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Managing Transitions Making the Most of Change William Bridges

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1 Managing Transitions Making the Most of Change William Bridges
7 mai 2018 Managing Transitions Making the Most of Change William Bridges « I have learned how self-defeating it is to try to overcome people’s resistance to change without addressing the threat the change poses to their world.» Bridges, W., “Managing Transitions -Making the Most of Change”, Third Edition, Da Capo Press, Cambridge, 2009.

2 Chapter 1 – It isn’t Change That Do you In
7 mai 2018 Chapter 1 – It isn’t Change That Do you In Change is situational, external: New Job New House New Child New Process Transition is internal It is the psychological process people go through to come to terms with the new situation The psychological transition happens much more slowly than a change “UNLESS TRANSITION OCCURS, CHANGE WILL NOT WORK.”

3 Un modèle de changement et de transition à trois étapes/processus
Temps Terminer Perdre Laisser aller La zone neutre Le mouvement Le nouveau début Le dégel Le regel Changing «La transition ne peut pas être achevée avant que les trois phases/étapes soient complétées» (Bridges 2009)

4 Three-Phase Transition Process
7 mai 2018 Ending, Losing, Letting Go The Neutral Zone The New Beginning Time Ending, Losing, Letting Go Letting go of the old ways and the old identity people had Helping people to deal with their losses The Neutral Zone Going through an in-between time when the old is gone and the new isn’t fully operational The critical psychological realignments and reparternings The New Beginning Coming out of the transition and making a new beginning The people develop a new identity, experience a new energy and discover the new sense of purpose that make the change begin to work “TRANSITION CANNOT BE COMPLETED UNTIL ALL THREE PHASES HAVE TAKEN PLACE.”

5 Change versus Transition
7 mai 2018 Change versus Transition

6 Deux approches au changement
7 mai /16/96 Deux approches au changement L’approche ‘marteau’ L’approche par la gestion de la transition Traduit et adapté de (SEI 1993) Le volet humain d'un changement technologique

7 L’approche ‘marteau’ - le rêve
7 mai /16/96 L’approche ‘marteau’ - le rêve État souhaité Productivité Qualité État présent Temps Traduit et adapté de (SEI 1993) Le volet humain d'un changement technologique

8 L’approche ‘marteau’ - la réalité - 1
7 mai /16/96 L’approche ‘marteau’ - la réalité - 1 État souhaité Productivité Qualité État présent Temps Traduit et adapté de (SEI 1993) Le volet humain d'un changement technologique

9 L’approche ‘marteau’ - la réalité - 2
7 mai /16/96 L’approche ‘marteau’ - la réalité - 2 État souhaité État présent Productivité Qualité Temps Traduit et adapté de (SEI 1993) Le volet humain d'un changement technologique

10 La gestion de la transition
7 mai /16/96 La gestion de la transition Les fins La zone neutre Le début Productivité Qualité Temps Traduit et adapté de (SEI 1993) Le volet humain d'un changement technologique

11 Three-Phase Transition Process
Endings Neutral Zone Beginning Productivity Quality Time Traduit et adapté de (SEI 1993)

12 Chapter 2 - A Test Case Company’s service is mostly performed on the phone Culuture was very individualistic Calls were handled by people in 3 levels (3 managers) From easy problems to problems requiring a complete knowledge of the system Each employee was evaluated on the number of calls processsed in a week A target was set at the beginning of each year To hit the target brought the bonus, missing it, cost the employee the bonus

13 Chapter 3 – How to Get People to Let Go
Endings Neutral Zone Beginning Productivity Quality Time “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 … … The problem is people don’t like endings, losses.” “It does little good to talk about how healthy the outcomes of the change will be. Instead, you have to deal directly with the losses and endings.”

