Change Management

This topic Change Management helps you: Recognize the different types of change programs observed in organizations, prepare your unit or group to become change-ready, understand a systematic approach for creating and implementing change, recognize the importance of communicating throughout all phases of a change effort, understand and address people''s reactions to change,...

Change Management Page of 54 Change Management About this Topic: Change Management Topic Mentor Linda A Hill From her more than 20 years of extensive field work, Professor Linda A Hill has helped managers create the conditions for effective management in today's flatter and increasingly diverse organizations She is a professor and Chair of the Leadership Initiative at Harvard Business School She is also the author of the best-selling Becoming a Manager (Harvard Business School Press), now out in paperback Linda served as the content expert for Coaching for Results and Managing Direct Reports, two award-winning interactive programs from Harvard Business School Publishing She also served as a mentor for many Harvard ManageMentor topics   Topic Source Notes Learn Brian L Davis, et al Successful Manager's Handbook Minneapolis, MN: Personnel Decisions International, 1992 Terrence E Deal and M K Key Corporate Celebration: Play, Purpose, and Profit at Work San Francisco: Berrett-Koehler, 1998 Cliff Hakim We Are All Self-Employed: The New Social Contract for Working in a Changed World San Francisco: Berrett-Koehler, 1994 Harvard Business School Publishing Managing Change and Transition Boston: Harvard Business School Press, 2003 Linda A Hill "Power Dynamics in Organizations." Harvard Business School Case Note 9-494-083, 1994 J Shep Jeffreys Coping with Workplace Change: Dealing with Loss and Grief Menlo Park, CA: Crisp Publications, Inc., 1995 mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page of 54 Todd D Jick "Note on the Recipients of Change." Harvard Business School Case Note 9-491-039, 1996 Todd D Jick "The Challenge of Change." Harvard Business School Case Note 9-490-016, 1989 John P Kotter Leading Change Boston: Harvard Business School Press, 1996 Steps Brian L Davis, et al Successful Manager's Handbook Minneapolis, MN: Personnel Decisions International, 1992 Harvard Business School Publishing Managing Change and Transition Boston: Harvard Business School Press, 2003 Cliff Hakim We Are All Self-Employed: The New Social Contract for Working in a Changed World San Francisco: Berrett-Koehler, 1994 John P Kotter and Walter Kiechel "How to Get Aboard a Major Change Effort: An Interview with John Kotter." Harvard Management Update, September 1996 Judith F Vogt and Kenneth L Murrell Empowerment in Organizations: How to Spark Exceptional Performance San Diego, CA: Pfeiffer, 1990 Tips Terrence E Deal and M K Key Corporate Celebration: Play, Purpose, and Profit at Work San Francisco: Berrett-Koehler, 1998 Harvard Business School Publishing Managing Change and Transition Boston: Harvard Business School Press, 2003 Tools Harvard Business School Publishing Managing Change and Transition Boston: Harvard Business School Press, 2003 What Would You Do? What would you do? For ten years, New Brew Coffee was a privately run company The long-standing culture was laid-back, informal, and nonhierarchical Last year, New Brew went public and everything changed New people were hired, new policies and procedures were put in place, and new goals were established Veteran employees were having a tough time dealing with all the changes When Debra, a new manager, asked all departments to submit detailed weekly reports, she encountered significant resistance Debra couldn't understand why: Didn't they see that going public would require more efficient and transparent record keeping? How could Debra establish an effective record keeping system in a culture that resisted formal structures? What would you do? To get everyone on the right track, Debra might have spoken with each of the departments to better understand how they currently keep records within their groups and share information with others in the company She then might have explained the need for greater accountability and asked them for suggestions on how to improve existing practices Next, Debra might have mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page of 54 framed the new plan as an experiment—one that would be modified over time in response to feedback By asking for input and agreeing to modify the trial plan, Debra would have enlisted the help of the groups in improving record keeping and reaching her desired outcome In this topic, you'll learn how to deal constructively with change and position change as an opportunity for experimentation and growth Change can be exciting, but it can also be daunting How can you ensure your business unit embraces change and prepares for successful transitions? Topic Objectives This topic helps you: • • • • • • Recognize the different types of change programs observed in organizations Prepare your unit or group to become change-ready Understand a systematic approach for creating and implementing change Recognize the importance of communicating throughout all phases of a change effort Understand and address people's reactions to change Take care of yourself during a change program Key Idea: Types of change Key Idea In order to respond to the challenges of new competitors, markets, and technologies, organizations must undergo continual change Some change programs are strategic in nature, while others are more operational Some are radical and take place only once; others are more incremental, purposefully paced to promote continuous improvement and stability Change programs can take many forms Generally, these programs fall into the following categories: • Structural change These programs attempt to reconfigure the organization in order to achieve greater overall performance Examples include mergers, acquisitions, consolidations, divestitures, promotions, layoffs, or the arrival of a new leader • Cost-cutting change These programs focus on the elimination of nonessential activities or on other methods for squeezing costs out of operations—for example, headcount, expense, capital, or unit cost reductions; outsourcing; partnering; creating industry alliances; or negotiating long term vendor contracts • Process change These programs concentrate on altering how things get done Examples include reengineering a process or introducing a new technology • Cultural change These programs focus on a company's operating values, norms of behavior, and the relationship between its management and employees Shifting from command-and-control to participative management or reorienting a company from an inwardly focused "product push" mentality to an outward-looking customer focus are examples of cultural change • Strategic