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Leading Change in Turbulent Times Executive Education Seminar MOVENDO SEU ELEFANTE Scott Wright, MBA October 2013.

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Presentation on theme: "Leading Change in Turbulent Times Executive Education Seminar MOVENDO SEU ELEFANTE Scott Wright, MBA October 2013."— Presentation transcript:

1 Leading Change in Turbulent Times Executive Education Seminar MOVENDO SEU ELEFANTE Scott Wright, MBA October 2013

2 “Change is the only constant” “Mudança é a única constante” ~ Heraclitus – Greek Philosopher 2

3 Change is difficult Multiple studies have shown that 70% of the time, when significant change is needed: – People back away – Try but fail miserably – Stop, exhausted, after achieving half of what they want using twice the time and money 3

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5 Mudança envolve três elementos Guia – intelecto Elefante - motivação A trilha - ambiente 5

6 Direct The Rider Riders love to contemplate & analyze but the analysis is usually directed at problems rather than bright spots Example - Malnutrition at a Vietnamese village 6

7 Knowledge Does Not Change Behavior Conhecimento não altera o comportamento Overweight doctors – médicos obesos Divorced marriage counselors - conselheiros matrimoniais divorciados Corrupt police officers – policiais corruptos Depressed psychologists – Psicologos depressivos 7

8 Ask the Exception Question When does the problem you’re fighting not happen? i.e., – When does your teenager not talk back? – When have the two warring departments collaborated instead of feuding? – When does your front-line employee show a “customer service focus”? 8

9 Provide Explicit Direction What’s wrong with: – Be more innovative – Be a more loving couple – Teach more effectively – We want to have the best sales force Remove abstractions 9

10 3 rd Party Observation Would someone observing from the outside be able to tell if you were making progress toward your goal? Will your team know when it is time to celebrate? 10

11 Decision Paralysis Retirement options – For every 10 additional options, participation goes down by 2% 6 jams vs. 24 jams – Shoppers who viewed only 6 jams were 6x more likely to buy Speed dating – Young adults who met 8 other singles made more “matches” than those who met 20 11

12 Rider Review 1. Focus on the positive 2. Provide clear direction 3. Be careful of too many choices 12

13 Motivating the Elephant – Managers initially focus on strategy, structure, culture or systems which lead them to miss the most important issue – Behavioral change happens in highly successful situations mostly by speaking to people’s feelings 13 Source: John Kotter in “Heart of Change”

14 Motivating the Elephant Most people think change happens in this order: – Analyze, think, change – generally unsuccessful – See, feel, change – is more successful You’re presented with evidence that makes you feel something – speaks to the elephant 14

15 Make the Change Visual Seeing is often more emotional than reading or hearing What can you show your employees to exhibit your desire for change? If you could video one person, who would that be – a competitor, an employee that has seen the benefits, etc. 15

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17 Hospital Screen Saver 17

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20 Candle Problem 20 Attach candle to wall so wax does not drip on table

21 2 groups asked to solve problem 21 No reward structure Only measured for time Offered $20 for best time or $5 for fastest 25%

22 2 groups asked to solve problem with tacks out of box 22 No reward structure Only measured for time Offered $20 for best time Or $5 for fastest 25%

23 Incentives If-then rewards work really well for those sorts of tasks, where there is a simple set of rules and a clear destination to go to. Rewards, tend to narrow our focus and concentrate the mind. London School Economics looked at 51 studies of pay-for-performance plans – financial incentives can result in a negative impact on performance. 23

24 Optimism Bias We’re more optimistic than realistic – Driving ability – Honesty 24 Source: The Optimism Bias: A Tour of the Irrationally Positive Brain - Tali Sharot

25 How many of us have the optimism bias? A.50% B.60% C.70% D.80% 25

26 Which card should be paid first? CardAmount Owed Interest Rate A$8,00015% B$6,00011% C$9,0009% D$5007% 26

27 Shrinking Change Make the change small enough that people can easily feel an accomplishment 27

28 Shrinking Change Car wash frequent-buyer cards study ___% returned 8 times 28

29 Play for Small Wins How long does your team have to wait before they have a sense of how they’re doing? 29

30 Growth vs. Fixed Mindset 1. Sua inteligência é algo tão básico que você não pode modificá-la muito. 2. Você é capaz de aprender coisas novas, mas você não pode realmente modificar seu nível de inteligência. Source: Mindsetonline.com 30

31 Growth vs. Fixed Mindset Imagine Edison inventing the lightbulb 31

32 Your Role If people have a fixed mindset they may see hard work and effort as signs that the problem can not be solved or that they are not the right kind of people to do it—can you help them understand that they are building “muscle” that will pay off in the future? 32

