Presentation on theme: "LEADING STRATEGIC CHANGE (Black and Gregersen Model)"— Presentation transcript:
1 LEADING STRATEGIC CHANGE (Black and Gregersen Model) byDr. Chee Kim LoyAssoc. Professor, UBD
2 “70% of organizations that seek strategic change fail” Black and Gregersen, 2003
3 Some Salient Facts about Strategic Change Change has never been easy since time immemorialHumans are biologically hard-wired to resist change – wired to survive, so hang on to what has worked!!The pace, size and complexity of change are greater than beforePast successes at managing change is no guarantee for dealing with future changes
4 Two Major Approaches to Leading Strategic Change “Organization in” approachTo strategically change your organization, you must identify all the organizational levels ( i.e. structure, processes, functions, etc.) you must pull in order to change the organization so that individual change will follow“Individual out” approachTo strategically change your organization, you must first change individuals
5 “Individual Out” Approach Unlocking individual change starts with and ends with the mental maps people carry in their heads - on how they see the organization and their jobsSuccessful strategic change requires a focus on individuals and redrawing their mental maps – i.e. overcoming or break through their ‘brain barrier”
6 Crux of the Challenges: The Three Brain Barriers Why, when opportunities or threats stare people in the face, do people fail to see the need to change?Even when people see the need, why do they often still fail to move?Even when people move, why do they fail to finish – not going far or fast enough?
7 Distinctive Features of B-G Model A simplifying and focused approach based on the rationalethat something is practical only if we can remember and recall it; and,Achieving 80% of the desired results quickly is much better that never attaining 100%;80% of the targets could be achieved by 20% of the key factors!!The key factors come from mastering the fundamentals of strategic change
8 The Fundamentals of Strategic Change Stage 1: Do the right thing and do it well.Stage 2: Discover that the right thing is now the wrong thing!Stage 3: Do the new right thing, but do it poorly at first.\Stage 4: Eventually, do the new right thing well ( i.e. back to Stage 1 again)
12 THE FIRST BRAIN BARRIER FAILURE TO SEE!!THE FIRST BRAIN BARRIER
13 STRATEGIC CHANGE MATRIX: FAILURE TO SEE Wrong ThingRight ThingReaction#2: Do even more of the old right thing!DoneWellReaction#1Deny the new realityDonePoorly
14 WHY FAILURE TO SEE? Blinded by the light of what we already see! History of success (or customary practices) that work well creates mental maps in us which filter out anything that does not fit our mental mapsThese mental maps keeps people from seeing impending threats & opportunities; hence make no efforts to change!!
15 THE KEYS TO ‘SEEING’ CONTRAST, and CONFRONTATION Leaders have to confront their people with the key contrasts between the past, present, and the future
16 CIRCLES OF CONTRASTSHARP CONTRAST!! VERY NOTICEABLE
17 CIRCLES OF CONTRASTCONTRAST LESSENS…LESS NOTICEABLE
18 Why People Can’t See the Contrast? In real life, organizational settings are very complex. There are many things to look at and people selectively focus on elements form the past and present that are similar, rather than focus on elements that are different.They ignore the key contrasts!!
19 CONFRONTATIONTo force people to change, leaders must confront their people with the key contrasts between the past, present and futureContrast and confrontation are necessary to overcome the first resistance to change – the failure to see !!
20 BREAKING THROUGH THE SIGHT BARRIER CONFRONTATIONLOWHIGHBREAKTHROUGH!!PARADEHIGHp!!!CONTRASTLOWGARBAGE CANOLD SHOW
21 TWO COMMON MISTAKES Comprehensive mistake “I get it” mistake Trying to focus on too many factors when it is sufficient to just concentrate on the core 20% of the factors that contribute to 80% results“I get it” mistakeForgetting that you are able to see it because you have put in a lot of resources and gone through many processes before you see it. Now you expect your staff to see it by justing pointing to them!!
22 HOW TO CREATE HIGH CONTRAST? Focus on the core 20% of what is differentEnhance ( or even slightly exaggerate! ) the simple description between the old and the newCreate visual images or pictures of the old and the new, so that the contrast is understood as more than mere words
23 HOW TO CREATE HIGH IMPACT CONFRONTATION? Repeat the messages of the old and new mental maps over and over and over again!Create high impact and inescapable confrontationsFocus on core contrasts, the key differencesMake sure it involves as many of the senses as possibleEnsure ( physically!) the people cannot avoid the experience
24 THE SECOND BRAIN BARRIER FAILURE TO MOVE!!THE SECOND BRAIN BARRIER
25 WHY FAILURE TO MOVE?First, even when we see the old right thing no longer works, we still don’t move if the new mental map with its destination and path is not clear (“ Articulate the vision”)Second, when the new vision is clear, it is easier for people to see all the specific ways in which they will be incompetent and look stupid – ways that they will do the right thing and do it badly!
26 THE KEYS TO MOVINGNot just see the new destination clearly but you must help them believe in the path that will take them to the destinationMake sure others see the destination or targets clearlyGive them the necessary skills, resources and tools to reach the destinationDeliver valuable rewards along the journey
27 Are people who see but still fail to move just plain dumb??
28 STRATEGIC CHANGE MATRIX: BREAKING THROUGH THE MOVEMENT BARRIER Wrong ThingRight ThingOld right thing becomeswrongDoneWellCan’t instantly be good atthe new right thingXDonePoorlyStage 3
29 They are not stupid!They do not want to look or feel stupid by making the changeEspecially, with a work culture in which mistakes were punished and learning was rarely rewarded.They preferred to be competent in the wrong thing than incompetent at the right thing!!
30 THE SOLUTION …..They must be led to believe in a path that will take them from doing the right thing poorly to doing it well.They must see the destination or target clearly ( not you the leader only!)Give them the skills, resources and tools so that they believe they can do it! Walk the path!!Deliver valuable rewards along the journey. They value the outocmes.
31 A Note on Rewards Money? Yes and No ARCTIC Values Achievement (accomplishment, competition)Relations (approval, belonging)Conceptual/ Thinking (problem solving, coordination)Improvement ( growth, exploration)Control (competence, influence)
32 THE THIRD BRAIN BARRIER FAILURE TO FINISHTHE THIRD BRAIN BARRIER
33 Organizational Change or Transformation Organizational change is fundamentally meaningful when the majority of the people in the organization have changed – think differently and act differently
34 WHY FAIL TO FINISH? TWO PRINICPAL FORCES People Getting Tired Change requires energy and effortThe returns to investment for these extra inputs may not be satisfactoryVapour of faith vs Concreteness of past practicesPeople Getting LostMajor transformations of people and organizations are long journeysLost sense of direction over time and uncertainties set in; hence hard to press ahead
35 KEYS TO FINISHING TWO FACTORS PROVIDING CHAMPIONS CHARTING PROGRESS Be close to the actionLook for the desired efforts not resultsCounteract negative consequences with positive onesCHARTING PROGRESSMonitoring and communicating of progress‘Micro-level’ monitoring and feedback