3 Goals For a Change Management 2 To help you understand and embrace the culture of change 3 To help you plan for the Organization side of cultural change 4 To help you manage through change You must be the change you wish to see in the world. - Mahatma Gandhi 1 To help you survive and thrive at change
5 Survive and Thrive Business Environment - An Example ▪ Our firm seeks 25% unlevered returns ▪ Our investment focus will typically change in any 18-24 month period ▪ We must evolve and be adaptive individually and organizationally ▪ Our investors expect we operate in a dynamic, highly evolving opportunistic environment ▪ If we don’t embrace change, our opportunities will be limited ▪ Our environment rewards merit “meritocracy” Embrace Change Envision possibilities, create opportunities
6 Survive and Thrive Business Platforms - Example Our mission, vision, and competencies are the tools to leveraging employees to achieving “our” returns Our Firm pursues distress and views it as opportunities to achieve 25% returns What we all need to do is be aware of change, understand it, and continually bring opportunities to improve our current platform and new investments Windows of opportunity regularly open and close. …but for fleeting moments. We must prepare for change Corporate Private Equity Mortgage Securities Whole Loan Mortgage Bank & Finance Co.
7 Survive and Thrive Delivery Expectations (Do you fit the Culture) - Example Constant Change YOU Disciplined Execution Confidence Growth Core Competencies Investor/ Customer Focus Low Opportunity Low Change Leadership & Management 25%+ Returns High Opportunity High Change Medium Opportunity Medium Change 10% Returns Low Change Low Opportunity 6% Returns
8 Survive and Thrive Culture - What Employees Will Not Be Rewarded For Hoarding knowledge or over- reliance on SME “ I am a tired dog” Fiefdom building Failure to recognize the environment we are in and moving towards Failure to recognize comfort is our enemy
9 ▪ Financial Market Instability ▪ Globalization – Reduction of Trade Barriers ▪ Accelerated Technology Advances ▪ Commoditization of Products and Services ▪ Increasing Price Wars ▪ Generations – Baby Boomer vs. Generation Y ▪ More Women in Leadership Role ▪ Trust and Transparency Needs in the Organization ▪ Accomplishment Based Rewards versus Loyalty Rewards ▪ High Unemployment ▪ Flat Organization Structure What is Driving Your Business’ Need For Change? Survive and Thrive
10 Understand and Embrace the Culture of Change
11 Change according to Webster’s Ninth New Collegiate Dictionary ▪ To make something different than it was. Even better ! ▪ To make something radically different ▪ To give a new course or direction to ▪ To replace something with another something ▪ To make a shift from one to another ▪ To undergo a modification or transformation Understand and Embrace the Culture of Change What is Change?
12 A structured PROCESS that: ▪ defines a needed organizational change or business process modification, ▪ promotes the need for and the benefits of the change for the organizations’ constituents and stakeholders, ▪ implements the change and ▪ assures the change is successful and becomes a lasting benefit to the organization. What is Change Management? Change is about ATTITUDE and EXECUTION Understand and Embrace the Culture of Change
13 Transformations can be from tiny to HUGE No matter the size… Change is challenging! What is the Size of Change? tiny New vacation policy One new hiring procedure One department reorganization One systems application change Small change to corporate policy HUGE Revamp of a portfolio company’s management structure Building a business platform Merger of two organizations Go Global Institute company mission and values Understand and Embrace the Culture of Change
14 We all have an effect on one another… Change Environment? You Industry External Environment You Company or Business Department Understand and Embrace the Culture of Change
15 A great many people think they are thinking when they are merely rearranging their prejudices. - William James ▪ Some are Born…Some are Bred…All can learn ▪ Energizes groups and communicate the need for change ▪ Demonstrates high tolerance for ambiguity and positive attitude ▪ Moves group to Mission of Goals ▪ Effectively deals with obstacles and road blocks ▪ Involves people and their unique motivations at all times What is a Change Leader? Understand and Embrace the Culture of Change
16 Eight Change Management Responsibilities Of Executives 1.Senior Leaders Have to Sell and Defend It 2.They Need to Change the Plan as Needs and Knowledge Evolve 3.Create a Vision and Marketing Plan for Change 4.Become Powerful Advocates of Change 5.Set Clear Objectives around Initiatives and Goals 6.Hold Oneself and Others Accountable 7.Demand Solid Measures and Results 8.Communicate Results and Setbacks Refer to Citing 1 in Bibliography Understand and Embrace the Culture of Change
18 People Tasks Two sides of change… Our main focus will be on People and the Culture Organizational Side of Cultural Change
