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A Prescription for Success* *And Success Requires Change The Importance of a Well-Designed Agency/Client Relationship in a Change Management Environment.

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Presentation on theme: "A Prescription for Success* *And Success Requires Change The Importance of a Well-Designed Agency/Client Relationship in a Change Management Environment."— Presentation transcript:

1 A Prescription for Success* *And Success Requires Change The Importance of a Well-Designed Agency/Client Relationship in a Change Management Environment Anthony D’Angelo and Gary Grates Inaugural Class, ISDP Communications Management Program

2 How central to your job is managing change?

3 What We’ve Learned: Most organizations fail to realize the benefits expected from a change initiative (Over 70%) Traditional communications approaches don’t help; they hurt Change isn’t the problem; clarity, engagement, and accountability are key There are common traits of winners and losers Basic principles and best practices

4 Winners and Losers Auto Industry Tech Bubble Lessons from Jack Welch PepsiCo

5 60+ Sources Boiled Down to 5 Motifs Effective change communications is a strategically integrated management activity Effective change communication is two-way symmetrical in nature – it begins with changing the conversation Effective change communication is often promoted through cross- functional teams or other special organizational structures but directed from central leadership source Effective change communication is linked to organizational and individual performance, and is measured—research is used in formulation and evaluation Change is difficult, uncertain, costly and takes a long time

6 Change Management Considerations Many companies inadvertently limit communication to tactical support in change management, diminishing the effectiveness of enterprise-wide change efforts Organizations that are successful leading transformation and change take a broader, strategic view of communications – we call this Leadership and Employee Engagement Leadership and Employee Engagement unifies change management and communications, which should be on parallel paths

7 What Is Change? Process/Developmental Change - Improvement of current systems, processes or skills Transitional Change - Creation / implementation of new products, services, systems, processes, policies or procedures that replace current portfolio or substantially upgrade it Transformational Change – Current business model is being challenged while a new competitive landscape is still unknown; new environment requires a fundamental shift in mindset, strategy, organizing principles, behavior and/or culture designed to support new business model

8 The Current Reality: A World in Fast Gear The Age of Transparency Customers, employees, shareholders, investor community are privy to higher levels of product information and company knowledge A New Corporate Ecosystem The lines between stakeholders are blurred; all are integral parts of one organization Growing demand for personalized products Customers and employees alike have become accustomed to receiving products, services and information that is custom-tailored to meet their needs Growing Sense of Distrust for Corporations Recent events have elevated concern about corporate governance, lack of trust for executives and boards A New Balance of Power Balance is shifting away from management to employees, customers, etc.

9 Social Media Is Mainstream Media Sixty-six percent of people on-line blog or network Exponential growth of Twitter; 600 million on Facebook 120 million visitors to Wikipedia each month; 5.5 million video feeds to YouTube Diversity continues: Flickr, Digg, Skype, LinkedIn

10 Why Change Doesn’t Stick Don’t believe in the rationale What‘s wrong with the way we do things now? Perceived loss of control No relevant metrics Trust lacking from previous efforts Lack of clarity on expected outcomes Threat Fear of failure Overwhelming task

11 Typical Internal Perceptions about Change Management 1. Change = Cost Reductions 2. “It sounds the same.” 3. “I have no idea what you’re talking about.” 4. “Are we winning?” 5. “Why is my manager clueless?”

12 1. Change = Cost Reductions Most change efforts go no further than cost reduction exercises “Change” means fewer resources to achieve better results There is no “there” there

13 2. “It sounds the same.” Overuse of language like “change,” “improve” and “competitive advantage” “Been there, done that” One change initiative after another creates a “little boy who cried wolf” syndrome People begin to say: “This too shall pass” They don’t take seriously leadership messages about the need to change

14 3. “I have no idea what you’re talking about” What is it that’s causing this? Teach me, listen to me, engage me What should I see that impacts the organization? Communicate how that relates to the organization and the internal environment

15 4. “Are we winning?” How can I know things are moving in the right direction? While I do my job, what are you doing to assure all the parts are working toward the company’s success? Is what I’m doing the right thing(s) to be doing?

16 5. “Why is my manager clueless?” My most trusted source of information is as out of the loop as I am Why should I trust anyone (or anything that anyone else tells me)?

17 Three Difficult Principles Let the realities of the marketplace drive change Teach employees that management doesn’t have all the answers – open channels for engagement Ignore instinct

18 What Communications Leaders Need to Equip Their Organizations for Successful Change Defining the Change/End State Identifying the guideposts Common Vocabulary/Language Knowledge of what works and doesn’t work Knowledge of what they can control and can’t control Training Communications Options

19 Communicators During Change Journalists at the outset Ask the tough questions Advocates during the process Catalyst for new conversations Employees throughout Empathetic

20 Leveraging the Client/Agency Relationship The Client brings… Leadership and direction Open mind for the task at hand Insights into the uniqueness of the organization and its people Open doors to appropriate management people What success will look like Partnership oriented The Agency brings… Outside perspective on the impact of change on organizations Fresh thinking/Insights New approaches to new challenges New view of old ways of doing things (messages, channels) Partnership oriented

21 Pillars to Effect Change Management practices The organization’s conversation The implementation apparatus

22 Respecting the Structure and the System What do we want people to know, feel and do? What will they experience that’s different?