purpose change These initiatives attempt to reinvent an organization by changing its strategic intent, core purpose, or mission Examples include shifting from mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page of 54 selling individual products to selling complete solutions that add value for the customer or expanding from local to global markets Is change headed your way? Change can take many forms and affect every part of your organization Sources of change While external forces, such as an economic downturn or the introduction of new legislative laws, can cause a company to change, most changes that occur within an organization are typically generated from within Managers at all levels in an organization can and initiate change Frontline managers, for example, may implement a new technology, mid-level managers may create a plan to reduce costs, and senior managers may merge the company with another organization Change is almost always disruptive and, at times, traumatic Because of this, many people try to avoid it Nevertheless, change is part of organizational life and essential for progress Accepting the necessity and inevitability of change enables managers to see times of transition not as threats, but as opportunities—opportunities for reinventing their companies and themselves Managers who approach change with an open mind and focus on its positive elements find ways to motivate others and harness enthusiasm for further progress Characteristics of effective managers of change What lies behind us and what lies before us are tiny matters compared with what lies within us –Oliver Wendell Holmes Whether managers are asked to carry out a change program initiated by senior management or create a change program within their unit or group, successful managers of change share these common characteristics: • Are accepted by others as trustworthy and competent • Have a big-picture perspective—they understand the long-range strategy for their organization and unit • Have a clear, compelling vision of the change they want • Can articulate what the change is, why it is necessary, and how it will benefit both employees and the organization • Can identify the people who can make the change a reality and determine how to get their support and cooperation • Are able to align and engage team members and stakeholders • Can motivate others to achieve the change vision • Can see opportunities and diagnose problems from their audience's perspective • Are able to eliminate barriers that interfere with the change initiative Although it is impossible to anticipate every change effort, the likelihood of change is something managers can count on—and plan for Managers who know how to anticipate, catalyze, and manage it will find their careers, and their experience in their companies, more satisfying and successful mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page of 54 Leadership Insight: Live the vision When changing a culture in a company, when you're trying to introduce visions, values, behaviors — a lot of companies this but it lacks authenticity because the senior management doesn't believe it It's something they feel they have to I urge anybody who is embarking on change in a company that it has to be for real This has to be authentic It has to be that the senior management lives it on a day to day So when in meetings, they will quote the behavior or the vision or the values and what you stand for, because if you don't make it real in an organization, why would staff make it any more real or want to believe it either? People can get a bit embarrassed by that and not want to mention it, and just think, "Well, we've written that and it goes in the bottom drawer, and forget about it, and now we get on with the business." The business of culture is what a business is It is what it stands for It's the very fabric that binds together an organization So then you could think, "Well, we've got the vision I talk about the vision and values." But it also comes down to the small things If the small things aren't right, a company quickly unravels Simply, that walking down a corridor and there's a piece of trash on the floor, I'll stoop down, pick it up, and throw it out, because it's as important how we live together as an organization in the little things as it is the big things Because if the little things aren't joined up, where those things are taken care of, then if things go wrong at a big level, the small things will completely undermine the organization And it's that amount of seriousness of purpose that really binds together an organization in its purpose, and everybody can see it's for real For a successful transformation, managers must live and breathe the change they encourage Neil Gaydon CEO, Pace Plc Neil Gaydon is Chief Executive Officer at Pace Plc., one of the world's leading developers of digital television technology for the pay TV industry Pace is the world leader in high-definition set-top box technology and a key player in the move toward technology convergence for entertainment throughout the home Neil joined Pace's board of directors in 2002 and was appointed CEO in 2006 In 2008 he led the company through the acquisition of Royal Philips Electronics, a set-top box business, doubling the company's size During his time at Pace, Neil also served as Director of Worldwide Sales and Marketing and President of Pace Americas, establishing the group's U.S operations Prior to working at Pace, Neil spent over 12 years as a Senior Executive in the hi-fi industry He is also active in the local community as a board member of the Bradford City of Film mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page of 54 Key Idea: The change-ready organization Key Idea For an organization to successfully implement change, it must be change-ready—meaning that the people and structure of the organization are prepared for and capable of change How you know when an organization is change-ready? Typically, three conditions are present: • First, effective leadership is in place at all levels in the organization Inept leaders are deterrents to organizational performance and ability to change A company may have excellent pay, benefits, and employee-friendly policies, but if incompetent leaders are in place, its employees will not be motivated to change • Second, employees are personally motivated to change Change happens when people are sufficiently dissatisfied with the status quo and are willing to make the effort and accept the risks involved in doing something new • Third, the organization is accustomed to working collaboratively Effective change demands collaboration between willing and motivated parties Some organizations are more ready for change than others How you know if your organization is change-ready? Prepare your group for change If you manage a business unit or group, there