19 Cycle of Change The Change Cycle The Comfort Zone The “No” Zone The “Go” Zone The Chasm Confidence Control Competency Complacency Boredom Shock Denial Anger Resentment Frustration Sabotage Bargaining Depression Anxiety Acceptance Clarity Creative Tension Implementation Change introduced Change accepted Organizational Side of Cultural of Change Refer to Citing 2 in Bibliography
20 Norms of behavior and shared values among a group of people Organizational Side of Cultural of Change What is Culture
21 Culture Audit –What is culture like? What needs to change? Values must be articulated in terms of expected behavior and operational results Support and coaching for change must be offered (result and values) Organizational Side of Cultural Change What and How to Change
22 Start with a business problem Figure out what needs to be done strategically or tactically to solve problem Examine current culture for what aids or hinders cultural advancement Focus on cultural elements that will help you get to where you want to go. Identify the cultural carriers who see the new direction and feel comfortable moving in that direction. Build change teams around the new culture carriers If Present Culture is Dysfunctional Organizational Side of Cultural Change
23 Provide Managers with skill development to cope with new roles and job duties Reward the right behaviors Foster the safety of their direct reports to take risks of change to make improvements Set clear expectations, decision-making process, guidelines for dealing with relationship issues Share Information What and How to Change Organizational Side of Cultural Change
24 Orientation and training programs Internal universities or other educational opportunities One-the-job socialization Rigorous up-through-the-ranks policies Tight screening practices Incentives, advancement, awards linked to core ideology Tolerance for honest mistakes, but penalties or termination for breaching core ideology What and How to Change Organizational Side of Cultural Change
25 “ We will lose control ” Idea Killers “ It won’t work here ” “ Legal will have big problems ” “We don’t have enough staff” “ We will lose staff ” “The risk is too great” “ I don’t have time ” “It is not in the budget” “They will never approve it” “The boss will hate it” “It is against policy” “ That’s not my job ” “He, She, They…” “There is no capital” Organizational Side of Cultural Change
30 Manage Through Change Twelve Keys to Getting a Culture around Constant Change 1.Tie Efforts to Business Strategy and Priorities 2.Position Change as an Improved Way to Manage for Today 3.Keep the Message Clear and Simple 4.Develop a Path to Change, Six Sigma, PDCA, Lean, Poke Yoke 5.Focus on Short Term Results 6.Focus on Long Term Growth and Development of Employees 7.Publicize Results, Admit Setbacks and Learn from Both 8.Make an to Make It Happen 9.Use Change Tools Wisely 10.Link Customers, Process, Data and Innovation to Changes in External Environment 11.Make Top Leaders Accountable and Responsible for Results 12.Make Learning an Ongoing Activity Refer to Citing 3 in Bibliography
31 Importance of Managing Change Effectively I can’t understand why people are frightened of new ideas. I’m afraid of the old ones. - John Cage If Change Goes WELL If Change Goes POORLY Key results improved Time well spent – productive Resources well utilized Excitement Stakeholders active & committed Change is long-lasting Time wasted – unproductive Resources squandered Frustration and confusion Results suffer or stagnate Stakeholders idle or resistant Change is fragile and fleeting Manage Through Change Refer to Citing 4 in Bibliography
33 Manage Through Change Michael A. Prushan, M.B. A. - Biography Michael Prushan is a transformational business leader delivering successful operating results for Fortune 100, Start-Up, Private Equity, College and University and Healthcare Companies in U.S. and international settings. He is recognized for propelling businesses through organizational growth, financial and performance turnarounds utilizing change management skills and process improvement expertise necessary to drive profitable and productive gains in a collaborative way. Michael has proven leadership experience in financial services, consumer business, high-technology, manufacturing businesses and higher education. Michael Prushan’s manufacturing and service business experiences include working for two Fortune 100 Companies (General Electric and Allied Signal/Honeywell) in senior financial, operational, quality and organizational development roles. These roles encompassed analyzing market dynamics, aligning organizational resources and implementing strategies for large multi-million dollar business segments ranging from $200 to $800 million both domestically and internationally. Michael was asked to consult with Innovation Philadelphia, a public/private partnership created to grow the wealth and workforce of the Greater Philadelphia region’s economy. Michael participated on the nanotechnology team to develop marketing and organizational development plans. The plans focused on attracting, retaining, connecting and building technology-based businesses and workforce in the Philadelphia region.
