer and Co Why? According to Fortune 500 executives, resistance/people not accepting changes
    18. 18. Why do people resist change? 21 Prentice Hall 2002
    19. 19. 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. People react differently... Rogers 1983, 1995
    20. 20. Reactions to change distribution Rogers 1983, 1995
    21. 21. 27 Say the color, not the word YELLOW BLUE ORANGE BLACKBLACK GREEN PURPLE YELLOW RED ORANGEORANGE GREEN BLACK BLUE Stroop
    22. 22. 28 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
    23. 23. 29 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
    24. 24. 3030 Tata Motors
    25. 25. 3131 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
    26. 26. 32 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
    27. 27. 33 1. Establish sense of urgency Forces for change Forces for stability The status quo Burnes 2004http://www.youtube.com/watch?v=U5802FBaMSI
    28. 28. Force field modelWhoandWhatCanChangeWhoandWhatCanChange Lewin 1947, 1951; Iles & Southerland, 2001
    29. 29. 35 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
    30. 30. 36 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
    31. 31. 37 Who has informal power in the organization? Teigland 2003
    32. 32. 38 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
    33. 33. 39 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 leadersBut listen as well!! Adapted from Kotter 1996
    34. 34. 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
    35. 35. 41 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
    36. 36. Barriers to empowerment 42Kotter 1996
    37. 37. 43 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
    38. 38. 44 7. Consolidate improvements and produce more change Change Project 1 Change Project 2 Change Project 3 Time Scope of change Adapted from Kotter 1996
    39. 39. 45 8. Anchor new approaches Company culture Physical artifacts activities and routines Underlying values, assumptions, beliefs, and expectations Intangible Adapted from Kotter 1996
    40. 40. 46 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
    41. 41. Involving people in the change 48 http://www.mckinseyquarterly.com/What successful transformations share
    42. 42. People don’t resist change – they resist being changed From recipients of change to co-creators of change
    43. 43. 52 Your Iceberg  Reflect on your organization. What is your iceberg and what does it look like? Is it melting? Does it have fissures?  Is there a clear and simple message about the future and what it may look like that is understood by all?  Are you and your team most concerned with success in catching fish today or planning for what may come tomorrow?  What does your team look like? Reflect on who the Nonos, Freds, Alices, Buddies, etc. are. How well balanced is it in terms of having the “right” characters? Do you have enough/too many/too few? Who will adopt the necessary roles if no one else is doing it?  What do you have to do to lead/encourage/support the people 'stepping up'? What can you do about the Nonos?
    44. 44. 53 Agenda Morning 1. What is Change? 2. Kotter’s 8 Stages 3. Groupwork Going Forward Afternoon 1. Live Project Groupwork 2. Some Change Tools
    45. 45. 58 In your groups ….. Choosing the Change Project
    46. 46. 59 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 your 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 stakeholder. ”This is something we would like to do!!”
    47. 47. 60 Change focus Burnes 2004 Small-scale change Large-scale change Rapid changeSlow change Level: The organization Focus: Structures & processes Level: The organization Focus: Culture Level: Individual/group Focus: Tasks & procedures Level: Individual/group Focus: Attitudes/behavior
    48. 48. 61 Better to choose a more narrow, specific focus!
    49. 49. 62 You will present your projects in Module 3
    50. 50. 63 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 Stakeholder?
    51. 51. 64 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. 52. 65 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 http://www.mindtools.com/pages /article/newPPM_07.htm
    53. 53. 66 Stakeholder analysis Stakeholder Block Let Help Make Diagnosis of stakeholder position Recommended action to move to desired position Adapted from Nader, NTL Current (C) & Desired (D) position regarding the Change
    54. 54. Involving people in the change 67 http://www.mckinseyquarterly.com/What successful transformations share
    55. 55. People don’t resist change – they resist being changed From recipients of change to co-creators of change
    56. 56. 70 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”!
    57. 57. 71 Your Live Project Iceberg  Reflect on your live project. What is the iceberg and what does it look like? Is it melting? Does it have fissures?  What is the clear and simple message about the future that may be understood by all?  What does the set of stakeholders look like? Reflect on who the NoNos, Freds, Alices, Buddies, etc. are. Do you have enough/too many/too few? Who will adopt the necessary roles if no one else is doing it?  What do you have to do to lead/encourage/support the people 'stepping up'? What can you do about the NoNos?
    58. 58. 72 Agenda Morning 1. What is Change? 2. Kotter’s 8 Stages 3. Groupwork Going Forward Afternoon 1. Live Project Groupwork 2. Some Change Tools
    59. 59. 73 Tools to achieve the “transformation” 1. Conduct stakeholder analysis 2. Develop clear project charter and roll out plan 3. Develop communication plan 4. Conduct risk analysis 5. Develop measurement plan
    60. 60. 90 Morning 1. What is Change? 2. Kotter’s 8 Stages 3. Groupwork Afternoon 1. Live Project Groupwork 2. Some Change Tools Agenda Going Forward
    61. 61. Timeline  Sept 9 (8:00 am Stockholm): Change project statement, should be agreed with Project Stakeholder  Oct 7 (8:00 am Stockholm): Progress report  Timeline to completion  Progress to date, what achieved (Kotter, frameworks, method, sources, etc.)  Issues/challenges outstanding with project  Ideas to overcome issues/challenges  Update on communication with Stakeholder  Module 2: Respond to feedback and develop implementation plan  Nov 22 (8:00 am Stockholm): Progress report  Communication plan  Risk analysis  Issues / challenges and how to overcome  Update on communication with Stakeholder  Dec 5: Module 3 – presentation
    62. 62. 92 Moving forward  Coordinate with Stakeholder and invite to Module 3 presentation  Provide brief update Friday morning on Thursday evening’s progress (remember Kotter’s 8 stages!)  Prepare and submit inter-module progress report  By email  Module 2  Scheduled working time during Module 2  Each team submits its presentation ● By email  Prepare and submit inter-module progress report  Submit by email
    63. 63. 93 Moving forward  Coordinate with Stakeholder and invite to Module 3 presentation  Provide brief update Friday morning on Thursday evening’s progress (remember Kotter’s 8 stages!)  Prepare and submit inter-module progress report  By email  Module 2  Scheduled working time during Module 2  Each team submits its presentation ● By email  Prepare and submit inter-module progress report  Submit by email
    64. 64. 95 Module 3 - Final Presentation  Each team has 15 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 and Stakeholders will provide further comments  Each team submits its presentation ● By email
    65. 65. 96 See you in Module 3!! Good luck with your projects!!

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