are certain steps you can take to help your organization become change-ready: Encourage participative work within your unit Develop more participative approaches to how everyday business is handled Specifically: ◦ Push decision making down to lowest levels possible Allowing others to make informed decisions, rather than imposing your own, increases the group's perception of their own effectiveness—and yours ◦ Share information freely Information is the lifeblood of any organization During times of change, getting and disseminating information is critical to operating effectively, flexibly, and quickly ◦ Make communication a two-way process—talk but also listen, especially to people who are resistant to change ◦ Get into the trenches with frontline employees to better understand the day-to-day issues that they face ◦ Give people practice in collaborative work between functions by tackling problems and assigning projects through cross-functional teams ◦ Help people see the "why" of change Give your employees a voice Employees who can freely express their ideas will feel more empowered to act Encourage people to openly discuss their thoughts and feelings about the change program Work to understand resistance by exploring their concerns and by taking their feelings seriously When people believe their voice counts, they are more apt to mobilize for change Drive fear out of your group mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page of 54 An organizational culture dominated by fear is incapable of serious change Fear encourages everyone to avoid risks, become internally focused, and stop communicating In addition, fear costs organizations real money in the form of increased absenteeism, reduced productivity, and diminished quality of products and services While managers should aim to reduce fear, they should not deny the challenging aspects of the change itself—nor should they minimize the intensity of employees' reactions to it Managers should openly acknowledge employees' concerns and work with them to support and embrace the change initiative Once an organization is primed for transition, a change initiative can be rolled out Activity: Manage resistance to change Resistance to change is an all-too-common obstacle facing managers Practice choosing strategies to manage resistance to change Brian is an inventory process improvement manager at SaveMart, a large retailer SaveMart recently decided to adopt new shipment-tracking software that promises to increase efficiency in receiving and decrease shipping times Brian is surprised to learn that employees in SaveMart's stores opposed the software change, despite its potential advantages What step should Brian take at this point? Ask store managers to collect comments and concerns about the proposed change from employees and to share with Brian any responses that the managers consider most legitimate Not the best choice It's true that employees should be given a voice to discuss their reactions to the proposed change, both positive and negative However, the full range of people's concerns and opinions should be communicated to Brian, rather than just the issues that store managers consider legitimate Visit stores and speak directly with employees who have objections and concerns regarding the proposed new software Correct choice By visiting stores and speaking to resisters in person, Brian allows his employees the opportunity to voice their concerns to a decision maker and participate in an open dialogue When people feel heard by a decision maker, they're more likely to consider a proposed change Write a memo to all employees assuring them that the benefits of the change far outweigh the short-term inconvenience of adopting the new system Not the best choice By taking this action, Brian would be ignoring employees' legitimate concerns As a result, they would be less likely to support the proposed initiative After speaking with several employees, Brian discovers that many of their objections relate to the use of new technology that will interface with the new software SaveMart demands specific performance on certain order-processing time metrics as a condition of employment Employees are hesitant to take the time to learn a new technology when they know they can meet the required performance using the old process How should Brian respond to these concerns? mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page of 54 Prove the efficiency of the new software with a demonstration of the new technology Not the best choice The new software's efficiency is the reason for its adoption However, this approach does not address resisters' concerns that taking time to learn the new technology will prevent them from maintaining their production quotas Ask employees to participate in a study to determine whether production quotas should be adjusted during the training period for the new technology Correct choice By taking this action, Brian explicitly acknowledges employees' fears about meeting their production quotas and demonstrates that he's taking those fears seriously This action will thus help him eventually mobilize these employees to embrace the proposed change Acknowledge the difficulty in learning the new technology and the pressures of the job performance metrics while emphasizing the efficiency gains the new software will provide Not the best choice Although Brian explicitly acknowledges employees' fears, with this action he seems to be trying to minimize the legitimacy of their concerns Therefore, this step will not likely help him overcome resistance to the proposed change While observing employees struggling with the new shipping process, Brian discovers that the technology limits people's ability to enter certain types of orders that can be handled more smoothly with the old process Indeed, many employees are resorting to the old process to fill these orders How should Brian address the difficulties employees are facing in the practical implementation of the new process? Propose to upper management that the order-fulfillment workforce be divided into two parts One part will specialize in the traditional shipping process; the other, in the new process Not the best choice If Brian took this action, he would be passing this decision back up the management chain, taking authority out of the hands of the people using the processes in question By removing decision making power from employees, Brian risks causing employees to conclude that they are not perceived as effective or valued Allow employees the discretion to decide to use the traditional shipping process when taking this action makes the most sense Correct choice By pushing decision-making authority down to the employee level, Brian encourages people to take an active role in promoting the new process change when it improves their efficiency He also encourages them to