14 Chapter 3 – How to Get People to Let Go
Identify who is losing what Describe the change in as much detail as possible Not ‘We are going to be CMMI level 3 by December 201x Identify the secondary changes that your change will cause Describe what will be different when the change is completed For each change, identify: Who is going to have to let go of something What must they let go Peers, roles, competencies What is over for everyone Accept the reality and importance of subjective losses Loss is subjective, do not argue You make your task more difficult by showing to people that you do not understand them

15 Chapter 3 – How to Get People to Let Go
Do not be surprised by overreaction People overreact to a change when they are reacting more than you are, It is a piece of their world that is being changed not yours, Overreaction can come from how past losses have been experienced Acknowledge the losses openly and sympathetically Express your concerns simply and directly to the affected people, Pretending that losses do not exist can stir up trouble, People recover quickly if losses can be openly expressed

16 Chapter 3 – How to Get People to Let Go
Expect and accept signs of grieving Signs of grieving People get angry, sad, frightened, depressed, confused People may deny that the losses will take place Typical emotions Bargaining, anxiety, sadness, disorientation, depression, anger Compensate for the losses A company may gain from change efforts, but for employees, it seems to be all losses What can be given back to balance what has been taken away e.g. status, turf, team membership, recognition, flexibility

17 Étapes typiques d’un deuil*
Colère Acceptation Statu Quo É N E R G I Diagnostic Marchandage Exploration Déni État de choc Dépression TEMPS (jour/semaine/mois/année) * Par exemple une maladie incurable, la perte d’un membre de la famille All that jazz - Stages of dying Funny Giraffe: (MP3) (Kübler-Ross, 1985)

18 Reaction Pattern to Change Viewed as Negative*
Anger, Rage Acceptance Status Quo E N R G Y Bargaining Testing Exploration Denial Stunned Paralysis Depression TIME * e.g. a non curable disease Source: E. Kübler-Ross, La mort dernière étape de la croissance, Pocket, 1985 Conner, D., “Managing at the Speed of Change”, Willard Books, 1992.

19 Reaction Pattern to Change Viewed as Negative
Denial: “No ! Not me !”, “I don’t want to hear it !”,“It can’t happen here” Anger: “Why me !”, “Not fair !”, “Why now, after all these years ?” Bargaining: “Not yet !”,” What can I do ?”, “I’ll work for less money…” Depression: “Go Away !”, “I’m too tired”, “I feel like someone has died” Testing-Exploration: “What is going to happen to me”, “Well, if I do this, it may work” Acceptance: “OK” , “If that’s the only way”, “Well, If you can’t beat them, join them!”

20 Réaction à un changement perçu
comme positif PUBLIC Pessimisme PRIVÉ Espoir réaliste Pessimisme informé Optimisme informé Décrochage Achèvement Optimisme non informé Temps Un changement, même ‘positif’, est souvent plus coûteux que prévu ! Traduit et adapté de (Conner 1992)

21 Response to Change Viewed as Positive
Pessimism PUBLIC PRIVATE Hopeful realism Informed Pessimism Informed Optimism CHECKING OUT Completion Uninformed Optimism TIME Conner, D., “Managing at the Speed of Change”, Willard Books, 1992.

22 Response to Change Viewed as Positive
Uninformed Optimism Feeling extremely positive about the change “Honeymoon” phase, naïve enthusiasm based on insufficient data e.g. when people get married Informed Pessimism Over time we discover the real prices for our change decision This phase always happen Every person has a certain tolerance level. If that tolerance is exceeded “checking out” occurs either publicly or privately. With private checking out, emotions are dangerously hidden

23 Response to Change Viewed as Positive
Hopeful Realism There is light at the end of the tunnel Begin to feel that “we can pull this thing off” Informed Optimism More and more concerns are resolved Strong confidence of success Completion Bottom Line Changes are more costly than anticipated

24 Seven Levels of Resistance
1. Blindly Loyal Danger (Ask no questions, jump onto whatever appears hot) 2. Believers but Questioners (Potential Allies) a. Skeptics (“Show me”) b. Passive Observers (“What’s in it for me ?”) Real allies c. Opposed (Fear change) d. Opposed (Fear loss of power) 3. Militantly Opposed Danger (Will undermine and destroy) Increasing Resistance Source: Jerry Johnson, Menninger Business Institute

