Managing Change

1
Managing Change

• By Anthony Coppel

2
What will be covered?

• Definition of Change Management What it is and
  what it is not (slides 3-5)
• Thinking Exercise (slide 6)
• The Basic Elements of Change Management (slides
  7-11)
• The Phases in Change Management (slides 12-19)
• A real-world Example (slides 20-26)
• Practice (slide 27)
• Summary (slide 28)
• Readings (slide 29)

3
Look at the whole puzzleWhat is Change
Management?

• Process, tools and techniques to
• manage people-side of change processes
• achieve the required outcomes
• realize the change effectively within
• the individual change agent
• the inner team
• the wider system

4
Major Barriers to Effective Organizational Change
5
7 Myths that Undermine Effective Change

• Myth 1 Its really not that big of a change.
• Myth 2 This isnt personal.
• Myth 3 We dont have to involve them.
• Myth 4 We have smart people, they can figure
  that out.
• Myth 5 We will figure it out as we go.
• Myth 6 They are employees, they should just get
  on board.
• Myth 7 My boss understands why I am doing this.

6
Thinking Exercise

• Think of the most difficult change youve
  recently gone through in your work life.
• Briefly describe your first reaction and
  subsequent reactions (evolution) to this change.
  Was it positive? If not, why?
• Identify at least one thing that you wish youd
  done differently while going through this change.

7
3 Fundamental Pieces of the Puzzle

• The environment scanning
• Five basic elements
• Three roles of the leader

8
Piece n1 the environment
9
Piece n2 5 basic elements

• Strategy
• Culture
• Structure
• Technology
• Employees

10
Piece n3 Role of the leader
Instrumental
Missionary
11
3 pieces or one piece?
The environment
5 basic elements
leader
12
Getting the puzzle together
13
Getting the puzzle together (cont.)

• Phase n1 Map the Influence Landscape
• Phase n2 Identify the Type of Resistance
• Phase n3 Leverage Negotiation
• Phase n4 Overcome Resistance
• Phase n5 Assemble the Puzzle

14
Phase n1Map the Influence Landscape

• Identify the key players
• Draw an influence map
• Identify supporters, opponents, and convincibles

15
Phase n2Identify Type of Resistance
16
Phase n3Leverage Negotiation

• Open both eyes
• Open your mind
• Put yourself in your opponents shoes
• Think outside the box
• Be creative

17
Phase n4Overcome Resistance 1 method 5 tools
Coercion
Facilitation
Cooptation
Education
Participation
Negotiation
18
Phase n5Assemble the Puzzle Actions
1. Establish a sense of urgency
2. Create a guiding coalition
3. Develop a vision and strategy
4. Communicate the change vision
5. Empower broad-based action
6. Generate short-term wins
7. Consolidate gains and produce more change
8. Anchor new approaches in the culture
19
Phase n5 (cont.)Assemble the Puzzle Behaviors

• Each of those steps will help create a new
  behavior toward change.
• Step 1 People start telling each other, lets
  go, we need to change things!.
• Step 2 A group powerful enough to guide a big
  change is formed and they start to work together
  well.
• Step 3 The guiding team develops the right
  vision and strategy for the change effort.
• Step 4 People begin to buy into the change and
  this shows in their behavior.
• Step 5 More people feel able to act, and do act,
  on the vision.
• Step 6 Momentum builds, as more and more people
  try to fulfill the vision, while fewer and fewer
  resist change.
• Step 7 People make wave after wave of changes
  until the vision is fulfilled.
• Step 8 People keep behaving in new ways despite
  the pull of tradition, turnover of change
  leaders, etc.

20
A real-world example ROLEX
21
A real-world example ROLEX (cont.)
22
A real-world example ROLEX (cont.)

• Six major trends
• 1) context of mergers and acquisition
• 2) emergence of new markets and new competitors
• 3) growing importance of product innovation and
  development
• 4) disproportion of competitors size structure
• 5) vertical integration
• 6) culture of secrecy

23
A real-world example ROLEX (cont.)

• Most pressing challenge for ROLEX internal.
• Externally no leverage on economic conditions
  and raw materials price
• Internally need to create a culture
• more customer-
• more innovation-
• more-delivery oriented.
• The lack of financial pressure (private company)
  causes that particular culture. Managers role to
  create the impulse for change in order to be able
  to overcome the weaknesses (major Supply Chain
  initiative on the way).

24
A real-world example ROLEX (cont.)

• Result Supply Chain ROLEX Project
• Ambitious goals of reduction of inventory, of
  costs, of time between order and delivery, etc.
• Implication of all departments of the firm
• Sense of Urgency established by the CEO with a
  strict deadline.
• Guiding Coalition newly hired employee
• with extensive background in building world-class
  supply chains
• did homework by identifying key players and
  influence maps
• sustained by a Supervisory Committee.

25
A real-world example ROLEX (cont.)

• New vision and strategy developed internally
  with consultants help.
• Communication top-down approach with incremental
  steps.
• Broader action identification of priorities and
  definition of an extensive test on a limited area
  of the production to be extended to all areas.
• Short-term wins concentration on MRP updates and
  adjustments

26
A real-world example ROLEX (cont.)

• Consolidation through implication of more
  departments, better communication through going
  deeper into the organization.
• Anchoring new metrics defined for the
  compensation system.
• RESULT ROLEX enters the industrial era, with a
  thorough knowledge of its costs, its production
  processes and reliable metrics.

27
Practice

• Refer back to our initial exercise(link)
• Revisit the most difficult change scenarios you
  identified earlier
• Identify one key thing youve learned today which
  would have helped you handle the change better
• What will you start doing differentlyas early as
  todaythe next time you are confronted with
  significant change?

28
Summary

• Change Management is a difficult science
  (because not exact) that succeeds best when
  ingrained in the culture.
• The role of the change agent (leader) is crucial.
  
• He/she should master the tools that will help
  plan the change. It is about observing and
  analyzing.
• Then comes the implementation of the 8-step
  method where the negotiation skills are critical.

29
Readings

• Leading Change Overcoming the Ideology of
  Comfort and the Tyranny of Custom, by James
  O'Toole, 302pp., Jossey-Bass, April 1995
• Leading Change Why Transformation Efforts Fail,
  by John P. Kotter, 187pp., Harvard Business
  School Press, September 1996
• The Heart of Change Real-Life Stories of How
  People Change Their Organizations, by John P.
  Kotter and Dan S. Cohen, 208pp., Harvard Business
  School Press, August 2002
• The First 90 Days Critical Success Strategies
  for New Leaders at All Levels, by Michael
  Watkins, Harvard Business School Press, 2003
• Good to Great Why Some Companies Make the Leap,
  and Others Don't, By Jim Collins, 320pp., Harper
  Collins Publishers, Incorporated, October 2002
• Useful website with free tools
  www.change-management-toolbook.com - sign up for
  its free monthly newsletter!