think for themselves rather than passively waiting for direction Establish a new policy that prescribes the most efficient process to be used for each type of order Not the best choice Imposing a new policy will only cause employees to conclude that Brian does not view them as effective or as able to think for themselves mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page of 54 Key Idea: Process overview Key Idea Is there a formula to ensure the success of a change initiative? Many organizations wish there was, but launching a change program is not that easy Barriers to change abound—poor leadership, lack of collaboration and teamwork, paralyzing company politics, and fear of the unknown are just a few examples To overcome these barriers, and to make a change strategy successful, managers typically follow these six steps: First, mobilize energy and commitment by identifying business problems and solutions Next, develop and communicate a shared vision of the change program Then, identify the leadership Then, create near-term wins by focusing on results, not activities Next, institutionalize success through formal processes, systems, and structures Finally, monitor and adjust strategies in response to problems in the change process There's no formula for a smooth change process, but successful managers follow these six steps Mobilize energy You mobilize energy and commitment by identifying business problems and solutions The starting point of any effective change effort is a clear definition of the business problem Problem identification answers the most important question employees will ask: Why must we undergo change? The answer lays the foundation for motivating all employees in an organization, and thus must be convincing Informing people why change must occur is essential not only for its motivating potential, but also because of the sense of urgency it creates Simply put, change won't happen without urgency People will not grapple with the pain and extra work associated with a serious change effort unless they are genuinely convinced that maintaining the status quo is more dangerous than striking out on a new path After defining the business problem, the next step is to develop a solution to it A set of alternatives should be generated and then evaluated against the objectives of the change initiative While identifying the business problem and its possible solutions are a must, how they are identified is equally important Motivation and commitment to change are greatest when employees—especially those who will be most affected by the change effort—are involved in identifying the problem and planning its solution Failure to involve key employees in these processes typically results in two serious errors: The problem is improperly defined and the solution is too narrowly drawn Leadership Insight: Setting the stage for change Julie Morath was the chief operating officer of Children's Hospital and Clinics in Minneapolis-St Paul She led a very ambitious patient safety change initiative Her aspiration was to make the hospital 100 percent safe for patients And she had a very comprehensive and thoughtful mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 10 of 54 program lined up, which I think is one of the best examples I've seen of comprehensive organizational change A few of the elements of this program that were absolutely magnificent were a very clear vision, a very compelling vision Clearly no one can disagree with the idea that every child in the hospital should be safe, should not be vulnerable to the treatment that the hospital provides The second aspect of her change initiative that was very powerful, was she really understood the necessity of making the climate and culture of the organization extremely safe for employees — for nurses, for doctors, for everyone — to speak up about what wasn't working So she created something that she called "blame-free reporting," which was a new policy, a new program in which nobody could be penalized for reporting something It doesn't mean that nobody could be penalized, period, for anything — for negligent acts, for blameworthy acts But all reporting was hereby not to be penalized any more So the second aspect was this use of blame-free reporting to create a safe environment The third thing she did was invite and sort of inspire team learning throughout the hospital for people to work on small problems of process failure, safety problems, throughout the company So this set of three aspects — create urgency, make it safe to speak up, and inspire people on the front lines to find the problems and make it better — became a kind of framework for leading change in a very complex setting Encouraging employees to seek out areas for improvement and to feel comfortable and safe reporting them creates a powerful change initiative Amy Edmondson Professor, Harvard Business School Amy C Edmondson is the Novartis Professor of Leadership and Management and Co-Unit Head of the Technology and Operations Management Unit at Harvard Business School She teaches MBA and Executive Education courses in leadership, team decision making, and organizational learning, and a doctoral course in field research methods Her research examines leadership influences on learning, collaboration and innovation in teams and organizations, reported in over 60 articles published in academic journals, management periodicals, and books In 2003, the Academy of Management's Organizational Behavior Division selected Professor Edmondson for the Cummings Award for outstanding achievement in early mid-career, and in 2000 selected her article, "Psychological safety and learning behavior in work teams," for its annual award for the best published paper in the field Her article (with Anita Tucker), "Why Hospitals Don't Learn from Failures: Organizational and Psychological Dynamics That Inhibit System Change" received the 2004 Accenture Award for a significant contribution to management practice Professor Edmondson received her PhD in organizational behavior, AM in psychology, and AB in engineering and design, all from Harvard University mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 40 of 54 Check Your Knowledge: Results Your score: Steps for assessing your reactions to change Reflect on past changes that you've experienced Consider positive and negative changes that you've undergone either on the job or in your personal life Recall how you felt during each of those changes Were you excited? Shocked? Angry? A mix of different emotions? Analyze your reactions to those changes For those times when you reacted positively, identify the factors surrounding the change that resulted in positive reactions Did you support the change because you thought it was the right course of action? Because you respected the people mandating or leading the change? Because you thought the