Change Management

1
Change Management

• Prof. Steve Phelan
• Lecture 15

2
Today

• LMZ Chs 37-38
• OD in the entrepreneurial firm (1997)
• OD in turnaround situations (1998)
• Downsizing Cases
• Managing to communicate (1993)
• Mark Margolis Emilio Kornau
• Broadway Brokers Simulation

3
OD in entrepreneurial firms

• Basic message
• Cant ignore governance issues and family
  dynamics
• Why?
• Do you want to be king or do you want to be
  rich? issue
• Different stages of firms
• Startup, growth, succession stages different
  issues
• OD interventions almost call for a shrink
• Author even advocates clinical approach
• How much is OD beholden to clinical psychology?

4
OD in turnaround situation

• Basic message
• OD is not much use in crisis
• Takes too long and costs too much
• It may be useful in decline stage or in recovery
  from turnaround
• Author claims OD was instrumental to several
  well-known turnarounds
• Admits it is difficult to know how useful it
  really was
• Begs question of what is OD
• Vision creation, values statement,
  decentralization of decision making, new
  strategic planning process, team building,
  survivor counseling, outplacement services,
  training, reeducation

5
Managing to communicate

• Best practices
• CEO as communications champion
• Philosophical and behavioral commitments, visible
• Match between words and actions
• Commitment to two-way communication
• Room for improvement in most companies
• Emphasis on face-to-face communication
• Communicate promptly in as many forms as possible
• Shared responsibility for employee comms
• Requires training and accountability
• The bad news/good news ratio dont censor (?)
• Knowing customers, clients, and audiences
• What do they want, how do they want it

6
Strategic points

• Five consensus items
• Communicate complete answers
• Who, what, why, when, where and how
• Timeliness is vital
• Communicate continuously
• Link the big picture with the little picture
• Dont dictate the way people should feel about
  the news
• Budget and reporting lines of communications
  departments dont seem to have much effect on
  communications outcomes commitment does!

7
Mark Margolis/Emilio Kornau

• Looks like a black and white situation
• Mark GOOD!
• Emilio BAD!
• What can we learn from the two cases?
• What could Emilio have done differently?
• What can Emilio do now?
• What could Mark do differently?

8
Broadway Brokers

• Choose your role
• You are all members of top 2 layers I am CEO
• COO, CIO, CFO, HR, Broking Operations, Research,
  International, PR, Marketing, Strategy, Back
  office, Internal communications, rest pick a boss
• As a group, create a process for dealing with the
  suggestions by dividing tasks among the group
• As a group, create a consensus change strategy
  (that also incorporates the suggestions)
• Do this at once
• Start planning to do
• Depends on how it is done
• Waste of effort
• No! Dont do this