25 Chapter 3 – How to Get People to Let Go
Give People Information, Again and Again Rationalization for not communicating They don’t need to know They already know We told their supervisor We don’t know the details yet Define What is Over and What is Not People may continue to do all the old things and not the new things People may make their own decisions about what to discard People may toss out everything that was done in the past

26 Chapter 3 – How to Get People to Let Go
Mark the Endings Create actions or activities that dramatize endings Treat the past with respect Never denigrate the past, it consolidates the resistance against transition Let the people take a piece of old way with them e.g. a yearbook Show how endings ensure continuity Endings may be the only way to protect the continuity Start-up ‘seat-of-the-pant’ management style is not adequate to manage midsize company Final Thought Don’t drag it out Plan carefully, once it is done, allow time for healing

27 Chapter 3 – How to Get People to Let Go
Conclusion The single biggest reason organizational changes fail is that no one thought about endings or planned their impact on people. Change management To understand the desired outcome and how to get there Transition management To convince people to leave home

28 Chapter 4 – Leading People Through the Neutral Zone
Endings Neutral Zone Beginning Productivity Quality Time “ It is not so much that we are afraid of change or so in love with the old ways, but it is that place in between that we fear… it is like between trapezes” Marilyn Ferguson

29 How long is it to take you to implement those changes ?
The Neutral Zone When the changes is deep and far-reaching, this time between the old identity and the new can stretch out for months, even years To make matters worse, the boss is probably getting impatient How long is it to take you to implement those changes ?

30 Certains changements sont plus ‘grands’ que d’autres
Niveau d’apprentissage requis Culture Stratégie Structure Procédure Compétence Années Mois Semaines Petit Grand Ampleur du changement visé Temps d’adaptation Traduit de (Adler)

31 Some Changes are Bigger than Others
Level of Learning Required Culture Strategy Structure Procedures Skills Years Months Weeks Small Large Time to adjust Magnitude of Change Sought Source: Adler

32 Danger in the Neutral Zone
Anxiety rises and motivation falls People feel disoriented, self-protective People in neutral zone miss more workdays than at other times Productivity suffers Medical claims rise Old weaknesses, long patched over or compensated for, re-emerge.

33 Danger in the Neutral Zone
People are overloaded, signals are often mixed, and the systems in flux are therefore less reliable Polarization between those who want to rush forward and those who want to go back to old ways Consensus may break down Level of discord may rise Teamwork will suffer Organizations are more vulnerable to attack from outside.

34 Normalize The Neutral Zone
People need to recognize it is natural to feel somewhat frightened and confused in this no-man’s-land. It is a journey from one identity to another It takes time

35 Creating Temporary Systems for the Neutral Zone
Protect people from further changes If you cannot, cluster the new change under a heading that relates it to the other changes Review policies and procedures to see that they are adequate in the neutral zone Review roles, reporting relationships to get through the neutral zone.

36 Creating Temporary Systems for the Neutral Zone
Set short-range goals and checkpoints People get discouraged easily in this mode, nothing seems to be happening Don’t promise high level of productivity Provide special training program Team building Group facilitator

37 Strengthen Intragroup Connections
People feel isolated if they don’t understand what is happening to them Rumours multiply and people alternate between anxiety and apathy Communicate e.g. newsletter Don’t show preferences People will put up with a lot of discomfort if everyone must do so

38 Use a Transition Monitoring Team
Group of people across the organization Meets every week or two to take the pulse Facilitates upward communication Demonstrates that the organization wants to know how things are going Reviews plans or communications before they are announced Provides a point of access to organization’s grapevine to: Correct misinformation Counter rumours

39 Using the Neutral Zone Creatively
Restraints on innovation may be weaker Truly creative solutions emerge unhampered Capitalize on the opportunity that the neutral zone provides to do things differently and better Establish by word and example that it is time to step back and come up with new and creative solutions Provide opportunities for others to do the same Provide training creative thinking, workshop on innovation Encourage experiment Utilize losses, setback or disadvantages as entry point for new solutions Look at opportunities to brainstorm new answers to old problems

40 Using the Neutral Zone Creatively
Restrain the impulse to push prematurely for certainty and closure Be careful that efforts to build solidarity do not squeeze out dissent or other ways of thinking People may choke off new ideas in order to keep the team in one piece May need to appoint a devil’s advocate Sure, I want to use Cobol !