23 Communications in a Change Environment… Provides clarity around business direction, strategy, priorities Gives external/internal context Ensures people understand rationale for decisions Instills a sense of urgency Enables relationships between leadership, management, supervisors and employees to evolve–the right things are being said, heard and done People understand where the business is and how they fit in What we measure – outcomes

24 It’s About Setting Expectations… For managers and employees: Acknowledging everyone makes a difference; a contribution Tell me how I’m doing? Acting like owners of the business Treat me with respect. Never being satisfied with current performance Help me set stretch targets. Being focused on outdoing our competition Let me see the marketplace.

25 Grasping the Strategy: The Strategic Roadmap Vision A brief, graphic and focused metaphor that characterizes the bond between your key customers and primary product, i.e... your core business. The core of what you’re striving to become. Mission An organization’s purpose, what and where it is today, and how it will achieve its vision. Key Measures Reputation Sales Market share Margins Rate of return Productivity Customer satisfaction index Employee satisfaction index Market Strategy Key customers you are targeting and the special needs you fill. Product/Services Strategy The distinctive trait that will differentiate your products and services as you fill the market’s special need. Operations Strategy The specific operational approach that will help you meet your market’s special needs most profitably and consistently. Values The four or five uncompromising beliefs you’ll recognize, reward and develop to ensure consistent behavior. Initiatives for 2011 (examples) Strengthen customer management processes New information systems Acquisitions New product development and introduction processes Customer satisfaction programs Leadership development New marketing structure

26 In Practice: A Change Strategy DISCOVER [Segmented target audiences] First priority: management comprehension - hold strategy development sessions with managers detailing marketplace realities, competitive issues, etc. Created a narrative describing the strategy in story form Established an employee worldview based on current feedback from cultural survey on employee attitudes, issues, behaviors factored into planning Raised the volume on key inputs of the strategy – customers, competition, products, delivery, societal concerns Synchronized leadership’s messaging across all divisions and BUs SELL [Homogeneous audience] Brochure produced Theme adapted Coffee mugs, mouse pads, posters CEO e-mail to all employees Article in newsletter and on Intranet announcing new strategy via theme One-way leadership messaging via net – CEO blog Information “packets” given to all managers telling them what to say Cascading of information begins

27 Sell vs. Discover: Campaign vs. Coherence SELL DISCOVER Leadership briefing with managers, supervisors Four key business unit presidents conducted road shows with their staffs –webcast on portal for all employees All-employee jam with five conversation streams reflecting key elements of the strategy Facebook page where people can opt-in the discussion Leadership directive to department heads to prioritize plans, budgets against the strategy Refresh the message based on the narrative to keep it relevant

28 Measuring the Right Things… Outputs vs. Outcomes Brochures Newsletters Press Releases Town Halls Portal/Intranet Videos Events Posters Bulletin Boards Relationships… Behavior Discretionary Effort Trust Collaboration Innovation

29 Make Human Resources a Significant Part of the Process This function is as critical as communications is to the success of the change effort simply because human resources professionals are needed to develop the new policy procedures, job specs and performance criteria that give meaning to the change effort. HR professionals have proven themselves to be a strategic resource with valuable potential for influencing management decisions on talent, training and development–a critical advantage when it comes to managing change.

30 Six Principles To Shape Change Communications Move communications beyond process updates – incorporate messaging on desired results, vision and the effect or benefit of changes to customers and other external stakeholders Determine what the marketplace will see as a result of organizational changes – to mitigate negative impact, plan for likely scenarios and align efforts to ensure One Face to the Customer Create a central narrative with elements that stay consistent, evolve with internal and external realities of the business and are supported by examples Shore up the global change and communications network, including all consultants – infuse with central narrative and leadership engagement model, in addition to protocol, tools, templates Challenge and test assumptions about the culture, employee mindset, resistance to change and communication preferences Treat gaining leadership and management buy-in on change strategies as a process, rather than a one-time event

31 The Right Questions (to answer for yourself) What is the specific assignment that communications is being directed towards? How is the organization defining success? How will measurement be integrated into the process? What is the delineation of activities and responsibilities between the agency and the client? What types of resources/skills set will be needed to carry out the assignment? What’s the protocol for interaction, decision making, project management? What do you really need from your outside partner; what is your value proposition to the client?

32 “The real act of discovery is not in finding new lands but in seeing with new eyes.” Marcel Proust


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