33 Elephant Review 1. Financial incentives don’t always work and can decrease performance. 2. Emotionally, we need to feel that change is needed. 3. Make change appear easy by starting with small steps. 4. Help people develop growth mindsets. 33

34 People or Situational Problem? 34

35 Shaping the Path “Fundamental Attribution Error” – Psychologist Lee Ross We tend to attribute people’s behavior to the way they are rather than to the situation they are in. – Person driving recklessly – Nurses distributing wrong pills 35

36 36 47%

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40 Why do errors occur? Errors of ignorance (mistakes we make because we don’t know enough) OR Errors of ineptitude (mistakes we made because we don’t make proper use of what we know) – Projectcheck.org – how to create checklists 40 Source: The Checklist Manifesto – Atul Gawande

41 Highlight the Changes Showcase people who are actively supporting the change Telling homeowners how their electricity use compared with their neighbors' had the effect of cutting energy consumption by 2%. This had the same the impact of a 15% rate hike. Source: Hunt Allcott of MIT 41

42 Path Review 1. Make the environment conducive to change. 2. Utilize checklists. 3. Show how others are changing (moving on the path). 42

43 How to Change Direct the Rider Motivate the Elephant Shape the Path 43

44 44 Idéia Pegajosa

45 45

46 Sticky = Understandable, memorable, and effective in changing thought or behavior 46

47 Making Ideas Stick Simple – Simples = 1 idea Concrete – Concreto = Understand and remember Credible – Digno de confiança = Believable Unexpected – Imprevisto = Gets your attention Emotional – Emocional = You care Story – História = Puts into context 47

48 Sticky or Abstract? “Our mission is to become the international leader in the space industry through maximum team-centered innovation and strategically targeted aerospace initiatives” 48

49 Sticky or Abstract? –Simple? –Unexpected? –Concrete? –Credible? –Emotional? –Story? President Kennedy - “Put a man on the moon & return him safely by the end of the decade” 49

50 Simple - Simples = 2 50

51 Simple – Proverbs – Sound bites that are profound Bird in the hand (Aesop – 570 b.c.) Golden Rule – Visual proverbs: The Palm Pilot wood block – Existing Schemas: The Pomelo fruit 51

52 Concrete - Concreto 52 OR

53 Velcro Theory Remember the capital of Bahia Remember the first line of Hino Nacional do Brasil Remember the Mona Lisa Remember the house where you spent most of your childhood Remember the definition of “verdade” Remember the definition of “maçã” 53

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55 Credible - Digno de confiança 55

56 Cure for Ulcer? 56 Duodenal Ulcer Disease Barry Marshall found cure but had no credibility.

57 Making #s Credible Only 37% said they have a clear understanding of what their organization is trying to achieve and why. OR Only 4 of 11 players on the field would know which goal is theirs. Source: The 8 th Habit – Stephen Covey – 23,000 employees polled 57.

58 Using a Soccer Metaphor Only 4 of 11 players on the field would know which goal is theirs. Source: The 8 th Habit – Stephen Covey – 23,000 employees polled 58

59 US Fiscal Condition US Tax revenue: $2,170,000,000,000 Fed budget: $3,820,000,000,000 New debt: $1,650,000,000,000 National debt: $14,271,000,000,000 Recent budget cut: $38,500,000,000 59

60 Make it Relevant Annual family income: $21,700 Money the family spent: $38,200 New debt on the credit card: $16,500 Outstanding balance on credit card: $142,710 Total budget cuts: $385 60

61 Unexpected - Imprevisto 61

62 What Makes People Interested? Common sense is the enemy of sticky messages – If I already understand what you’re trying to tell me, why should I obsess about remembering it? Basic way of getting someone’s attention: Break a pattern – Great Wall of China seen in space – We should drink 8 glasses of water a day – We only use 10% of our brain 62

63 What Makes People Interested? Find the knowledge gap – Highlight specific knowledge that your audience is missing – Pose a question that exposes their gap in knowledge 63

64 64 Emotional - Emocional

65 Feelings inspire people to act (moving the elephant) Make people care – People donate more to a girl than to Africa 7-year old girl in Mali vs Save the Children – Appeal to self-interest The “benefit of the benefit” that they can imagine themselves enjoying 65

66 Story - História 66

67 Story - História Stories provide simulation (knowledge about how to act) Stories are like flight simulators for the brain Hardest part is to keep them simple and deliver your core message 67

68 Making Ideas Stick Simple – Simples = 1 idea Concrete – Concreto = Understand and remember Credible – Digno de confiança = Believable Unexpected – Imprevisto = Gets your attention Emotional – Emocional = You care Story – História = Puts into context 68

69 What story can a a beer company tell? 69

70 Additional Readings from Faculty ohiofgv.com - Materials 70


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