ISB group presentation_Change of mngt subject

1. GROUP: NUMBER ONE
1. LE THI HOANG LAN
2. TRUONG THI XUAN THAO
3. DO THI TUYET NHUNG
4. TRAN NGAN HA

2. WHY IS CHANGE SO HARD?
 Most people are reluctant to alter their habits;
 What worked in the past is good enough;
 Resistance is even stronger if the organization has
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succession of leaders;
 „Call for sacrifice and self discipline is met with
cynicism, skepticism and resistance.
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3. For change to stick, leaders must
design and run an effective
persuasion campaign
To create a continuously receptive
environment for change
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4. THE FOUR PHASES OF A
PERSUASION CAMPAIGN
Example:
The turnaround of Beth Israel Deaconess Medical
Center (BIDMC) in Boston was managed by Paul
Levy, who became CEO in early 2002.
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5. BIDMC’S PROBLEM?
- A misguided focus on clinical practice rather than backroom
integration
- A failure to cut costs
- The repeated inability to execute plans and adapt to
changing conditions in the health care marketplace
 The hospital was losing $50 million a year
 Relations between the administration and medical staff
as well as between management and the board of directors
were strained
 Employees felt demoralized, having witnessed the
disappointing failure of its past leaders.
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6. PHASE 1. SETTING THE STAGE
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Convince employees that radical
change is imperative; demonstrate why
the new direction is the right one

7. PHASE 1. SETTING THE STAGE
In BIDMC: Levy…
…Chose to act as the managerial equivalent of a good
doctor
…Developed a bold message that provided compelling
reasons to do things differently and then cast that message
in capital letters to signal the arrival of a new order.
…Described the open management style he would adopt.
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8. PHASE 2. CREATING THE FRAME
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Effective leaders need to help employees
interpret the plans for change.
With complex plans, skilled leaders use
“frame” to provide context and shape
perspective. This way, leaders can help
people digest ideas in particular way.

9. PHASE 2. CREATING THE FRAME
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FOR BIDMC
A
detailed
email
memo
1st part –
modify critics,
reduce the fears of
doctors and nurses
2nd part –
provide further
detailed about the
turnaround plan 3rd part –
anticipate and
respond to
prospective
concerns

10. PHASE 3. MANAGING THE MOOD
 Leaders must pay close attention to employees’ emotions
– the ebb and flow of their feelings and moods - and work
hard to preserve a receptive climate for change.
 This requires a delicate balancing between presenting
good and bad news in just the right proportion.
 Employees need to feel that their sacrifices have not been
in vain and their accomplishments have been recognized
and rewarded.
 Communication must strike the right notes of optimistic
and realism and carefully calibrate the timing, tone, and
positioning of every messages.
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11. PHASE 3. MANAGING THE MOOD
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For BIDMC:
Challenges for leader (Paul Levy):
• To give remaining employees to grieve and
recover from layoffs and other difficult
measures
• To make them feel that he cared for and
supported them
• To ensure that the turnaround plan
proceeded apace.

12. PHASE 3. MANAGING THE MOOD
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FOR BIDMC
Actions: balance bad news and good news
To acknowledge employees’ feeling of depression
while helping them look to the future
• In an email, Levy explicitly empathized with employees’
feelings and then urged employees to look forward and
concluded on a strongly optimistic note.
To keep employees focused on the continuing
hard work ahead
• Spoke plainly about the need to control costs and reminded
employees that merit pay increase would remain on hold.

13. PHASE 4. REINFORCING GOOD HABITS
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EFFECTIVE CHANGE LEADER should:
• Personally model new ways of working and provide
coaching and support.
• Explicitly reinforce organizational values on a constant
basis, using action to back up their words.
• Recognize that many staff simply do not know how to
make decisions as a group or work cooperatively, and
accordingly delegate critical decisions and responsibilities
to provide them with ample opportunities to practice new
ways of working.

14. PHASE 4. REINFORCING GOOD HABITS
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FOR BIDMC
- Levy had established meeting rules requiring staff to
state their objections to decision and to “disagree without
being disagreeable”.
- When one medical chief emailed Levy, complained about
a decision had made during a meeting and copied the
other chief and board chairman- Levy took action.
- He responded the email with the same audience publicly
reprimanding the chief for his tone, lack of civility, and
the failure to follow the rule about speaking up during
meetings.

15. CONCLUSION
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In a receptive environment, employees not only
understand why change is necessary; they’re also
emotionally committed to making it happen, and
they faithfully execute the required steps.

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THANK YOU FOR
YOUR LISTENING !