Confidential and Proprietary MANAGING TRANSITIONS By: GERARDO A. PLANA, FPM Executive Director People Management Association of the Philippines (PMAP)

Confidential and Proprietary “If the rate of change inside the organization is not greater than the rate of change outside, then the end is near.” Jack Welch Former CEO General Electric

CHANGE OR DIE!

LESSONS IN MANAGING TRANSITIONS

1. FAILURE TO APPOINT CREDIBLE PEOPLE WHO WILL LEAD THE CHANGE

Confidential and Proprietary CREDIBILITY IS ABOUT EARNING THE TRUST, RESPECT AND ADMIRATION OF OTHER PEOPLE

2. FAILURE TO DEVELOP A CHANGE MANAGEMENT PLAN

BASIC FAILURES OF A CHANGE PLAN 1.Who is leading the change? 2.Why do it? 3.What will it look like when we are done? 4.How will it affect people? 5.Who needs to be involved? 6.How will it be measured? 7.How will change be institutionalized? 8.How will we get started?

3. NO CLEAR AND EXCITING VISION

Confidential and Proprietary “VISION IS HAVING AN ACUTE SENSE OF THE POSSIBLE”

Confidential and Proprietary Vision should…. Engage the spirit Tap into embedded concerns and needs Add meaning to life gives everyday activities a larger sense of purpose.

Confidential and Proprietary “Our products enjoyed in every home every day” “Providing news around the clock” “Bringing air travel to the masses”

Confidential and Proprietary 4. FAILURE TO TRANSLATE VISION TO MILESTONE AND METRICS

Confidential and Proprietary Vision: A car in every home” Milestones/Metrics 2010 – 70% 2011 – 85% 2011 – 85% 2012 – 100% 2012 – 100%

Confidential and Proprietary 5. FAILURE TO CREATE A “SENSE OF URGENCY”

Confidential and Proprietary CREATING SENSE OF URGENCY HEIGHTENS THE ENERGY LEVEL OF PEOPLE.

Confidential and Proprietary 6. LACK OF INTEGRATION OF CHANGE INITIATIVES

Confidential and Proprietary CHANGE INITIATIVES ALL OVER THE PLACE

Confidential and Proprietary 7. FOCUSED ON MANAGING CHANGE AND NEGLECT MANAGING TRANSITIONS

Confidential and Proprietary CHANGE External Event TRANSITION Internal Individual Experience

Confidential and Proprietary “While the first task of change Management is to understand the destination and how to get there, the first task of transition management is to convince people to leave home”

Confidential and Proprietary “The failure to identify and be ready for endings and losses that change produces is the largest single problem that organizations in transitions encounter.”

Confidential and Proprietary ENDINGS NEUTRAL ZONE BEGINNINGS THE TRANSITION CYCLE

Confidential and Proprietary DENIAL COMMITTMENT EXPLORATION RESISTANCE THE TRANSITION CURVE

Confidential and Proprietary 8. FAILURE TO DEAL WITH RESISTANCE APPROPRIATELY

Confidential and Proprietary SIGNS OF RESISTANCE Anger Complaints Withdrawal Errors Sabotage

Confidential and Proprietary Comfortable with old ways Feel they will lose out Threatens identity and status Not sure if they can measure up WHY PEOPLE RESIST CHANGE?

Confidential and Proprietary 9. LACK OF INNOVATION

Confidential and Proprietary TYPES OF INNOVATION? Process Innovation Product/Service Innovation Strategy Innovation

Confidential and Proprietary 10. FAILURE TO BUILD A STRONG SUPPORT COALITION

Confidential and Proprietary BUILD A NETWORK OF CHANGE COMPANIONS

Confidential and Proprietary 11. FAILURE TO INVOLVE PEOPLE

Confidential and Proprietary INVOLVEMENT= BUY-IN

Confidential and Proprietary 12. FAILURE TO INSTITUTIONALIZE THE CHANGE

Confidential and Proprietary CHANGE MANAGEMENT MODEL OF INVESTORS IN PEOPLE STANDARD RECOGNIZING6IMPROVING1ALIGNING2 MODELING5 EMPOWERING4 DEVELOPING3

Confidential and Proprietary In Summary… 12 LESSONS IN MANAGING TRANSITIONS 1.Appoint credible people who will lead the change 2.Develop a change management plan 3.Craft and communicate an exciting vision 4.Translate vision to milestone 5.Create a sense of urgency 6.Integrate all change initiatives 7.Don’t neglect managing transitions

Confidential and Proprietary 8.Manage resistance to change 9.Promote innovation 10.Build a support coalition 11.Involve people 12.Institutionalize the change

Confidential and Proprietary