1 Ch. 18 Outline 1. Becoming World Class 2. Managing Change 3. Shaping the Future

2 Becoming World Class Being world class requires applying the best and latest knowledge and ideas, and having the ability to operate at the highest standards of anyplace anywhere World-class companies create high-value products and earn superior profits over the long run

3 Leadership/Followers "People are the key to successful change. For an organization to be great, or even just to survive, people have to care about its fate and know how they can contribute. But typically, leadership lies with only a few people at the top. Too few take on the burden of change; the number of people who care deeply, and who make innovative contributions, is too small. People throughout the organization need to take a greater interest an a more active role in helping the business as a whole. They have to identify with the entire organization, not just with their unit and close colleagues."

4 Motivating People to Change People must be motivated to change Managers tend to underestimate the amount of resistance they will encounter Some general for resistance include: –Inertia – people don’t want to disturb the status quo –Timing –Surprise –Peer pressure

5 Motivating People to Change Some change-specific reasons for resistance include –Self-interest –Misunderstanding –Different assessments –Management tactic s

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7 A General Model for Managing Resistance Motivating people to change often requires three basic stages –Unfreezing –Moving –Refreezing

8 Leading Change Successful change requires managers to actively lead it Leaders must start by examining the current realities facing the organization –From here they can create a sense of urgency

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