change initiative might result in some form of personal gain? For those times that you reacted negatively, identify the causes of your frustration, shock, or other negative reactions Did you resist the change because you thought it was unnecessary or would make the situation worse? Because you weren't involved in the planning and/or implementation of the change initiatives? Because you didn't want to let go of the status quo? Evaluate what you did to successfully manage your reactions to those changes What worked well and why? What didn't work well and why? What steps could you take to improve the way you react to change? Answers to these questions will prepare you better for the next time you encounter change Steps for addressing resistance to change Encourage people to openly express their thoughts and feelings about the change Create an environment that fosters open communication and exchange of ideas Actively reach out to employees—using informal hallway conversations, more formal one-on-one meetings, email, and other channels—and ask them how they're managing the change effort When resistance occurs, listen carefully While it's important to explain the benefits of a change program, employees who are resistant to the change don't always want to hear an explanation of why the change is necessary Instead, work to understand their resistance by exploring their concerns and by taking their feelings and comments seriously Treat resistance as a problem to solve, not as a character flaw Resisters may provide valuable information about a change program—information that you may not be aware of For example, a resister may reveal an unanticipated consequence of a projected change that could result in a potential threat to either the unit or organization Instead of dismissing the resister as someone who is negative or inflexible, try to understand his or her mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 41 of 54 rationale and sources of motivation Doing so can open up new, unexpected possibilities for realizing change Once you understand the nature of their concerns, bring people together to discuss and deal with the perceived problems If people feel that they've been heard and have had opportunities to discuss problems and suggest solutions, they are more likely to support the decisions made around the change initiative Address all concerns head-on and provide people with as much information as possible Steps for creating an effective implementation plan Involve people at all levels in the planning and implementation processes An implementation plan should not be imposed on the people asked to move it forward Rather, the people affected by the change should be involved in the creation of the plan If people have played a part in the development of the plan, they will be more likely to support it Structure the plan in achievable chunks Overly ambitious plans are usually doomed to failure Build a plan that can be tackled in manageable, achievable chunks Specify roles and responsibilities Establishing accountability in any implementation plan is essential Define clear roles and responsibilities from the beginning to avoid any confusion later Make the plan simple An overly complex plan may confuse and frustrate those participating in the change effort Make your plan clear, concise, and coherent Build in flexibility Change programs seldom follow their planned trajectories or timetables Thus, a good implementation plan is open to revision Tips for avoiding common change mistakes • Don't move forward with a change program unless strong leadership is in place at all levels in an organization If you have lots of mediocre managers running a company, your change program won't get very far • Don't underestimate the power of a vision Without a sound vision, a change effort can easily dissolve into a list of confusing, incompatible, and time-consuming projects that go in the wrong direction or nowhere at all • Don't undercommunicate the purpose of the change and actions planned Without credible information, and a lot of it, employees won't be motivated to change • Don't ignore the importance of generating short-term wins If employees not see compelling evidence that the change program is producing results, they will lose enthusiasm and momentum • Don't impose solutions that have been suggested or developed by someone else Instead, develop solutions with the people in the unit(s) who will be most affected by the change mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 42 of 54 • Don't attempt to change everything at once Often, managers try to too much too fast Unless the organization is in a major crisis, roll out change initiatives on a smaller-scale—for example, in a unit that has strong leadership and a collaborative team of employees Once the change program takes hold, launch similar initiatives in other units, letting change spread slowly throughout the organization Tips for creating a guiding vision • Describe a desirable future—one that people would be happy to have right now if they could • Make the vision compelling It must be better than the status quo so that people will gladly undertake the effort and sacrifice necessary to attain it • Ensure that the vision is realistic It must be perceived as being within the grasp of a hardworking group of people • Focus on a manageable and coherent set of goals • Build in flexibility so that if the circumstances change, the vision can change too • Make sure the vision is easy to communicate to all levels of people, both inside and outside of the organization Tips for empowering employees to change • • • • • • Demonstrate trust and respect for employees—and it regularly Encourage innovative thinking Delegate, and don't micromanage Be flexible, and demonstrate that flexibility to others Encourage risk-taking and be tolerant of failures Spread decision-making authority around Tips for making near-term wins effective • Make the wins visible so that people see firsthand that their hard work is making a difference toward change • Make the wins unambiguous Small gains, such as conducting a productive meeting or resolving a scheduling discrepancy, are not examples of short-term wins • Ensure that the wins have in fact been won and that you're not declaring victory prematurely • Make sure the wins are related to the change effort mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 43 of 54 Self-assessment for managers of change mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 44 of 54 Worksheet for communicating change mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 45 of 54 mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 46 of 54 Worksheet for addressing resistance to change mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 47 of 54 Worksheet for overcoming obstacles to change Why Develop Others? “At the end of the