41 Neutral Zone - A Final Note
If the organization punishes failure It will certainly be difficult if not impossible to benefit from the neutral zone i.e. to do things differently and better

42 Chapter 5 – Launching a New Beginning
Endings Neutral Zone Beginning Productivity Quality Time

43 The Beginnings

44 The Beginnings Beginning Confusing Beginnings with Starts
Takes place only after people had come through the wilderness, the neutral zone and are ready to make the emotional commitment to do things the new way and see themselves as new people Confusing Beginnings with Starts Beginnings are psychological phenomena Beginnings involve new understandings, new values, new attitudes and identities Starts are situational Starts involve new situations Starts take place on a schedule as a result of decisions

45 The Beginnings Ambivalence Towards Beginnings
People want beginnings to happen but fear them at the same time Beginnings may reactivate some of the old anxieties that were triggered by the endings e.g. beginning a new career There is always a possibility that it won’t work A risky new beginning may resonate with the past Triggering old memories of failure For a few people new beginnings destroy a pleasant experience in the neutral zone Slower pace of work Confusion gives them a cover Excuse for their inactivity

46 The Timing of New Beginnings
Beginnings, like an organic process, cannot be made to happen by word or act More beginnings abort because they we not preceded by well managed endings and neutral zones than for any other reason Beginnings can be encouraged, supported and reinforced To make a new beginning, People need the Four Ps Explain the Purpose behind the outcome you seek Paint a Picture of how the outcome will look and feel Lay out a step-by-step Plan for phasing in the outcomes Give each person a Part to play in the plan and the outcome itself

47 Clarify and Communicate the Purpose
What is the idea behind what you are doing? People may not have a realistic idea of where the organization really stood and what its problems were You need to sell problem before you try to sell solutions Provide answers to the questions (adapted to the interest and understanding the audience) What was the problem? Who said so, and on what evidence? What would have occurred if no one had acted to solve it? What would have happened to us if that had occurred?

48 Clarify and Communicate the Purpose
Reasons why the purpose is not discernable It has not yet been clearly explained in terms that means something to you It has not been communicated at all There may be no purpose, at least none that will stand up to scrutiny “Another organization did it” Leadership is not talking because they don’t think people need to understand The “official reason” is a smoke screen to cover what cannot publicly be said People will lose trust, withdraw their loyalty and grow resentful Purpose are fashionable clichés “We are going for excellence” “We are going to be a cutting edge company”

49 After a Purpose, a Picture
Purpose are rather abstract, they are ideas. People need a picture of how the outcome will look What are people going to experience that is going to be different? What is the outcome going to look like, sound like How are people going to get their work done and interact with each other? What is the spatial layout of the place going to be like? How is a day going to be organized? Warning Don’t expect the picture to have its effect prematurely i.e. before people have made an ending

50 After a Purpose, a Picture
There is a time delay between people that make the changes (they are the first to start) and the people that are entering the change process The marathon effect Change agent are in the beginning phase Middle manager are in the neutral zone Rank and file are still in ending phase Not to overwhelm people with a picture that is intimidating e.g. high tech video of a new manufacturing facility versus a scale model Neutral Zone Endings Beginning Productivity Quality Time

