1. Change Management Session 10

2. Change Management “ People don't resist change. They resist being changed” Peter Senge

3. Leading Change “The rate of change is not going to slow down anytime soon. If anything, competition In most industries will probably speed up even more in the next few decades.”

4. Leading the Change Process Performance Consultants Make recommend- ations Translate job requirements into competencies Apply Science of Learning & Human Performance Generate solution options and metrics Conduct effectiveness & cost analysis (K, S, A, T)

5. 1. Establishing a Sense of Urgency 2. Creating a Guiding Coalition 3. Developing a Vision & Strategy 4. Communicating the Change Vision 5. Empowering Broad-Based Action 6. Generating Short-Term Wins 7. Consolidating Gains & Producing More Change 8. Anchoring New Approaches in the Culture Source: Leading Change, John P. Kotter, 1998 The 8 Stage Process of Creating Major Change Creating Major Change

6. Establishing a Sense of Urgency 1 Examining the market & competitive realities 2 Identifying & discussing crisis, potential crisis, major opportunities  Concepts:  Create a crisis: highlight major weaknesses, allow errors to compound  Eliminate obvious examples of excess (company facilities, services,etc  Set goals & targets unrealistically high  Distribute company-wide performance data highlighting deficiencies to more employees  Force interaction with unsatisfied “customers, suppliers, shareholders.”  Use consultants to force more relevant & honest appraisals  Bombard people with information on future opportunities, rewards for capitalize on those opportunities, & potential “lost opportunities.” Source: Leading Change, John P. Kotter, 1998

7. Creating a Guiding Coalition 1Putting together a group with enough power to lead the change 2Getting the group to work together like a team 4 Key Characteristics of Guiding Coalition: Positional Power: Are enough key players on board, especially the main line managers, so those left out can not easily block progress? Expertise: Are the various points of view, relevant to the tasks at hand, adequately represented so that informed, intelligent decisions can be made? Credibility: Does the group have enough people, with good reputations, that its pronouncements will be taken serious by the other employees? Leadership: Does the group include enough proven leaders to be able to drive the change process? Creating Major Change Source: Leading Change, John P. Kotter, 1998

8. Developing a Vision & Strategy 1Creating a vision to help direct the change effort 2 Developing strategies for achieving that vision Characteristics of an Effective Vision Imaginable: Conveys a picture of what the future will look like Desirable: Appeals to the long-term interests of employees, customers, stakeholders. Feasible: Comprises realistic, attainable goals Focused: Is clear enough to provide guidance in decision making Flexible: Is it general enough to allow individual initiative & alternative responses in light of changing condition. Communicable: Is easy to communicate, can be successfully explained within 5 minutes. Creating Major Change Source: Leading Change, John P. Kotter, 1998

9. Communicating the Change Vision 1Using every vehicle possible to constantly communicate the new vision and strategies 2Having the guiding coalition role model the behavior expected of employees Key elements in communicating the vision: Simplicity. All jargon & techno-babble must be eliminated. Metaphor, Analogy & Example. A verbal picture is worth a thousand words. Multiple Forums. Big meetings & small, memos, newspapers, formal and informal meetings…. Repetition. Ideas sink in only after they have been heard many times Leadership by Example. Behavior by important people that is inconsistent with the vision overwhelms other forms of communication. Explanation of Seeming Inconsistency. Unaddressed inconsistencies undermine the credibility of all communications. Give & Take. Two way communication is always more powerful and one-way communication. Creating Major Change Source: Leading Change, John P. Kotter, 1998

10. Empowering Broad-Based Action 1 Getting rid of obstacles 2 Changing systems or structures that undermine the change vision 3 Encouraging risk taking & non-traditional ideas, activities & actions Empowering People to Effect Change Communicate a sensible vision to employees. Make sure structures are compatible with the vision. Provide the training employees need. Align information and personnel systems to the vision. Confront supervisors who undercut needed change. Creating Major Change Source: Leading Change, John P. Kotter, 1998

11. Generating Short-Term Wins 1Planning for visible improvements in performance, or “wins” 2Creating those wins 3Visibly recognizing & rewarding people who made the win possible 1.Provides evidence that sacrifices are worth it. 2.Reward change agents. 3.Helps fine-tune vision & strategies. 4.Undermine cynics and self-serving registers. 5.Keep bosses on board. 6.Build Momentum. Creating Major Change Source: Leading Change, John P. Kotter, 1998

12. Consolidating Gains & Producing More Change 1Using increased credibility to change all systems, structures & policies that 2don’t fit together and don’t fit the transformation strategy 3Hiring, promoting, & developing people who can implement the change vision 4Reinvigorating the process with new projects, themes & change agents More change, not less. The guiding coalition uses the credibility afforded by the short-term wins to tackle additional and bigger change projects More Help. Additional people are brought in, promoted and developed to help with all the changes Leadership from Senior Management. Senior people focus on maintaining clarity of shared purpose, keeping urgency levels up. People management & leadership from below. Lower ranks in the hierarchy provide both leadership & management for specific projects. Reduction of unnecessary interdependencies. To make change easier in both short/long-term, managers identify and eliminate unnecessary organizational interdependencies. Note: Resistance is always waiting to reassert itself! Creating Major Change Source: Leading Change, John P. Kotter, 1998

13. Anchoring New Approaches in the Culture 1Creating better performance through customer- & productivity oriented behavior, more and better leadership, & more effective management 2Articulating the connections between new behavior & organizational success 3Developing means to ensure leadership development & succession Concepts: Culture changes come last, not first. Most alteration in norms & shared values come at the end of the transformation process Results matter. New approaches usually sink into a culture only after it is very clear that they work and are superior to the old methods. Requires a lot of talk. Without verbal instruction and support, people are reluctant to admit the validity of new practices. May involve turnover. Sometime the only way to change a culture is to change key people. Makes decision on succession crucial. If promotion processes are not changed to be compatible with the new practices, the old culture will reassert itself Creating Major Change Source: Leading Change, John P. Kotter, 1998

14. Change Management 14 An effective Change Management program maximizes performance at implementation by minimizing disruption and accelerating the acceptance of change. Typical level of performance and motivation in changing environments Time Motivation to Change Transition Design Implement Improve Level of Acceptance Improve Level of Acceptance Awareness Understanding Involvement Acceptance