day, you bet on people, not strategies.” Larry Bossidy Former CEO, AlliedSignal In today’s global business environment, markets and regulations change quickly Competitors constantly innovate Technological changes are the norm In order to outmaneuver the competition and meet the demands of the moment, organizations must be agile They must execute flawlessly And they must transform themselves continuously Are your leaders ready? mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 48 of 54 Dr Noel M Tichy Professor University of Michigan Ross School of Business We have now entered an era where I don’t care what industry you’re in, you need leaders who can make decisions, make judgment calls at every single level All the way down to the interface with the customer If you go to a company like Google or any of the high tech companies, a lot of the innovation that Amazon does is happening right at the front line Go ahead, try it, put it out there, we'll learn from it That cannot happen if the senior leadership doesn't have a commitment to both develop the leadership capability, but develop the business through engaging people at all levels of the organization Becoming a teaching organization I like to tell parents that they cannot delegate their responsibility to develop their children And I think it is the same in an organization Day in and day out the person that has the biggest impact on people in the organization is the next level above and the associates around and below.  And so to build a learning organization I say is not enough Learning could be, you know we are learning cooking, we are learning this or that, but teaching organizations, when I learned something, I have a responsibility to teach my colleagues So everybody takes responsibility for generating new knowledge and it is not enough to be a learner, you then have to translate it into teaching The Virtuous Teaching Cycle The role of a leader is to ensure that the people who work for them and around them are better every day There's only one way to make people better It's to teach them, learn from them, create what I call "virtuous teaching cycles”, not command and control A virtuous teaching cycle is teach learn, teach learn And the leader has a responsibility for reducing the hierarchy, for having a point of view to start the discussion, but then to be responsible to hear everyone's voice, get everyone involved in a disciplined way It is not a free for all But it is the leader's responsibility to create that virtuous teaching cycle A wonderful example of virtuous teaching cycle is the program that Roger Enrico ran at Pepsi, where every one of the 10 vice presidents comes with a business project Roger Enrico gets smarter as result of five days with 10 vice presidents, because he's learning from them He needs to lower the hierarchy He needs to be open to learning And in turn, the people participating need to be energized and empowered to come up and engage in problem solving Another example is at Best Buy, where every morning in the stores you would bring 20 associates or so together and they would review the profit and loss statement from the day before, what we learned from the different customer segments in our stores, what we can to improve our performance this day And they that every single day The store manager was learning mostly from the associates on the floor That was a virtuous teaching cycle were everybody is teaching everybody, everybody is learning and the result has been an incredible result at Best Buy “The growth and development of people is the highest calling of leadership.” - Harvey S Firestone        Founder, Firestone Tire and Rubber Co There are clear advantages to leader-led development mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 49 of 54 But for many leaders, taking on teaching, coaching, and other development responsibilities can seem daunting You might avoid taking on these roles due to lack of time, resources, or your own lack of comfort with this role.   The following tips and resources can help you impart valuable learning to your team every day To develop others… • Start with a Teachable Point of View The first requirement of being able to develop other leaders is to have what I call a teachable point of view I often give the example of, if I ran a tennis camp and you just came to day one of the tennis camp, I better have a teachable point of view on how I teach tennis So you are standing there looking at me and it has got four elements One, the ideas, well how I teach the backhand, the forehand, the serve, rules of tennis Then if I am a good tennis coach, I have a set of values What are the right behaviors I want, how I want you to dress, how I want you to behave on the tennis court But if that's all I have, what I do? Show you a power point presentation and then expect you to hit 500 backhands, 500 serves, run around for eight hours I have to have a teachable point of view on emotional energy How I motivate you to buy in to the ideas and values? On one end of the spectrum it could be I threaten you with corporal punishment, the other I can give you stock options, I can make you feel good about yourself, I can help you develop as a human being, what motivates you And then finally, how I make the tough judgment calls, the yes/no, decisions as the tennis coach, the ball is in, the ball is out I don't hire consultants and set up a committee, it is yes/no And the same with running a business, what are the products, services, distribution channels, customer segments that are going to grow top line growth and profitability of the organization What are the values that I want everyone in the organization to have, how I emotionally energize thousands of people, and then how I make the yes/no, judgments on people and on business issues So the fundamental building block of being able to develop other leaders is to have that teachable point of view just like the tennis coach To develop others… • Lead with questions Questions are hugely important because you want to create dialogue and again, what I call a virtuous teaching cycle where the teacher learns from the students and vice versa Which means everybody ought to be free to ask whatever is on their mind, whatever it will take to get clarity and understanding, but it is not the leader just coming in and freeform asking questions I believe the leader has a responsibility for framing the discussion, for having as best they can a teachable point of view, they may need help from their people in flushing it out, but they need to set the stage but then it has to be a very interactive, what I call virtuous teaching cycle environment, teach learn, teach learn, teach learn To develop others… • Make it part of your routine A good example to me of an outstanding leader developing other leaders is Myrtle Potter who at the time I am commenting was Chief Operating Officer of Genentech running the commercial side of the business And she would take time at the end of every single meeting and some coaching of the whole team on how we could perform as a team better, and then she would often take individuals and say, could we spend 10 minutes over a cup of coffee, I want to give you some feedback and coaching on that report that you just presented on or how you are handling a particularly difficult human resource issue, but it was part of her regular routine.  