51 Create a Plan Change management plan Transition management plan
Large-scale outline of stages and dates e.g. new machinery installation It starts with the outcome and then works backward, to create preconditions for the outcome Transition management plan It starts where people are and then works forward through the processes of: Leaving the past behind Getting through the neutral zone and profiting from it Emerging with new attitudes, behaviors, identity An outline of steps and schedule in which people will receive information, training and support needed to make the transition It addresses the change on the personal rather than the collective level It is oriented to the process and not just to the outcome

52 A Part to Play Until people have a part to play:
They will feel left out They find it difficult to make a new beginning If they don’t see their name on the wall chart If no one told them how they fit into the new scheme If no one has given them any role to play People need parts to play They need to see their role and their relationship to others They need to have a role to play in the transition process: The planning task force Survey groups Problem solving circles Transition monitoring team

53 Importance of a Part to Play
It gives people insight into the real problems faced by the organization When people understand problems, they are in the market for solutions By sharing the problems, you align yourself and subordinates on one side and the problems on the other (i.e. allies not adversaries) By giving people a part to play, it brings their firsthand knowledge to bear on solving problems Outcomes work best if they serve, or at least don’t violate, the self interest of the participants Everyone who plays a part is implicitly implicated in the outcome

54 Reinforcing the New Beginning
Refocusing needs to be reinforced if it is to keep its shape and not revert to chaos when the initial focus is confronted by the continuing stream of changes that are sure to come along Be consistent Conflicting messages are confusing It can provide people with excuses to argue that the new beginning isn’t for real Consistency of your own action Actions speak louder than words It is disastrous to tell people to act and react in new ways and then reward them for the old actions and reactions e.g. Preaching teamwork and rewarding individual contribution

55 Reinforcing the New Beginning
Ensure quick successes (Low hanging fruits) Neutral zone is a period of lowered productivity and diminished feelings of competence, low self-esteem People need quick successes Successes can come from small tasks, sure wins with little risk of failure Successes reassure the believers, convince the doubters, and confound the critics Symbolize the new identity During highly charged times of transition, everything takes on a symbolic hue, everything means something Apparently small things can take on enormous importance Than can trip because you don’t intend to mean something with everything you do

56 Reinforcing the New Beginning
Celebrate the success Need to mark the beginning Get together on Friday Timing may be arbitrary because there are always loose ends to be tied up People may have something to take away from this celebration Picture, T-shirt Conclusion Things start when the plan says they will, but the new beginning takes place much more slowly

57 Launching a New Beginning
Endings Neutral Zone Beginning Productivity Quality Time “ Things start when the plan says they will, but the new beginning takes place much more slowly… … if transition is mishandled or overlooked completely, beginnings sometimes fail to take place… … then we say that the change didn’t work.”

58 Chapter 6 Transition, Development, and Renewal
« People, products, markets, even societies have life cycles...As the organization passes from one phase of life to the next, different roles are emphasized..» Ichak Adizes

59 Chapter 6 Transition, Development, and Renewal
Seven Stages of Organizational Life 4 Making it 3 Getting Organized 5 Becoming an Institution 2 Launching the Venture 6 Closing in 1 Dreaming the Dream 7 Dying

60 Seven Stages of Organizational Life
Dreaming the Dream Articulating the dream and getting people to join in Many dreams never grow beyond this phase Launching the Venture Birth has taken place – Organization’s infancy and childhood Founders may still be living off their savings ! People are doing whatever they can by the seat of their pants No formal system, people are improvising Getting Organized Energy of founders is not enough to ensure good results Frantic efforts need to be replaced with predictable activities, defined roles, with financial controls Hiring process changes as experience starts to become more important Roles are defined, financial controls established, org. policies spelled out

61 Seven Stages of Organizational Life
4. Making it Organization’s adulthood begins, It expands and grows, it is established in the market Org wants to take its place as one of the Big Boys – as an Institution Becoming an Institution The emphasis moves from doing to being Moving from the results to making an impression New hires are selected for how they will fit in with ‘us’ The organization has a reputation A sense of having arrived A loss of concern about moving on This phase can last a very long time If nothing is done It can start to close in on itself and lose its vital connection with the world

