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Change management in hard times

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Change management in hard times

  1. 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. 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. 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. 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. 5. The Change Problem (Change) Current Future State State (Unfreeze) (Refreeze) Transition Path © Fred Nickols 2013 5
  6. 6. Force Field Analysis © Fred Nickols 2013 6
  7. 7. A Psychological View (Neutral Zone) Current Future State State (Letting Go) (New Beginnings) Transition Path © Fred Nickols 2013 7
  8. 8. CM: An Endless Loop © Fred Nickols 2013 8
  9. 9. A Positive Cycle © Fred Nickols 2013 9
  10. 10. Life Cycle Growth, Startup Chaos & Success Institution Ostrich Demise Organization © Fred Nickols 2013 10
  11. 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. 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. 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. 14. Tip #2 Avoid Carelessness & Over-Confidence © Fred Nickols 2013 14
  15. 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. 16. Tip #4 Don’t Sacrifice the Long-Term View © Fred Nickols 2013 16
  17. 17. Facets of Change  Structure  Strategy  Systems  Processes  Culture  People © Fred Nickols 2013 17
  18. 18. Tip #5 Adapt Your Approach to Fit the Change at Hand © Fred Nickols 2013 18
  19. 19. Elements © Fred Nickols 2013 19
  20. 20. Tip #6 Visualize Your Organization and the Changes in and to It © Fred Nickols 2013 20
  21. 21. An Enterprise View © Fred Nickols 2013 21
  22. 22. The Big Picture © Fred Nickols 2013 22
  23. 23. Tip #7 Understand All Three Domains of Performance © Fred Nickols 2013 23
  24. 24. Performance Pyramid © Fred Nickols 2013 24
  25. 25. Return on Equity © Fred Nickols 2013 25
  26. 26. Load Rate © Fred Nickols 2013 26
  27. 27. Changing Behavior © Fred Nickols 2013 27
  28. 28. The Mix of Work © Fred Nickols 2013 28
  29. 29. GAP-ACT (Target) Model © Fred Nickols 2013 29
  30. 30. Tip #8 Get Good Counsel © Fred Nickols 2013 30
  31. 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. 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. 33. Tip #10 Share, Share, Share; Listen, Listen, Listen © Fred Nickols 2013 33
  34. 34. Tip #11 Do Some Homework and Get Connected © Fred Nickols 2013 34
  35. 35. Tip #12 Break Down Boundaries and Don’t Stand on Formalities © Fred Nickols 2013 35
  36. 36. Tip #13 Don’t Make Slashing Staff Your First Move © Fred Nickols 2013 36
  37. 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. 38. Tip #14 Refocus and Reallocate Resources © Fred Nickols 2013 38
  39. 39. Tip #15 Manage the Emotional Reactions © Fred Nickols 2013 39
  40. 40. The “Natural” Process © Fred Nickols 2013 40
  41. 41. A Managed Process © Fred Nickols 2013 41
  42. 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. 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. 44. Tip #16 Engage and Involve Your People  Sponsors  Architects  Champions  Straw Bosses  Envoys  Brokers  Mechanics  Pawns © Fred Nickols 2013 44
  45. 45. Employee Engagement © Fred Nickols 2013 45
  46. 46. Energy Equations © Fred Nickols 2013 46
  47. 47. Tip #17 Hone Your Political Skills © Fred Nickols 2013 47
  48. 48. Tip #18 Pay Attention to ALL Your Stakeholders © Fred Nickols 2013 48
  49. 49. Tip #19 Encourage Divergent Views © Fred Nickols 2013 49
  50. 50. The Question How do you manage change? (In Hard Times or in Good) © Fred Nickols 2013 50
  51. 51. My Answer You don’t. Not in good times or bad. © Fred Nickols 2013 51
  52. 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. 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. 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. 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. 56. Further Reading  Managing Transitions by William Bridges  www.skullworks.com  Change Management 101: A Primer  Change Management in Hard Times  A Change Management Bibliography © Fred Nickols 2013 56
  57. 57. Q&A © Fred Nickols 2013 57
  58. 58. Contact Information Fred Nickols Managing Partner Distance Consulting, LLC (740) 504-0000 fred@nickols.us www.nickols.us “Assistance at a Distance”SM © Fred Nickols 2013 58

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