Adjunct Faculty Conference Terre Haute April 21, 2007 Richard Markwart, Business Division, Valparaiso Leading Change

Ivy Tech Region 1 Innovation and Entrepreneurship Center2 Agenda The forces creating change The role of complacency Kotter’s model of change Highlight the challenges ahead for Ivy Tech.

Ivy Tech Region 1 Innovation and Entrepreneurship Center3 Forces of change External Forces: Demographics – Baby Boom Anyone? Technology – The virtualization of society The market and competition – When China is high cost and water is the new oil Values – I don’t even want to go there!

4 Complacency is the #1 barrier to change!

Ivy Tech Region 1 Innovation and Entrepreneurship Center5 The Cost of Complacency The day before … December 6, 1941, Pearl Harbor, Hawaii September 10, 2001, New York City, NY August 28, 2005, New Orleans, LA April 15, 2007, Blacksburg, VA

Ivy Tech Region 1 Innovation and Entrepreneurship Center6 No highly visible crisis.The company is not losing money; no big layoffs are threatened. The company measures itself against low standards. The company compares itself to the industry average, not to the industry leader. Source: adapted from John Kotter, Leading Change (Boston, MA: Harvard Business School Press, 1996), Complacency causes and symptoms

Ivy Tech Region 1 Innovation and Entrepreneurship Center7 Performance feedback is strictly internal.The culture dictates that external feedback is either without value or likely to be uninformed. Evidence that change is needed results in finger- pointing. "It's just the cheap imports." Management focuses on marginal issues."The slip is sinking. Let's rearrange the deck chairs." The culture sends subliminal messages of success. Plush offices, wood paneling, and in art adorn corporate offices. Happy Talk -- Management believes its own press releases and mythology. "We are the greatest ad agency in the country. We set the standard for our industry. Manufacturing is back in the U.S." Source: adapted from John Kotter, Leading Change (Boston, MA: Harvard Business School Press, 1996),

8 Complacency is the #1 barrier to change! But, change carries a high emotional cost!

Ivy Tech Region 1 Innovation and Entrepreneurship Center9 Change! Them are fightin’ words! Source: The Information School of the University of Washington, copyright Prentice Hall, 2002.

Ivy Tech Region 1 Innovation and Entrepreneurship Center10 The emotional costs of change  Surprise and fear of the unknown  Fear of failure  Loss of status and/or job security  Peer pressure against change  Disruption of cultural traditions and/or group relationships  Personality conflicts

Ivy Tech Region 1 Innovation and Entrepreneurship Center11 So, how can we create change? Have leaders as well as managers. Utilize one of the active change models.

Ivy Tech Region 1 Innovation and Entrepreneurship Center12 The roles of leaders and managers Leaders: Establish direction Motivate and inspire Produce change Look forward Look outward Managers: Plan & budget Organize & staff Problem solve Produce order & predictability Move things forward

Ivy Tech Region 1 Innovation and Entrepreneurship Center13

Ivy Tech Region 1 Innovation and Entrepreneurship Center14 Kotter’s Model 1. Establish the need for urgency 2. Ensure there is a powerful change group to guide the change 3. Develop a vision 4. Communicate the vision 5. Empower staff 6. Ensure there are short-term wins 7. Consolidate gains 8. Embed the change in the culture Source: adapted from John Kotter, Leading Change (Boston, MA: Harvard Business School Press, 1996)

Ivy Tech Region 1 Innovation and Entrepreneurship Center15 1. Establish the need for urgency 2. Ensure there is a powerful change group to guide the change 3. Develop a vision 4. Communicate the vision 5. Empower staff 6. Ensure there are short-term wins 7. Consolidate gains 8. Embed the change in the culture

Ivy Tech Region 1 Innovation and Entrepreneurship Center16 1. Establish the need for urgency 2. Ensure there is a powerful change group to guide the change 3. Develop a vision 4. Communicate the vision 5. Empower staff 6. Ensure there are short-term wins 7. Consolidate gains 8. Embed the change in the culture

Ivy Tech Region 1 Innovation and Entrepreneurship Center17 1. Establish the need for urgency 2. Ensure there is a powerful change group to guide the change 3. Develop a vision 4. Communicate the vision 5. Empower staff 6. Ensure there are short-term wins 7. Consolidate gains 8. Embed the change in the culture

Ivy Tech Region 1 Innovation and Entrepreneurship Center18 1. Establish the need for urgency 2. Ensure there is a powerful change group to guide the change 3. Develop a vision 4. Communicate the vision 5. Empower staff 6. Ensure there are short-term wins 7. Consolidate gains 8. Embed the change in the culture

Ivy Tech Region 1 Innovation and Entrepreneurship Center19 1. Establish the need for urgency 2. Ensure there is a powerful change group to guide the change 3. Develop a vision 4. Communicate the vision 5. Empower staff 6. Ensure there are short-term wins 7. Consolidate gains 8. Embed the change in the culture

Ivy Tech Region 1 Innovation and Entrepreneurship Center20 Quick Side Trip into Organizational Behavior Fred Taylor and the cheaper by the dozen folks. Elton Mayo visits Cicero Illinois and isn’t bribed. Doug McGregor learns algebra. Fred Herzberg debates cleanliness vs. having fun. Victor Vroom has high expectations

Ivy Tech Region 1 Innovation and Entrepreneurship Center21 1. Establish the need for urgency 2. Ensure there is a powerful change group to guide the change 3. Develop a vision 4. Communicate the vision 5. Empower staff 6. Ensure there are short-term wins 7. Consolidate gains 8. Embed the change in the culture

Ivy Tech Region 1 Innovation and Entrepreneurship Center22 1. Establish the need for urgency 2. Ensure there is a powerful change group to guide the change 3. Develop a vision 4. Communicate the vision 5. Empower staff 6. Ensure there are short-term wins 7. Consolidate gains 8. Embed the change in the culture

Ivy Tech Region 1 Innovation and Entrepreneurship Center23 1. Establish the need for urgency 2. Ensure there is a powerful change group to guide the change 3. Develop a vision 4. Communicate the vision 5. Empower staff 6. Ensure there are short-term wins 7. Consolidate gains 8. Embed the change in the culture

Ivy Tech Region 1 Innovation and Entrepreneurship Center24 Our Challenge – Strategic Plan 2010

Ivy Tech Region 1 Innovation and Entrepreneurship Center25 Expand programs in existing high-need, high-demand workforce areas Ensure that all associate degree programs allow students to continue on to baccalaureate level Provide quality degree programs that are consistent with national standards and the standards of the universities to which credits will transfer Offer remedial coursework in a variety of forms that will effectively and quickly move people into college-level work however …. Goal #1: New and Expanded Education Programs Objectives

Ivy Tech Region 1 Innovation and Entrepreneurship Center26 September 2, 2006 “At 2-Year Colleges, Students Eager but Unready” By DIANA JEAN SCHEMO “Aside from New York City’s higher education system, at least 12 states explicitly bar state universities from providing remedial courses or take other steps like deferred admissions to steer students needing helping toward technical or community colleges.”

Ivy Tech Region 1 Innovation and Entrepreneurship Center27 Go forth and tip over the apple cart. © Trek Earth, 2007, Jim HenryPeshawar, Pakistan