And I think the challenge for all of us as leaders is to make that a way of life and it is built into mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 50 of 54 the fabric of how we lead and it is not a one off event, three times a year It is happening almost every day To develop others… • Make it a priority One of the biggest challenges in getting people kind of on this path is to overcome some of their own resistance, either fear or the way I view the world I don't have time for this, everybody can make time Roger Enrico is CEO of Pepsi He didn't have time to go off for a week at a time and run training sessions He had to readjust his calendar So it requires you to look in the mirror and say, is this important If it is important, of course I can make the time Then I have to get over my own anxiety on how well I can it, but it is a commitment to get on the path that says:  this is how I am going to drive my own performance and the performance of my colleagues To develop others… • Learn to teach I think the biggest mistake is to assume you are going to be good at it right off the bat It is like learning anything else.  First time you go out and try and play tennis, good luck But you got to stay with it and you got to engage your people in helping make you better and them better And so it is a journey you need to get on, not I am going to it perfectly when I start out If you want to be a great leader who is a great teacher, it's very simple You have got to dive into the deep end of the pool But you've got to dive into the pool with preparation I don't want you drowning.  I want you succeeding It is extraordinarily rewarding for most human beings to teach others.  I think once you can turn that switch on, it is self perpetuating You get a lot of reinforcement, your team is better You perform better because your performance goes up and it becomes this virtuous teaching cycle Your opportunity to develop others We’ve heard why developing others can drive greater business results, and how to make the most of your leader-led development efforts The materials provided in Develop Others enable you to create personalized learning experiences for YOUR team within the flow of their daily activities Use the guides and projects to engage your team quickly And to explore how key concepts apply to them in the context of their priorities and goals The value of teaching is the performance of the organization is totally dependent on making your people smarter and more aligned every day as the world changes In the 21st century we are not going to get by with command and control We are going to have to get by with knowledge creation The way you create knowledge in an organization is you create these virtuous teaching cycles where you are teaching and learning simultaneously, responding to customer demands and changes, responding to changes in the global environment My bottom line is if you're not teaching, you're not leading     A leader’s most important role in any organization is making good judgments — well informed, wise decisions about people, strategy and crises that produce the desired outcomes.  When a leader shows consistently good judgment, little else matters.  When he or she shows poor judgment nothing else matters.  In addition to making their own good judgment calls, good leaders develop good judgment among their team members mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 51 of 54 Dr Noel M Tichy Professor, University of Michigan Ross School of Business Dr Noel M Tichy is Professor of Management and Organizations, and Director of the Global Business Partnership at the University of Michigan Ross School of Business The Global Business Partnership links companies and students around the world to develop and engage business leaders to incorporate global citizenship activities, both environmental projects and human capital development, for those at the bottom of the pyramid Previously, Noel was head of General Electric’s Leadership Center at Crotonville, where he led the transformation to action learning at GE Between 1985 and 1987, he was Manager of Management Education for GE where he directed its worldwide development efforts at Crotonville He currently consults widely in both the private and public sectors He is a senior partner in Action Learning Associates Noel is author of numerous books and articles, including: For more information about Noel Tichy, visit http://www.noeltichy.com/ Share an Idea Leaders are in a unique position to recognize the ideas and tools that are most relevant and useful for their teams If you only have a few minutes, consider sharing an idea or tool from this topic with your team or peers that is relevant and timely to their situation.  For example, consider sending one of the three recommended ideas or tools below to your team with your comments or questions on how the idea or tool can be of value to your organization By simply sharing the item, you can easily engage others in important conversations and activities relevant to your goals and priorities Steps for addressing resistance to change Tips for avoiding common change mistakes Self-assessment for managers of change To share an idea, tip, step, or tool with your comments via e-mail, select the EMAIL link in the upper right corner of the page that contains the idea, tip, step, or tool that you wish to share Discussion 1: Addressing reactions to change Even if you've taken all the steps necessary to implement a positive and successful change program, you may find that peoples' reactions to change vary Some people welcome the change, while others fear it It's the manager's job to assess, leverage, and deal with people's individual reactions If your unit or organization's change effort is to succeed, then you — and the leaders that report to you—will need to understand people's different perceptions and take action to address their reactions Use these resources to lead a discussion with your team about addressing the various reactions to change Download resources: Discussion Invitation: Addressing Reactions to Change Discussion Guide: Addressing Reactions to Change Discussion Slides: Addressing Reactions to Change (optional) Tips for Preparing for and Leading the Discussion The discussion you have with your team will help you and your team assess the level of change support, explore