62 Seven Stages of Organizational Life
Closing in This phase grows almost imperceptibly out of self satisfaction For a governmental org., it could result in an increase in bureaucracy Employees forget the customer and focus on internal matters They argue about rules and status The organization is slowly collapsing Loosing the vital tension with its environment Dying Organization gets acquired, pieces are split of and sold May get into bankruptcy The activities and the identity of the org no longer exist Have reached the end of the life cycle

63 The Role of Transition in the Organizational Life Cycle
Transitions are the interludes between the seven stages They close out one phase, reorient and renew people in the neutral zone Prepare people for the next stage Example Founders of the Dreaming stage have to let go the perfect ideal to get to launch the Venture stage Some people will not emerge from the Dream stage Others are ready to start a company

64 The Laws of Organizational Development
First Law Those who were most at home at one stage are the most likely to experience subsequent stage as a severe personal set back The transitions are forcing them to let go Second Law The successful outcome of any stage triggers its demise by creating challenges that it is not equipped to handle Third Law In any significant transition, the thing that the organization needs to let go of is the very thing that got it this far. This is painful. Fourth Law Whenever there is a painful, troubled time in the organization, a developmental transition is probably going on. May want to avoid making the transition then: Fifth Law During the first half on the life cycle, through the ‘Making it’ Stage, not to make a transition when the time is ripe for one to occur will cause a ‘retardation’ in the organization.

65 Organizational Renewal
Renewal comes by taking the organization back to the start of its life cycle 4 Making it 5 Becoming an Institution 3 Getting Organized 6 a The path of renewal 6 b Closing in 2 Launching the Venture 7 b Dying 1 Dreaming the Dream

66 Organizational Renewal
The organization’s “immune system” is set up to reject the results of making the choice to renew Renewal is finding ways to recapture and reincorporate the energy of the first three phases of the life cycle: Redreaming the Dream Getting a new central idea around which to build the organization Recapturing the Venture Spirit New roles and structures are required New cultural leadership is encouraged Need to behave like the founder of a new Venture Getting Reorganized Remodeling policies, roles, and structures May have to break up the organization in small units Treating small units as start-ups within the organization People who have grown to the practice and culture of an “Institution” will have to let go of expectations and assumptions that have been rewarded for some time.

67 Choosing the Path of Renewal
Three transition-based questions What is it time for me to let go of ? No transition will happen as long as people are holding on to the old ways of doing things How will we spend our time in the neutral zone ? You cannot skip this neutral zone What is this new beginning going to require of us and of others in the organization ? Need to embody the new behaviors and attitudes Need to put in place reinforcements

68 Chapter 7 – How to Deal with Nonstop Change
The only constant is change ! One change overlaps with another with phases overlapping Ending, Losing, Letting Go The Neutral Zone The New Beginning Time

69 L’impact de plusieurs changements simultanés
7 mai /16/96 L’impact de plusieurs changements simultanés Crédits d’assimilation utilisés 700 800 MICRO SEUIL CRITIQUE INDIVIDUEL ORGANISATIONNEL 550 500 400 200 100 MACRO 100 75 Temps Micro = Je dois changer Organisationnel = Nous devons changer Macro = Tout le monde doit changer Traduit et adapté de (Conner 1992) Le volet humain d'un changement technologique

70 Orchestrating Simultaneous Changes
Assimilation Points Used 800 700 FUTURE SHOCK THRESHOLD 550 500 MICRO 400 400 200 ORGANIZATIONAL 100 100 100 75 MACRO Time Micro = I have to change Organizational = We have to change Macro = Everyone must change, e.g. environmental pollution

71 Orchestrating Simultaneous Changes
Must have an overall design within which various and separate changes are integrated as much as possible Need to save money Capture markets Speed up decision making Respond to a new climate of public opinion Postpone “Extra” Changes A crucial change may be jeopardized by a smaller change Postpone a change to let the organization digest the current ones Example: An organization is currently changing its systems engineering and software engineering processes. The introduction of a new project management process affecting all projects may need to be postponed. Postpone or cancel changes that are unrelated to a larger shift.