34 Manage Through Change Michael A. Prushan, M.B.A. - Biography Mr. Prushan received his Bachelor’s of Science degree in Operations and Master’s in Business Administration from Drexel University, Philadelphia, Pennsylvania. He received certificates for successfully completing Executive Financial Management Program and Master Black Belt in Six Sigma Quality from General Electric. Michael was recognized as a Quality leader traveling throughout the U.S. training and leading teams of executives on implementation of this improvement methodology. Michael also attended the Global Business Management Seminar at General Electric’s Crotonville. Michael received extensive training on adult learner pedagogy employing various delivery methods and implementing rubrics to evaluate and improve performance. Michael lives in Bucks County, Pennsylvania with his wife of 21 years and three wonderful children.
35 William G. Stieber, Ph.D is an experienced coach, consultant and trainer having worked with clients from a variety of industries. Bill has over 20 years experience in the financial services, healthcare, manufacturing and consulting fields. Dr. Stieber’s professional background includes many quality, training and organizational development assignments including a position in Philadelphia as Director of Corporate Management Development and Training for CIGNA Corporation. As a contract consultant with AT&T Capital Corporation, he reengineered two businesses using an Organization Systems Design (OSD) model and assisted one of the businesses in applying for an internal quality award patterned after the Malcolm Baldrige Award. He also assisted with the implementation of Six Sigma at GE Capital and Sun Microsystems Over the last decade Bill has also been involved in significant executive coaching assignments. As a coach and facilitator, Bill spent several years coaching and facilitating CEO’s from mid-size businesses. He was also a contractor for Corporate Balance Concepts and coached managing partners at a major accounting firm in New York City. Bill Stieber, Ph.D. - Biography Manage Through Change
36 He is the author of the book “Teaming for Improvement” and has written a number of articles on leadership, teams and change management. Bill’s clients more recently have been in the healthcare arena. He assisted GlaxoSmithKline with a major outsourcing change management initiative. He also designed and implemented key project management programs and improvement programs for Thomas Jefferson University Hospital, Temple University Healthcare System and University of Pennsylvania Health Systems. Other clients have included American International Group, AT&T, AstraZeneca, Aluminum Shapes, Blue Cross and Blue Shield, Comcast, Children’s Hospital of Philadelphia, CNA HealthPro, GE Capital, GlaxoSmithKline, Howard Hughes Medical Institute, ICI Americas, Lockheed Martin, Merck, Novartis, New York State Electric and Gas, Raritan Bay Medical Center, Sanofi-Aventis, SAP, Sodexho, University of Pennsylvania Health Systems, and the US Postal Service. Bill has been involved in a number of projects involving process mapping and project management. Over the last three years, Bill has designed and implemented project management programs for a variety of organizations and a major Lean Six Sigma and organization redesign effort for PointRoll, a rich media technology company in Conshohocken, PA. Bill is a member of the OD Network, American Society of Training and Development, Human Resource Planning Society, National Speakers Association, SHRM, and the American Society of Quality. Manage Through Change Bill Stieber, Ph.D. - Biography
38 Citings Citing 1 Thomas Pyzdek, The Six Sigma Handbook, McGraw-Hill, 2001 Citing 2 Kevin Craine, The Cycle of Change, Published by TDAN.com October 2000, accessed, 2/1/12, www.tdan.com/view-articles/4878www.tdan.com/view-articles/4878 Citing 3 Thomas Pyzdek, The Six Sigma Handbook, McGraw-Hill, 2001 Citing 4 M.J. Rayn, AdaptAbility: How to Survive Change You Did Not Ask For, New York, Broadway Books, 2009 Bibliography