reasons for the various reactions, and try to make the different perspectives part of the solution mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 52 of 54 Working through the discussion guide can take up to 45 minutes If you prefer a shorter 15- or 30minute session, you may want to focus only on those concepts and activities most relevant to your situation Discussion 2: Communicating a shared vision Managers at all levels in an organization can and initiate change It’s part of organizational life and essential for progress However, it isn't enough to just identify and agree on a change Leaders must get people excited and involved They must be able to communicate a shared vision in ways that make the benefits of the change effort clear If your unit or organization is initiating a change effort, then you will need to develop a shared vision with your team about where your organization is headed Individuals on your team must then communicate that vision to their units and direct reports Doing so ensures that all employees understand the change effort that is currently under way Use these resources to lead a discussion with your team about developing and communicating a shared vision for a change initiative Download resources: Discussion Invitation: Communicating a Shared Vision Discussion Guide: Communicating a Shared Vision Discussion Slides: Communicating a Shared Vision (optional) Tips for Preparing for and Leading the Discussion The discussion you have with your team will help your team develop a shared vision of a specific change effort, identify what to communicate to their teams, and leverage effective approaches for communicating that vision Working through the discussion guide can take up to 45 minutes If you prefer a shorter 15- or 30minute session, you may want to focus only on those concepts and activities most relevant to your situation Start a Group Project Just like any change effort, successfully incorporating new skills and behaviors into one’s daily activities and habits takes time and effort After reviewing or discussing the concepts in this topic, your direct reports will still need your support to fully apply new concepts and skills They will need to overcome a variety of barriers including a lack of time, lack of confidence, and a fear of making mistakes They will also need opportunities to hone their skills and break old habits To help ensure their success, you can provide safe opportunities for individuals and your team as a whole to practice and experiment with new skills and behaviors on the job.  For example, to encourage the adoption of new norms, you can provide your team members with coaching, feedback, and additional time to complete tasks that require the use of new skills Management approaches such as these will encourage team members to experiment with new skills until they become proficient Group learning projects provide another valuable technique for accelerating team members’ development of new behaviors A group learning project is an on-the-job activity aimed at providing team members with direct experience implementing their new knowledge and skills Through a learning project, team members discover how new concepts work in the context of their situation, while simultaneously having a direct and tangible impact on the organization mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 53 of 54 The documents below provide steps, tips, and a template for initiating a group learning project with your team, along with two project recommendations for this topic Download resources: Tips for Initiating and Supporting a Learning Project Learning Project Plan Template Learning Project: Develop a Communication Plan for a Change Effort Learning Project: Overcome Obstacles to Change Choosing Strategies for Change John P Kotter and Leonard A Schlesinger "Choosing Strategies for Change." Harvard Business Review, July 2008 Download file Summary The rapid rate of change in the world of management continues to escalate New government regulations, new products, growth, increased competition, technological developments, and an evolving workforce compel organizations to undertake at least moderate change on a regular basis Yet few major changes are greeted with open arms by employers and employees; they often result in protracted transitions, deadened morale, emotional upheaval, and the costly dedication of managerial time Kotter and Schlesinger help calm the chaos by identifying four basic reasons why people resist change and offering various methods for overcoming resistance Decoding Resistance to Change Jeffrey D Ford and Laurie W Ford "Decoding Resistance to Change." Harvard Business Review, April 2009 Download file Summary When a change initiative falters, the knee-jerk response can be to blame those who won't get on board Jeffrey Ford, of the Ohio State University, and Laurie Ford, of Critical Path Consultants, examine why that type of reaction is not only pointless but potentially destructive Drawing on their years of research and consulting work, the authors recommend seeing resistance for what it really is—feedback—and propose five ways for leaders to use that feedback to effect change more productively Overpromoted and Over His Head Eileen Roche, Bruce Chizen, and Debra Benton "Overpromoted and Over His Head." Harvard Business Review, January 2010 Download file Summary mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 Change Management Page 54 of 54 Dan Sestak has had a charmed career path at packaged-foods giant NutriSelect But when the CEO unexpectedly passes away just months after Dan is tapped as his successor, he finds himself thrust into the role before he feels ready Two experts comment on this fictional case study: Bruce Chizen, former CEO of Adobe, remembers what it's like to step into big shoes and advises Dan to acknowledge his weaknesses and reach out to his top team for guidance Executive coach Debra Benton proposes a few strategic firings to show detractors that Dan means business v 11.0.2.07272011 © 2011 Harvard Business School Publishing All rights reserved.    Privacy mhtml:file://C:\Users\quang\AppData\Local\Temp\SolidDocuments\SolidConverterPDFv 03/07/2012 ... mhtml:file://C:UsersquangAppDataLocalTempSolidDocumentsSolidConverterPDFv 03/07/2012 Change Management Page of 54 Key Idea: The change- ready organization Key Idea For an organization to successfully implement change, it must be change- ready—meaning that... or resist change Why people support change Why people resist change • They believe that the change makes sense and is the right course of action • They respect the people leading the change effort... communicating throughout all phases of a change effort Understand and address people's reactions to change Take care of yourself during a change program Key Idea: Types of change Key Idea In order to respond