72 Orchestrating Simultaneous Changes
Foresee as Much as You Can Difficulties in forecasting Everything is so closely interrelated that you don’t know enough to say what is going to happen e.g. Impact of the Fall of the Berlin Wall on defense industry The procurement of many defense systems were cancelled We aren’t the only ones planning changes. Other parts of the organization or environment are planning changes too. Do Worst-Case Scenarios (i.e. risk management) Build into every plan a “what if ?” clause Specify what you will do if the unexpected happens i.e. contingency plans

73 Orchestrating Simultaneous Changes
Clarify Your Mission Stability through change demands clarity about what you are trying to do. Rebuild Trust When people trust their management, they are more likely to undertake a change even if it scares them. When people don’t trust management, progress isn’t likely to occur.

74 Orchestrating Simultaneous Changes
Rebuild Trust Trustworthiness is encouraged by a number of actions: Do what you say you will do. What you do talks louder than what you say ! Don’t make promise you can’t or won’t keep Listen to people carefully, and tell them what you think they are saying. People trust others whom they believe understand them Understand what matters to people and work hard to protect whatever is related to that People trust those who are looking out for their best interests Share yourself honestly Mistrust begins when people are unable to read you Ask for feedback and acknowledge for unasked-for feedback

75 Orchestrating Simultaneous Changes
Rebuild Trust Trustworthiness is encouraged by a number of actions: Don’t try to push others to trust you further than you trust them Your own mistrust will be communicated subtly Trust is mutual or very shallow Trust is not a one-way highway ! Try extending your trust of others a little further Being trusted makes one more trustworthy, and trustworthy people are more trusting Don’t confuse being trustworthy with being a “buddy” Trust does not automatically come with friendship Don’t be surprised if your trust-building project is viewed a bit suspiciously Mistrust is a form of self protection, no one readily gives up self-protection

76 Orchestrating Simultaneous Changes
Unload Old Baggage During transition, management find itself fighting old battles May even precede management’s tenure During transition, old grievances resurface, old scars start to ache, old skeletons come tumbling out of closets. Every transition is an opportunity to heal the old wounds Sell Problems, Not Solutions People let go of arrangements if they are convinced that there is a serious problem that demand an ending, People who understand the organization’s real problems are in the market for solutions Selling problems implicates people in the solution If everyone understand the same problem, it’s the manager and employees on one side and the problem on the other

77 «The great civilizations have risen to power not because of their advantages but because they treated their disadvantages as challenges to which they discovered creative responses.» Arnold Toynbee

78 Chapter 8 – A Practice Case - 1
Apex Manufacturing Small specialized gasoline motors 4,000 employees In 1980 : 52% of motors produced In 1990 2 Asian firms, one German company entered the field New noise abatement regulations Apex redesigned the motor’ exhaust system Competitors foresaw these new standards and built them into their design In 2000 Apex share of the market: 43% Rumors of downsizing CEO said that trimming will be done through attrition alone

79 Chapter 8 – A Practice Case - 2
Briefing from VP 2 of the 5 plants of the company will be closed 1000 employees will be affected 20% reduction of workforce 800 jobs will be affected You are part of the Transition management advisory group Decisions made by management (What will be done) Downsizing and consolidation Mandate is to work in defining ‘How it will be done’ Develop a scenario for announcing and implementing the closure Develop a plan for handling the workforce reduction

80 Chapter 8 – A Practice Case - 3
VP handed out a sheet describing her concerns Apex has not had a layoff in the past 20 years The 1000 employees from the 2 plants include highly talented people which Apex do not want to loose Leadership team favors an across-the-board cut There is a perception that senior managers are not bearing enough of the brunt Announcement of closure and downsizing is scheduled for tomorrow

81 Chapter 9 - Conclusion

82 Appendix A


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